At a sprawling conference known as “Mass Torts Made Perfect”, hundreds of lead selling businesses converge to persuade an audience of thousands of attorneys to purchase their services. The practice of buying leads is common among plaintiff’s law firms, yet it carries significant legal and ethical risks.
Plaintiff’s law firms, which often engage heavily in the purchase of third-party leads, find themselves in the paradox of both buying and subsequently being targeted by legal actions concerning these leads. The allure of accessing a stream of potential clients is shadowed by the complexities and hazards inherent in such transactions. Notably, third-party leads can expose firms to significant risks under the Telephone Consumer Protection Act (TCPA), alongside other legal challenges.
A glaring example of these perils is encapsulated in the ongoing legal battle involving Burger Law. According to court documents, in the case titled “Gonzalez v. Burger Law”, a U.S. District Court in Missouri tackled the issue head-on. The court denied a motion to dismiss by Burger Law, signaling that the firm’s arrangement with a third-party lead generator, Consumer Legal, could legally constitute a telemarketing scheme to which Burger might be held accountable.
Despite Burger Law’s defense that it did not directly make any solicitation calls, the plaintiff’s allegations were deemed sufficient by the court. The accusations highlighted that Burger Law purportedly directed Consumer Legal to make calls on its behalf, illustrating a contractual and operational control over the telemarketing efforts. The court found that these facts could reasonably suggest either a formal agency relationship or an apparent authority scenario, binding Burger Law to the actions taken by Consumer Legal.
This case serves as a cautionary tale for law firms dabbling in the acquisition of third-party leads, reinforcing the need for rigorous compliance procedures and careful vetting of all vendors involved. The potential legal consequences stemming from third-party engagements can be severe, engulfing firms in litigation that can damage reputation and incur significant expenses.
Legal consultants like Puja and John Henson, who specialize in compliance and risk management related to lead purchasing, stress the importance of thorough due diligence in these transactions. Their expertise highlights the necessity of proactive measures to prevent the kind of legal entanglements that can arise from seemingly innocuous business practices.
This scenario underscores a broader lesson about the interconnectedness of legal and ethical considerations in modern legal practice. As law firms navigate the complexities of acquiring leads in the digital age, the stakes are high, and the margins for error are slim. The unfolding narrative of “Gonzalez v. Burger Law”, and others akin to it, will undoubtedly continue to influence the legal landscape and practices surrounding the utilization of third-party lead generators.