ROBERT W. GETTLEMAN, District Judge.
Plaintiffs Christopher Legg and Page Lozano have brought a three count second amended putative class action complaint against defendants PTZ Insurance Agency, Ltd., Pethealth Inc. and Fairfax Financial Holdings, Ltd.,
Defendant Pethealth Inc. ("Pethealth") is a holding company with numerous subsidiaries under what can be described as the Pethealth umbrella. Pethealth, through its subsidiaries, offers consumers various services related to pet adoption and pet insurance. Once such service offered by defendant PTZ in conjunction with pet adoptions is an initial 30-day free gift of pet health insurance. The 30-day free gift is actually offered to pet adopters at PTZ's partner animal shelters, generally to those adopters of pets that have a microchip implanted for safety. The shelters used software provided by defendants to gather information from adopters during the adoption process for the purpose of providing the 30-day free gift. To receive the free gift, the adopter must provide a valid email address and "opt-in" to receiving communications from defendants via email.
During the adoption process, the adopters fill out paper work providing the shelter with their name, address, email address and telephone numbers. The paperwork provides that unless they opt-out they may be sent information and special offers by mail or email regarding products or services that may be of interest, and that their personal information may be shared with third parties so those third parties may "contact you by mail or email for their own marketing purposes."
Adopters are sent at least two emails reminding them of the 30-day free gift. In addition, adopters also receive what plaintiff describes as two pre-recorded robocalls. The first call (the "Day 2 call") provides:
The calls are made using contact information provided by the adopters to the animal shelters at the time of the adoption process.
Congress enacted the TCPA in 1991 to address telephone marketing calls and certain telemarketing practices that Congress found to be an invasion of consumer privacy. Section 227(b) of the Act proscribes the use of an automated telephone dialing system or prerecorded voice calsl to any telephone number assigned to a cellular telephone absent prior express consent of the called party. 47 U.S.C. § 227(b)(1)(A)(iii). After October 16, 2013, the FCC, the agency vested with authority to issue regulations implementing the TCPA, has required express signed written consent to place advertising calls to cellular phones.
Class action suits are governed by Fed. R. Civ. P. 23. Under Rule 23(c)(1)(A), the court should determine whether to certify an action as a class action "at any early practicable time." Motions to strike class allegations are analyzed under Rule 23, not Rule 12(f).
The determination of whether class certification is appropriate requires a two step analysis. First, plaintiffs must satisfy all four requirements of Rule 23(a): (1) numerosity; (2) commonality; (3) typicality; and (4) adequacy of representation.
Plaintiffs propose certification of two classes. The first, the "advertisement class" is defined as:
The second, or so-called robocall class, is defined as:
Under Rule 23(a)(1) plaintiffs must show that the class is so numerous that joinder of all members is impracticable. The exact number of class members need not be shown, but impracticability of joinder must.
Rule 23(a)(2) required the presence of questions of law or fact common to the class. The Rule does not mandate absolute commonality; a common nucleus of operative facts is usually sufficient to satisfy the requirement.
In the instant case, each potential class member received the same prerecorded calls. Thus, at least with respect to the specifics of the call and how defendants received the class members' telephone numbers, the case presents common questions of fact. Additionally, whether defendants' calls violate the TCPA, and whether they constitute advertising are common questions of law. Thus, plaintiffs have established the commonality requirement of Rule 23(a)(2).
Rule 23(a)(3) requires plaintiffs to establish that "the claims or defenses of the representative parties are typical of the claims or defenses of the class." Typicality is closely related to commonality.
In the instant case, each class member's claim arises from defendants' use of prerecorded phone calls to their cellular phones. The claims are all based on the same set of facts and legal theories. Consequently, plaintiffs have satisfied the typicality requirement of Rule 23(a)(3).
Rule 23(a)(4) requires plaintiffs to demonstrate that the representative parties will fairly and adequately protect the interests of the class. The requirement has three elements: (1) the chosen class representatives cannot have antagonistic or conflicting claims with other members of the class; (2) the named representative must have a sufficient interest in the outcome to insure vigorous advocacy; and (3) counsel for the named plaintiff must be competent, experienced, qualified and generally able to conduct the proposed litigation vigorously.
Under Rule 23(b)(3) the questions of law or fact common to the class must "predominate over any questions affecting only individual members," and a class action must be superior to other available methods for the fair and efficient adjudication of the controversy. It is the establishment of this condition that defendants challenge and where plaintiffs' class certification petition runs into trouble.
Predominance under Rule 23(b)(3) is similar to the commonality requirement of Rule 23(a)(2), but requires a "far more demanding" inquiry.
In the instant case, defendants argue that individualized questions of consent predominate over any common questions. Plaintiffs counter that the question of whether by giving their cell phone numbers to the shelters constitutes consent to receive calls from defendants about the free gift can be resolved class-wide as a matter of law . That may be true, but defendants have argued more than that. Defendants argue that during the adoption process adopters agree to receive communications from defendants and are told and agree and expect to receive such communications by phone in addition to email. Thus, defendants argue that the question centers around what happens during each individual adoption process.
To avoid these individual issues, plaintiff argues that the calls in question are "advertising," which requires express written consent of the recipient pursuant to FTC rules.
As defendants point out, however, if an adopter has expressly agreed and expected to receive calls from defendant, and did receive those calls, the adopter has not been injured in any way, even if defendants technically violated a procedural requirement of the TCPA. Thus, under
In the instant case, defendants argue that adopters have expressly agreed to receive the calls, that they just did not do so in writing. The lack of a writing does not make the calls unsolicited. If the class members agreed to receive the calls, they lack a "genuine controversy."
Whether issues of individualized consent defeat the predominance requirement in a TCPA case is made on a case-by-case basis after evaluating the specific evidence available to prove consent.
In the instant case, there is nothing vague about defendants' assertions of consent. They have supplied affidavits from a number of adopters who state that they agreed to and expected to receive calls on their cellular phones from defendants about the offered pet insurance. In addition, defendants have submitted affidavits from shelter employees who conducted the adoption processes. Those employees state that after taking the adopters' cell phone numbers, the employees told the adopters to expect to receive "communications" from defendants. Whether such "communications" included cell phone calls as well as e-mail messages would depend on the nature of the conversations between the shelter employees and the adopters, and the adopters' expectations resulting from the conversations. This evidence convinces the court that the trial in this case will be consumed and overwhelmed by testimony from each individual class member, and the shelter employee who assisted that member in the adoption process, to determine whether the class member consented to receive the calls in question. In short, the trial will involve hundreds, if not thousands, of mini-trials on the issue of consent alone. Given the evidence presented by defendants, there is simply no way for plaintiff to establish a lack of consent with generalized evidence.
For the reasons described above, defendants' motion to strike class allegations (Doc. 247) is granted. Plaintiffs' motion to certify a class (Doc. 252) is denied. This case must proceed on an individual basis. This matter is set for a report on status on August 24, 2017, at 9:00 a.m.