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

815 A.2d 816, 149 Md. App. 219, 2003 Md. App. LEXIS 5
CourtCourt of Special Appeals of Maryland
DecidedJanuary 29, 2003
Docket537, Sept. Term, 2001
StatusPublished
Cited by12 cases

This text of 815 A.2d 816 (R.A. Ponte Architects, Ltd. v. Investors' Alert, Inc.) is published on Counsel Stack Legal Research, covering Court of Special 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., 815 A.2d 816, 149 Md. App. 219, 2003 Md. App. LEXIS 5 (Md. Ct. App. 2003).

Opinion

BARBERA, J.

In this appeal we decide a question of first impression— whether a private cause of action may be brought in Maryland to enforce the prohibition in the Telephone Consumer Protection Act of 1991 (“the TCPA” or “the Act”), against the transmission of unsolicited commercial facsimiles. We hold that the General Assembly has not accepted the jurisdiction conferred upon the states by the TCPA, and, thus, such private actions may not be brought in Maryland state courts.

The underlying facts of this case are not in dispute. On several occasions during the summer of 2000, appellant, R.A. Ponte Architects, Ltd., received on its fax machine unsolicited copies of an investment newsletter entitled “Investors’ Alert.” The transmissions were sent free of charge, and encouraged the purchase of stock in select corporations and solicited subscription to future issues of the newsletter.

On October 24, 2000, appellant filed a class action complaint in the Circuit Court for Montgomery County, naming as defendants appellees, Investors’ Alert, Inc. and Access Financial Consulting, Inc. Appellant alleged that appellees had *221 violated the TCP A, which prohibits, inter alia, the use of a telephone fax machine to send unsolicited advertising to another fax machine. 47 U.S.C. § 227(b)(1)(C) (1991). Appellees thereafter filed a motion to dismiss and a supporting memorandum of law, arguing that appellant’s complaint failed to state a claim upon which relief can be granted. Appellees specified that Maryland law “does not provide for a private cause of action,” and that, had the Maryland General Assembly intended a private cause of action to exist, its intent would be reflected in the language of Maryland’s law prohibiting the intentional electronic or telephonic transmission to a fax machine for the purpose of commercial solicitation. See Md.Code (1975, 2000 Repl.Vol.), § 14-1313 of the Commercial Law Article (“CL”).

Appellant opposed the motion to dismiss. Appellant mounted three arguments in support of the validity of its claim under the TCPA: (1) the Supremacy Clause of the United States Constitution vests jurisdiction over private causes of action in state courts; (2) statutory language enabling a private cause of action is not required in order for a plaintiff to file suit; and (3) CL § 14-1313 cannot be construed to mean that no private cause of action exists when the statute is silent on the issue.

The instant case was one of two such cases then pending in the Circuit Court for Montgomery County. 1 The cases presented identical motions to dismiss, which, at the request of appellant, were jointly heard. At the hearing’s conclusion, the court granted appellees’ motion to dismiss, stating:

In each of these cases [i.e., the instant case and the Nixon case], the Plaintiffs are bringing private causes of action under the Telephone Consumer Protection Act.. . .
*222 The Defendants have moved to dismiss on the basis that no private cause of action exists within the State of Maryland to allow these claims to proceed.
The language in the [TCPA] that [counsel for appellant] has referred to ... states that “Private right of action, a person or entity may, if otherwise permitted by the laws or rules of the Court of a State, bring in an appropriate Court of that state and [sic] action,” and that is the basis for bringing the action in these cases.
Commercial law article Section 14-1313 addresses the basis for bringing causes of action that the Plaintiffs seek to bring in these lawsuits.
The attorney general is empowered to bring the causes of action that exist under the state of the law in Maryland. There is no private cause of action with respect to these claims.

From the dismissal of its case, appellant has appealed, 2 and presents the following question:

Do Maryland courts have subject matter jurisdiction over private suits for unsolicited faxes under the TCPA [Telephone Consumer Protection Act]?

DISCUSSION

The issue presented by this case is, at its core, an issue of statutory construction. Its resolution requires that we examine not only the TCPA itself, but Maryland’s Consumer Protection Act, particularly CL § 14-1313, which prohibits the sending of unsolicited commercial advertisements by facsimile. We therefore begin our analysis with a discussion of the TCPA and CL § 14-1313, as well as other commercial law provisions relevant to the decision in this case.

*223 I.

The Telephone Communications Protection Act

In 1991, Congress amended the Communications Act of 1934 with enactment of the TCPA, codified at 47 U.S.C. § 201 et seq. Its purpose “is to protect residential telephone subscriber privacy rights by restricting certain commercial solicitation and advertising uses of the telephone and related telecommunications equipment.” H.R.Rep. No. 102-317, at 5 (1991), reprinted in 14082 U.S. Congressional Serial Set, 102d Cong. 1st Sess.1991; see also Int’l Science & Tech. Inst., Inc. v. Inacom Comm., Inc., 106 F.3d 1146, 1150 (4th Cir.1997).

At the time of the TCPA’s enactment, over half the states had enacted statutes restricting marketing uses of the telephone. See 47 U.S.C. § 227, Congressional finding No. 7. Congress recognized, however, that “telemarketers can evade [state] prohibitions through interstate operation; therefore, Federal law is needed to control residential telemarketing practices.” Id.; see also S.Rep. No. 102-178, at 5 (1991), reprinted in 1991 U.S.C.C.A.N.1968, 1972-73 (noting that “Federal legislation is necessary to protect the public from automated telephone calls [and that] Federal action is necessary because States do not have the jurisdiction to protect their citizens against those who use these machines to place interstate telephone calls”).

The Act was enacted for the benefit of the states, not the federal government. As the Court of Appeals for the Third Circuit commented, the Act “does not appear to reflect any significant federal interest, or one that is uniquely federal. It does not reflect an attempt by Congress to occupy this field of interstate communication or to promote national uniformity of regulation.” Erienet, Inc. v. Velocity Net, Inc., 156 F.3d 513, 515 (3d Cir.1998).

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815 A.2d 816, 149 Md. App. 219, 2003 Md. App. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ra-ponte-architects-ltd-v-investors-alert-inc-mdctspecapp-2003.