Physicians Healthsource, Inc. v. Stryker Sales Corp.

65 F. Supp. 3d 482, 2014 WL 7109630
CourtDistrict Court, W.D. Michigan
DecidedDecember 12, 2014
DocketCase No. 1:12-CV-0729
StatusPublished
Cited by25 cases

This text of 65 F. Supp. 3d 482 (Physicians Healthsource, Inc. v. Stryker Sales Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Physicians Healthsource, Inc. v. Stryker Sales Corp., 65 F. Supp. 3d 482, 2014 WL 7109630 (W.D. Mich. 2014).

Opinion

OPINION AND ORDER

ROBERT J. JONKER, District Judge.

This is a civil action for alleged violations of the Telephone Consumer Protection Act, 47 U.S.C. § 227. Before the Court is Defendant Howmedica’s Motion for Summary Judgment (docket no. 91), Defendant Stryker’s Motion for Summary Judgment (docket no. 95), and Plaintiff PHI’s Motion for Summary Judgment (docket no. 97). The Court finds as a matter of law that the faxes at issue are “unsolicited,” but that genuine issues of material fact preclude summary judgment for any party on all other issues. Accordingly, the motions are denied because no party is entitled to judgment as a matter of law.

I. BACKGROUND

Defendant Stryker Corporation and its subsidiaries — Stryker Biotech LLC, Stryker Corp., and Howmedica Osteonics Corp. — design, manufacture, and sell products used in joint replacement and trauma surgeries, including total joint arthroplast-ies. (R. 27-3, Ex. C., PagelD # 265.) Defendants conducted Primary Care Physician (“PCP”) seminars relating to the field in which they operate. Howmedica promoted the PCP seminars by fax, focusing on either the recipient’s medical speciality or geographic location. Howmedica purchased lists of fax numbers from Redi-Mail Direct Marketing, Inc. (“RediMail”), a list provider company. The parties disagree whether the seminars were promotional or educational in nature.

Dr. Martinez was a medical doctor in Cincinnati, Ohio. He practiced with Physician’s Healthsource, Inc. (“PHI”). On or around October 12, 2009, one or more of [485]*485Defendants faxed Plaintiff an invitation to attend an upcoming seminar at Jeff Ruby’s, a Cincinnati steakhouse. The sent fax included a cover letter with the following: “Please join us for an engaging discussion on the latest advancements in or-thopaedics, including arthritis of hip & knee and advancements in total joint ar-throplasty, presented by Dr. Pamela Pe-trocy, on Wednesday, October 14th at 6:30pm. RSVP to Jen at [redacted] today. (Dinner will be served.)” (R. 61M, Ex. D at 2, PagelD # 780.) Two pages accompanied the cover letter. The first page included the Stryker logo and a picture of an unidentified orthopedic implant — the parties disagree whether it is one of Defendants’ products or a generic product — with the headline, “Advancements in Ortho-paedics for The Primary Care Physician.” Also included was information concerning the guest speaker, Dr. Pamela Petrocy, an orthopedic surgeon. (R. 61-4, Ex. D at 3, PagelD # 781.) The second page repeated information from the first page, as well as noted that covered topics would include “Arthritis of the Hip and Knee” and “Advancements in Total Joint Arthro-plasty.” (R. 61M, Ex. D at 4, PagelD # 782.) No language providing a recipient with information on how to “opt-out” of future correspondence appeared on the fax. It is undisputed that Defendant sent 15,041 similar faxes to 8,065 unique numbers between December 3, 2009 and August 8, 2011. (R. 61-8, Ex. G, PagelD # 965.)

Defendants say they got Plaintiffs fax number — at least indirectly — from Plaintiff itself. Dr. Martinez, a medical doctor, provided both his and PHI’s contact information to the American Medical Association (“AMA”). (R. 92, Howmedica Br. at 3, PagelD # 2425.) The contact information included a fax number as part of his response to the AMA’s 2003 Census. Defendants’ claim that by including the fax number, Dr. Martinez consented to receive at least some faxed communications associated with the licensed use of the AMA’s physician database. (R. 92, Howmedica Br. at 2, 8, PagelD # 2424, 2430.) In fact, the census form itself does not include any formal consent question; rather, it simply says the number “is necessary so you can receive medically-related information, including advertising, approved by the AMA.” (R. 92-5, Ex. D at 6, PagelD #2534.) It appears the AMA presumes consent and then offers its members the option of submitting a separate request for a “No Contact” or “Do Not Release” option. (R. 92-5, Ex. D at 12, PagelD # 2540.) The boilerplate disclosure language certainly does not encourage opt out. To the contrary, after noting some potential issues regarding the “Do Not Release” option in particular, the AMA concludes: “If after careful consideration you decide to request a change [from what appears to be the default position],” the doctor may notify the AMA by email, phone, fax, or regular mail, or the doctor may visit the AMA’s website. (R. 92-5, Ex. D at 12, PagelD # 2540.) Again, this must be made by separate communication, not as part of a “check-the-box” opt-out on the census form itself.

The AMA placed Dr. Martinez’s contact information in its “masterfile” based on Dr. Martinez’s response to the 2003 census form. There is no evidence of his response to any other census form even though it is distributed annually. Nor is there any direct evidence of what Dr. Martinez himself said on the response at any time. Rather, the record consists of what the AMA Masterfile reports was on a form from Dr. Martinez. No original document signed or submitted by Dr. Martinez is part of the record. Provided in the same envelope as the census form was a privacy statement, stating that “Masterfile infor[486]*486mation is made available to Database Licensees, who operate under strict usage agreements.” (R. 92, Howmedica Br. at 9, PagelD #2431.) The privacy statement further stated that the Database Licensees could fax information concerning continuing medical education programs, medical equipment and supplies, and general practice-related commercial offers of interest to physicians as consumers. (R. 92, Howmedica Br. at 10, PagelD #2432.) The privacy statement also included information on how to elect either a “Do Not Release” or “No Contact” option, which would have kept Dr. Martinez from receiving faxes. (R. 92, Howmedica Br. at 10, PagelD # 2432.)

Database Licensees that obtained contact-information lists from the AMA entered into contractual agreements with the AMA relating to conditions of usage. The AMA’s “Conditions of Usage For Facsimile Transmissions” provide in relevant part as follows:

(iii) DATABASE LICENSEE agrees that facsimile transmissions shall be used for conveying information germane to the practice of medicine. Any use of conveying consumer and/or commercial information and/or advertising to physician’s as general consumers is strictly prohibited. All materials to be faxed pursuant to the terms of this Section shall contain the name, address and telephone number of the organization utilizing the fax numbers and contain the following notices conspicuously located within the materials:
If you have questions about this specific fax, or wish to be removed from receiving future faxes from (sender’s name) please call (sender’s phone number).

(R. 92-4, Ex. N at 2, PagelD #2527 (emphasis added).) The fax sent to PHI did not include the contractual opt-out language or any other opt-out notice.

On October 14, 2012, Dr. Petrocy spoke at and moderated the free dinner seminar at Jeff Ruby’s Steakhouse. (R. 109, PI. Br. at 9, PagelD #4277.) Dr. Petrocy was not a Stryker employee, however Stephanie Groh, program director at Stryker, testified that only orthopedic surgeons who used Stryker products were used as seminar speakers because those surgeons understood the clinical features of Stryker’s products. (R. 98, PI. Br.

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Cite This Page — Counsel Stack

Bluebook (online)
65 F. Supp. 3d 482, 2014 WL 7109630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/physicians-healthsource-inc-v-stryker-sales-corp-miwd-2014.