Judge Denies State Farm’s Motion to Dismiss, Says Plaintiff Has ‘the Better of the Argument’
U.S. District Judge John Kness for Northern Illinois in Chicago used a telephone motion hearing Wednesday to orally deny State Farm’s Jan. 6 motion to dismiss plaintiff Thomas Gebka’s Dec. 23 amended Telephone Consumer Protection Act class action for failure…
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to state a claim and for lack of Article III standing (see 2301090024). Kness was unpersuaded by State Farm’s arguments that Gebka failed to allege the insurer was vicariously liable for the telemarketing calls Gebka received from State Farm agents, said the judge. He also was unswayed by State Farm’s assertions that Gebka failed to allege any connections between State Farm and the calls, he said. “Under the TCPA, it’s well established that a principal may be held vicariously liable for its agents’ violations of the statute,” said Kness. “At this early stage, relatively, of the litigation, the plaintiff is not required to plead the specifics of the defendant’s business relationships,” said the judge. “Rather, the plaintiff only has to allege a factual basis that gives rise to an inference of an agency relationship,” he said. “I do think the plaintiff has alleged sufficient facts to create a basis for vicarious liability,” he said. “The plaintiff has adequately alleged that the defendant authorized its agencies to appoint sub-agents for telemarketing services,” he said. “I will add that given that the plaintiff was contacted by State Farm agencies within the hour of receiving those telemarketing calls, that could give rise, it does give rise, to a plausible inference that the telemarketing calls were connected to, and of behalf of, the defendant,” he said. “These are only allegations,” said the judge. “They may turn out to be all wet later, like the weather is today, but for now, the tie goes to the runner,” he said. “The plaintiff has the better of the argument here,” he said. Kness dismissed as moot State Farm’s motion to stay or phase discovery in the case, pending the resolution of its motion to dismiss. “We need to move the case forward,” said the judge, ordering the parties to meet and confer on a joint case management report to be filed by July 28. He plans to appoint a magistrate judge to supervise discovery, he said.