International Science & Technology Institute, Incorporated v. Inacom Communications, Incorporated

106 F.3d 1146, 25 Media L. Rep. (BNA) 1498, 6 Communications Reg. (P&F) 856, 1997 U.S. App. LEXIS 2232, 1997 WL 57123
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 11, 1997
Docket96-1142
StatusPublished
Cited by137 cases

This text of 106 F.3d 1146 (International Science & Technology Institute, Incorporated v. Inacom Communications, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Science & Technology Institute, Incorporated v. Inacom Communications, Incorporated, 106 F.3d 1146, 25 Media L. Rep. (BNA) 1498, 6 Communications Reg. (P&F) 856, 1997 U.S. App. LEXIS 2232, 1997 WL 57123 (4th Cir. 1997).

Opinion

Affirmed by published opinion. Judge NIEMEYER wrote the opinion, in which Judge WILLIAMS and Judge MOTZ joined.

OPINION

NIEMEYER, Circuit Judge:

We today reach the somewhat unusual conclusion that state courts have exclusive jurisdiction over a cause of action created by federal law. Holding that the states have been given, subject to their consent, exclusive subject matter jurisdiction over private actions authorized by the Telephone Consumer Protection Act of 1991, 47 U.S.C. § 227, we affirm the district court’s ruling dismissing this ease.

I

In 1991, Congress amended the Communications Act of 1934, 47 U.S.C. § 201 et seq., with the enactment of the Telephone Consumer Protection Act of 1991 (“TCPA”), Pub.L. No. 102-243, 105 Stat. 2394 (1991) (codified at 47 U.S.C. § 227). The TCPA was enacted to “protect the privacy interests of residential telephone subscribers by placing restrictions on unsolicited, automated telephone calls to the home and to facilitate interstate commerce by restricting certain uses of facsimile ([flax) machines and automatic dialers.” S.Rep. No. 102-178, at 1 (1991), reprinted in 1991 U.S.C.C.A.N.1968.

The relevant section of the TCPA provides, “It shall be unlawful for any person within the United States ... to use any telephone facsimile machine, computer, or other device to send an unsolicited advertisement to a telephone facsimile machine.” 47 U.S.C. § 227(b)(1)(C).

The TCPA creates a private right of action to obtain an injunction, 47 U.S.C. § 227(b)(3)(A), and to recover the actual monetary damages or $500, whichever is greater. 47 U.S.C. § 227(b)(3)(B). If the court finds that the defendant “willfully or knowingly” violated the TCPA, it may treble the damage award. 47 U.S.C. § 227(b)(3). In creating a private right of action, the TCPA authorizes a plaintiff to file suit “if otherwise permitted by the laws or rules of court of a State ... in an appropriate court of that State.” 47 U.S.C. § 227(b)(3). The TCPA also authorizes state attorneys general to bring civil actions on behalf of their state’s residents to obtain an injunction against such calls and to recover monetary damages. 47 U.S.C. § 227(f)(1). The TCPA provides that the federal district courts have “exclusive jurisdiction” over actions brought by state attorneys general. 47 U.S.C. § 227(f)(2). Finally, the TCPA also authorizes the Federal Communications Commission to intervene as of right in any state attorney general’s action. 47 U.S.C. § 227(f)(3).

II

During the summer months of 1995, International Science & Technology Institute, Inc. (“International Science”) received at its fax machine several unsolicited advertisements for discount long-distance telephone service from Inacom Communications, Inc. (“Ina-Com”). International Science claims that Inacom sent “thousands of such unsolicited advertisements to small business enterprises throughout the United States in knowing and willful violation of the [TCPA].” Proceeding under the TCPA and invoking federal-question jurisdiction granted by 28 U.S.C. § 1331, International Science filed a class action suit in the district court, demanding $500 for each violation—or $1,500 if the court were to find the violation willful—and praying for injunc-tive relief against future unsolicited advertising. On Inacom’s motion, the district court dismissed International Science’s complaint for lack of subject matter jurisdiction, ruling that private actions authorized by the TCPA may be filed only in state courts. The court explained:

*1151 The language in § 227(b)(3) is unambiguous. The statute clearly places jurisdiction for a private right of action in the state courts, just as it places jurisdiction for actions brought by the State or the FCC in the District Courts of the United States. Contrary to plaintiffs assertion, there is no ambiguity created because Congress omitted the phrase “exclusive jurisdiction” from § 227(b)(3).

In response to International Science’s argument that the statute did not make state jurisdiction exclusive and that federal jurisdiction could therefore be implied, the district court ruled that it could not imply a federal right of action when Congress had expressed an intent to create only a right of action in state courts.

On appeal, International Science makes three arguments: (1) that the permissive language of 47 U.S.C. § 227(b)(3) that a private action may be brought in state courts does not make state court jurisdiction exclusive; (2) that a federally created cause of action “arises under” federal law within the meaning of 28 U.S.C. § 1331 granting district courts federal-question jurisdiction; and (3) that an exclusive jurisdictional grant to state courts would violate both the Equal Protection Clause of the Fourteenth Amendment and the Tenth Amendment.

Ill

To discern whether Congress intended to authorize jurisdiction over private actions exclusively in state courts, we first turn, as we must, to the TCPA’s text. See, e.g., New York State Conf. of Blue Cross and Blue Shield Plans v. Travelers Insurance Co., — U.S. —, —, 115 S.Ct. 1671, 1677, 131 L.Ed.2d 695 (1995) (in determining congressional intent, analysis begins with interpretation of the statutory text and “move[s] on, as need be, to the structure and purpose of the Act in which it occurs”). In' relevant part, the TCPA provides that “a person or entity may, if otherwise permitted by the laws or rules of court of a State, bring in an appropriate court of that State ” an action for violation of the TCPA’s ban on unsolicited fax-advertising. 47 U.S.C. § 227(b)(3) (emphasis added). In providing that a private person “may bring” a TCPA action in an appropriate state court, Congress authorized state courts to enforce the right it created. In using the customary “may” language for conferring jurisdiction, 1

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Bluebook (online)
106 F.3d 1146, 25 Media L. Rep. (BNA) 1498, 6 Communications Reg. (P&F) 856, 1997 U.S. App. LEXIS 2232, 1997 WL 57123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-science-technology-institute-incorporated-v-inacom-ca4-1997.