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Court holds that ATDS Allegations Against Debt Collection Companies Simply not Plausible in Seventh Circuit

  • Written by Steel Rose

The Court in Mosley v. General Revenue Corp., Civil Action No. 1:20-cv-01012-JES-JEH, 2020 U.S. Dist. LEXIS 127055 (C.D. Ill. July 20, 2020) granted a debt collection defendant’s motion to dismiss a TCPA claim at the pleadings stage reasoning that it is simply not plausible the Defendant used a random or sequential number generator to make the challenged calls. And while that’s great news– the ruling contains a bit of a curveball for other callers hoping to leverage Gadelhack at the pleadings stage.

The Seventh Circuit Court of Appeals—where Mosely as venued—is a particularly favorable jurisdiction for Defendants, however, because the ruling in Gadelhak assures that the TCPA only applies to pre-recorded or random-fired calls. Nonetheless, there is still relatively little caselaw regarding the pleadings standard for TCPA cases post-Gadelhak and, as we all know, positive case law is scarcely beneficial if it can’t be used at the pleadings stage to cut these cases off at the knees—if a Defendant is forced to wait until summary judgment for a dismissal on the ATDS issue hundreds of thousands in fees and expense may already be incurred. (A cost the Defendant very unlikely to recoup).

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