Joffe v. Acacia Mortgage Corp.

121 P.3d 831, 211 Ariz. 325, 462 Ariz. Adv. Rep. 38, 2005 Ariz. App. LEXIS 124
CourtCourt of Appeals of Arizona
DecidedSeptember 20, 2005
Docket1 CA-CV 02-0701
StatusPublished
Cited by6 cases

This text of 121 P.3d 831 (Joffe v. Acacia Mortgage Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joffe v. Acacia Mortgage Corp., 121 P.3d 831, 211 Ariz. 325, 462 Ariz. Adv. Rep. 38, 2005 Ariz. App. LEXIS 124 (Ark. Ct. App. 2005).

Opinion

OPINION

NORRIS, Judge.

¶ 1 Acacia Mortgage Corporation (“Acacia”) appeals from the superior court’s order granting what was in effect partial summary judgment in favor of Rodney Joffe. The superior court found Acacia had violated the Telephone Consumer Protection Act of 1991 (“TCPA”), 47 U.S.C. § 227 (Supp.2005), 1 by *327 delivering unsolicited advertisements, in the form of text messages, to Joffe’s cellular telephone. Acacia argues the superior court should not have ruled against it because the TCPA does not apply to text messages, and if it does, the TCPA violated its rights under the First Amendment. For the following reasons, we affirm the superior court’s order and hold the TCPA applies to the text messages at issue here and does not violate Acacia’s First Amendment rights.

BACKGROUND AND PROCEDURAL HISTORY

¶ 2 On January 6, 2001, Joffe’s cellular telephone rang. When he answered it, he discovered he had received an unrequested text message solicitation from Acacia, a mortgage company. The message stated, “[C]arla, Greenspan lowered rates, 30 yr mortgage=6.875%. Still interested? 602-944-7200 or www.AcaciaNatio nal.com[J” On March 21, 2001, Joffe received a second text solicitation from Acacia on his cellular telephone. In similar form, this message stated, “Mr. Simms, Federal Reserve just cut rates by 1/2%. Still want new mortgage? 480-897-8944....”

II3 Acacia’s messages to Joffe were part of a marketing campaign to advertize low interest rates on home mortgages. Acacia programmed its computers to send the solicitations as electronic mail messages (“e-mail”) over the Internet to consumer e-mail addresses. In Joffe’s case, Acacia’s computers generated his cellular telephone number, “(602)XXX-XXXX,” 2 plus his cellular telephone carrier’s domain name, “att.net,” and sent the solicitations to the e-mail address 602XXXXXXX@att.net.

¶ 4 When Acacia’s e-mails reached Joffe’s cellular carrier’s domain, his carrier automatically converted the text, that is, the content of the solicitations, into a format that could be transmitted to Joffe’s cellular telephone number. Acacia was thus able to take advantage of a service provided to Joffe by his cellular telephone carrier known as Short Message Service (“SMS”). As discussed in more detail below, SMS allows cellular telephone subscribers to send and receive text messages, known as SMS messages, on their cellular telephones.

¶ 5 On April 26, 2001, Joffe filed a complaint in justice court alleging Acacia had violated the TCPA’s prohibition on using “any automatic dialing system” to make “any call” to “any telephone number assigned to a ... cellular telephone service.” 47 U.S.C. § 227(b)(l)(A)(iii). Acacia answered the complaint and filed a counterclaim requesting $55,000 in damages for “harassment.” Because the amount sought by Acacia in its counterclaim exceeded the jurisdiction of the justice court, the case was transferred to superior court. After the transfer, Acacia moved for summary judgment arguing the TCPA was inapplicable because it had simply sent Joffe e-mails. The superior court denied the motion:

By using an e-mail address composed primarily of a telephone number, [Acacia] initiated a telephone message to a telephone number assigned to a cellular telephone service. By this method, [Acacia] initiated a demand to make a connection to [Joffe’s] cellular telephone for the purpose of delivering a message by telephone encouraging the purchase of services or investment in a product offered by [Acacia]. By doing advertising in this manner, [Acacia] shifted some of the cost of its advertising to those receiving the telephone calls. The Court is of the opinion that such conduct violates the [TCPA].

¶6 Following the superior court’s ruling, Joffe moved to certify the case as a class action, alleging Acacia had sent the same promotional messages to 90,000 cellular telephones using the same method of transmission and form of e-mail address. Thereafter, Acacia filed a second “motion for summary judgment or, in the alternative, motion for reconsideration,” and argued the TCPA was directed at telephone calls that involved two-way voice communications and not at the sending of text messages. In response, Joffe filed a cross-motion for summary judgment *328 and asked the superior court to grant summary judgment one way or the other on the issue of Acacia’s liability under the TCPA.

¶7 Relying on its prior ruling, the court granted what was in effect partial summary judgment in favor of Joffe and held Acacia liable under the TCPA. The court also rejected Acacia’s argument the TCPA violated its rights under the First Amendment to the United States Constitution.

¶ 8 Acacia timely appealed. As a consequence of the appeal, the superior court took no action on the motion to certify the class. We have jurisdiction pursuant to Arizona Revised Statutes (“A.R.S.”) section 12-2101(G) (2003). 3

DISCUSSION

¶ 9 Whether the TCPA applies to Acacia’s actions turns on the wording of 47 U.S.C. § 227(b)(l)(A)(iii) and the resolution of two issues: first, whether Acacia called Joffe, and, second, if it did, whether Acacia used an “automatic dialing system” to do so. 4 For the following reasons, we hold Acacia called Joffe using an automatic dialing system. Consequently, we agree with the superior court that Acacia violated the TCPA.

I. The TCPA

¶ 10 Enacted in 1991 as an amendment to the Communications Act of 1934, the TCPA was designed to deal with various telemarketing practices arising out of the telemarketing industry’s use of sophisticated equipment, generically known as autodialers, to generate millions of automated telephone calls to residential and business telephone subscribers. S.Rep. No. 102-178, at 2-3 (1991), as reprinted in 1991 U.S.C.C.A.N.1968, 1969-71. Congress found consumers and businesses were especially frustrated by these calls, viewing them as a nuisance, an invasion of privacy and a threat to interstate commerce. Id. at 1; Telephone Consumer Protection Act of 1991, Pub.L. No. 102-243, § 2,105 Stat. 2394 (1991) (current version at 47 U.S.C. § 227). Accordingly, as relevant here, the TCPA prohibits “any call” using “any automatic dialing telephone system” to “any telephone number assigned to a ... cellular telephone service.” Section 227(b)(l)(A)(iii) reads as follows:

It shall be unlawful for any person within the United States ...
(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 or an artificial or prerecorded voice—

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Bluebook (online)
121 P.3d 831, 211 Ariz. 325, 462 Ariz. Adv. Rep. 38, 2005 Ariz. App. LEXIS 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joffe-v-acacia-mortgage-corp-arizctapp-2005.