Kavu, Inc. v. Omnipak Corp.

246 F.R.D. 642, 2007 U.S. Dist. LEXIS 5207, 2007 WL 201093
CourtDistrict Court, W.D. Washington
DecidedJanuary 23, 2007
DocketNo. C06-109RSL
StatusPublished
Cited by39 cases

This text of 246 F.R.D. 642 (Kavu, Inc. v. Omnipak Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kavu, Inc. v. Omnipak Corp., 246 F.R.D. 642, 2007 U.S. Dist. LEXIS 5207, 2007 WL 201093 (W.D. Wash. 2007).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR CLASS CERTIFICATION

ROBERT S. LASNIK, District Judge.

I. INTRODUCTION

This matter comes before the Court on a motion for class certification filed by plaintiff Kavu, Inc. (“Kavu”). (Dkt. #23). Plaintiff alleges that defendant Omnipak Corporation (“Omnipak”) sent it an unsolicited advertisement via facsimile in violation of federal and [645]*645Washington law. Plaintiff seeks to represent a class of people who received the same facsimile. At defendant’s request, the Court heard oral argument in this matter on January 23, 2007.

For the reasons set forth below, the Court finds that class certification is warranted but narrows the proposed class.

II. DISCUSSION

A. Factual Background.

Plaintiff Kavu operates an outdoor clothing and accessories business in Seattle. Omnipak is a small corporation, employing seven people, that sells packaging material to manufacturers and suppliers of goods. It does not generally sell to the retail market.

On August 13, 2005, Kavu received a one-page unsolicited advertisement by facsimile from Omnipak. Kavu had never done business with Omnipak and did not request the facsimile. On or around that day, Omnipak sent the same facsimile (“the facsimile”) to approximately 3,000 entities in Washington, Oregon, Montana and Idaho. Omnipak obtained the recipients’ facsimile numbers from Manufacturers’ News, a company that apparently compiles contact information for businesses and sells the compilations as databases to third parties. Manufacturers’ News’ website states that it obtains information about businesses from various public sources, then contacts the businesses periodically to update the information and ensure accuracy. Declaration of James Johnson, (Dkt.#34) (“Johnson Decl.”), Ex. A. Prior to sending the facsimile, Omnipak had never before sent a broadcast facsimile, and it has not done so since.

Kavu asserts that as a result of receiving the facsimile, it experienced damages due to the loss of its paper and toner, the temporary loss of use of its facsimile machine, the potential loss of business while its facsimile machine was in use, and a violation of its right to privacy. Kavu alleges violations of the Telephone Consumer Protection Act of 1991 (“TCPA”), 47 U.S.C. § 227. The TCPA prohibits, among other things, “use of any telephone facsimile machine, computer, or other device to send, to a telephone facsimile .machine, an unsolicited advertisement” absent certain conditions. 47 U.S.C. § 227(b)(1)(C). The TCPA does not prohibit sending an unsolicited advertisement if the facsimile contains a notice that meets certain requirements, and the sender either has an established business relationship with the recipient or the sender obtained the facsimile machine number through “a directory ... to which the recipient voluntarily agreed to make available its facsimile number for public distribution.” 47 U.S.C. § 227(b)(1)(C)(ii)(II). An “unsolicited advertisement” is one that is “transmitted to any person without that person’s prior express invitation or permission, in writing or otherwise.” 47 U.S.C. § 227(a)(5).

Kavu also alleges that Omnipak violated the Washington Unsolicited Facsimile Act (“WUTA”), RCW 80.36.540, and the Washington Consumer Protection Act (“CPA”), RCW 19.86 et seq. The TCPA and the WUTA provide for a $500 penalty for sending an unsolicited facsimile. 47 U.S.C. § 227(b)(3)(B); RCW 80.36.540(2). The TCPA provides for trebling the penalty if the sender “willfully or knowingly” violated the Act. 47 U.S.C. § 227(b)(3). A violation of the WUTA is also a violation of the CPA. The CPA provides for attorney’s fees and the discretionary trebling of actual damages up to $10,000.

Plaintiff filed its complaint in King County Superior Court. Defendant removed the case to this Court based on the Class Action Fairness Act of 2005 (“CAFA”), Pub.L. No. 109-2.

Plaintiff seeks to represent the following class:

All persons who received an unsolicited advertisement promoting “Omnipak’s Summer Bag Special is here” via facsimile from Defendant during the period of time defined by the applicable statute of limitations.

Plaintiff seeks to represent a nationwide class for the TCPA claim, and a Washington state subclass for the WUTA and CPA claims.

[646]*646B. Subject Matter Jurisdiction.

As an initial matter, this Court must determine if it has subject matter jurisdiction over this dispute. Plaintiff has raised the issue, although both parties assert that this Court has jurisdiction. Section 227(b)(3) of the TCPA provides a private right of action under the statute and states 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 injunctive relief or damages. Courts have interpreted that section to mean that the statute does not provide a basis for federal court jurisdiction. See, e.g., Murphey v. Lanier, 204 F.3d 911, 915 (9th Cir.2000) (explaining that state courts have “exclusive jurisdiction” over TCPA claims; “the failure to provide for federal jurisdiction indicates that there is none”). Although the holding in Murphey is broadly phrased, that case did not involve or address diversity jurisdiction. Nor does the opinion appear to preclude district courts from hearing TCPA claims where some other independent basis for jurisdiction exists. Two circuit courts have subsequently held that federal courts have diversity jurisdiction over private causes of action brought under the TCPA. Gottlieb v. Carnival Corp., 436 F.3d 335 (2d Cir.2006); Brill v. Countrywide Home Loans, Inc., 427 F.3d 446 (7th Cir.2005); see also Kopff v. World Research Group, LLC, 298 F.Supp.2d 50, 55 (D.D.C.2003). In Brill, the court held that defendants properly removed the TCPA ease under CAFA.

Similarly, in this case, jurisdiction is alleged to exist based on CAFA, which was enacted after Murphey. Under 28 U.S.C. § 1441

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Cite This Page — Counsel Stack

Bluebook (online)
246 F.R.D. 642, 2007 U.S. Dist. LEXIS 5207, 2007 WL 201093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kavu-inc-v-omnipak-corp-wawd-2007.