Estate Auction Company to Pay $1.8 Million for Sending Junk Faxes

When Massachusetts consumer attorney Matthew P. McCue filed a class action lawsuit against New Jersey based estate auction company Metropolitan Antiques in 2002 over unsolicited junk faxes, he had no idea that his efforts to have the Telephone Consumer Protection Act (TCPA) enforced would transform into a legal battle that would last over six years.

From 2001-2003 Metropolitan Antiques is said to have sent out over 360,000 faxes advertising themselves. The TCPA prohibits unsolicited telemarketing via fax, and can have penalties of up to $500 to $1500 per violation. But with Metropolitan Antiques being nearly bankrupt, the responsibility to pay such fees fell on their insurance company. The insurance company claimed they were not required to pay these fines, but when the case came before the Supreme Judicial Court, the found that the insurance coverage was triggered.

With that ruling, a heated ten-hour mediation session hammered out a settlement between the plaintiffs and defendants, with a final negotiated amount of $1.8 million to be paid by Metropolitan Antiques and their insurers. McCue and his lawyer are seeking a third of the money for contingency fees, with the remaining amount to be divided among potential class members. A website, www.metrojunkfaxsettlement.com, has been set up for these class members can instantly find out if they are entitled to part of the settlement.