Avio, Inc. v. Alfoccino, Inc.

18 F. Supp. 3d 882, 2014 WL 1870108, 2014 U.S. Dist. LEXIS 64209
CourtDistrict Court, E.D. Michigan
DecidedMay 9, 2014
DocketNo. 2:10-cv-10221
StatusPublished
Cited by4 cases

This text of 18 F. Supp. 3d 882 (Avio, Inc. v. Alfoccino, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Avio, Inc. v. Alfoccino, Inc., 18 F. Supp. 3d 882, 2014 WL 1870108, 2014 U.S. Dist. LEXIS 64209 (E.D. Mich. 2014).

Opinion

OPINION AND ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT AND DENYING PLAINTIFF’S MOTION TO CERTIFY CLASS

GERALD E. ROSEN, Chief Judge.

I. INTRODUCTION

This is a “junk fax” case arising out of Defendants’ use of a third-party to send [884]*884advertisements via facsimile to numerous businesses in southeast Michigan. Plaintiffs putative class action generally asserts that this third-party, Business-to-Business Solutions (B2B), faxed over ten thousand advertisements on Defendants’ behalf in violation of the Telephone Consumer Protection Act, 47 U.S.C. § 227 (TCPA). Presently before the Court are two Motions: (1) Plaintiffs Motion to Certify Class (Plfs Mtn., Dkt. # 109); and (2) Defendants’ Motion for Summary Judgment (Defs’ Mtn., Dkt. # 117). Having reviewed and considered the parties’ Motions, respective responses and replies thereto, supplemental authority,1 and the entire record of this matter, the Court has determined that the relevant allegations, facts, and legal arguments are adequately presented in these written submissions, and that oral argument would not aid the decisional process. Therefore, the Court will decide these matters “on the briefs.” See Eastern District of Michigan Local Rule 7.1(f)(2). The Court’s Opinion and Order is set forth below.

II. PERTINENT FACTS

A. B2B Junk Fax Litigation across the Country

This litigation is but one of at least one hundred junk fax matters filed by Plaintiffs attorneys across the country involving facsimiles sent by B2B. It is, to turn a phrase, not the first rodeo for these facts and legal issues.2 Judge Cox of this District expansively discussed this history in three nearly identical matters, which put this litigation into perspective:

Anderson + Wanca and Bock & Hatch are two Chicago area law firms that specialize in representing plaintiffs in class action lawsuits under the Telephone Consumer Protection Act as amended by the Junk Fax Prevention Act of 2005 (the “TCPA”). The TCPA authorizes $500.00 in statutory damages for faxing an unsolicited advertisement, and each transmission is a separate violation. And the award triples upon a showing of willfulness. Because plaintiffs may enforce the statute via class action and because a single advertisement is often faxed to hundreds — if not thousands — of phone numbers, suits under the Act present lucrative opportunities for plaintiffs’ firms.
A woman named Caroline Abraham functioned as a modern-day “typhoid mary” in the small business communities in which she operated. As the Seventh Circuit explained [in Reliable Money Order, Inc. v. McKnight Sales Co., 704 F.3d 489 (7th Cir.2013) ], Abraham and her company, Business-to-Business Solutions (‘B2B’) sit at the center of this lawsuit and scores of others: B2B contracted with businesses to send advertisements via facsimile. Advertisers would pay a fee, and B2B would send the ad to hundreds of fax numbers purchased from InfoUSA, Inc. (a practice known as “fax-blasting”). Abraham, B2B’s sole employee, never obtained [885]*885from the fax recipients!’] permission to send them the advertisements.
Anderson + Wanca came across B2B and Abraham while they were investigating four putative class actions in Illinois. They learned that the defendants in those four cases had contracted with B2B to fax the offending advertisements. Unsurprisingly, Caroline Abraham’s B2B records became the focus of discovery. Abraham ultimately produced spreadsheets in discovery that listed only the recipients of the advertisements at issue in the four cases.
Flush with success, Anderson + Wanca recognized that the B2B hard drives and fax lists likely contained a treasure trove of potential clients for putative class action lawsuits. So, despite having all information necessary to certify the classes in the Four Cases, Anderson + Wanca continued pushing Caroline Abraham to disclose all B2B fax transmission data. Ryan Kelly, an attorney at Anderson + Wanca, met with Caroline Abraham and asked her for the actual backup disks and hard drive. He told her that “nobody would look at anything on these media not related” to the Four Cases. Indeed, Kelly even emailed Ms. Abraham a copy of the protective order filed in one of the Four Cases, explaining that it “will prevent [Kelly] from disclosing any of the backup disks or hard drive to any third-party.” To receive those protections, however, the producing party had to stamp documents confidential or notify plaintiffs counsel of their confidential nature at the time of production. Ms. Abraham continued to resist.
Ultimately, plaintiffs counsel subpoenaed Joel Abraham to testify at a deposition. The subpoena also ordered Mr. Abraham to produce, at the time of his deposition, the back-up disks and hard drive. Appearing at the deposition with attorney Eric Ruben, Joel Abraham produced the materials. Neither he nor Ruben, who had read the protective order, asserted confidentiality. Even so, Anderson + Wanca later instructed defense counsel to “treat the DVD produced by Joel Abraham as confidential pursuant to the protective order[.]”
The back-up disks and hard drive revealed not only the recipients of fax advertisements sent by the defendants in the Four Cases but the names of other B2B clients as well.
Then, armed with data from B2B’s electronic files, Plaintiffs counsel filed scores of putative class actions under the TCPA. The B2B files provided a treasure trove of potential new clients for Anderson + Wanca, revealing the names of other potential defendants who contracted with B2B to send unsolicited fax advertising and listing the recipients of that advertising.... Anderson + Wanca attorneys have filed over one hundred putative class actions under the Act, all rooted in data recovered from the B2B disks and hard drive.

APB Associates, Inc. v. Bronco’s Saloon, Inc., 297 F.R.D. 302, 304-06 (E.D.Mich. 2013) (Cox, J.) (internal citations and quotations to Reliable Money Order omitted); see also Compressor Eng’g Corp. v. Mfrs. Fin. Corp., 292 F.R.D. 433 (E.D.Mich.2013) (Cox, J.); Machesney v. Lar-Bev of Howell, Inc., 292 F.R.D. 412 (E.D.Mich.2013) (Cox, J.).3

[886]*886B. Pertinent Facts Regarding Plaintiffs Claim in This Litigation

This case involves a fax campaign by B2B4 on behalf of two Alfoccino restaurants located in Auburn Hills and Farm-ington Hills on two separate occasions in 2006. Defendant Farshid Shushtari was responsible for Alfoccino’s marketing and advertising. (Ex. D to Plfs Class Mtn., Dkt. # 109-4, at 10, 80). In 2006, B2B contacted Alfoccino — ironically through Al-foecino’s fax machine — advertising its services. (Id. at 12-13). Shushtari responded, and eventually engaged B2B to send 20,000 advertisements via fax, split between delivery dates in November and December 2006. (Id. at 64-65). The content of these ads are immaterial.

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Cite This Page — Counsel Stack

Bluebook (online)
18 F. Supp. 3d 882, 2014 WL 1870108, 2014 U.S. Dist. LEXIS 64209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/avio-inc-v-alfoccino-inc-mied-2014.