Benchmarks on collusion spelled out

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted December 23, 2014 2:23 PM

Because of a conflict of interest between Tracy’s Treasures Inc., the defendant in a junk-fax case, and its liability insurer, Central Mutual Insurance Co., Tracy’s had a right to compromise the class action without Central’s consent. Tracy’s settled the Telephone Consumer Protection Act case for $14 million, the total amount available from Central, with a promise from the named plaintiff, Paul Idlas, to only collect from the insurance company. But Central — which simultaneously paid …

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