Advanced Rehab & Med., P.C. v. Amedisys Holding, LLC
Advanced Rehab & Med., P.C. v. Amedisys Holding, LLC
Opinion of the Court
INTRODUCTION
In its first amended class action complaint filed January 31, 2018, against the Defendant, Amedisys Holding, LLC ("Amedisys"), the Plaintiff, Advanced Rehab and Medical, P.C. ("Advanced Rehab"), individually and as the representative of a class of similarly-situated persons,
UNDISPUTED MATERIAL FACTS
The following material facts are undisputed for purposes of summary judgment. Amedisys, a provider of home health care and hospice services, received referrals from physicians and health care clinics who determined their patients were in need of such care. In an effort to facilitate those referrals, Defendant routinely sent facsimile transmissions to health care providers from whom it had received prior referrals.
The transmissions at issue in the amended pleading contained an "opt-out" notice (the "Opt-Out Notice" or "Notice") which read as follows:
You may request not to receive future faxes from us. To stop receiving our faxes, please call (888) 755-2327 or send a fax to (855) 782-6508. You must include the specific telephone number of the fax machine(s) at which you do not wish to receive faxes. Failure to comply with your request within 30 days is unlawful.
(D.E. 43-1, Aff. of Lauren Cutrer
STANDARD OF REVIEW
Rule 56 provides that the "court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). "A genuine issue of material fact exists where there is sufficient evidence favoring the nonmoving party for a jury to return a verdict for that party." Lang v. City of Kalamazoo , --- F. App'x ----, ----,
ARGUMENTS OF THE PARTIES AND ANALYSIS
Advanced Rehab has alleged, among other things, that the Opt-Out Notice violated the Act. In the instant motion, the Defendant seeks partial summary judgment as to its compliance with the statutory notice provisions in an effort to streamline the substantive and class issues before the Court in this case.
In 1991, "[v]oluminous consumer complaints about abuses of telephone technology ... prompted Congress to pass the TCPA. Congress determined that federal legislation was needed because telemarketers, by operating interstate, were escaping state-law prohibitions on intrusive nuisance calls." Mims v. Arrow Fin. Servs., LLC ,
Relevant to the issues to be ruled upon in the instant motion,
Subparagraph (E) requires that the Commission
provide, by rule, that a request not to send future unsolicited advertisements to a telephone facsimile machine complies with the requirements under this subparagraph only if-
(i) the request identifies the telephone number or numbers of the telephone facsimile machine or machines to which the request relates;
(ii) the request is made to the telephone or facsimile number of the sender of such an unsolicited advertisement provided pursuant to subparagraph (D)(iv) or by any other method of communication as determined by the Commission; and
(iii) the person making the request has not, subsequent to such request, provided express invitation or permission to the sender, in writing or otherwise, *976to send such advertisements to such person at such telephone facsimile machine[.]
[a] request not to send future unsolicited advertisements to a telephone facsimile machine complies with the requirements under this subparagraph only if-
(A) The request identifies the telephone number or numbers of the telephone facsimile machine or machines to which the request relates;
(B) The request is made to the telephone number, facsimile number, Web site address or email address identified in the sender's facsimile advertisement; and
(C) The person making the request has not, subsequent to such request, provided express invitation or permission to the sender, in writing or otherwise, to send such advertisements to such person at such telephone facsimile machine
Subparagraph (d), cited in § 227(b)(2)(D)(vi), makes it unlawful
to use a computer or other electronic device to send any message via a telephone facsimile machine unless such person clearly marks, in a margin at the top or bottom of each transmitted page of the message or on the first page of the transmission, the date and time it is sent and an identification of the business, other entity, or individual sending the message and the telephone number of the sending machine or of such business, other entity, or individual.
In response to the motion, Plaintiff seeks denial of the relief sought as to (1) whether the Opt-Out Notice was "clear and conspicuous," (2) whether the Notice set forth the requirements for a proper opt-out request, and (3) whether the Notice complied with the requirements of § 227(d). The Court will address each of these arguments in turn.
Was the Opt-Out Notice "Clear and Conspicuous" in Accordance with § 227(b)(2)(D)(i) ?
Although the term "clear and conspicuous" is not defined in the Act, the FCC offered some guidance in a 2006 order:
25. ... Some commenters argue that as long as the notice is on the first page and is apparent to a reasonable consumer, the Commission should not further define what will be considered "clear and conspicuous." Others urge the Commission to provide specific guidance to ensure consumers are aware of their opt-out rights and sending parties have standards by which they can comply with the law. We are persuaded that rules specifying the font type, size and wording of the notice might interfere with fax senders' ability to design notices that serve their customers. However, we make some additional determinations about the opt-out notice so that facsimile recipients have the information necessary to avoid future unwanted faxes.
26. Consistent with the definition in our truth-in-billing rules, "clear and conspicuous" for purposes of the opt-out notice means a notice that would be apparent to a reasonable consumer. We also conclude that the notice must be separate from the advertising copy or other disclosures and placed at either the top or bottom of the fax. Many facsimile advertisements today contain text covering the entire sheet of paper, making it difficult to see an opt-out notice that is placed amongst the advertising material. Thus, the notice must be distinguishable from the advertising material through, for example, use of bolding, italics, different font, or the like. We clarify that, in accordance with the Junk Fax Prevention Act, if there are several pages to the fax, the first page of the advertisement must contain the opt-out notice.
In the Matter of Rules & Regulations , 21 F.C.C.R. at 3801 (footnotes omitted). Such orders are entitled to deference by the federal courts. See Carlton & Harris Chiropractic, Inc. v. PDR Network, LLC ,
The parties disagree as to whether the question of conspicuousness is one of law or fact. The Court is unaware of any Sixth Circuit authority addressing this issue with respect to the TCPA. Conspicuousness in other contexts, including the Fair Credit Reporting Act, the Truth in Lending Act ("TILA"), and the Uniform Commercial Code, has been considered by *977courts to be a question of law. See Burghy v. Dayton Racquet Club, Inc. ,
Advanced Rehab insists, however, that the question here is factual, directing the Court's attention to Davies v. W.W. Grainger, Inc. , Case No. 13-cv-03546,
Hana arose from a trademark dispute over "tacking," a doctrine under which a "party may clothe a new [trade]mark with the priority position of an older mark." Hana Fin. ,
Based on Hana , the Davies court concluded that whether the opt-out notice before it was clear and conspicuous was a mixed question of law and fact. Davies ,
Unlike the parties in Davies , Plaintiff has pointed to nothing about the conspicuousness of the Opt-Out Notice that raises a genuine issue of material fact. While it complains that the type font used in the Notice was small, the 2006 FCC order stated only that the notice must be "distinguishable" from the advertising text through the "use of bolding, italics, different font, or the like." In the Matter of Rules & Regulations , 21 F.C.C.R. at 3801. On the faxes at issue here, copies of which have been provided to the Court, the Opt-Out *978Notice appearing on the first page, the only page on which Amedisys was mandated to place the notice, utilized a smaller, and therefore different, font than was used for the advertisement text, which is what the FCC requires. In arguing that the type was too small to support a judgment for Amedisys, Plaintiff cites to a TILA case from the Seventh Circuit, Lifanda v. Elmhurst Dodge, Inc. ,
Accordingly, the Court finds, as a matter of law, that the Notice was clear and conspicuous for purposes of the TCPA. The Defendant's motion for summary judgment on that issue is GRANTED.
Did the Notice Set Forth the Requirements of an Opt-Out Request Pursuant to §§ 227(b)(2)(D)(iii) and 227(b)(2)(E) ?
Advanced Rehab argues Amedisys has not shown as a matter of law that it fully complied with all the requirements of § 227(b)(2)(E), as it must under § 227(b)(2)(D)(iii). Plaintiff concedes that the Notice adequately set forth the first requirement, found in subparagraph (E)(i), that a request for opt-out identify the telephone and/or fax machine numbers to which the request applies. With respect to subparagraph (E)(ii), however, Plaintiff submits that it was not enough to advise the recipient that requests were to be made to a particular telephone or fax number. Rather, it had to state that calling these numbers was the only way to request an opt-out, i.e. , that the request is compliant only if the stated methods are used. See
In Landsman & Funk, P.C. v. Lorman Business Center, Inc. , No. 08-cv-481-bbc,
You may ask us not to send future advertisements to you by emailing us at [email protected], calling us at (877) 659-2233, or faxing your request to (715) 833-3953. Please follow the instructions provided to opt-out from receiving future faxes. For us to be able to honor this request, you must include the name of the person (or persons) and fax number (or numbers) you wish to opt-out. Failure to comply within a reasonable time with a request to opt-out would be unlawful.
Landsman & Funk ,
Subparagraph (E)(iii) is another matter. Amedisys has proffered no argument as to whether the Notice satisfied this subparagraph.
Did the Notice Comply with § 227(d)(1)(B) ?
Finally, Plaintiff claims that the Opt-Out Notice failed to comport with § 227(d)(1)(B).
CONCLUSION
For the reasons articulated herein, the Defendant's motion for summary judgment is DENIED as to the issues involving
IT IS SO ORDERED this 15th day of August 2018.
Contemporaneously with its initial complaint filed August 4, 2017, the Plaintiff filed a "placeholder" motion for class certification. (D.E. 2.) Its amended complaint was accompanied by an amended placeholder motion. (D.E. 33.) In an order entered March 1, 2018, the Court denied the amended motion without prejudice, noting that the filing of the amended motion rendered the original request moot. (D.E. 42.) Since entry of the Court's order, Advanced Rehab has not again sought class certification.
According to her affidavit, Cutrer is director of marketing for Amedisys. (D.E. 43-1, ¶ 2, at PageID 227.)
As specifically enumerated and discussed more fully below, the Plaintiff, in its response to the motion, chose to address only some of the notice requirements on which Amedisys sought partial summary judgment, while ignoring others. The Court assumes, therefore, that Advanced Rehab does not challenge a grant of partial summary judgment on those issues to which it did not respond.
In Response Card Marketing, Inc. , 27 F.C.C.R. 3895, 3898 (2012), the FCC explained that the relevant regulations
require[ ] that the notice include requirements ... for the recipient to follow in making an opt-out request. These requirements include that the request identify the particular telephone number of the facsimile machine to which the request relates; that the request is made to the telephone number, facsimile machine, website, or email address identified in the sender's fax; and that the recipient has not, subsequent to his or her request, authorized the sender to send a fax to him or her at the number indicated in the request.
Like the court in Landsman , the agency did not mandate use of the "only" language Advanced Rehab insists is required.
The Landsman court did not specifically discuss subparagraph E(iii).
See, e.g., Casso's Wellness Store & Gym, L.L.C. v. Spectrum Lab. Prods., Inc. , Civil Action No. 17-2161,
Defendant argues in a footnote that there is no private right of action under subparagraph (d). While it is correct, see Ashland Hosp. Corp. v. Serv. Emps. Int'l Union, Dist. 1199 WV/KY/OH ,
Reference
- Full Case Name
- ADVANCED REHAB AND MEDICAL, P.C. v. AMEDISYS HOLDING, LLC
- Cited By
- 1 case
- Status
- Published