On April 13, the Ninth Circuit issued an opinion affirming a district court’s summary judgment order on the grounds that under Borden v. eFinancial, LLC, discussed here, to qualify as an automatic telephone dialing system (ATDS) under the Telephone Consumer Protection Act (TCPA) the telephone system must store or produce randomly or sequentially generated telephone numbers, not just any numbers.

In Pascal v. Concentra, Inc., the plaintiff filed a class action lawsuit arising out of a text message that he claimed was sent to him and “3,596 phone numbers that Concentra identified as belonging to physical therapists in California.” The plaintiff sued under the TCPA, claiming that when Concentra uploaded or manually added numbers to its messaging application, Textedly, the application assigned unique, sequential identification numbers to those telephone numbers. Therefore, according to the plaintiff, Textedly used a random or sequential number generator to store telephone numbers within the meaning of the TCPA.

Concentra argued that Textedly did not qualify as an ATDS because Textedly assigned identification numbers to telephone numbers sequentially as they were uploaded to or entered manually into Textedly and they were stored in that order. According to Concentra, Textedly did not change the order of the telephone numbers or determine when any number would be called. The district court granted Concentra’s motion for summary judgment, relying on the Supreme Court’s decision in Facebook, Inc. v. Duguid, which formed the basis for Borden and held that a system does not qualify as an ATDS unless the telephone numbers themselves are randomly or sequentially generated, then dialed. The plaintiff appealed.

The Ninth Circuit affirmed, relying on Borden, which echoed the holding of Facebook, that a system constitutes an ATDS only if it generates random or sequential telephone numbers. “Because Textedly did not store or produce randomly or sequentially generated telephone numbers, Concentra’s text message was not sent to [the plaintiff] via use of an autodialer in violation of the TCPA.”

Photo of Chad R. Fuller Chad R. Fuller

Chad is a partner in the firm’s Consumer Financial Services practice with a primary focus in financial services litigation. He is an accomplished trial attorney who has served as lead counsel in state and federal courts across the country in which he represents…

Chad is a partner in the firm’s Consumer Financial Services practice with a primary focus in financial services litigation. He is an accomplished trial attorney who has served as lead counsel in state and federal courts across the country in which he represents clients in consumer class actions and general business litigation. Chad has particular speciality with the Telephone Consumer Protection Act, and has also broadened his practice into more traditional areas of health care litigation.

Photo of Virginia Bell Flynn Virginia Bell Flynn

Virginia is a first chair litigator with a diverse practice, representing clients in the health care and financial services sectors. Her managed health care work is focused on defending insurers, managed care organizations, and plan administrators in complex multiparty and single-plaintiff litigation. Virginia…

Virginia is a first chair litigator with a diverse practice, representing clients in the health care and financial services sectors. Her managed health care work is focused on defending insurers, managed care organizations, and plan administrators in complex multiparty and single-plaintiff litigation. Virginia helps clients navigate a range of claims, including bad faith, breach of contract, ERISA, the Mental Health Parity Act (MHPA), out-of-network, and issues arising under common law. As a go-to advisor for some of the largest companies in the U.S., Virginia has litigated matters in more than 21 states.

Photo of Brooke Conkle Brooke Conkle

Brooke Conkle offers consumer-facing companies compliance counseling and litigation services to help them address federal and state consumer protection laws. Recognizing the challenges facing financial services companies, she provides in-depth analysis of complex issues related to consumer protection and compliance.