APARTMENT INV. MANAGEMENT v. Suggs

129 S.W.3d 250
CourtCourt of Appeals of Texas
DecidedApril 1, 2004
Docket05-03-00276-CV
StatusPublished

This text of 129 S.W.3d 250 (APARTMENT INV. MANAGEMENT v. Suggs) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
APARTMENT INV. MANAGEMENT v. Suggs, 129 S.W.3d 250 (Tex. Ct. App. 2004).

Opinion

129 S.W.3d 250 (2004)

APARTMENT INVESTMENT AND MANAGEMENT COMPANY, Appellant,
v.
SUGGS & ASSOCIATES, P.C., Both Individually and on Behalf of all Others Similarly Situated, Appellees.

No. 05-03-00276-CV.

Court of Appeals of Texas, Dallas.

February 26, 2004.
Rehearing Overruled April 1, 2004.

*251 Eric W. Buether, Eric Sean Tautfest, Godwin Gruber L.L.P., Todd Benjamin Stoller, McKool Smith, P.C., Dallas, for Appellant.

Keith M. Jensen, Law Office of Keith M. Jensen, P.C., John W. MacPete, MacPete Law Firm, Fort Worth, for Appellees.

Before Justices MOSELEY, FITZGERALD, and LANG.

OPINION

Opinion by Justice LANG.

This is an interlocutory appeal from an order granting class certification. This *252 case arises from allegations that Suggs & Associates, P.C. (Suggs) received unsolicited telecopy or fax advertisements from American Blast Fax, Inc. (ABF) advertising properties owned or managed by Apartment Investment and Management Company (AIMCO), in violation of the Telephone Consumer Protection Act, 47 U.S.C.A. § 227 (West 2001) (TCPA). Suggs sought statutory damages and requested that the trial court certify the lawsuit as a class action.[1] The trial court certified a class under Texas Rule of Civil Procedure 42(b)(2) and (b)(4). AIMCO appeals that certification order in ten issues. Because we conclude that the trial court abused its discretion by certifying a class that is not properly defined, we reverse the order granting class certification and remand this case for further proceedings.

Factual and Procedural Background

Suggs is a law firm in Dallas. AIMCO is incorporated in Maryland and is a real estate investment trust engaged, indirectly through subsidiaries and partnerships, in the ownership and management of apartment properties. Some of those properties are located in the Dallas-Fort Worth area. In December 2000 and January 2001, AIMCO entered into agreements with ABF to send fax advertising regarding AIMCO's properties to fax reception devices in the Dallas-Fort Worth area. During that time period, ABF sent over 112,000 faxes which advertised AIMCO's properties. ABF maintained "daily fax confirmation logs" that show the telephone numbers to which ABF sent these faxes. Suggs alleged that it received three of these faxes.

Following a hearing, the trial court signed an order which certified the following claims and class: "the TCPA claims of the holders of the telephone numbers on the date they are confirmed to have received AIMCO's fax ads as confirmed by the American Blast Fax daily fax confirmation logs." The order states that, if the class prevails at trial on the merits, "class members can submit proofs of claim establishing they held such a number on the day or days ABF's records show the AIMCO faxes were received in 2000 and 2001." The order further states that the class "as defined is precise and presently ascertainable by reference to objective criteria; to wit, a number on the ABF confirmation logs which correspond to AIMCO's fax ads." In the order, the trial court concluded "that it is not necessary to be able to identify the names and addresses of the class members at the time of certification to define a class for which membership or lack of membership is presently ascertainable by reference to objective criteria." Moreover, the order provides that, if AIMCO prevails, its res judicata rights would be protected because an injunction would require subsequent claimants to substantiate the fax number they held on the date they claim to have received the fax. The trial court's order found that the requirements of Texas Rule of Civil Procedure 42(b)(2) and (b)(4) were met.

STANDARD OF REVIEW

On appeal, we determine whether a trial court abused its discretion in deciding whether to grant or deny class certification. Kondos v. Lincoln Prop. Co., 110 S.W.3d 716, 720 (Tex.App.-Dallas 2003, no pet.). A trial court abuses its discretion when it: (1) acts arbitrarily or unreasonably; (2) does not properly apply the law to the undisputed facts; or (3) *253 rules on factual assertions not supported by the record. Id. The supreme court has rejected what it described as a "certify now and worry later" philosophy towards class certification. Id. (citing S.W. Ref. Co. v. Bernal, 22 S.W.3d 425, 435 (Tex.2000)). Consequently, actual, not presumed, compliance with rule of civil procedure 42 is required when a trial court decides to certify a class action. Id.; Bernal, 22 S.W.3d at 435 (citation omitted); see Tex.R. Civ. P. 42.

APPLICABLE LAW

The TCPA makes it unlawful for any person in the United States "to use any telephone facsimile machine, computer, or other device to send an unsolicited advertisement to a telephone facsimile machine." 47 U.S.C.A. § 227(b)(1). "The term `unsolicited advertisement' means any material advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person without that person's prior express invitation or permission." Id. § 227(a)(4). The TCPA provides a private right of action for a violation of the statute to enjoin violations and to recover the actual monetary loss from a violation or $500 in damages for each violation, whichever is greater. Id. § 227(b)(3).

CLASS DEFINITION

In issues one and three, AIMCO contends the trial court abused its discretion in granting class certification because the class is not sufficiently defined. Specifically, AIMCO argues that it is not administratively feasible for a court to determine whether a particular individual is a member of the class. Because the class definition is not sufficient, we conclude the trial court abused its discretion. Accordingly, AIMCO's first and third issues are resolved in its favor. We need not address the other issues.

Applicable Law

The threshold inquiry in determining class certification must be into the class definition, i.e., the parameters of the proposed class. Intratex Gas Co. v. Beeson, 22 S.W.3d 398, 403 (Tex.2000). Rule 42 implicitly requires the representative plaintiffs to demonstrate not only that an identifiable class exists, but that it is susceptible to precise definition. Id.; see DeBremaecker v. Short, 433 F.2d 733, 734 (5th Cir.1970) (per curiam) (holding that it is "elementary that in order to maintain a class action, the class sought to be represented must be adequately defined and clearly ascertainable"); 5 JAMES WM. MOORE ET AL., MOORE'S FEDERAL PRACTICE ¶¶ 23.20-.21 (3d ed.2003).

Before a reviewing court can consider a putative class's compliance with rule 42(a) and (b) class certification requirements, it must first consider the appropriateness of the certified class definition. Beeson, 22 S.W.3d at 403. In fact, absent a cognizable class, evaluating whether the putative class representatives satisfy the rule 42(a) and (b) requirements would be impossible. Id.

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Related

Eisen v. Carlisle & Jacquelin
417 U.S. 156 (Supreme Court, 1974)
Pinnacle Realty Management Co. v. Kondos
130 S.W.3d 292 (Court of Appeals of Texas, 2004)
Southwestern Refining Co., Inc. v. Bernal
22 S.W.3d 425 (Texas Supreme Court, 2000)
Intratex Gas Co. v. Beeson
22 S.W.3d 398 (Texas Supreme Court, 2000)
Kondos v. Lincoln Property Co.
110 S.W.3d 716 (Court of Appeals of Texas, 2003)
Sun Coast Resources, Inc. v. Cooper
967 S.W.2d 525 (Court of Appeals of Texas, 1998)
Apartment Investment & Management Co. v. Suggs & Associates, P.C.
129 S.W.3d 250 (Court of Appeals of Texas, 2004)
DeBremaecker v. Short
433 F.2d 733 (Fifth Circuit, 1970)
Rex v. Owens
585 F.2d 432 (Tenth Circuit, 1978)
Rios v. Marshall
100 F.R.D. 395 (S.D. New York, 1983)

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Bluebook (online)
129 S.W.3d 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apartment-inv-management-v-suggs-texapp-2004.