In Perrong v. Chase Data Corp., et al., a court in the Eastern District of Pennsylvania recently ruled that no personal liability attaches to the owner of a company for Telephone Consumer Protection Act (TCPA) violations.

The case arose out of the defendant companies selling “turnkey” calling and texting services. The defendants allegedly sent three text messages to the plaintiff asking him to call a number to discuss potential injuries and possible compensation. Plaintiff alleged that the texts were sent to generate leads for personal injury lawyers, and asserted violations of Section 227(b) of the TCPA, which prohibits automated calling by using a pre-recorded message. The defendants moved to dismiss.

The court found the plaintiff sufficiently alleged a violation against one company and would be allowed to amend his complaint against the successor company. However, the plaintiff’s claims against the owner were another matter.

The court initially noted that the claims against the owner were conclusory and merely recast the allegations against the company by arguing the owner was personally involved. But the deciding factor was Third Circuit precedent, which “raised ‘doubt’ as to whether ‘common-law personal participation liability is available against corporate officers under the TCPA.'” Specifically, the appellate court stated that Congress can and does impose personal-participation liability when it chooses, and there is no such language in the TCPA. Following other courts in the Third Circuit, the court dismissed the claims against the owner without leave to amend.

Photo of Rachel Ommerman Rachel Ommerman

Rachel is an attorney in the firm’s Consumer Financial Services Practice Group, where she represents clients in consumer financial services law, collections disputes, and commercial litigation in both the federal and state courts. She also represents creditors in bankruptcy courts throughout the U.S.…

Rachel is an attorney in the firm’s Consumer Financial Services Practice Group, where she represents clients in consumer financial services law, collections disputes, and commercial litigation in both the federal and state courts. She also represents creditors in bankruptcy courts throughout the U.S., primarily Motions of Relief from Stay and Objections to Confirmation, as well as handling adversary proceedings.

Photo of Virginia Bell Flynn Virginia Bell Flynn

Virginia is a partner in the firm’s Consumer Financial Services practice and specifically within the Financial Services Litigation practice. She represents clients in federal and state court, both at the trial and appellate level in the areas of complex litigation and business disputes…

Virginia is a partner in the firm’s Consumer Financial Services practice and specifically within the Financial Services Litigation practice. She represents clients in federal and state court, both at the trial and appellate level in the areas of complex litigation and business disputes, health care litigation, including ERISA and out-of-network issues, and consumer litigation in over 21 states nationwide. As a result of new legal developments, she increasingly counsels clients to ensure they comply with the myriad of growing laws in the consumer law with a particular emphasis on the intersection of TCPA and HIPAA.

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.