Background
Robert Hossfeld sued Allstate Insurance Company under the Telephone Consumer Protection Act after receiving twelve robocalls from Atlantic Telemarketing Center, a company hired by a subcontractor of Allstate’s agents. Hossfeld claimed 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 liable for treble damages.
The court’s reasoning
The Seventh Circuit held that Hossfeld failed to prove Allstate authorized the subcontractor to appoint further subagents, negating the subagency theory. The court found no evidence of apparent authority or ratification, as Allstate did not manifest assent to the calls and promptly investigated the issue. Regarding willfulness, the court clarified that the standard requires reckless or knowing conduct, not just volitional action. Finally, the court affirmed the denial of class certification because Hossfeld failed to provide evidence that joinder was impracticable for the proposed thirty-three-member class.
Hossfeld failed to show Allstate is liable for Atlantic’s calls under any theory of agency law.
Opinion at 2
What it means going forward
The decision clarifies that insurers are not automatically liable for TCPA violations committed by deep-tier subcontractors without direct authorization and establishes a higher standard for proving willfulness to trigger treble damages.