Jose Gomez v. Campbell-Ewald Co.

768 F.3d 871, 61 Communications Reg. (P&F) 363, 2014 U.S. App. LEXIS 18019, 2014 WL 4654478
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 19, 2014
Docket13-55486
StatusPublished
Cited by100 cases

This text of 768 F.3d 871 (Jose Gomez v. Campbell-Ewald Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jose Gomez v. Campbell-Ewald Co., 768 F.3d 871, 61 Communications Reg. (P&F) 363, 2014 U.S. App. LEXIS 18019, 2014 WL 4654478 (9th Cir. 2014).

Opinion

OPINION

BENAVIDES, Circuit Judge:

Plaintiff Jose Gomez appeals adverse summary judgment on personal and putative class claims brought pursuant to the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227(b)(l)(A)(iii) (2012). Gomez alleges that the CampbellEwald Company instructed or allowed a third-party vendor to send unsolicited text messages on behalf of the United States Navy, with whom Campbell-Ewald had a marketing contract. Because we conclude that Campbell-Ewald is not entitled to immunity, and because we find no alternate basis upon which to grant its motion for summary judgment, we vacate the judgment and remand to the district court.

I.

The facts with respect to Gomez’s personal claim are largely undisputed. On May 11, 2006, Gomez received an unsolicited text message stating:

Destined for something big? Do it in the Navy. Get a career. An education. And a chance to serve a greater cause. For a FREE Navy video call [number].

The message was the result of collaboration between the Navy and the CampbellEwald Company, 1 a marketing consultant hired by the Navy to develop and execute a multimedia recruiting campaign. The Navy and Campbell-Ewald agreed to “target” young adults aged 18 to 24, and to send messages only to cellular users that had consented to solicitation. The message itself was sent by Mindmatics, to whom the dialing had been outsourced. Mindmatics was responsible for generating a list of phone numbers that fit the stated conditions, and for physically transmitting the messages. Neither the Navy nor Mindmatics is party to this suit.

*874 In 2010, Gomez filed the present action against Campbell-Ewald, alleging a single violation of 47 U.S.C. § 227(b)(l)(A)(iii), which states:

It shall be unlawful for any person within the United States, or any person outside the United States if the recipient is 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—...
(iii) to any telephone number assigned to a paging service [or] cellular telephone service....

Gomez contends that he did not consent to receipt of the text message. He also notes that he was 40 years old at the time he received the message, well outside of the Navy’s target market. It is undisputed that a text message constitutes a call for the purposes of this section. See Satterfield v. Simon & Schuster, Inc., 569 F.3d 946, 952 (9th Cir.2009) (“[W]e hold that a text message is a ‘call’ within the meaning of the TCPA.”). In addition to seeking compensation for the alleged violation of the TCPA, Gomez also sought to represent a putative class of other unconsenting recipients of the Navy’s recruiting text messages.

After a 12(b)(6) motion to dismiss was denied, Campbell-Ewald tried to settle the case. Campbell-Ewald offered Gomez $1503.00 per violation, plus reasonable costs, but Gomez rejected the offer by allowing it to lapse in accordance with its own terms.

Campbell-Ewald then moved to dismiss the case under Rule 12(b)(1), arguing that Gomez’s rejection of the offer mooted the personal and putative class claims. After the court denied the motion, CampbellEwald moved for summary judgment, seeking derivative immunity under Yearsley v. W.A. Ross Construction Co., 309 U.S. 18, 60 S.Ct. 413, 84 L.Ed. 554 (1940). In opposition to the summary judgment motion, Gomez presented evidence that the Navy intended the messages to be sent only to individuals who had consented or “opted in” to receive messages like the recruiting text. A Navy representative testified that Campbell-Ewald was not authorized to send texts to individuals who had not opted in. The district court ultimately granted the motion, holding that Campbell-Ewald is “immune from liability under the doctrine of derivative sovereign immunity.” Gomez v. Campbell-Ewald Co., No. CV 10-2007 DMG CWX, 2013 WL 655237, at *6 (C.D.Cal. Feb. 22, 2013). Gomez filed a timely appeal, arguing that the Yearsley doctrine is inapplicable.

This Court reviews summary judgment de novo, affirming only where there exists no genuine dispute of material fact. Satterfield, 569 F.3d at 950; see also Fed. R.Civ.P. 56(a). We are free to affirm “on any basis supported by the record.” Gordon v. Virtumundo, Inc., 575 F.3d 1040, 1047 (9th Cir.2009).

II.

We begin with jurisdiction. Upon Gomez’s timely appeal, Campbell-Ewald filed a motion to dismiss for lack of jurisdiction, arguing that the personal and putative class claims were mooted by Gomez’s refusal to accept the settlement offer. We denied that motion without prejudice, and now reject CampbellEwald’s argument on the merits.

Gomez’s individual claim is not moot. Campbell-Ewald argues that “whether or not the class action here is moot,” the individual claim was mooted by Gomez’s rejection of the offer. The company is mistaken. Although this issue was *875 unsettled until recently, we have now expressly resolved the question. “[A]n unaccepted Rule 68 offer that would fully satisfy a plaintiffs claim is insufficient to render the claim moot.” Diaz v. First Am. Home Buyers Prot. Corp., 732 F.3d 948, 950 (9th Cir.2013). Because the unaccepted offer alone is “insufficient” to moot Gomez’s claim, and as CampbellEwald identifies no alternate or additional basis for mootness, the claim is still a live controversy.

Similarly, the putative class claims are not moot. We have already explained that “an unaccepted Rule 68 offer of judgment — for the full amount of the named plaintiffs individual claim and made before the named plaintiff files a motion for class certification — does not moot a class action.” Pitts v. Terrible Herbst, Inc., 653 F.3d 1081, 1091-92 (9th Cir.2011). Like the Pitts plaintiff, Gomez rejected the offer before he moved for class certification. Gomez’s rejection therefore does not affect any class claims.

Campbell-Ewald recognizes that it is asking this panel to depart from these precedents. Yet it is well settled that we are bound by our prior decisions. Miller v. Gammie, 335 F.3d 889, 900 (9th Cir. 2003) (en banc). Although there is an exception for precedents that have been overruled, that exception applies only where “the relevant court of last resort [has] undercut the theory or reasoning underlying the prior circuit precedent in such a way that the cases are clearly irreconcilable.” Ibid.

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768 F.3d 871, 61 Communications Reg. (P&F) 363, 2014 U.S. App. LEXIS 18019, 2014 WL 4654478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jose-gomez-v-campbell-ewald-co-ca9-2014.