John Salcedo v. Alex Hanna

936 F.3d 1162
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 28, 2019
Docket17-14077
StatusPublished
Cited by99 cases

This text of 936 F.3d 1162 (John Salcedo v. Alex Hanna) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Salcedo v. Alex Hanna, 936 F.3d 1162 (11th Cir. 2019).

Opinion

Case: 17-14077 Date Filed: 08/28/2019 Page: 1 of 22

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 17-14077

D.C. Docket No. 0:16-cv-62480-DPG

JOHN SALCEDO, individually and on behalf of others similarly situated,

Plaintiff - Appellee,

versus

ALEX HANNA, an individual, THE LAW OFFICES OF ALEX HANNA, P.A., a Florida Professional Association,

Defendants - Appellants.

Appeal from the United States District Court for the Southern District of Florida

(August 28, 2019)

Before JILL PRYOR and BRANCH, Circuit Judges, and REEVES, * District Judge.

* Honorable Danny C. Reeves, United States District Judge for the Eastern District of Kentucky, sitting by designation. Case: 17-14077 Date Filed: 08/28/2019 Page: 2 of 22

BRANCH, Circuit Judge:

Is receiving a single unsolicited text message, sent in violation of a federal

statute, a concrete injury in fact that establishes standing to sue in federal court? To

answer that question, we have examined the statute, our precedent, and—following

the Supreme Court’s guidance—history and the judgment of Congress, and we

conclude that the allegations in this suit do not establish standing.

I. BACKGROUND

At 9:56 a.m. on August 12, 2016, John Salcedo, a former client of Florida

attorney Alex Hanna and his law firm, 1 received a multimedia text message from

Hanna offering a ten percent discount on his services.

Salcedo filed suit in the district court as the representative of a putative class

of former Hanna clients who received unsolicited text messages from Hanna in the

past four years, alleging violations of the Telephone Consumer Protection Act of

1991 (“TCPA”), 47 U.S.C. § 227(b)(1)(A)(iii).2 He sought, among other relief,

statutory damages of $500 per text message and treble damages of $1,500 per text

1 For simplicity, and without implying any view as to Mr. Hanna’s possible personal liability, throughout this opinion we will refer to both defendants—Mr. Hanna and his law firm— collectively as “Hanna.” 2 “It shall be unlawful for any person within the United States . . . 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 . . . to any telephone number assigned to a . . . cellular telephone service . . . .” 47 U.S.C. § 227(b)(1)(A)(iii). 2 Case: 17-14077 Date Filed: 08/28/2019 Page: 3 of 22

message sent willfully or knowingly. See 47 U.S.C. § 227(b)(3).

Hanna moved to dismiss the complaint for lack of standing, arguing in the

alternative that it should be dismissed as to Mr. Hanna for failure to state a claim

against him and that certain parts of the complaint should be stricken. The district

court disagreed, finding in relevant part that Salcedo had standing under Mohamed

v. Off Lease Only, Inc., No. 15-23352-Civ-COOKE/TORRES, 2017 WL 1080342

(S.D. Fla. Mar. 22, 2017). However, finding that its order “involves a controlling

question of law as to which there is a substantial ground for difference of opinion,”

the court allowed Salcedo to pursue an interlocutory appeal and stayed its

proceedings pending appeal. A panel of our Court granted Hanna’s petition for

permission to appeal under 28 U.S.C. § 1292(b). We now consider his appeal.

II. STANDARD OF REVIEW

“We review standing determinations de novo.” Bochese v. Town of Ponce

Inlet, 405 F.3d 964, 975 (11th Cir. 2005).

III. DISCUSSION

Our analysis proceeds as follows. We first introduce the TCPA, the statute

under which Salcedo has filed suit. Next, we discuss the standing requirements of

Article III of the Constitution, which help to define our limited power to resolve

only cases or controversies. We then turn to Salcedo’s particular allegations of

harm and analyze them in view of our Circuit precedent, history, and the judgment

3 Case: 17-14077 Date Filed: 08/28/2019 Page: 4 of 22

of Congress.

A. The Telephone Consumer Privacy Act of 1991

Because it found that “residential telephone subscribers consider automated

or prerecorded telephone calls . . . to be a nuisance and an invasion of privacy,”

Telephone Consumer Protection Act of 1991, S. 1462, 102d Cong., Pub. L. No.

102-243, § 2, ¶ 10 (1991), in 1991 Congress enacted the TCPA to restrict interstate

telemarketing. The TCPA thus prohibits using automatic telephone dialing systems

to call residential or cellular telephone lines without the consent of the called party.

47 U.S.C. § 227(b)(1)(A)(iii), (B). It also prohibits sending unsolicited

advertisements via facsimile machine. Id. § 227(b)(1)(C). It authorizes the Federal

Communications Commission (“FCC”) to enact implementing regulations. Id.

§ 227(b)(2). Finally for our purposes, the TCPA creates a private right of action

whereby a person or entity may seek compensatory or injunctive relief against

violators. Id. § 227(b)(3).

There have been two relevant updates to the TCPA and its enforcement

regime since 1991. First, in October 1992, Congress amended the TCPA to allow

the FCC to exempt free-to-receive cellular calls if it so chooses. Id. § 227(b)(2)(C).

The FCC has not done so. Second, the statute has been silent as to text messaging,

for that medium did not exist in 1991. But under its TCPA rulemaking authority,

the FCC has applied the statute’s regulations of voice calls to text messages. 30

4 Case: 17-14077 Date Filed: 08/28/2019 Page: 5 of 22

FCC Rcd. 7961, 7964 n.3, 7978–79, 8016–22 (2015); 18 FCC Rcd. 14014, 14115

(2003); see also Campbell–Ewald Co. v. Gomez, 136 S. Ct. 663, 667 (2016) (“A

text message to a cellular telephone, it is undisputed, qualifies as a ‘call’ within the

compass of § 227(b)(1)(A)(iii).”). Thus, Salcedo’s complaint facially appears to

state a cause of action under the TCPA as interpreted by the FCC.

B. Article III Standing

Not every right created by Congress or defined by an executive agency is

automatically enforceable in the federal courts. Our tripartite system of

government recognizes that “there is no liberty if the power of judging be not

separated from the legislative and executive powers.” The Federalist No. 78, at 465

(Alexander Hamilton) (Clinton Rossiter ed. 1961). To protect this separation of

powers, we must assure ourselves that our exercise of jurisdiction falls within the

Constitution’s grant of judicial power.

Article III vests the judicial power in the federal courts and extends that

power to “Cases” and “Controversies.” U.S. Const. art. III, §§ 1–2. One tool for

determining that the matters before us are truly cases or controversies, as

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936 F.3d 1162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-salcedo-v-alex-hanna-ca11-2019.