Background
Robert Hossfeld sued Allstate Insurance Company under the Telephone Consumer Protection Act after receiving twelve telemarketing calls from Atlantic Telemarketing Center. Hossfeld had previously requested that Allstate not call him, but the calls were placed by Atlantic, a company hired by Transfer Kings, which was in turn hired by Allstate agents. Hossfeld argued Allstate was liable under agency principles and sought class certification. The district court denied class certification but granted summary judgment for Hossfeld, finding Allstate vicariously liable and subject to treble damages.
The court’s reasoning
The court held that Hossfeld failed to prove Allstate authorized Transfer Kings to appoint sub-subagents like Atlantic. Actual authority requires a manifestation from the principal to the agent, and no such communication existed between Allstate and Transfer Kings. The court also rejected apparent authority and ratification theories, noting Allstate did not manifest authority to Atlantic and promptly investigated the calls upon learning of them. Regarding willfulness, the court adopted the standard requiring reckless or knowing conduct, rejecting the district court’s volitional standard. Finally, the court affirmed the denial of class certification because Hossfeld failed to prove the impracticability of joinder for the proposed thirty-three-member class.
Hossfeld failed to raise a genuine issue of fact that would allow a jury to find Allstate liable under any of these theories.
Hossfeld v. Allstate Ins. Co., No. 25-1518 (7th Cir. 2026)
What it means going forward
The decision limits vicarious liability under the TCPA by requiring clear evidence of authority at each level of a subagency chain. It also establishes a higher bar for treble damages, requiring proof of reckless or knowing violations rather than mere volitional acts.