Second Circuit Doubles Down On Decision Prohibiting Unilateral Revocation of Consent From Bilateral Contract

We reported in June on a Second Circuit decision holding that a consumer cannot unilaterally revoke consent that she provided in a bilateral contract. “It is black letter law,” the court explained, “that one party may not alter a bilateral contract by revoking a term without the consent of a counterparty,” and that “consent to another’s actions can ‘become irrevocable’ when it is provided in a legally binding agreement.” As a result, the TCPA “does not permit a consumer to revoke his consent to be called when that consent forms part of a bargained-for exchange.”

The Plaintiff filed a motion for panel rehearing or, in the alternative, rehearing en banc. On October 20, 2017, the Second Circuit denied that motion in a three-sentence Order that says simply that “the petition is denied.” Its earlier decision therefore continues to weigh heavily in favor of including consent provisions in customer-facing contracts.

Michael P. Daly

About the Author: Michael P. Daly

Mike Daly has spent two decades defending, counseling and championing clients that interact with consumers. His practice focuses on defending class actions, handling critical motions and appeals, and maximizing the defensibility of marketing and enforceability of contracts. Clients large and small have trusted him to protect their businesses, budgets and brands in complex cases across the country.

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