Uesco Industries, Inc. v. Poolman of Wisconsin, Inc.

2013 IL App (1st) 112566, 993 N.E.2d 97
CourtAppellate Court of Illinois
DecidedJune 17, 2013
Docket1-11-2566
StatusPublished
Cited by36 cases

This text of 2013 IL App (1st) 112566 (Uesco Industries, Inc. v. Poolman of Wisconsin, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uesco Industries, Inc. v. Poolman of Wisconsin, Inc., 2013 IL App (1st) 112566, 993 N.E.2d 97 (Ill. Ct. App. 2013).

Opinion

ILLINOIS OFFICIAL REPORTS Appellate Court

Uesco Industries, Inc. v. Poolman of Wisconsin, Inc., 2013 IL App (1st) 112566

Appellate Court UESCO INDUSTRIES, INC., an Illinois Corporation, Individually and Caption as the Representative of a Class of Similarly Situated Persons, Plaintiff- Appellee, v. POOLMAN OF WISCONSIN, INC., Defendant-Appellant.

District & No. First District, First Division Docket No. 1-11-2566

Filed June 17, 2013

Held In a class action alleging that defendant violated the Telephone Consumer (Note: This syllabus Protection Act by sending unsolicited fax advertisements, the trial court constitutes no part of erred in granting plaintiff’s motion for class certification, since plaintiff the opinion of the court failed to state a valid claim against defendant and was not an appropriate but has been prepared class representative for those who received unsolicited faxes from by the Reporter of defendant. Decisions for the convenience of the reader.)

Decision Under Appeal from the Circuit Court of Cook County, No. 09-CH-16028; the Review Hon. Carolyn Quinn, Judge, presiding.

Judgment Reversed and remanded. Counsel on SmithAmundsen LLC, of Chicago (Eric L. Samore, Michael Resis, and Appeal Molly A. Arranz, of counsel), for appellant.

Bock & Hatch, LLC, of Chicago (Phillip A. Bock, Robert M. Hatch, Jonathan B. Piper, Tod A. Lewis, and James M. Smith, of counsel), and Anderson & Wanca, of Rolling Meadows (Brian J. Wanca and David M. Oppenheim, of counsel), for appellee.

Panel JUSTICE DELORT delivered the judgment of the court, with opinion. Presiding Justice Hoffman and Justice Cunningham concurred in the judgment and opinion.

OPINION

¶1 The ability to electronically send enormous volumes of advertisements at minimal cost, and the nuisances those advertisements create in daily life, have resulted in a number of laws aimed at limiting those practices. After determining that reams of unsolicited advertisements were clogging facsimile transmission machines, Congress imposed a stiff $500-per-fax penalty in an attempt to price facsimile advertisers out of the marketplace. Some businesses, unaware of the federal law and believing that faxed advertisements might actually generate new customers, continued to hire specialized businesses to send faxes on their behalf. The senders, in turn, perhaps fully aware of the legal prohibitions against their transmissions, relied on loopholes in the law to avoid liability for the penalties, or operated from foreign locations from which it would be difficult to trace the origin of the advertisements. The $500-per-fax penalty, multiplied by the colossal number of faxes, established a favorable atmosphere for lucrative class action litigation. In this lawsuit, brought by a “junk fax” recipient, we are called upon to determine whether the circuit court properly granted class certification. ¶2 Defendant, Poolman of Wisconsin, Inc., appeals an order of the circuit court of Cook County granting plaintiff, Uesco Industries, Inc., class certification in an action alleging violations of the federal Telephone Consumer Protection Act of 1991 (Act) (47 U.S.C. § 227(b)(1)(C) (2006)), and a state law claim for conversion. On this interlocutory appeal, defendant argues that the circuit court erred by granting class certification. Defendant asserts the court did not apply the appropriate legal standard in determining whether plaintiff’s claim was actionable and, as a result, plaintiff was not an adequate class representative. Defendant also contends plaintiff’s counsel could not adequately represent the class. ¶3 We reverse the circuit court’s decision to grant class certification. As a result, we conclude the issue of whether plaintiff’s counsel is adequate to represent the class is moot.

-2- ¶4 BACKGROUND ¶5 Plaintiff is an Illinois corporation in the business of manufacturing and distributing overhead cranes. Defendant, a Wisconsin corporation, services, sells, and repairs swimming pools, hot tubs, and fireplaces. ¶6 On April 21, 2009, plaintiff filed a class action complaint alleging that, on or about March 6, 2006, defendant sent an advertisement by facsimile (fax) to plaintiff and over 39 others without the recipients’ permission or invitation. Count I of the complaint asserted that defendant thereby violated the Act, which prohibits the use of “any telephone facsimile machine, computer or other device to send, to a telephone facsimile machine, an unsolicited advertisement.” 47 U.S.C. § 227(b)(1)(C) (2006). Count II was a state law claim sounding in conversion. It alleged that, by sending plaintiff and others an unsolicited fax advertisement, defendant improperly and unlawfully converted the putative class members’ fax machines, toner, paper, and employee time to defendant’s own use. Plaintiff attached a copy of the fax it received, which advertised swimming pool and hot tub pumps and parts. Both counts alleged there were common issues of fact and law warranting class certification pursuant to section 2-801 of the Illinois Code of Civil Procedure (Code) (735 ILCS 5/2-801 (West 2008)). On the same date, plaintiff moved for class certification. ¶7 On October 8, 2009, defendant filed an answer and affirmative defenses to the class action complaint. Defendant denied that a class action is proper in this matter. In its sixth affirmative defense, defendant asserted that it did not authorize any fax transmittal to plaintiff. ¶8 Plaintiff filed an amended class action complaint, elaborating on the allegations of the original pleading, as well as an amended motion for class certification. The amended complaint pled that the initial fax from defendant was received on March 16, 2006, not March 6, 2006. Plaintiff again attached a copy of the fax advertisement it allegedly received to its amended complaint. ¶9 On January 18, 2011, defendant moved for summary judgment on plaintiff’s amended class action complaint. Defendant argued that the undisputed facts established defendant did not send or authorize the sending of the fax advertisement to plaintiff in March 2006. Rather, without a formal contract, defendant hired a third-party fax broadcaster, Business to Business Solutions (B2B), to send fax advertisements only to small electric motor repair and service companies. Based on deposition testimony from Wesley Wiedenbeck (one of defendant’s two shareholders, officers, and directors) and Caroline Abraham (the sole proprietor of B2B), defendant asserted that, aside from directing B2B to advertise solely to small electric motor repair and service companies and approving the advertising design, defendant was not involved with the advertising campaign. Defendant asserted that it did not create or see the list of fax recipients and never received confirmation that the faxes were sent. Defendant argued that it could not be held liable under the Act or for conversion not only because defendant did not authorize or instruct B2B to send the fax advertisement to plaintiff, but also because the facts established that B2B exceeded its authority in doing so by sending the advertisement to businesses other than those that repair and service small electric motors. ¶ 10 Plaintiff responded that under the Federal Communication Commission’s (FCC) long-

-3- standing interpretation of the Act, liability under the Act generally attaches to the person or entity on whose behalf the fax was transmitted. Plaintiff also argued that the Act does not require proof of authority or agency for liability to attach.

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Bluebook (online)
2013 IL App (1st) 112566, 993 N.E.2d 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uesco-industries-inc-v-poolman-of-wisconsin-inc-illappct-2013.