October 19, 2021

Volume XI, Number 292

Advertisement
Advertisement

October 18, 2021

Subscribe to Latest Legal News and Analysis
Advertisement

TCPA Quick Hitter: Another CEO Caught in TCPA Trap

You start a business. You create an LLC. That’s supposed to protect you from personal liability for the activities of your business, right?

Not when it comes to the TCPA.

As I’ve reported over and over again, the courts have zero trouble holding CEOs and other officers of companies directly liable for corporate conduct in TCPA suits. Even low-level employees who are just following instructions can be held personally liable under the TCPA’s strict liability rules.

It's the most unfair rule in the entire legal world. 

But that’s all old news. Here’s the new news.

In a new case out yesterday a court just held that a CEO can be personally named in a TCPA suit based on allegations that the company is a small company (two employees) so the CEO must have been involved in sending the allegedly illegal messages.

Yep. That’s it.

Notably, the Plaintiff didn’t even name the company in the suit. Just went directly after the CEO.

So basically the door is now open to directly sue the CEO of any small company for any TCPA violation.

Got it. Totally the way the law is supposed to work.

If you’re a small business owner or a start-up operator please please do not assume that any level of corporate formality will keep you safe from the TCPA. These cases do NOT require piercing the corporate veil. These guys can come directly after you merely because you were “involved” with the allegedly illegal conduct–even if your sole involvement was mandated by your role and responsibilities in the business.

It's nuts.

The case is Marden’s Ark Corp. v. Bodenhamer, No. 5:20-CV-611-BO, 2021 U.S. Dist. LEXIS 169797 (E.D. N.C.  Sept. 08, 2021).

© Copyright 2021 Squire Patton Boggs (US) LLPNational Law Review, Volume XI, Number 252
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Eric Troutman Class Action Attorney
Of Counsel

Eric Troutman is one of the country’s prominent class action defense lawyers and is nationally recognized in Telephone Consumer Protection Act (TCPA) litigation and compliance. He has served as lead defense counsel in more than 70 national TCPA class actions and has litigated nearly a thousand individual TCPA cases in his role as national strategic litigation counsel for major banks and finance companies. He also helps industry participants build TCPA-compliant processes, policies, and systems.

Eric has built a national litigation practice based upon deep experience, rigorous...

213-689-6510
Advertisement
Advertisement
Advertisement