Chair King, Inc. v. GTE Mobilnet of Houston, Inc.

184 S.W.3d 707, 49 Tex. Sup. Ct. J. 336, 2006 Tex. LEXIS 97, 2006 WL 249978
CourtTexas Supreme Court
DecidedFebruary 3, 2006
Docket04-0570
StatusPublished
Cited by29 cases

This text of 184 S.W.3d 707 (Chair King, Inc. v. GTE Mobilnet of Houston, Inc.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chair King, Inc. v. GTE Mobilnet of Houston, Inc., 184 S.W.3d 707, 49 Tex. Sup. Ct. J. 336, 2006 Tex. LEXIS 97, 2006 WL 249978 (Tex. 2006).

Opinion

Justice O’NEILL

delivered the opinion of the Court.

The suit underlying this appeal complains of unsolicited faxes sent in violation of the federal Telephone Consumer Protection Act, 47 U.S.C. § 227 (“TCPA”), which grants those who receive illegal faxes a private cause of action in state court “if otherwise permitted by the laws or rules of court of a State.” 47 U.S.C. § 227(b)(3). Texas did not expressly permit a private right of action for unsolicited faxes until September 1, 1999, when the Legislature amended the Business and Commerce Code to allow parties to bring suit in state court for TCPA violations. Act of May 26, 1999, 76th Leg., R.S., ch. 635, § 1, 1999 Tex. Gen. Laws 3203 (current version at TEX. BUS. & COM. CODE § 35.47(f)). We must decide whether the faxes at issue in this case, which were sent before September 1, 1999, are actionable in Texas state courts under the TCPA. We conclude that they are not, and reverse and render judgment against the recipients.

I. Background

Beginning in 1992, The Chair King, Inc., and others 1 (collectively “plaintiffs” or “recipients”) complain that they began to receive illegal faxes from various companies advertising their products. They originally filed suit in federal court, but the court dismissed the case for lack of subject-matter jurisdiction. 2 Chair King, Inc. v. *709 Houston Cellular Corp., 131 F.3d 507, 509 (5th Cir.1997). The plaintiffs then filed this suit in state court against a number of defendants 3 alleging a private damage claim under the TCPA, negligence, negligence per se, invasion of privacy, trespass to chattels, gross negligence, and conspiracy among the senders. The trial court granted the defendants’ joint and individual summary-judgment motions and denied the plaintiffs’ motion for partial summary judgment. The plaintiffs settled with various defendants during the course of the proceedings, leaving only GTE Mobilnet of Houston, Inc. (“GTE Mobilnet”) and Chick-Fil-A, Inc. (“Chick-Fil-A”) as defendants before the court of appeals.

The court of appeals affirmed the trial court’s judgment in part, and reversed and remanded in part. 135 S.W.3d 365. Specifically, the court affirmed the trial court’s summary judgment on all of the common-law claims, on all claims against Chick-Fil-A after applying Texas’ two-year statute of limitations, and on certain plaintiffs’ TCPA claims against GTE Mobilnet that the court considered barred by limitations. Id. at 396-97. The court reversed the trial court’s judgment as to the remaining plaintiffs’ TCPA claims against GTE Mobilnet, 4 which were remanded for further proceedings. Id.

Both sides petitioned this Court for review, the plaintiffs challenging the court of appeals’ determination of the limitations issue and the defendants contending, inter alia, that there was no TCPA private right of action cognizable in Texas courts until the Legislature enacted enabling legislation in 1999. Alternatively, defendants claim they cannot be liable for faxes transmitted by independent advertising companies acting at the behest of independent retailers. We granted the parties’ petitions for review to consider the TCPA’s application and related issues.

II. The Telephone Consumer Protection Act

A. History

Congress enacted the Telephone Consumer Protection Act in 1991 by amending the Communications Act of 1934. Pub.L. No. 102-243, 105 Stat. 2394, (codified as amended at 47 U.S.C. § 227). The TCPA’s purposes were to “protect the privacy interests of residential telephone subscribers by placing restrictions on unsolicited, automated telephone calls ... and to facilitate interstate commerce by restricting certain uses of facsimile (fax) machines and automatic dialers.” S. REP. No. 102-178, at 1 (1991), reprinted in 1991 U.S.C.C.A.N.1968, 1968. The legislation was intended to address a growing number of consumer complaints related to the use of automated telephone equipment to make unsolicited telephone calls and faxes. That growth was spurred by a dramatic de *710 crease in the cost of long-distance service, which in turn reduced the expenses associated with telemarketing. Id. at 2, reprinted in 1991 U.S.C.C.A.N.1968,1969-70.

Before the TCPA’s enactment, many states had promulgated regulations aimed at limiting unsolicited intrastate telemarketing, but constitutional constraints prevented them from reaching interstate communications. Id. at 3, reprinted in 1991 U.S.C.C.A.N.1968, 1970 (noting “States do not have jurisdiction over interstate calls. Many States have expressed a desire for Federal legislation to regulate interstate telemarketing calls to supplement their restrictions on intrastate calls.”). By the time the TCPA became law, over forty states had legislatively limited the use of ■automatic-dialer recorded-message players or otherwise restricted telemarketing. 5 Id., reprinted in 1991 U.S.C.C.A.N.1968, 1970. But- given that state regulation reached only intrastate communications, consumer complaints to the Federal Communications Commission (FCC) soared. Id., reprinted in 1991 U.S.C.C.A.N.1968, 1970. The TCPA quickly followed.

B. Statutory Framework

The TCPA presents what has been described as “an unusual constellation of statutory features.” Chair King, 131 F.3d at 512. On one hand, the Act creates a federal private right of action, but on the other it confers exclusive jurisdiction on state courts to entertain it. Id. The TCPA does contain an exclusive federal enforcement component, authorizing state attorneys general to bring civil actions in federal court on behalf of their state’s residents to obtain injunctive relief against unauthorized telephone calls and facsimiles and to recover monetary damages. 47 U.S.C. § 227(f)(l)-(2). For such actions the TCPA authorizes the FCC to intervene as of right, to be heard in all such matters, and to file petitions for appeal. 47 U.S.C. § 227(f)(3). But for purposes of' private enforcement and redress, state-court jurisdiction is exclusive.

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184 S.W.3d 707, 49 Tex. Sup. Ct. J. 336, 2006 Tex. LEXIS 97, 2006 WL 249978, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chair-king-inc-v-gte-mobilnet-of-houston-inc-tex-2006.