St. Louis Heart Center, Inc. v. Vein Centers for Excellence, Inc.

860 F. Supp. 2d 920, 2012 WL 872757, 2012 U.S. Dist. LEXIS 34294
CourtDistrict Court, E.D. Missouri
DecidedMarch 14, 2012
DocketCase No. 4:12CV174 CDP
StatusPublished

This text of 860 F. Supp. 2d 920 (St. Louis Heart Center, Inc. v. Vein Centers for Excellence, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis Heart Center, Inc. v. Vein Centers for Excellence, Inc., 860 F. Supp. 2d 920, 2012 WL 872757, 2012 U.S. Dist. LEXIS 34294 (E.D. Mo. 2012).

Opinion

MEMORANDUM AND ORDER

CATHERINE D. PERRY, District Judge.

On December 23, 2011, plaintiff St. Louis Heart Center, Inc. filed a three count complaint in the Circuit Court of St. Louis County against Vein Centers for Excellence, Inc. The complaint alleged that Vein Centers violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227, committed conversion, and violated the Missouri Merchandising Practices Act (MPA), Mo.Rev.Stat. § 407.010 et seq., in conjunction with several faxes the Heart Center allegedly received from Vein Centers. On January 31, 2012, Vein Centers removed the case to this Court.

On February 7, 2012, Vein Centers filed three motions to dismiss. The first motion sought to dismiss Count III which alleged an MPA violation. On February 16, 2012, Heart Center filed its own motion to dismiss Count III without prejudice. I granted Heart Center’s motion to dismiss Count III by docket text order, which mooted Vein Centers’ motion to dismiss Count III.

The second and third motions both relate to Count I. Vein Centers argues that the request for class certification under TCPA should be dismissed because TCPA does not provide for private class actions. Additionally, Vein Centers argues that the allegations related to the faxes at exhibits 1-3 of the Complaint should be dismissed, or in the alternative, stricken from the record because the statute of limitations has lapsed on those claims. At this stage, I will deny the motion to dismiss the request for class certification, but I will grant the motion to the extent the allegation are outside the statute of limitations. As such, the allegations regarding the faxes at exhibits 1-3 will be dismissed and exhibits 1-3 themselves will be stricken from the record.

Motion to Dismiss Standard

A defendant may move to dismiss a claim “for failure to state a claim upon which relief can be granted” under Fed. R.Civ.P. 12(b)(6). The purpose of such a motion is to test the legal sufficiency of the complaint. A complaint is only required to contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a). When considering a 12(b)(6) motion, the court should assume all factual allegations of a complaint are true and construe them in favor of the plaintiff. Neitzke v. Williams, 490 U.S. 319, 326, 109 S.Ct. 1827, 104 L.Ed.2d 338 (1989). The court, however, is not required to accept as true a legal conclusion couched as a factual allegation. Bell Atlantic v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). While the complaint need not contain detailed factual allegations, the plaintiff must set forth “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Id.

Request for Class Certification

Vein Centers argues that the TCPA does not authorize private class actions for two reasons. First, it argues that Congress could not have intended to authorize private class actions because the statutory damages available to individual plaintiffs, $500 to $1500 for each violation, are sufficient to punish offenders and ineentivize plaintiffs to bring lawsuits on their own. Second, it argues that Congress only intended class actions to be brought by a state official because the TCPA authorizes a private right of action in two different subsections, then authorizes a state official to bring a suit on behalf of state citizens [922]*922when a pattern or practice of violations is present in another subsection. Specifically, § 227(b)(3) sets out a private right of action for violations allowing an injunction, $500 per violation, or $1500 for willful or knowing violations. Section 277(b)(5) sets out a private right of action for a “person who receives more than one telephone call within any 12-month period by or on behalf of the same entity in violation” of the statute. § 277(f)(1), entitled “Actions by States,” provides that “[wjhenever the attorney general of a State, or an official or agency designated by the state, has reason to believe that any person has engaged or is engaging in a pattern or practice of telephone calls or other transmissions to residents of that State in violation of this section or the regulations prescribed under this subsection, the state may bring a civil action on behalf of its residents.... ” Vein Centers argues that the inclusion of right of action by state officials on behalf of state citizens necessarily excludes such a right for private citizens and entities.

Heart Center argues that a ruling on this class certification issue is premature because class determinations require a rigorous analysis including discovery and briefing. It also points the Court to several state and federal courts that have certified class actions by private individuals or entities based on TCPA claims.

The United States Court of Appeals for the Third Circuit has addressed whether a class action is the superior method of handling claims under TCPA. Landsman & Funk PC v. Skinder-Strauss Ass., 640 F.3d 72, 91-95 (3d Cir.2011). It concluded that whether “individual statutory damages of $500 to $1500 are enough to both punish offenders and spur victims” is a question for Congress, and a trial court’s determination that such damages are adequate would be an inappropriate substitution of judicial judgment for that of Congress. Id. at p. 94. It noted that “[h]ad Congress wanted to preclude aggregation of individual TCPA claims, it could have so provided in the TCPA itself or in CAFA, which specifically lists certain types of statutory claims that could not be brought as class actions.” Id. at 95 (citing 28 U.S.C. § 1332(d)). The Landsman court also held that a class determination on a motion to dismiss would be premature because it is well settled that exploring whether a case meets the requirements of Federal Rule of Civil Procedure 23 requires a “rigorous analysis.” Id. at 94. I agree.

Although state and federal courts are split on this private class action certification issue, see Local Baking Prod., Inc. v. Kosher Bagel Munch, Inc., 421 N.J.Super. 268, 23 A3d 469, 476 (N.J.Super.A.D.2011) (collecting cases), many decisions not to certify classes were based on the suggested class’s inability to meet the requirements of state rules or Federal Rule of Civil Procedure 23, rather than a ban on private rights. Further, the Landsman decision is supported by the rationale in Califano v. Yamasaki, 442 U.S. 682, 99 S.Ct. 2545, 61 L.Ed.2d 176 (1979) (holding that “[t]he fact that the statute speaks in terms of an action brought by ‘any individual’ ...

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Califano v. Yamasaki
442 U.S. 682 (Supreme Court, 1979)
Neitzke v. Williams
490 U.S. 319 (Supreme Court, 1989)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Sawyer v. Atlas Heating & Sheet Metal Works, Inc.
642 F.3d 560 (Seventh Circuit, 2011)
Karen S. Little, L.L.C. v. Drury Inns, Inc.
306 S.W.3d 577 (Missouri Court of Appeals, 2010)
Loc. Baking Prod. v. Kosher Bagel.
23 A.3d 469 (New Jersey Superior Court App Division, 2011)
Landsman & Funk PC v. Skinder-Strauss Associates
640 F.3d 72 (Third Circuit, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
860 F. Supp. 2d 920, 2012 WL 872757, 2012 U.S. Dist. LEXIS 34294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-heart-center-inc-v-vein-centers-for-excellence-inc-moed-2012.