Campbell-Ewald Co. v. Gomez

577 U.S. 153, 136 S. Ct. 663, 193 L. Ed. 2d 571, 25 Fla. L. Weekly Fed. S 585, 84 U.S.L.W. 4051, 64 Communications Reg. (P&F) 9, 93 Fed. R. Serv. 3d 884, 2016 U.S. LEXIS 846
CourtSupreme Court of the United States
DecidedJanuary 20, 2016
Docket14–857.
StatusPublished
Cited by929 cases

This text of 577 U.S. 153 (Campbell-Ewald Co. v. Gomez) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campbell-Ewald Co. v. Gomez, 577 U.S. 153, 136 S. Ct. 663, 193 L. Ed. 2d 571, 25 Fla. L. Weekly Fed. S 585, 84 U.S.L.W. 4051, 64 Communications Reg. (P&F) 9, 93 Fed. R. Serv. 3d 884, 2016 U.S. LEXIS 846 (2016).

Opinions

Justice GINSBURG delivered the opinion of the Court.

Is an unaccepted offer to satisfy the named plaintiff's individual claim sufficient to render a case moot when the complaint seeks relief on behalf of the plaintiff and a class of persons similarly situated? This question, on which Courts of Appeals have divided, was reserved in Genesis Healthcare Corp. v. Symczyk, 569 U.S. ----, ----, ----, n. 4, 133 S.Ct. 1523, 1528, 1529, n. 4, 185 L.Ed.2d 636 (2013). We hold today, in accord with Rule 68 of the Federal Rules of Civil Procedure, that an unaccepted settlement offer has no force. Like other unaccepted contract offers, it creates no lasting right or obligation. With the offer off the table, and the defendant's continuing denial of liability, adversity between the parties persists.

This case presents a second question. The claim in suit concerns performance of the petitioner's contract with the Federal Government. Does the sovereign's immunity from suit shield the petitioner, a private enterprise, as well? We hold that the petitioner's status as a Government contractor does not entitle it to "derivative sovereign immunity," i.e., the blanket immunity enjoyed by the sovereign.

I

The Telephone Consumer Protection Act (TCPA or Act) 48 Stat. 1064, 47 U.S.C. § 227(b)(1)(A)(iii), prohibits any *667person, absent the prior express consent of a telephone-call recipient, from "mak[ing] any call ... using any automatic telephone dialing system ... to any telephone number assigned to a paging service [or] cellular telephone service." A text message to a cellular telephone, it is undisputed, qualifies as a "call" within the compass of § 227(b)(1)(A)(iii). 768 F.3d 871, 874 (C.A.9 2014). For damages occasioned by conduct violating the TCPA, § 227(b)(3) authorizes a private right of action. A plaintiff successful in such an action may recover her "actual monetary loss" or $500 for each violation, "whichever is greater." Damages may be trebled if "the defendant willfully or knowingly violated" the Act.

Petitioner Campbell-Ewald Company (Campbell) is a nationwide advertising and marketing communications agency. Beginning in 2000, the United States Navy engaged Campbell to develop and execute a multimedia recruiting campaign. In 2005 and 2006, Campbell proposed to the Navy a campaign involving text messages sent to young adults, the Navy's target audience, encouraging them to learn more about the Navy. The Navy approved Campbell's proposal, conditioned on sending the messages only to individuals who had "opted in" to receipt of marketing solicitations on topics that included service in the Navy. App. 42. In final form, the message read:

"Destined for something big? Do it in the Navy. Get a career. An education. And a chance to serve a greater cause. For a FREE Navy video call [phone number]." 768 F.3d, at 873.

Campbell then contracted with Mindmatics LLC, which generated a list of cellular phone numbers geared to the Navy's target audience-namely, cellular phone users between the ages of 18 and 24 who had consented to receiving solicitations by text message. In May 2006, Mindmatics transmitted the Navy's message to over 100,000 recipients.

Respondent Jose Gomez was a recipient of the Navy's recruiting message. Alleging that he had never consented to receiving the message, that his age was nearly 40, and that Campbell had violated the TCPA by sending the message (and perhaps others like it), Gomez filed a class-action complaint in the District Court for the Central District of California in 2010. On behalf of a nationwide class of individuals who had received, but had not consented to receipt of, the text message, Gomez sought treble statutory damages, costs, and attorney's fees, also an injunction against Campbell's involvement in unsolicited messaging. App. 16-24.

Prior to the agreed-upon deadline for Gomez to file a motion for class certification, Campbell proposed to settle Gomez's individual claim and filed an offer of judgment pursuant to Federal Rule of Civil Procedure 68. App. to Pet. for Cert. 52a-61a.1 Campbell offered to pay Gomez his *668costs, excluding attorney's fees, and $1,503 per message for the May 2006 text message and any other text message Gomez could show he had received, thereby satisfying his personal treble-damages claim. Id., at 53a. Campbell also proposed a stipulated injunction in which it agreed to be barred from sending text messages in violation of the TCPA. The proposed injunction, however, denied liability and the allegations made in the complaint, and disclaimed the existence of grounds for the imposition of an injunction. Id ., at 56a. The settlement offer did not include attorney's fees, Campbell observed, because the TCPA does not provide for an attorney's-fee award. Id., at 53a. Gomez did not accept the settlement offer and allowed Campbell's Rule 68 submission to lapse after the time, 14 days, specified in the Rule.

Campbell thereafter moved to dismiss the case pursuant to Federal Rule of Civil Procedure 12(b)(1) for lack of subject-matter jurisdiction. No Article III case or controversy remained, Campbell urged, because its offer mooted Gomez's individual claim by providing him with complete relief. Gomez had not moved for class certification before his claim became moot, Campbell added, so the putative class claims also became moot. The District Court denied Campbell's motion. 805 F.Supp.2d 923 (C.D.Cal.2011).2 Gomez was not dilatory in filing his certification request, the District Court determined; consequently, the court noted, the class claims would "relat[e] back" to the date Gomez filed the complaint. Id., at 930-931.

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Cite This Page — Counsel Stack

Bluebook (online)
577 U.S. 153, 136 S. Ct. 663, 193 L. Ed. 2d 571, 25 Fla. L. Weekly Fed. S 585, 84 U.S.L.W. 4051, 64 Communications Reg. (P&F) 9, 93 Fed. R. Serv. 3d 884, 2016 U.S. LEXIS 846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-ewald-co-v-gomez-scotus-2016.