R.A. Ponte Architects, Ltd. v. Investors' Alert, Inc.

857 A.2d 1, 382 Md. 689, 2004 Md. LEXIS 503
CourtCourt of Appeals of Maryland
DecidedAugust 26, 2004
Docket17, Sept. Term, 2003
StatusPublished
Cited by39 cases

This text of 857 A.2d 1 (R.A. Ponte Architects, Ltd. v. Investors' Alert, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R.A. Ponte Architects, Ltd. v. Investors' Alert, Inc., 857 A.2d 1, 382 Md. 689, 2004 Md. LEXIS 503 (Md. 2004).

Opinion

ELDRIDGE, J.

The issue in this case is whether Maryland courts may entertain a private cause of action for damages, under the provisions of the federal Telephone Consumer Protection Act, 47 U.S.C. § 227, for the receipt of unsolicited commercial telephone facsimile messages. We shall hold that such actions may be brought in the courts of this State.

I.

Petitioner, R.A. Ponte Architects, Ltd. (“Ponte”), is a Maryland corporation located in Bethesda, Maryland. According to the allegations of the complaint, Ponte received unsolicited *692 advertisements via facsimile on August 23, 2000, and on several occasions subsequently. These advertisements consisted of an investment newsletter entitled “Investors’ Alert,” created by Investors’ Alert, Inc. and Access Financial Consulting, Inc. The newsletter promoted its own paid subscription, and the purchase of the common stock of certain small corporations, and was distributed free of charge via facsimile broadcast, which permits the transmission of the facsimile to thousands of recipients in a single broadcast session.

Ponte filed a complaint and a motion for class certification in the Circuit Court for Montgomery County against Investors’ Alert and Access Financial, alleging violations of the Telephone Consumer Protection Act, 47 U.S.C. § 227. 1 The motion for class certification was never ruled upon. Following discovery, Investors’ Alert and Access Financial filed a motion to dismiss, which was granted after oral argument, on the basis “that no private cause of action exists within the State of Maryland to allow these claims to proceed.” The court reasoned that Maryland Code (1975, 2000 Repl.Vol.), § 14-1313 of the Commercial Law Article, addresses the issue of unsolicited *693 faxes and makes no provision for private suits. 2

Ponte noted a timely appeal to the Court of Special Appeals, and the intermediate appellate court affirmed the judgment of the Circuit Court. See R.A. Ponte Architects, Ltd. v. Investors’ Alert, 149 Md.App. 219, 238-239, 815 A.2d 816, 827 (2003), where the Court of Special Appeals stated:

“In sum, Maryland has a statute, [Maryland Code § 14-1313 of the Commercial Law Article], that covers substantially the subject matter covered by the claim raised in this lawsuit under the TCPA. Appellant could not proceed under the Maryland statute, because it does not permit a private right of action. By opting not to create a private right of action for violation of Maryland law, the legislature has indicated its intent not to permit a private right of action for violation of the comparable federal law.”

Ponte then petitioned this Court for a writ of certiorari, which we granted. Ponte v. Investors’ Alert, 374 Md. 358, *694 822 A.2d 1224 (2003). The Court also granted motions to participate as amici curiae to the State of Maryland and to a private individual on behalf of the petitioner, and to PrimeTV, LLC and DirecTV, Inc., on behalf of the respondents. 3

II.

The only question in this case is whether a Maryland trial court is authorized to entertain the federal cause of action created by Congress in the Telephone Consumer Protection Act, 47 U.S.C., § 227. Before addressing this specific question, however, it would be useful to review the law concerning the jurisdiction of Maryland courts over civil causes of action created by the laws of other jurisdictions, and particularly civil causes of action created by federal law.

As a general matter, courts in Maryland regularly entertain civil causes of action arising under the laws of other jurisdictions. See Ward v. Nationwide Mutual Automobile Ins., 328 Md. 240, 247, 614 A.2d 85, 88 (1992); Rein v. Koons Ford, 318 Md. 130, 135, 567 A.2d 101, 103 (1989); Kramer v. Bally’s Park Place, 311 Md. 387, 535 A.2d 466 (1988); County Exec., *695 Prince George’s County v. Doe, 300 Md. 445, 453-455, 479 A.2d 352, 356-357 (1984); Pine Street Trading v. Farrell Lines, 278 Md. 363, 379-380, 364 A.2d 1103, 1114 (1976); Texaco, Inc. v. Bosche, 242 Md. 334, 339-340, 219 A.2d 80, 83 (1966); Lambros v. Brown, 184 Md. 350, 356-357, 41 A.2d 78, 81 (1945); B & O Rail Road Co. v. Glenn, 28 Md. 287, 322 (1868); LaChance v. Service Trucking Co., 215 F.Supp. 162, 165 (D.Md.1963).

Moreover, Maryland courts exercise jurisdiction in such actions even when identical causes of action could not be brought under Maryland law. See, e.g., Rein v. Koons Ford, supra, 318 Md. at 133-138, 567 A.2d at 102-104; Kramer v. Bally’s Park Place, supra, 311 Md. at 392, 535 A.2d at 468; County Exec., Prince George’s County v. Doe, supra, 300 Md. at 452-456, 479 A.2d at 355-358; Lambros v. Brown, supra, 184 Md. at 354-355, 41 A.2d at 79-80; B & O Rail Road Co. v. Glenn, supra, 28 Md. at 322. See also LaChance v. Service Trucking Co., supra, 215 F.Supp. at 162-163.

The principle that Maryland courts will entertain civil causes of action arising under the laws of other jurisdictions reflects the nature of judicial jurisdiction and the differences between “ ‘the political jurisdiction of a State [and] its judicial jurisdiction.’ ” Hansford v. District of Columbia, 329 Md. 112, 129, 617 A.2d 1057, 1065, cert. denied, 509 U.S. 905, 113 S.Ct. 2997, 125 L.Ed.2d 690 (1993), quoting Gulf Offshore Co. v. Mobil Oil Corp., 453 U.S. 473, 482, 101 S.Ct. 2870, 2877, 69 L.Ed.2d 784, 794 (1981). This Court in Hansford continued (329 Md. at 130, 617 A.2d at 1065, quoting the Gulf Offshore opinion, 453 U.S. at 481, 101 S.Ct. at 2877, 69 L.Ed.2d at 793):

“ ‘ “The judiciary power of every government looks beyond its own local or municipal laws, and in civil cases lays hold of all subjects of litigation between parties within its jurisdiction, though the causes of dispute are relative to the laws of the most distant part of the globe.” The Federalist No. 82, p. 514 (H. Lodge ed. 1908) (Hamilton), quoted in Claflin v. Houseman, 93 U.S. [130] at 138 [23 L.Ed. 833 (1876) ]. State courts routinely exercise subject-matter jurisdiction over civil cases arising from events in *696 other States and governed by the other States’ laws. See, e.g., Dennick v. Railroad Co., 103 U.S. 11[, 26 L.Ed.

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857 A.2d 1, 382 Md. 689, 2004 Md. LEXIS 503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ra-ponte-architects-ltd-v-investors-alert-inc-md-2004.