TCPA Class Action Not Mooted By Payment

The Ninth Circuit addressed an issue the U.S. Supreme Court left unresolved in Campbell-Ewald v. Gomez.

Source: 9th Circuit: Defendant Can’t Avoid TCPA Class Action Lawsuit by Depositing Funds Into Court-Controlled Account – ACA International

img_1735On April 12, 2016, the Ninth Circuit Court of Appeals rejected Allstate Insurance Company’s attempt to end a Telephone Consumer Protection Act class action by depositing in a bank escrow account $20,000 – an amount Allstate asserted would moot the named plaintiff’s individual monetary and injunctive relief claims. In the case Chen, et al. v. Allstate Insurance Company, No. 13-16816, 2016 WL 1425869 (9th Cir., April 12, 2016), the Ninth Circuit affirmed the district court’s denial of the defendant’s motion to dismiss the case, ruling that a class action is not moot even where the defendant deposits full settlement funds into an escrow account for the plaintiff’s benefit.

The Ninth Circuit also held that even if the plaintiff’s individual claim was mooted, a class action cannot be dismissed until the plaintiff has an opportunity to obtain class certification.

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