Question: User In May 2 0 0 9 , Satellite Systems Network ( SSN ) repeatedly called Dr . Thomas Krakauer, asking him to purchase television

User
In May 2009, Satellite Systems Network (SSN) repeatedly called Dr. Thomas Krakauer, asking him to purchase television services
through Dish Network, L.L.C.(Dish). SSNs sole business was direct marketing calls to consumers on behalf of television service providers. During the relevant time in 2009, SSN was only working for Dish.
Krakauer had registered his phone number on the national Do-Not-Call registry in 2003. The national registry was established by
the Telephone Consumer Protection Act (TCPA) to prevent abusive telephone marketing practices. The TCPA prohibited calls to numbers on the national Do-Not-Call registry; thus, SSNs calls to Dr. Krakauer violated the TCPA.
Krakauer sued Dish for violating the TCPA by having SSN call on its behalf, and he sought to certify his lawsuit as a class action
on behalf of all persons who, like him, had received similar calls to numbers listed on the Do-Not-Call registry.
The district court certified the class and the case proceeded to trial, which Dish Network lost.
Dish Network appealed on a number of bases, including that the district court improperly instructed the jury regarding agency law.
Dish Network argued that SSN was not its agent, and, therefore, it should not be responsible for SSNs acts in violation of the TCPA.
Wilkinson, Circuit Judge
Dish does not contest that widespread violations of the TCPA occurred, nor does it dispute that these violations were made for the
sole purpose of selling Dish services. Dish does not even seriously
contest that it knew of the violative conduct. ...
We first consider whether Dish was properly held liable for
the calls that SSN made to members of the class. The jury concluded that it was because SSN was acting as Dishs agent when
the calls were made. By its plain language, the TCPAs private
right of action contemplates that a company can be held liable for calls made on its behalf, even if not placed by the company
directly. ... While we have no clear definition of on behalf of
in the TCPA, we may, at a minimum, assume that federal statutes
are written with familiar common law agency principles in mind.
Under traditional agency law, an agency relationship exists
when a principal manifests assent to an agent that the agent
shall act on the principals behalf and subject to the principals
control, and the agent manifests assent or otherwise consents so
to act. See Restatement (Third) of Agency, 1.01....
The jury was asked to find whether or not SSN was Dishs
agent at the time it made the calls relevant to this case. If the
jury had answered that question in the negative, that would have
ended the matter. The court carefully explained that Krakauer
had the burden of showing such a relationship, and that the relationship required mutual assent and control by Dish. The court
also instructed the jury on the scope of authority. Specifically,
the court instructed the jury how to assess a situation, as we have
here, wherein the principals guidance to the agent may not be
explicit, but instead arises from the principals acquiescence to
a course of conduct. As the district court explained, to decide
whether the principal acquiesced or consented, you must find
that the principal knew of prior similar activities and consented
or did not object to them.
In sum, the district court interpreted the statute to apply standard legal principles. The question was then presented to the jury,
which ultimately held Dish liable. Despite Dishs assertions that the
district court somehow engaged in legal errors on this point, its challenges bottom out on no more than a disagreement about the facts.
The evidence supporting an agency relationship between Dish
and SSN is considerable. First, there are the many provisions of
the contract between Dish and SSN affording Dish broad authority over SSNs business, including what technology it used
and what records it retained. Second, SSN was authorized to
use Dishs name and logo in carrying out its operation. Third,
the jury had before it the Voluntary Compliance Agreement that
Dish entered into with 46 state attorneys general, wherein Dish
clearly stated its authority over SSN with regard to TCPA compliance. And on the issue of whether SSN was acting within the
scope of its authority, an array of witnesses testified that Dish
was aware of SSNs legal violations, took no meaningful action to
ensure compliance, and profited from SSNs actions. Faced with
this evidence, it was entirely reasonable for the jury to conclude
both that SSN was acting as Dishs agent, and that SSN was acting pursuant to its authority when making the calls at issue in
this case.
Dish ... contends that its contract with SSN, which expressly
defined the relationship between the parties, ought to outweigh the
evidence on the ground. It is a familiar rule of agency, however,
that parties cannot avoid the legal obligations of agency by simply
contracting out of them. See Restatement (Third) of Agency,

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