Collector - May 2020 - 27

A

ny company that uses telephony
systems to reach consumers got
important news on Jan. 27, 2020,
when the 11th Circuit released its muchanticipated opinion in Glasser v. Hilton
Grand Vacations Company, LLC, 948 F.3d
1301 (11th Cir. 2020).
In this case, the court held that a phone
system must use randomly or sequentially
generated numbers to qualify as an automatic
telephone dialing system (ATDS) under the
Telephone Consumer Protection Act. The
court found that the telephony at issue required
human intervention and, as a result, "was not
an 'automatic' dialing system in the first place."
The 7th Circuit followed suit on Feb. 19,
2020, in Gadelhak v. AT&T Services, Inc.,
when it likewise held that the statutory
language of the TCPA requires random or
sequential number generation.
Both Glasser and Gadelhak are significant
due to the thousands of individual and class
actions brought annually under the TCPA,
all hinging on the theory that a phone system
lacking a "random or sequential number
generator" nevertheless qualifies as an ATDS,
triggering the TCPA. Companies of all types
can take comfort that the theory has suffered
another-potentially fatal-blow.

How Glasser and
Gadelhak changed the
litigation landscape
for ATDS claims.
By David N. Anthony, James K. Trefil
and Brooke K. Conkle

COLLECTOR 05.20

THE OPINIONS: HOW
GLASSER AND GADELHAK
TOOK DOWN THE TCPA
The Glasser decision consolidated two
appeals, the first from the Middle District
of Florida, which analyzed a "clicker agent"
telephone system, and the second from
the Northern District of Georgia, which
analyzed a system that dials from a stored
list of phone numbers.
The Middle District of Florida held that
telephony does not qualify as an ATDS if it
requires human intervention to place calls.
Specifically, if a company's employee must
click on a "Make Call" button to initiate a
call, the telephone system is not an ATDS.
The Northern District of Georgia separately
held that the telephone system at issue
qualified as an ATDS because it had the
capacity to dial automatically from a stored
list of telephone numbers.

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