You start a business. You create an LLC. That’s supposed to protect you from personal liability for the activities of your business, right?
Not when it comes to the TCPA.
As I’ve reported over and over again, the Court’s have zero trouble holding CEOs and other officers of companies directly liable for corporate conduct in TCPA suits. Even low level employees who are just following instructions can be held personally liable under the TCPA’s strict liability rules.
Its the most unfair rule in the entire legal world.
But that’s all old news. Here’s the new news.
In a new case out yesterday a court just held that a CEO can be personally named in a TCPA suit based on allegations that the company is a small company (two employees) so the CEO must have been involved in sending the allegedly illegal messages.
Yep. That’s it.
Notably the Plaintiff didn’t even name the company in the suit. Just went directly after the CEO.
So basically the door is now open to directly sue the CEO of any small company for any TCPA violation.
Got it. Totally the way the law is supposed to work.
If you’re a small business owner or a start up operator please please do not assume that any level of corporate formality will keep you safe from the TCPA. These cases do NOT require piercing the corporate veil. These guys can come directly after you merely because you were “involved” with the allegedly illegal conduct–even if your sole involvement was mandated by your role and responsibilities in the business.
The case is Marden’s Ark Corp. v. Bodenhamer, No. 5:20-CV-611-BO, 2021 U.S. Dist. LEXIS 169797 (E.D. N.C. Sept. 08, 2021).
Unrelated–how many of you will be in Denver next week? Contact.io baby.