STEPHEN P. FRIOT, District Judge.
Defendant Yodel Technologies LLC moves the court to decertify the class or reconsider summary judgment. Doc. no. 170. Plaintiff Robert Braver has responded, objecting to the motion. Doc. no. 179. Yodel filed a reply brief. Doc. no. 186.
The court begins with some general comments about Yodel's motion.
Many of Yodel's arguments are premised on Yodel's contention, made throughout its moving papers,
Yodel's premise is demonstrably incorrect. As explained in more detail later in this order, the court's orders do not hold, effectively or otherwise, that all uses of soundboard technology are prohibited by 47 U.S.C. §227(b)(1)(B). The court's summary judgment order established the nature of Yodel's soundboard technology as used by Yodel to deliver the calls in question in this case. For example, the order found that Yodel's soundboard agents, located in a call center in India, followed a script which instructed them to press buttons in a certain order, thereby delivering prerecorded audio clips to the called party. The order further found there was no dispute that calls were made to residential phone lines, and that every initial call to class members began with the soundboard agent playing a pre-recorded message without the prior consent of the called parties.
Based on these and other findings, it was clear that all class members received at least one soundboard call that violated the prohibition set forth in 47 U.S.C. §227(b)(1)(B).
As for Yodel's alternative request that the court reconsider its order on summary judgment, the court will make a minor amendment to footnote 30, for the sake of accuracy. In all other respects, Yodel's request for reconsideration will be denied.
Rule 23(c)(1)(C) provides that an order which grants or denies class certification may be altered or amended before final judgment. Even after a certification order is entered, the judge remains free to modify it in light of subsequent developments in the litigation.
Although the Federal Rules of Civil Procedure do not recognize a "motion to reconsider," the court has inherent authority to reconsider its interlocutory rulings and it should do so where error is apparent.
Yodel argues that "Determinations crucial to the court's initial class decision order are now at odds with the record on summary judgment." Doc. no. 170, p. 19 of 32 ("Argument" proposition 1.B). Yodel states that "As the record stands now, three principal inconsistencies in the Orders show the incongruity of the current class." Id., p. 20 of 32.
1. The first asserted inconsistency appears in footnote 30 of the summary judgment order. The footnote begins by quoting legislative history of the TCPA which expresses the congressional concern that:
Doc. no. 139, p. 11 of 13, n.30. The footnote references defendants' argument that "soundboard calls do not offend these congressional concerns," then states:
Id. The footnote then quotes illustrative excerpts from the Braver call.
Yodel argues that the "But" sentence quoted immediately above is erroneous and belied by the record as a whole. Yodel argues that the experience of class members varied because some class members interacted directly with the soundboard agent or with another live agent who joined the call, and because there was a wide range of interactivity demonstrated in the calls. See, e.g., doc. no. 186, p. 4 of 12 (bullet points).
The court agrees with Yodel that the objected-to sentence in footnote 30 of the court's order on summary judgment is erroneous. It is too broad. As currently written, the sentence indicates that soundboard calls can never interact with the customer except in preprogrammed and meaningless ways. What the court should have said in footnote 30 is this:
Accordingly, footnote 30 of the order on summary judgment is hereby
That correction aside, there is a larger point to be made. Footnote 30, in its corrected or uncorrected form, is not in any sense necessary to the court's ruling that Braver and the class are entitled to summary judgment on count one. Footnote 30 is an aside, intended to show that the transcript of the Braver call raises concerns consistent with those expressed by Congress when it considered the TCPA. That observation is relegated to a footnote because it is immaterial to the outcome. As stated in the body of the summary judgment order:
Doc. no. 139, pp. 11-12 of 31 (emphasis added). As the court ruled at the summary judgment stage and as it reiterates now, the language of §227(b)(1)(B) is plain, and there is no reason to resort to legislative history to determine its meaning.
2. Yodel next argues that the certification order is inconsistent with the record because it states, "The technology in issue, called avatar or soundboard technology, involves humans who are purportedly listening in and who attempt to press computer buttons to generate a prerecorded response or a conversation which would be consistent with whatever the called party might have said." Doc. no. 72, p. 11 of 27 (certification order, citing doc. no. 67, Tr., pp. 46-47); quoted (in part) by Yodel at doc. no. 170, p. 21 of 32. Yodel argues that the references in this statement to humans who are "purportedly listening in and who attempt to press computer buttons" are inconsistent with the record as it now stands. Doc. no. 170, p. 21 of 32 (emphasis in Yodel's motion). Yodel argues "[t]he record now shows that Yodel soundboard agents—while by no means perfect—did in fact utilize the technology to have human-driven conversations." Id.
The court rejects this argument for decertification. There is no inconsistency between the court's statement in the certification order (that soundboard technology involves humans who are purportedly listening in and who attempt to press computer buttons to generate a prerecorded response or conversation which would be consistent with whatever the called party might have said) and the evidence cited by Yodel in its motion to decertify for the purpose of showing that the agents did, in fact, listen in to calls, one call at a time, and did press buttons to have what Yodel calls "human-driven conversations."
Furthermore, Yodel's argument that some of the soundboard operators generated prerecorded responses which were consistent with whatever the called party had said, is ultimately immaterial to the court's ruling in favor of Braver and the class at the summary judgment stage. As found in the order on summary judgment, "every initial call began with the soundboard agent (Yodel's agent) playing the first recording" (doc. no. 139, p. 7 of 31); "Yodel did not obtain consent from the called parties prior to initiating calls to plaintiff and the class." Id. at p. 9 of 31. These findings (together with others, including a finding that calls were made to residential telephone lines) established a violation of §227(b)(1)(B) based on the first recording played in the initial call made to class members. Thus, all class members received a call from a Yodel soundboard agent that violated §227(b)(1)(B) —a conclusion which applies without regard to the level of interaction Yodel argues is demonstrated in certain calls.
3. Lastly with respect to purported inconsistencies between this court's orders and the record, Yodel singles out the certification order's rejection of Yodel's argument "that factual variations in the calls raise individualized issues," and the statement in the certification order that "[b]ased on the evidence heard to date [i.e. the date of the certification order], it appears that all of the calls at issue delivered a prerecorded soundboard message." Doc. no. 72, p. 12 of 27 (certification order); quoted by Yodel at doc. no. 170, p. 21 of 32. What Yodel appears to be arguing in this part of its motion is that these statements are inconsistent with the record "Unless the use of any soundboard technology is deemed sufficient to trigger TCPA liability—which...would violate the First Amendment...." Doc. no. 170, p. 21 of 32. The court rejects this argument for decertification. As stated at the beginning of this order, the court has never ruled that a TCPA violation is triggered simply by using "any soundboard technology." What the court has consistently found is that every initial call to the class began with the soundboard agent playing the first recording, to which consent had not been given, and that these and other facts (such as the fact that calls were made to residential telephone numbers) show that class members received a call that violated §227(b)(1)(B).
In addition, Yodel's argument that this court's rulings render §227(b)(1)(B) unconstitutional under the First Amendment relies on an incorrect interpretation of
What
After setting out the argued-for inconsistencies between the court's orders and the record, Yodel argues that "[t]hese inconsistencies warrant reexamination of the initial nationwide class determination on multiple grounds." Doc. no. 170, p. 22 of 32. Yodel argues that commonality and predominance are not satisfied based on varying levels of interactivity in the calls. Yodel also argues that Mr. Braver is not a typical or adequate class representative because the record shows that calls to others in the class were more interactive.
Yodel next argues that the varying level of interactivity reflected in certain calls shows the superiority requirement is not met. The court rejects this argument for the same reasons that it rejects Yodel's arguments regarding predominance, commonality and typicality. Yodel makes one more argument regarding superiority, however, which needs to be separately addressed. Yodel argues that the superiority requirement is not met in light of the potential for a disproportionate damages award which exists if this action remains certified as a class action. Yodel argues the potential for disproportionate damages violates due process. The court rejects this argument. While it is possible that damages may eventually be reduced by the court,
For the reasons stated in this order, all of Yodel's arguments for decertification are rejected.
Lastly, Yodel argues that if the court declines to decertify the class, the court should reconsider its ruling on summary judgment and modify that ruling to avoid raising doubts about the constitutionality of the TCPA under the First Amendment and
After careful consideration, Yodel's motion seeking decertification of the class is
Yodel's alternative request for reconsideration of the court's order on summary judgment is
IT IS SO ORDERED.