Duran v. La Boom Disco, Inc.
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Opinion
Allyne R. Ross, United States District Judge
Radames Duran ("plaintiff") brings this action against La Boom Disco, Inc. ("defendant") for alleged violations of the Telephone Consumer Protection Act (TCPA),
BACKGROUND
On March 19, 2016, plaintiff texted defendant the word "TROPICAL" in response to an advertisement defendant had placed on Facebook. See Pl.'s 56.1 ¶ 8, ECF No. 20-1; Def.'s 56.1 ¶ 8, ECF No. 39; Pl.'s Br. 1, 8, ECF No. 21.1 Plaintiff texted *478defendant in order to receive free admission to a particular event taking place at defendant's nightclub. See Pl.'s 56.1 ¶ 8; Def.'s 56.1 ¶ 8; Pl.'s Br. 1. After plaintiff texted defendant, he received the following response:
You Been Added To The Saturday Nite Guest List @ LaBoomNY.com
FREE ADMISSION til 12am w/txt
Must be 21+/Valid for 1
718-204-2069
Reply STOP Tropical 2 Optout
Lee Decl. in Supp. Pl.'s Mot. Summ. J. ("Lee Decl.") Ex. B ("Def.'s Records"), at 12-13, ECF No. 24-2. Plaintiff's text gained him free admission to an event, as well as added him to defendant's mass text list for Saturday night events. See
Defendant texted plaintiff using the ExpressText and EZ Texting programs (collectively, "the programs"). See Pl.'s 56.1 ¶ 5; Def.'s 56.1 ¶ 5; see also Def.'s Br. 9 (conceding that it sent plaintiff 108 texts using ExpressText and 13 texts using EZ Texting).5 ExpressText COO Ashish Patel testified that "numbers can get uploaded to the [ExpressText] system either through the client's direct upload of phone numbers, or the client can advertise short codes that end-subscribers can text to in order to opt in and have their numbers added to the client's database." Lee Suppl. Decl. Ex. E ("Patel Dep."), Errata Sheet at 1, ECF No. 44-5. In this case, plaintiff's number was automatically added to defendant's *479database through the EZ Texting program when plaintiff texted "TROPICAL" to defendant. See Def.'s Records 12; Najera Dep. 16:15-19; see also Najera Dep. 36:2-12 (noting that when individuals are added to the database, they receive an automatic text message notifying them that they have been added). Once numbers are in a user's database, the user can organize the numbers into groups and send mass text messages to the groups. See Pl.'s Br. 14-16; see also Patel Dep. 10:10-12 ("[The users] create their own content for the text message, select the groups that they prefer to send to and then send their message."). The ExpressText platform allows users to send the same message to thousands of people with one click. See Patel Dep. 11:16-20; see also Pl.'s Br. 15. Users can send the message immediately or schedule a future time for the message to go out. See Pl.'s Br. 15; see also Najera Dep. 40:7-11 ("I upload [the message] to the system ... [and] tell them when ... I want it to go out."). Before sending a message, users must certify that they are in compliance with the TCPA. See Patel Dep., Errata Sheet at 2; Pl.'s Reply 6, ECF No. 43. The ExpressText and EZ Texting programs function in substantially the same way. See Pl.'s Br. 16; see also Ramos v. Hopele of Fort Lauderdale, LLC ,
On October 31, 2017, plaintiff filed a class-action complaint alleging that he received "unsolicited and unconsented-to" text messages from defendant in violation of the TCPA. Compl. ¶ 1, ECF No. 1. Plaintiff filed an amended complaint on March 8, 2018, containing the same allegation. See Am. Compl. ¶ 1, ECF No. 13. On May 15, 2018, plaintiff moved for summary judgment on the issue of defendant's liability under the TCPA. See Mot. Summ. J., ECF No. 20. On May 17, 2018, Magistrate Judge Pollack issued an order staying the briefing schedule on plaintiff's motion until discovery in the case was complete. See Electronic Order, May 17, 2018. The stay was lifted on September 18, 2018, see Scheduling Order, ECF No. 38, and defendant submitted its opposition to plaintiff's summary-judgment motion on October 16, 2018, see Def.'s Br. For the following reasons, plaintiff's motion for summary judgment is denied, and summary judgment in favor of defendant is granted sua sponte.
STANDARD OF REVIEW
"The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). The function of the court is not to resolve disputed factual issues but to determine whether there is a genuine issue to be tried. Anderson v. Liberty Lobby, Inc.
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Allyne R. Ross, United States District Judge
Radames Duran ("plaintiff") brings this action against La Boom Disco, Inc. ("defendant") for alleged violations of the Telephone Consumer Protection Act (TCPA),
BACKGROUND
On March 19, 2016, plaintiff texted defendant the word "TROPICAL" in response to an advertisement defendant had placed on Facebook. See Pl.'s 56.1 ¶ 8, ECF No. 20-1; Def.'s 56.1 ¶ 8, ECF No. 39; Pl.'s Br. 1, 8, ECF No. 21.1 Plaintiff texted *478defendant in order to receive free admission to a particular event taking place at defendant's nightclub. See Pl.'s 56.1 ¶ 8; Def.'s 56.1 ¶ 8; Pl.'s Br. 1. After plaintiff texted defendant, he received the following response:
You Been Added To The Saturday Nite Guest List @ LaBoomNY.com
FREE ADMISSION til 12am w/txt
Must be 21+/Valid for 1
718-204-2069
Reply STOP Tropical 2 Optout
Lee Decl. in Supp. Pl.'s Mot. Summ. J. ("Lee Decl.") Ex. B ("Def.'s Records"), at 12-13, ECF No. 24-2. Plaintiff's text gained him free admission to an event, as well as added him to defendant's mass text list for Saturday night events. See
Defendant texted plaintiff using the ExpressText and EZ Texting programs (collectively, "the programs"). See Pl.'s 56.1 ¶ 5; Def.'s 56.1 ¶ 5; see also Def.'s Br. 9 (conceding that it sent plaintiff 108 texts using ExpressText and 13 texts using EZ Texting).5 ExpressText COO Ashish Patel testified that "numbers can get uploaded to the [ExpressText] system either through the client's direct upload of phone numbers, or the client can advertise short codes that end-subscribers can text to in order to opt in and have their numbers added to the client's database." Lee Suppl. Decl. Ex. E ("Patel Dep."), Errata Sheet at 1, ECF No. 44-5. In this case, plaintiff's number was automatically added to defendant's *479database through the EZ Texting program when plaintiff texted "TROPICAL" to defendant. See Def.'s Records 12; Najera Dep. 16:15-19; see also Najera Dep. 36:2-12 (noting that when individuals are added to the database, they receive an automatic text message notifying them that they have been added). Once numbers are in a user's database, the user can organize the numbers into groups and send mass text messages to the groups. See Pl.'s Br. 14-16; see also Patel Dep. 10:10-12 ("[The users] create their own content for the text message, select the groups that they prefer to send to and then send their message."). The ExpressText platform allows users to send the same message to thousands of people with one click. See Patel Dep. 11:16-20; see also Pl.'s Br. 15. Users can send the message immediately or schedule a future time for the message to go out. See Pl.'s Br. 15; see also Najera Dep. 40:7-11 ("I upload [the message] to the system ... [and] tell them when ... I want it to go out."). Before sending a message, users must certify that they are in compliance with the TCPA. See Patel Dep., Errata Sheet at 2; Pl.'s Reply 6, ECF No. 43. The ExpressText and EZ Texting programs function in substantially the same way. See Pl.'s Br. 16; see also Ramos v. Hopele of Fort Lauderdale, LLC ,
On October 31, 2017, plaintiff filed a class-action complaint alleging that he received "unsolicited and unconsented-to" text messages from defendant in violation of the TCPA. Compl. ¶ 1, ECF No. 1. Plaintiff filed an amended complaint on March 8, 2018, containing the same allegation. See Am. Compl. ¶ 1, ECF No. 13. On May 15, 2018, plaintiff moved for summary judgment on the issue of defendant's liability under the TCPA. See Mot. Summ. J., ECF No. 20. On May 17, 2018, Magistrate Judge Pollack issued an order staying the briefing schedule on plaintiff's motion until discovery in the case was complete. See Electronic Order, May 17, 2018. The stay was lifted on September 18, 2018, see Scheduling Order, ECF No. 38, and defendant submitted its opposition to plaintiff's summary-judgment motion on October 16, 2018, see Def.'s Br. For the following reasons, plaintiff's motion for summary judgment is denied, and summary judgment in favor of defendant is granted sua sponte.
STANDARD OF REVIEW
"The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). The function of the court is not to resolve disputed factual issues but to determine whether there is a genuine issue to be tried. Anderson v. Liberty Lobby, Inc. ,
The moving party carries the burden of proving that there is no genuine dispute respecting any material fact and "may obtain summary judgment by showing that little or no evidence may be found in support of the nonmoving party's case."
*480Gallo v. Prudential Residential Servs., Ltd. P'ship ,
"When one party has moved for summary judgment, 'a court may grant summary judgment in favor of the non-moving party provided that [the moving] party has had a full and fair opportunity to meet the proposition that there is no genuine issue of material fact to be tried.' " Weissman v. Collecto, Inc. , No. 17-CV-4402 (PKC) (LB),
DISCUSSION
The TCPA makes it:
unlawful for any person ... (A) to make any call (other than a call made for emergency purposes or made with the prior express consent of the called party) using any automatic telephone dialing system ... (iii) to any ... cellular telephone ... unless such call is made solely to collect a debt owed to or guaranteed by the United States.
*481("ATDS" or "autodialer") as "equipment which has the capacity-(A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers."
The Federal Communications Commission ("FCC") is responsible for interpreting the TCPA's reach. In 2003, the FCC issued an order clarifying that the TCPA's prohibition on autodialer "calls" encompasses both voice calls and text messages. See Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991,
I. Defendant cannot avoid TCPA liability on the ground that plaintiff consented to the text messages.
In 2012, the FCC issued a rule that "established a two-tier system of consent, with the two tiers being 'prior express consent' and 'prior express written consent.' " Rotberg v. Jos. A. Bank Clothiers, Inc. ,
[A]n agreement, in writing, bearing the signature of the person called that clearly authorizes the seller to deliver or cause to be delivered to the person called advertisements or telemarketing messages using an automatic telephone dialing system or an artificial or prerecorded voice, and the telephone number to which the signatory authorizes such advertisements or telemarketing messages to be delivered.
Defendant appears to argue that the "prior express consent" standard governs this case and that defendant received such consent when plaintiff provided his phone number to defendant. See Def.'s Br. 14-16. Defendant relies on Van Patten to support its argument; however, Van Patten is not applicable because the alleged conduct in Van Patten took place before the 2012 rule requiring prior express written consent for advertising and telemarketing calls took effect. See Van Patten ,
II. ExpressText and EZ Texting do not qualify as autodialers as a matter of law, and summary judgment against plaintiff is therefore appropriate.
The TCPA defines an ATDS as "equipment which has the capacity-(A) to store *483or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers."
A. Autodialer definition
i. The 2003 FCC Order
In 2003, the FCC addressed whether "predictive dialers" are autodialers. See 2003 Order, supra , ¶¶ 129-33. "A predictive dialer is an automated dialing system that uses a complex set of algorithms to automatically dial consumers' telephone numbers in a manner that 'predicts' the time when a consumer will answer the phone and a telemarketer will be available to take the call." Id. ¶ 8 n.31; see also id. ¶ 131 ("[A] predictive dialer is equipment that dials numbers and, when certain computer software is attached, also assists telemarketers in predicting when a sales agent will be available to take calls."). The FCC noted that "in most cases, telemarketers program the numbers to be called into the equipment." Id. ¶ 131. Members of the telemarketing industry argued that predictive dialers do not qualify as autodialers because they do not dial "randomly or sequentially," i.e., (1) they dial from a database of numbers, and (2) they dial "in a manner that maximizes efficiencies for call centers." Id. ¶ 130.
The FCC rejected the industry members' argument and held that predictive dialers do fall under the statutory definition of an ATDS. Regarding the use of a database of numbers, the FCC wrote:
In the past, telemarketers may have used dialing equipment to create and dial 10-digit telephone numbers arbitrarily. As one commenter points out, the evolution of the teleservices industry has progressed to the point where using lists of numbers is far more cost effective....
... [T]o exclude ... equipment that use[s] predictive dialing software from the definition of "automated telephone dialing equipment" simply because it relies on a given set of numbers would lead to an unintended result.
Id. ¶¶ 132-33. Thus, the FCC reasoned, while early autodialing equipment created and dialed numbers on its own, technology has developed such that equipment that relies on lists of numbers is more effective, and technological advances should not enable telemarketers to avoid TCPA liability. In response to the claim that predictive dialers are not autodialers because they do not dial numbers arbitrarily, the FCC noted that "the basic function of [early autodialing equipment and predictive dialers] ... has not changed-the capacity to dial numbers without human intervention." Id. ¶ 132. In other words, there is no substantive difference between predictive-dialing software and software that dials numbers randomly or sequentially, because both dial numbers without human intervention. See also id. ¶ 131 n.432 ("Some dialers are capable of being programmed for sequential or random dialing; some are not" (quoting industry comments) ).
*484I interpret the 2003 Order as holding that a piece of equipment can constitute an autodialer if it relies on a list of numbers, so long as the equipment also has the capacity to dial those numbers without human intervention. This reading comports with the FCC's implication that predictive dialers qualify as autodialers because of the pairing between the database of numbers and the predictive-dialing software, i.e., the component of the equipment that operates without human intervention. See, e.g., id. ¶ 131 ("[A] predictive dialer is equipment that dials numbers and, when certain computer software is attached , also assists telemarketers in predicting when a sales agent will be available to take calls. The hardware, when paired with certain software , has the capacity to store or produce numbers and dial those numbers at random, in sequential order, or from a database of numbers." (emphases added) (footnotes omitted) ); id. ¶ 133 ("[T]o exclude ... equipment that use[s] predictive dialing software from the definition of 'automated telephone dialing equipment' simply because it relies on a given set of numbers would lead to an unintended result." (emphasis added) ). The FCC's subsequent orders, which focus on the absence of human intervention as the defining characteristic of an autodialer, lend further support to my interpretation of the 2003 Order. See Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991,
ii. The 2015 FCC Order and ACA International
In 2015, the FCC again addressed the statutory definition of an autodialer. See 2015 Order, supra , ¶¶ 10-24. The FCC mainly focused on the meaning of the word "capacity" under the statute. See
The D.C. Circuit also struck down the portion of the 2015 Order describing the requisite functions of an autodialer, reasoning that the FCC offered competing explanations that "fail[ed] to satisfy the requirement of reasoned decisionmaking."
[T]he [2015] ruling distinguishes between use of equipment to "dial random or sequential numbers" and use of equipment to "call[ ] a set list of consumers." Anytime phone numbers are dialed from a set list, the database of numbers must be called in some order-either in a random or some other sequence. As a result, the ruling's reference to "dialing random or sequential numbers" cannot simply mean dialing from a set list of numbers in random or other sequential order: if that were so, there would be no difference between "dialing random or sequential numbers" and "dialing a set list of numbers," even though the ruling draws a divide between the two. It follows that the ruling's reference to "dialing random or sequential numbers" means generating those numbers and then dialing them.
Id. (citations omitted) (first quoting 2015 Order, supra , ¶ 10; then citing 2015 Order, supra , ¶¶ 13-14). The court went on to state that the 2003 Order "reinforce[s] th[e] understanding" that "the [2015 Order's] reference to 'dialing random or sequential numbers' means generating those numbers and then dialing them," because in the 2003 Order, the FCC also drew a distinction between "calling from a list of numbers" and " 'creating and dialing' a random or arbitrary list of numbers." Id. ("In its 2003 ruling addressing predictive dialers, the Commission observed that, '[i]n the past, telemarketers may have used dialing equipment to create and dial 10-digit telephone numbers arbitrarily.' But the industry had 'progressed to the point where' it had become 'far more cost effective' instead to 'us[e] lists of numbers.' " (quoting 2003 Order, supra , ¶ 132) ). Thus, the D.C. Circuit concluded, because the FCC "espouse[d] ... competing interpretations in the same order" regarding whether a device must be able to generate random or sequential numbers to qualify as an autodialer, the 2015 Order was not "consistent with reasoned decisionmaking." Id. at 703.
The D.C. Circuit also found that the 2015 Order included a contradictory discussion of the "human intervention" factor. See id. at 703 (noting that the FCC reiterated *486its holding that the " 'basic function' of an autodialer is the ability to 'dial numbers without human intervention' " but also declined to "clarify[ ] that a dialer is not an autodialer unless it has the capacity to dial numbers without human intervention" (quoting 2015 Order, supra , ¶¶ 14, 17, 20) ). Thus, the court concluded: "The order's lack of clarity about which functions qualify a device as an autodialer compounds the unreasonableness of the Commission's expansive understanding of when a device has the 'capacity' to perform the necessary functions. We must therefore set aside the Commission's treatment of those matters." Id.
iii. The Impact of ACA International
In King v. Time Warner Cable , the Second Circuit examined the D.C. Circuit's decision in ACA International and concluded, "[a]lthough we are not bound by the D.C. Circuit's interpretation of the statute, we are persuaded by its demonstration that interpreting 'capacity' to include a device's 'potential functionalities' after some modifications extends the statute too far." King ,
Currently, federal courts are in disagreement over whether ACA Internation al *487's invalidation of the 2015 Order also "invalidated the analogous portions of the 2003 and 2008 Orders concerning predictive dialers." Richardson v. Verde Energy USA, Inc. ,
[T]he FCC's 2015 Order ... broadly construed the term "capacity" .... In the wake of ACA International , which invalidated that Order and thereby removed any deference we might owe to the views the FCC expressed in it, we must decide independently whether the district court's broad understanding of the "capacity" a device must have in order to qualify as an ATDS under the TCPA is a supportable interpretation of the statute. We conclude that it is not.
King ,
The Second Circuit, however, only analyzed the meaning of "capacity" under "the statutory language itself." As discussed earlier, the court declined to weigh in on the requisite functions of an autodialer. Importantly, the invalidation of the 2015 Order does not have the same impact on "capacity" as it does on autodialer functions. Regarding "capacity," the invalidation of the 2015 Order forces courts to analyze "capacity" under the statute, because the FCC had not offered prior guidance on the term.11 The FCC had, however, offered prior guidance on requisite autodialer functions, see 2003 Order, supra , ¶¶ 129-33; 2008 Order, supra , ¶¶ 12-13; 2012 Order, supra , ¶ 2 n.5, so the invalidation of the 2015 Order does not necessarily send courts back to the statute to analyze these functions. I understand the Second Circuit's statement that "an administrative interpretation of the statute ... has now been invalidated" and it must "consider the meaning of the statute independently, without an administrative interpretation to defer to" as limited to the meaning of the term "capacity." King ,
While courts in this circuit do not appear to have addressed the issue, a growing number of courts in other circuits have. See, e.g., Richardson ,
This line of reasoning is incorrect. As discussed earlier, the 2003 Order clearly holds that equipment that calls from a list can meet the statutory definition of an autodialer. See supra Section II.A.i-ii; see also Maes v. Charter Commc'n ,
B. ExpressText and EZ Texting
As discussed earlier, I interpret the prior FCC Orders as holding that equipment can meet the definition of an autodialer if it pulls from a list of numbers, so long as the equipment also has the capacity to dial those numbers without human intervention. See supra Section II.A.i. Plaintiff concedes that the programs at issue lack the ability to generate randomized or sequential numbers. See Pl.'s Br. 16 ("Their websites do not indicate that these systems have the capacity to actually 'produce' telephone numbers 'using a random or sequential number generator.' Rather, the automated text messaging *490works off of a pre-established list of numbers that have been uploaded into the system." (citation omitted) ); see also Patel Aff. ¶¶ 8-9 (stating that ExpressText "does not have the ability to generate randomized or sequential lists of contact cell phone numbers" and "does not dial cell phone numbers or send text messages sequentially or randomly"); Ramos ,
There is no dispute that for the programs to function, "a human agent must determine [the time to send the message], the content of the messages, and upload the numbers to be texted into the system." Pl.'s Reply 16; see also Pl.'s Br. 14-16; Patel Dep. 10:10-12; Najera Dep. 40:7-11. Plaintiff argues that these programs operate without human intervention because "the user does not have to 'click' before each number is dialed. Rather, the user can simply direct the system to fire off thousands of texts at a designated time." Pl.'s Reply 16. Neither the FCC Orders nor the relevant case law support plaintiff's understanding of what it means to operate without human intervention. When the FCC expanded the definition of an autodialer to include predictive dialers, the FCC emphasized that "[t]he principal feature of predictive dialing software is a timing function." 2003 Order, supra , ¶ 131 (emphasis added). Thus, the human-intervention test turns not on whether the user must send each individual message, but rather on whether the user (not the software) determines the time at which the numbers are dialed. See Blow v. Bijora, Inc. ,
To support his understanding of human intervention, plaintiff relies on a number of cases dealing with predictive dialers. The programs at issue in this case, however, are not predictive dialers, and the predictive-dialer cases cited by plaintiff actually support the notion that a program does not qualify as an autodialer unless a computer determines when to send the message. See Espejo v. Santander Consumer USA, Inc. , No.
In sum, because a user determines the time at which the ExpressText and EZ Texting programs send messages to recipients, they operate with too much human involvement to meet the definition of an autodialer. Summary judgment for plaintiff is therefore improper. Further, since plaintiff's motion turns on whether the programs qualify as autodialers, I conclude that "all of the evidentiary materials that [plaintiff] might submit in response to a motion for summary judgment [on this issue] are before the court." Bridgeway Corp. ,
CONCLUSION
For the reasons stated in this opinion, plaintiff's motion for summary judgment is denied, and summary judgment for defendant is granted sua sponte. The Clerk of Court is directed to enter judgment accordingly and close the case.
SO ORDERED.
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