Blitz v. Agean, Inc.

2007 NCBC 21
CourtNorth Carolina Business Court
DecidedJune 25, 2007
Docket05-CVS-441
StatusPublished
Cited by2 cases

This text of 2007 NCBC 21 (Blitz v. Agean, Inc.) is published on Counsel Stack Legal Research, covering North Carolina Business Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blitz v. Agean, Inc., 2007 NCBC 21 (N.C. Super. Ct. 2007).

Opinion

Blitz v. Agean, Inc., 2007 NCBC 21

STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE SUPERIOR COURT DIVISION COUNTY OF DURHAM 05 CVS 441

JONATHAN BLITZ, on behalf of himself and all others similarly situated,

Plaintiff,

v. ORDER & OPINION

AGEAN, INC.,

Defendant.

The Margulis Law Group by Max G. Margulis and J. Blake Norman Attorney-at-Law by J. Blake Norman for Plaintiff Jonathan Blitz, on behalf of himself and all others similarly situated.

Hoof & Hughes, PLLC by J. Bruce Hoof for Defendant Agean, Inc.

Diaz, Judge.

{1} The Court heard this matter on 19 February 2007 on the Motion of Plaintiff Jonathan Blitz (“Blitz”) for Class Certification pursuant to Rule 23 of the North Carolina Rules of Civil Procedure. For the reasons set forth below, and after considering the Court file, the written Motion, and counsel’s memoranda and oral arguments, the Court DENIES the Motion.

I. PROCEDURAL BACKGROUND {2} Blitz filed his Complaint on 28 January 2005 in Durham County Superior Court. Blitz filed an Amended Complaint on 11 February 2005, and the case was transferred to the North Carolina Business Court and assigned to me as an exceptional matter on 20 January 2006. {3} On 6 October 2006, Blitz filed a Motion to Amend Class Definition. {4} On 17 October 2006, Blitz filed a Motion for Class Certification. {5} Defendant Agean, Inc. (“Agean”) filed a response to Blitz’s Motion to Amend Class Definition on 26 October 2006 and a Revised Brief in Opposition to Blitz’s Motion for Class Certification 1 on 13 November 2006. {6} Blitz filed a Reply to Agean’s Brief in Opposition to Class Certification on 22 November 2006, and he filed a Citation to Supplemental Authority in Support of the Motion for Class Certification on 1 February 2007. {7} The Court heard oral arguments on the Motion for Class Certification on 19 February 2007.

II. THE FACTS A. THE PARTIES {8} Blitz is a resident of Durham County, North Carolina. (Am. Compl. ¶ 1.) {9} Agean is a North Carolina corporation that operates a restaurant known as “Papas Grille” in Durham, North Carolina. (Am. Compl. ¶ 2; Def.’s Revised Br. Opp’n Pl.’s Mot. Class Certification Ex. A, at 4.) B. THE CLAIMS {10} Since Papas Grille has been in operation, it has, on average, served between 120 and 160 meals per day. (Def.’s Revised Br. Opp’n Pl.’s Mot. Class Certification Ex. A, at 5.) Based on that estimate, Papas Grille has served more than 500,000 meals in its twelve years of operation. (Def.’s Revised Br. Opp’n Pl.’s Mot. Class Certification Ex. A, at 5.) {11} From its inception as a going concern, Papas Grille has also received numerous inquiries concerning its hours, menus, accommodations, and capacity;

1 On 8 November 2006, the Court denied Agean’s Motion to Modify Length Requirement of Brief and

struck Agean’s original Brief in Opposition to Blitz’s Motion for Class Certification for failure to comply with Rule 15.8 of the General Rules of Practice and Procedure for the North Carolina Business Court. (Order, Nov. 8, 2006.) and numerous requests that Papas Grille fax or e-mail its menus and other materials relating to the restaurant or its services. (Def.’s Revised Br. Opp’n Pl.’s Mot. Class Certification Ex. A, at 4–5.) {12} Papas Grille provides its customers with “customer information cards” which they may, but are not required to, complete. (Def.’s Revised Br. Opp’n Pl.’s Mot. Class Certification Ex. A, at 5.) Although Papas Grille maintains a customer list based on completed customer information cards, it does not maintain an exhaustive list of its contacts or patrons. (Def.’s Revised Br. Opp’n Pl.’s Mot. Class Certification Ex. A, at 5.) {13} In April 2004, Agean purchased a list of over 900 fax numbers for businesses in the three zip codes surrounding Papas Grille (the “List”). (Mem. Supp. Pl.’s Mot. Class Certification Ex. 2; Mem. Supp. Pl.’s Mot. Class Certification Ex. 3, Papanikas Dep. 60:22–61:4, 66:5–8, 93:17–18, Sept. 6, 2006.) {14} After it purchased the List, Agean contracted with nonparty Concord Technologies to send fax advertisements to the numbers on the List. (Mem. Supp. Pl.’s Mot. Class Certification Ex. 3, Papanikas Dep. 88:9–96:8; Mem. Supp. Pl.’s Mot. Class Certification Ex. 4.) {15} Agean did not know, and made no effort to determine, whether any of the businesses on the List had contacted or been customers of Papas Grille, or whether any of them had given Agean permission to send them fax advertisements. (Mem. Supp. Pl.’s Mot. Class Certification Ex. 3, Papanikas Dep. 73:10–77:4.) {16} During 2004, Concord Technologies successfully transmitted 7,000 fax advertisements to the numbers on the List on behalf of Agean.2 (Compare Mem. Supp. Pl.’s Mot. Class Certification Ex. 2 with Mem. Supp. Pl.’s Mot. Class Certification Ex. 3, Papanikas Dep. 104:20–106:2.) {17} Blitz received several of these fax advertisements. (Mem. Supp. Pl.’s Mot. Class Certification Ex. 5, Blitz Dep. 73:3–11, 73:21–74:6, Sept. 6, 2006.)

2 The fax advertisements stated the hours and location of Papa’s Grille and included a coupon for a

free cup of coffee or lunch. (Mem. Supp. Pl.’s Mot. Class Certification Ex. 1.) {18} Blitz alleges that Agean’s fax advertisements violated the Federal Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227, which, inter alia, prohibits the transmission of “unsolicited advertisements” to fax machines. (Am. Compl. ¶ 10.) {19} Blitz seeks certification on behalf of a class alleging that Agean violated the TCPA when its agent, Concord Technologies, faxed thousands of single-page unsolicited advertisements regarding Agean’s services. (Am. Compl. ¶ 10.) {20} Pursuant to the TCPA, Blitz seeks $500 in statutory damages for each member of the putative class, statutory treble damages based on allegations that the violations were willful or knowing, and injunctive relief. (Am. Compl. Prayer for Relief ¶¶ 2–3.)

III. CONCLUSIONS OF LAW {21} Blitz’s Motion for Class Certification defines the proposed class as: All persons and other entities to whom Defendant sent or caused to be sent, one or more facsimile advertisement transmissions promoting the restaurants of Defendant from February 12, 2001 until February 11, 2005 inclusive, and excluding those persons and other entities who had an established business relationship with Defendant at the time said facsimile advertisement transmissions were sent. 3

(Pl.’s Mot. Class Certification 6.) {22} This Court addressed the issue of class certification under the TCPA in Blitz v. Xpress Image, Inc., 2006 NCBC 10 (N.C. Super. Ct. Aug. 23, 2006), http://www.ncbusinesscourt.net/opinions/2006%20NCBC%2010.htm. In that case, the Court denied class certification on the grounds that (1) issues individual to each purported class member predominated over common issues, and (2) a class action was not the superior method for resolving the claims. Id. ¶ 1.

3 Blitz defines his proposed class in a manner different from that originally pled in his Amended

Complaint. (See Am. Compl. Prayer for Relief ¶ 1.) Although Agean objects to the purported amendment, the Court overrules the objection and elects to consider the newly defined class. {23} In his moving papers, Blitz attempts to distinguish the present case from Xpress Image on four grounds: (1) Agean, unlike the defendant in Xpress Image, admits that it did not seek permission to send the fax advertisements, (2) Agean, unlike the defendant in Xpress Image, purchased an anonymous list of fax numbers rather than gathering them from a directory of fellow chamber of commerce members, (3) Blitz has excluded entities that have existing business relationships with Agean from his class definition, and (4) new case law supports class certification under the TCPA. (Mem. Supp. Pl.’s Mot.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Thomas Cook Printing Co., Inc. v. Subtle Impressions, Inc.
2008 NCBC 17 (North Carolina Business Court, 2008)
Cicero v. U.S. Four, Inc., 07ap-310 (12-11-2007)
2007 Ohio 6600 (Ohio Court of Appeals, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
2007 NCBC 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blitz-v-agean-inc-ncbizct-2007.