Facts

Between 2002 and 2003, San Diego City Councilmember Donna Frye's office, in addition to numerous other city departments, received hundreds of unsolicited advertisements by fax. The San Diego City Attorney initiated a suit under the Telephone Consumer Protection Act.

Defendant's company, Fax.com, Inc., settled a lawsuit with plaintiff in 2003 for $75,000 in connection with the unsolicited faxes. Later, the defendant dissolved and defaulted. The San Diego City Attorney's office re-opened the case and pursued the company's president, Kevin Katz.

CONTENTIONS:
Plaintiffs contended there was evidence that defendant's company had sent fraudulent faxes nationwide. Defendant and his company violated the Telephone Consumer Protection Act of 1991. Plaintiff is entitled to $500 per violation and $1,500 per willful violation, plus injunctive relief, under the Act.

Result

Stipulated judgment, $428,000.

Other Information

The Federal Communications Commission also fined Fax.com, Inc. $5 million in connection with faxing unsolicited ads.