Payton v. Kale Realty, LLC

164 F. Supp. 3d 1050, 64 Communications Reg. (P&F) 383, 2016 WL 703869, 2016 U.S. Dist. LEXIS 21655
CourtDistrict Court, N.D. Illinois
DecidedFebruary 22, 2016
DocketCase No. 13 C 8002
StatusPublished
Cited by14 cases

This text of 164 F. Supp. 3d 1050 (Payton v. Kale Realty, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Payton v. Kale Realty, LLC, 164 F. Supp. 3d 1050, 64 Communications Reg. (P&F) 383, 2016 WL 703869, 2016 U.S. Dist. LEXIS 21655 (N.D. Ill. 2016).

Opinion

OPINION AND ORDER

Joan H. Lefkow, United States District Judge

Rusty Payton and Juan Soto filed suit against Kale Realty, LLC (Kale) and Voi-ceShot, LLC (VoiceShot), alleging that defendants sent unsolicited text messages to plaintiffs’ cellular telephones in violation of the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227(b)(1)(A)(iii). (Dkt. 134 (Second Amend Compl.).) Defendants Kale and VoiceShot have moved for summary judgment. (Dkts. 131, 139.) For the reasons stated below, their motions are granted.1

BACKGROUND2

During the fall of 2011, Nick Patterson, the sole shareholder of Kale, met in person, had telephone discussions, and exchanged emails with Payton. (See dkt. 150 ¶ 5-6.) On December 19 and 23 of that year, Payton sent Patterson three emails to “kalerealty.com.” (Id. ¶ 8.) Sometime thereafter, still during the month of December, Payton and Patterson exchanged at least five additional emails. (Id. ¶ 10.) The emails related to an ongoing discussion between them of “the possibility of merging Payton’s business and Patterson’s business, and forming a new business entity... .Patterson would be the president of the merged business, and Payton would assume the position of managing broker and be an employee of the new business entity.” (Dkt. 154 ¶ 14.) In at least three of these emails, Payton provided his cellular telephone number and other contact information to Patterson. (Dkt. 150 ¶¶ 7, 11.) After Payton provided his cellular number [1054]*1054to Patterson, Payton never instructed Patterson not to contact him at that number. (Id. ¶ 9.) In January 2012, the discussions between Payton and Patterson ended. (Dkt. 154 ¶ 15.)

On October 17, 2013, Payton received a text message on his cellular telephone which read, “Kale Realty named 2013 Top 100 Places to Work by Tribune — We pay 100% on sales — Reply or visit http:// joinkale.com to learn more! Rply 68 to unsubscribe.” (Id. ¶ 16.) Kale used Voi-ceShot’s services to send this text message to Payton. (Dkt. 134 ¶ 17.)

VoiceShot is a Delaware limited liability company that offers web-based communication services that subscribers may access and use through a web-based user interface hosted on VoiceShot’s website. (Dkt. 143 ¶ 10.) “Voiceshot holds itself out via its publicly available website to serve all potential users of its communications service on the same terms and conditions.” (Dkt. 143 ¶ 18.) VoiceShot customers can use VoiceShot’s group text messaging service to send and receive text messages from telephone numbers that the customer uploads into VoiceShot’s system. (Id. ¶ 11.)

‘VoiceShot does not provide its subscribers with lists of telephone numbers or otherwise select to whom the subscribers decide to send text messages.” (Id. ¶ 12.) Indeed, VoiceShot does not control any of its subscribers’ recipient lists or the content of their messages. In fact, “VoiceShot subscribers like Kale populate their individual contact lists through one of two methods: (1) manually inputting telephone numbers; or (2) uploading telephone numbers contained on a separate software file, such as an Excel spreadsheet, into their contacts lists.” (Id. ¶ 26.) Then, to send a group text message, the subscriber must first input the content of the message they wish to transmit and specify the telephone numbers to which the message will be transmitted. (Id. ¶ 28.) The message will not be transmitted to downstream carriers “unless an individual subscriber directs VoiceShot to transmit the text message at the time of the subscriber’s choosing.” (Id. 1130.) After the subscriber has created the content of his or her text message and selected the telephone numbers to be called, the subscriber must hit the “begin” button in the user interface. (Id. ¶ 14.) VoiceShot then converts the message into a format that a downstream carrier can understand, and ultimately the message is received as a text message. (See id. ¶ 15.)

LEGAL STANDARD

Summary judgment obviates the need for a trial where there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). A genuine issue of material fact exists if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). To determine whether any genuine fact issue exists, the court must pierce the pleadings and assess the proof as presented in depositions, answers to interrogatories, admissions, and affidavits that are part of the record. Fed. R. Civ. P. 56(c). In doing so, the court must view the facts in the' light most favorable to the non-moving party and draw all reasonable inferences in that party’s favor. Scott v. Harris, 550 U.S. 372, 378, 127 S.Ct. 1769, 167 L.Ed.2d 686 (2007). The court may not weigh conflicting evidence or make credibility determinations. Omnicare, Inc. v. UnitedHealth Grp., Inc., 629 F.3d 697, 704 (7th Cir.2011).

The party seeking summary judgment bears the initial burden of proving there is no genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In re[1055]*1055sponse, the non-moving party cannot rest on bare pleadings alone but must designate specific material facts showing that there is a genuine issue for trial. Id. at 324, 106 S.Ct. 2548; Insolia v. Philip Morris Inc., 216 F.3d 596, 598 (7th Cir.2000). If a claim or defense is factually unsupported, it should be disposed of on summary judgment. Celotex, 477 U.S. at 323-24, 106 S.Ct. 2548.

ANALYSIS

I. VoiceShot

VoiceShot argues that it is not subject to liability under the TCPA because it is a common carrier and did not initiate the text messages plaintiffs received. VoiceSh-ot also argues that is it not liable because its platform is not an automated telephone dialing system (ATDS).

Under the TCPA, it is unlawful “to make any call (other than a call made for emergency purposes or made with the prior express consent of the called party) using an 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). The TCPA, however, generally does not apply to common carriers. S.Rep. No. 102-78 (1991), 1991 WL 211220 at *9.3 Indeed, common carriers are immune from TCPA liability unless they have a “high degree of involvement or actual notice of an illegal use and failure to take steps to prevent such transmissions.”

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Bluebook (online)
164 F. Supp. 3d 1050, 64 Communications Reg. (P&F) 383, 2016 WL 703869, 2016 U.S. Dist. LEXIS 21655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/payton-v-kale-realty-llc-ilnd-2016.