Keating v. Peterson's Nelnet, LLC

615 F. App'x 365
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 21, 2015
Docket14-3558
StatusUnpublished
Cited by29 cases

This text of 615 F. App'x 365 (Keating v. Peterson's Nelnet, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keating v. Peterson's Nelnet, LLC, 615 F. App'x 365 (6th Cir. 2015).

Opinion

MARTHA CRAIG DAUGHTREY, Circuit Judge.

Plaintiff Grant Keating, on behalf of a putative class of plaintiffs, appeals the district court’s grant of summary judgment to defendants Nelnet, Inc., Peterson’s Nel-net, LLC, and CUnet, LLC, on Keating’s allegation that the defendants violated provisions of the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227, by sending an unsolicited.text message to his cellular telephone. Although Keating concedes that the-defendants themselves did not send the text message, he argues that the defendants should be held vicariously liable for the illegal actions of downstream vendors. The district court held to the contrary, finding the evidence on summary judgment insufficient to establish liability. We affirm.

*367 FACTUAL AND PROCEDURAL BACKGROUND

Grant Keating, an Ohio resident, is a licensed attorney who works for the' law firm that represents him in this matter. Keating alleged that he received the following text message on his cellular telephone on June 10, 2011: “Searching for a college or trade school? Get FREE education advice. Call to speak to an advisor now at 866-944-3042. Send STOP to opt out.” He maintained that he did not solicit information about colleges or trade schools and did not consent to receive any such advertisements by text message on his phone. Consequently, Keating referred the matter to his attorneys, who filed suit in federal district court, alleging violations of the TCPA on behalf of the'plaintiff and a putative class of similarly situated persons “who received calls on their cellular telephones from Defendants’ automatic telephone dialing system' without giving Defendants prior express consent.” Through the ensuing discovery process, the relevant facts underlying this appeal were brought to light. Documentary and testimonial evidence revealed that defendant Nelnet, Inc., is the parent company of both Peterson’s Nelnet, LLC, and CUnet, LLC, sister companies under the direction of Todd Eicher. Eicher explained that CUnet was formed to provide marketing services to higher-education institutions; Specifically, “CUnet uses various marketing media, including mobile media, in an attempt to generate potential student inquiries for its ... clients.” One such service offered by CUnet, CollegeQuest, attempted “to match prospective student candidates with higher education institutions” through a website operated for Col-legeQuest.

CUnet’s CollegeQuest Campaign consisted of two components — a elick-to-call (CollegeQuest C2C) program and a click-to-web (CollegeQuest C2W) program. As explained by Akeel Haider, CUnet’s mobile media strategist:

The CollegeQuest C2C Campaign only was to involve graphical banner images contained in mobile-optimized web pages and/or in mobile applications used on mobile electronic devices which would encourage the end user to “click” the image. Once the end-user clicked the banner image, the user’s cell phone would open a new web browser which would be directed to a separate mobile web page. That separate ■ web page would contain information on how to contact CollegeQuest, including a specific telephone number. The end-user could click on the telephone number to call the CollegeQuest call center directly from the user’s cell phone. íjí # sf: %
The CollegeQuest C2W Campaign was ■ intended to be a mobile media marketing campaign in which graphical images were to be displayed on banner adver- ' tisements contained in the internet web browser pages and/or mobile application programs used on mobile electronic devices. The graphical marketing banners were intended to encourage the mobile device user to “click” on the graphical image to initiate the process of opening the mobile device’s web browser application to a mobile web page. That mobile web page would contain an informational form which would ask the mobile device user to enter certain contact information so that the user could receive more information. The mobile device user could not call any telephone number directly from the web page.

To carry out the two campaigns, CUnet contracted with CornerBlue, a marketing company “specifically focused on mobile devices that use mobile applications or have internet web browsing capabilities.”

*368 As part of that contract with CornerBlue, CUnet provided CornerBlue with the graphical banner images that CUnet had developed and that Haider referenced. CUnet made clear to CornerBlue “that the CollegeQuest C2C Campaign was not to involve the use of SMS [short messaging service] or text messages. CornerBlue also understood that it was not authorized to send SMS or text messages for the CollegeQuest C2C Campaign.” In fact, “[b]ecause of the graphical nature of the banner images developed by CUnet, the images could not be used in text messages as a click to call.” Similarly, “[t]he Colle-geQuest C2W Campaign was purely a graphical banner campaign” and thus did not involve click-to-call telephone numbers or the sending of text messages.

CornerBlue conducted the entire Colle-geQuest C2W Campaign itself, and no text messages were sent in connection with that advertising effort. Unfortunately, the CollegeQuest C2C Campaign was not as free from misuse. Despite its contract with CUnet that prohibited the assignment, transfer, or delegation of any obligation incurred under the terms of the document without prior written consent from CUnet, CornerBlue subcontracted its click-to-call campaign obligations to AKMG, Inc., on June 2, 2011. Moreover, CornerBlue never informed CUnet of the subcontracting of the CollegeQuest C2C Campaign to AKMG. CornerBlue, however, was adamant that it never authorized AKMG to send SMS or text messages for the campaign or to publish any click-to-call campaigns using text messages or materials other than the banner images received from CUnet. Otherwise, CornerBlue controlled neither the manner and means by which AKMG performed its work nor the detail or quality of that work.

CornerBlue’s subcontract with AKMG did not define the extent of CUnet’s attenuation from the ultimate transmission of the text message to Keating. In fact, the evidence before the district court indicated that AKMG in turn entered into its own agreement with River City Media, LLC, whereby AKMG would supply River City Media with language to be used in an advertising campaign — the same campaign for which CornerBlue had contracted with AKMG — and River City Media would transmit that advertisement through text messaging using an auto-dialer. Matt Ferris, a River City Media representative, testified during his deposition that AKMG specifically indicated to him that the information provided by AKMG was to be sent via text messaging. Ferris stated further that although he thought that River City Media was using a list of recipients who had consented to the receipt of text messages, his company never took steps to insure that the recipients of the text messages actually had consented to receiving such advertisements.

Ferris also testified that River City Media’s only correspondence regarding the campaign was with representatives of AKMG, and that no one from his company ever had dealings with anyone from Cor-nerBlue, from Nelnet, from Peterson’s Nelnet, or from CUnet.

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615 F. App'x 365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keating-v-petersons-nelnet-llc-ca6-2015.