State Ex Rel. Stenehjem v. FreeEats.com, Inc.

2006 ND 84, 712 N.W.2d 828, 2006 N.D. LEXIS 87, 2006 WL 1043986
CourtNorth Dakota Supreme Court
DecidedApril 21, 2006
Docket20050171
StatusPublished
Cited by51 cases

This text of 2006 ND 84 (State Ex Rel. Stenehjem v. FreeEats.com, Inc.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Stenehjem v. FreeEats.com, Inc., 2006 ND 84, 712 N.W.2d 828, 2006 N.D. LEXIS 87, 2006 WL 1043986 (N.D. 2006).

Opinion

KAPSNER, Justice.

[¶ 1] FreeEats.com, Inc. (“FreeEats”) has appealed from a summary judgment finding FreeEats in violation of North Dakota’s telephone solicitation statutes and imposing civil penalties, attorney fees, costs, and disbursements. We affirm, concluding North Dakota’s prohibition against placement of political polling calls using an automatic dialing — -announcing device is not preempted by federal law.

I

[¶ 2] FreeEats is based in Herndon, Virginia, and conducts telephone surveys and polling services. In August 2004, FreeEats placed numerous political polling calls from its call center in Ashburn, Virginia, to residences in North Dakota. FreeEats employed an automatic dialing-announcing device to place the calls, and all of the calls used prerecorded messages with no live person on the line.

[¶ 3] On September 17, 2004, the State brought this action against FreeEats seeking civil penalties for violations of N.D.C.C. § 51-28-02. FreeEats admitted it made the automated calls to North Dakota residents, but argued application of N.D.C.C. § 51-28-02 to interstate political polling calls was preempted by federal law. On cross-motions for summary judgment, the district court concluded that application of N.D.C.C. § 51-28-02 was not preempted by federal law and that the calls placed by FreeEats to North Dakota residents violated the statute. Judgment was entered ordering FreeEats to pay $10,000 in civil penalties and $10,000 in attorney fees, costs, and disbursements. FreeEats has appealed, alleging the district court erred in concluding that federal law did not preempt application of N.D.C.C. § 51-28-02 to interstate political polling calls.

II

[¶ 4] Summary judgment is a procedural device for the prompt resolution of a controversy on the merits without a trial if there are no genuine issues of material fact or inferences that can reasonably be drawn from the undisputed facts, or if the only issues to be resolved are *832 questions of law. Wheeler v. Gardner, 2006 ND 24, ¶ 8, 708 N.W.2d 908; Jacob v. Nodak Mut. Ins. Co., 2005 ND 56, ¶ 11, 693 N.W.2d 604. Summary judgment is appropriate if the issues in the case are such that resolution of any factual disputes will not alter the result. Jacob, at ¶ 11; Tibert v. Slominski, 2005 ND 34, ¶ 8, 692 N.W.2d 133. Whether the trial court properly granted summary judgment is a question of law that we review de novo on the entire record. Wheeler, at ¶ 8; Heng v. Rotech Med. Corp., 2004 ND 204, ¶ 9, 688 N.W.2d 389.

[¶ 5] In this case there are no disputed issues of material fact, and the sole question presented involves interpretation of statutes. Interpretation and application of a statute is a question of law, which is fully reviewable on appeal. Wheeler, 2006 ND 24, ¶ 10, 708 N.W.2d 908; Smith v. Hall, 2005 ND 215, ¶ 15, 707 N.W.2d 247. Accordingly, this case was appropriate for resolution on a motion for summary judgment.

Ill

[¶ 6] The sole question presented on appeal is whether federal law preempts the application of N.D.C.C. § 51-28-02 to automated political polling calls made from Virginia to residents in North Dakota.

[¶ 7] Section 51-28-02, N.D.C.C., prohibits the placement of telephone calls using an automatic dialing-announcing device except in certain enumerated instances:

A caller may not use or connect to a telephone line an automatic dialing-announcing device unless the subscriber has knowingly requested, consented to, permitted, or authorized receipt of the message or the message is immediately preceded by a live operator who obtains the subscriber’s consent before the message is delivered. This section and section 51-28-05 do not apply to a message from a public safety agency notifying- a person of an emergency; a message from a school district to a student, a parent, or an employee; a message to a subscriber with whom the caller has a current business relationship; or a message advising an employee of a work schedule.

The calls placed by FreeEats to North Dakota residents in 2004 did not fit under any of the exemptions in N.D.C.C. § 51-28-02.

[¶ 8] FreeEats contends, however, that application of N.D.C.C. § 51-28-02 to interstate calls is preempted by 47 U.S.C. § 227, the Telephone Consumer Protection Act of 1991 (“TCPA”). The TCPA prohibits calls to a residential telephone line using an artificial or prerecorded voice without the recipient’s prior express consent, “unless the call is initiated for emergency purposes or is exempted by rule or order by the [Federal Communications] Commission under paragraph (2)(B).” 47 U.S.C. § 227(b)(1)(B). Under paragraph (2)(B), the FCC is authorized to exempt calls that are not made for a commercial purpose. 47 U.S.C. § 227(b)(2)(B)(i). The FCC has adopted a regulation exempting calls not made for a commercial purpose from the TCPA’s general prohibition on calls using an artificial or prerecorded voice message. 47 C.F.R. § 64.1200(a)(2)(ii) (2005). FreeEats contends the political polling calls at issue in this case were not made for a commercial purpose, and were therefore permissible under federal law.

A

[¶ 9] The crux of this ease lies in the interpretation of the TCPA’s “savings clause,” 47 U.S.C. § 227(e)(1):

(1) State law not preempted
Except for the standards prescribed under subsection (d) of this section and subject to paragraph (2) of this subsection, nothing in this section or in the *833 regulations prescribed under this section shall preempt any State law that imposes more restrictive intrastate requirements or regulations on, or which prohibits—
(A) the use of telephone facsimile machines or other electronic devices to send unsolicited advertisements;
(B) the use of automatic telephone dialing systems;
(C) the use of artificial or prerecorded voice messages; or
(D) the making of telephone solicitations.

[¶ 10] The parties offer conflicting interpretations of the statute, centering upon the scope of the term “intrastate.” The State contends the language of the statute is clear and unambiguous, and the term “intrastate” modifies only “more restrictive ... requirements or regulations,” and does not modify “which prohibits.” The State argues that the TCPA therefore expressly permits application of state statutes which prohibit certain classes of calls placed with automatic dialing systems or which use artificial or prerecorded voice messages to interstate calls placed to North Dakota residents.

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

Related

City of Dickinson v. Helgeson
2026 ND 34 (North Dakota Supreme Court, 2026)
Adoption of G.M.H.
2025 ND 208 (North Dakota Supreme Court, 2025)
Clemenson v. Clemenson, et al.
2025 ND 195 (North Dakota Supreme Court, 2025)
Northwest Landowners Association, et al. v. State, et al.
2025 ND 147 (North Dakota Supreme Court, 2025)
State v. Berkley
2025 ND 134 (North Dakota Supreme Court, 2025)
City of West Fargo v. McAllister
2022 ND 94 (North Dakota Supreme Court, 2022)
Armstrong v. Helms
2022 ND 12 (North Dakota Supreme Court, 2022)
Williams v. Williams
2021 ND 134 (North Dakota Supreme Court, 2021)
Public Service Commission v. Grand Forks Bean Company, Inc.
2017 ND 201 (North Dakota Supreme Court, 2017)
Industrial Contractors, Inc. v. Taylor
2017 ND 183 (North Dakota Supreme Court, 2017)
Environmental Driven Solutions, LLC v. Dunn County
2017 ND 45 (North Dakota Supreme Court, 2017)
American Fuel & Petrochemical Manufacturers v. O'Keeffe
134 F. Supp. 3d 1270 (D. Oregon, 2015)
State v. Kuruc
2014 ND 95 (North Dakota Supreme Court, 2014)
Patriotic Veterans, Inc. v. State of Indiana
736 F.3d 1041 (Seventh Circuit, 2013)
Mickelson v. North Dakota Workforce Safety & Insurance
2012 ND 164 (North Dakota Supreme Court, 2012)
Heier v. N.D. Department of Corrections and Rehabilitation
2012 ND 171 (North Dakota Supreme Court, 2012)
State v. Perales
2012 ND 158 (North Dakota Supreme Court, 2012)
Disciplinary Board v. Lawler
2012 ND 161 (North Dakota Supreme Court, 2012)
Haugland v. City of Bismarck
2012 ND 123 (North Dakota Supreme Court, 2012)
Opinion No.
Arkansas Attorney General Reports, 2011

Cite This Page — Counsel Stack

Bluebook (online)
2006 ND 84, 712 N.W.2d 828, 2006 N.D. LEXIS 87, 2006 WL 1043986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-stenehjem-v-freeeatscom-inc-nd-2006.