E & G, Inc. v. Mount Vernon Mills, Inc.
E & G, Inc. v. Mount Vernon Mills, Inc.
Opinion of the Court
Before this Court is Defendant Mount Vernon Mills, Inc. ("Mount Vernon")'s Motion *909for Summary Judgment brought pursuant to Rule 56 of the Federal Rules of Civil Procedure. (ECF No. 50.) The Court held a hearing on this Motion on May 29, 2018, and has considered the arguments of the parties, as well as the briefing submitted and the entire record in this case. For the reasons set forth herein, Mount Vernon's Motion for Summary Judgment is DENIED.
FACTUAL AND PROCEDURAL BACKGROUND
Plaintiff E & G, Inc. ("Plaintiff") filed this action on February 2, 2017, as a class action lawsuit against Defendants Mount Vernon and John Does 1-5 alleging Defendants violated the federal Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005,
STANDARD OF REVIEW
A court shall grant summary judgment if the moving party shows that there is no genuine dispute as to any material fact and the party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). The judge is not to weigh the evidence, but rather to determine if there is a genuine issue of fact. Anderson v. Liberty Lobby, Inc. ,
ANALYSIS
At issue in this case is what Seventh Circuit Judge Frank Easterbrook has termed "another of the surprisingly many junk-fax suits under
*910Chapman v. First Index, Inc. ,
(i) the unsolicited advertisement is from a sender with an established business relationship with the recipient;
(ii) the sender obtained the number of the telephone facsimile machine through-
(I) the voluntary communication of such number, within the context of such established business relationship, from the recipient of the unsolicited advertisement, or
(II) a directory, advertisement, or site on the Internet to which the recipient voluntarily agreed to make available its facsimile number for public distribution,
except that this clause shall not apply in the case of an unsolicited advertisement that is sent based on an established business relationship with the recipient that was in existence before July 9, 2005, if the sender possessed the facsimile machine number of the recipient before July 9, 2005; and
(iii) the unsolicited advertisement contains a notice meeting the requirements under paragraph (2)(D)...
The statute provides a private right of action to enforce its provisions. A person or entity may bring an action: (1) to enjoin such a violation; (2) "to recover for actual monetary loss from such a violation, or to receive $500 in damages for each such violation, whichever is greater;" or (3) "both such actions."
Plaintiff E & G is a West Virginia corporation which owns three hotels, including the Wingate by Wyndham hotel which purportedly received the subject fax. (ECF No. 54 at 4.) The subject fax is a single page (referencing Mount Vernon's Riegel division) of a five-page transmission allegedly received by Plaintiff on or around December 1, 2015.
*911Mount Vernon has submitted the entirety of the subject fax for the record in conjunction with its Motion, a copy of which it says was received from a subpoena from Plaintiff to a third-party. (ECF No. 50-6.) Each of the pages includes certain disclaimers by Wyndham Worldwide Corporation and its affiliates, opt-out language by Wyndham Worldwide entities, and the logo of Wyndham Hotel Group. (ECF No. 50-6.) Each page of the five-page fax includes a date stamp of "12-01-05," a page number reference, i.e., 2/5, and two numbers, 973-753-7483 and 304-744-4343, respectively. (ECF No. 50-6.)
Mount Vernon argues that: (1) Plaintiff expressly consented to receive faxes such as the one at issue through its franchise relationship with Hotel Franchising Limited Partnership d/b/a Wingate Inns, LLC, a division or affiliate of Wyndham Worldwide Corporation (referred to as "Wyndham"); and alternatively, (2) that the fax was not sent by Mount Vernon, but was instead sent on behalf of Wyndham in conjunction with its franchise sourcing program promoting approved suppliers. (ECF No. 50-1 at 1-3.) In response, Plaintiff: (1) argues that neither Wyndham nor Mount Vernon had prior express permission to send Plaintiff fax advertisements; (2) challenges the sufficiency of the opt-out language; and (3) disputes Mount Vernon's argument that Wyndham, not Mount Vernon was the sender of the subject fax. (ECF No. 54 at 2-3.)
The Court first addresses the argument that Plaintiff expressly consented to receiving the fax. In its motion, memorandum and oral argument, Mount Vernon argues that the fax was solicited because Plaintiff consented to receive faxes from Wyndham by entering a franchise agreement whereby it agreed that Wyndham and affiliates could offer assistance to Plaintiff, a franchisee, in purchasing items for use at the hotel. Mount Vernon further maintains that this consent passes as a matter of law to Mount Vernon as one of Wyndham's vendors. (ECF No. 50-1 at 15-16.) Given the nature of a franchisor/franchisee relationship, and Mount Vernon's relationship with Wyndham by extension, this is a reasonable and logical argument. Indeed, it seems odd that a franchisee, who consents to its franchisor to receive information about approved vendors, would complain when the vendor supplies such information and it is transmitted by the franchisor. However, at this stage of the case, Mount Vernon has not established as a matter of law that there was any such express permission for purposes of their motion for summary judgment. In fact, Plaintiff has offered testimony to the contrary, to include the deposition of Mount Vernon's Vice President of Sales Christopher Gowdy on the issue of lack of prior express permission for the transmission of fax advertisements. (ECF No. 54 at 5.)
The burden is ultimately on the defendant to show that it obtained the necessary prior express invitation or permission. Van Patten v. Vertical Fitness Grp., LLC ,
Again, Mount Vernon may ultimately prevail on this issue. However, an issue of fact remains as to whether express invitation or permission was given to Plaintiff by Mount Vernon. It is not for the Court to decide credibility, weigh the evidence, or decipher the nature, contours, and import of the various agreements and any permissible actions which may be implicated by this unique set of facts. Mount Vernon has not established as a matter of law the initial threshold issue concerning whether the fax was solicited (or not).
The second issue raised by Mount Vernon also raises questions of fact-who is the "sender" of the subject fax? Mount Vernon acknowledges that its goods and services are advertised on one page of the subject fax, but argues that the subject fax was sent on behalf of Wyndham, thereby making Wyndham the sender for purposes of liability under a "totality of the circumstances" review. (ECF No. 50-1 at 16.) Plaintiff disputes this point, contending that Mount Vernon constitutes "a sender" in that the subject fax was sent on its behalf, and because Mount Vernon's goods are advertised in the subject fax (ECF No. 54 at 28.) The 2006 FCC Rule provides some initial guidance: "The Commission takes this opportunity to emphasize that under the Commission's interpretation of the facsimile advertising rules, the sender is the person or entity on whose behalf the advertisement is sent. In most instances, this will be the entity whose product or service is advertised or promoted in the message . As discussed above, the sender is liable for violations of the facsimile advertising rules, including failure to honor opt-out requests. Accordingly, the Commission adopts a definition of sender for purposes of the facsimile advertising rules." Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991; Junk Fax Prevention Act of 2005, 71 FR 25967-01,
It may be the case that the subject fax was not sent on Mount Vernon's behalf. But the Court cannot say so as a matter of law. The use of Wyndham's name, fax number, logo and the opt-out language included on the fax, could lead a reasonable fact finder to conclude that Wyndham was the "sender" of the subject fax. But a reasonable fact finder could also find otherwise, in considering the involvement of Mount Vernon in the design process, payment for participation and the authorization extended to Wyndham for the transaction. Mount Vernon recognizes that its products were advertised on one page of the subject fax and that some level of inquiry as to potential sender liability is triggered. (ECF No. 50-1 at 17.) The Court, however, cannot weigh the several factors articulated by Mount Vernon in its motion to determine on whose behalf the advertisement was sent. See Cin-Q Auto., Inc. v. Buccaneers Ltd. P'ship , No. 8:13-CV-01592-AEP,
Because Mount Vernon has failed to show it is entitled to summary judgment as a matter of law on the issue of "express invitation or permission" necessary to establish that the subject fax was solicited under the TCPA, and, further, that it was *913not the sender of the fax, the Court need not address whether the opt-out rule is required in express consent situations, or the applicability of the D.C. Circuit's holding in Bais Yaakov of Spring Valley v. Federal Communications Commission ,
CONCLUSION
For the reasons stated above, Mount Vernon's Motion for Summary Judgment (ECF No. 50) is DENIED.
IT IS SO ORDERED.
Although Plaintiff's complaint would suggest otherwise, the "subject fax" is in fact a single page that is part of a "five-page fax sent to certain franchisees that included reference to Riegel's products, and the products of four other Approved Suppliers," as acknowledged in Plaintiff's Memorandum in Opposition to Defendant's Motion for Summary Judgment. (ECF No. 53 at 9.) The Court finds Plaintiff's representations to the contrary incomplete at best.
As it has done in this Opinion and Order, the Court will continue to apply the FCC interpretations of the TCPA as mandated by the Fourth Circuit in Carlton & Harris Chiropractic, Inc. v. PDR Network, LLC ,
Reference
- Full Case Name
- E & G, INC., individually and as the representative of a class of similarly-situated persons v. MOUNT VERNON MILLS, INC. and John Does 1-5
- Cited By
- 2 cases
- Status
- Published