Vandenberg & Sons Furniture, Inc. v. Alliance Funding Group

CourtDistrict Court, W.D. Michigan
DecidedJanuary 22, 2021
Docket1:15-cv-01255
StatusUnknown

This text of Vandenberg & Sons Furniture, Inc. v. Alliance Funding Group (Vandenberg & Sons Furniture, Inc. v. Alliance Funding Group) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vandenberg & Sons Furniture, Inc. v. Alliance Funding Group, (W.D. Mich. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION __________________________

VANDENBERG & SONS FURNITURE, INC.,

Plaintiff, Case No. 1:15-CV-1255 v. HON. GORDON J. QUIST ALLIANCE FUNDING GROUP, et al.,

Defendants. ________________________________/

OPINION

Plaintiff, Vandenberg & Sons Furniture, Inc., individually and behalf of all others similarly situated, alleges that Defendant, Alliance Funding Group, violated the Telephone Consumer Protection Act of 1991 (TCPA), 47 U.S.C. § 227, et seq., by sending unsolicited advertisements via fax. (ECF No. 1.) Vandenberg has moved for class certification pursuant to Fed. R. Civ. P. 23(a) and (b)(3), to appoint Vandenberg as the class representative, and to appoint Vandenberg’s counsel as class counsel pursuant to Fed. R. Civ. P. 23(g). (ECF No. 120.) Alliance opposes the motion. (ECF No. 122.) On November 5, 2020, the Court heard argument on Vandenberg’s motion. For the reasons stated below, Vandenberg’s motion is granted in part and denied in part. I. Background This case arises from a single fax sent in 2012. Alliance is a California corporation that provides financing for equipment leasing to small businesses. Vandenberg is a Michigan corporation that is in the furniture business. On March 19, 2012, Alliance sent Vandenberg a two- page fax, offering a pre-approved line of credit in the amount of $100,000. (ECF No. 121-6.) At the bottom of each page of the fax, there is an “Opt-Out Notice” that provides the fax recipient with instructions on how “[t]o stop future fax advertisements[.]” (Id. at PageID.1290-1291.) Over three-and-a-half years after the fax was received, on December 3, 2015, Vandenberg initiated this putative class action under the “junk fax” provision of the TCPA, 47 U.S.C. § 227(b)(1)(C). Under this provision, it is unlawful to send an unsolicited advisement via fax unless:

(1) the parties have an established business relationship; (2) the recipient granted permission by either providing the fax number to the sender or by making the fax number publicly available; or (3) the unsolicited advertisement contains the requisite opt-out notice. 47 U.S.C. § 227(b)(1)(C). The TCPA creates a private right of action for any entity that receives an advertisement in violation of the Act and provides for statutory damages in the amount of $500 for each violation that can increase to $1,500 if the violation is made “willfully or knowingly.” 47 U.S.C. § 227(b)(3). The parties dispute whether Vandenberg consented to receiving the fax by voluntarily providing its fax number to Alliance. Vandenberg’s Business Manager states that Vandenberg did not provide permission to send the fax. (ECF No. 121-1 at PageID.1248.) Alliance does not have

any evidence to establish that Vandenberg consented to receiving the March 2012 fax. Instead, Alliance’s Vice President of Sales and Sales Manager explain that Alliance sent faxes only to potential customers that had requested information and provided a fax number. (ECF No. 69-4 at PageID.625-626; ECF No. 121-4 at PageID.1272.) According to these two employees, Alliance obtained fax numbers through sales representatives cold calling businesses. Each sale representative allegedly kept a list of fax numbers in an Excel spreadsheet, and Alliance never bought fax lists. Since filing the Complaint, the parties have spent considerable time in discovery. The passage of time and Alliance’s lack of record keeping have resulted in the production of only a few documents. Vandenberg learned that Alliance occasionally used a company called WestFax to fax potential customers. Alliance produced three documents related to WestFax, which consisted of four pages—a March 2, 2013, WestFax Invoice; a March 9, 2013, WestFax Invoice; and a two-page fax template that was identical to the fax sent to Vandenberg. (ECF No. 121-5.) Vandenberg, frustrated with Alliance’s conduct during discovery,1 filed several motions to

compel. (ECF Nos. 38, 52, 69, and 85.) In response to Vandenberg’s final motion to compel, Alliance’s Vice President of Sales submitted an affidavit declaring that he could not find any other relevant document on Alliance’s computer servers in addition to the three documents that had been already produced. (ECF No. 99-1.) Vandenberg also subpoenaed WestFax for additional records. In response to the subpoena, WestFax produced thirteen additional invoices dated between January 17, 2013, and June 9, 2014. (ECF No. 121-7 at PageID.1306-1318.) The invoices show that WestFax successfully sent 465,758 pages via fax and charged Alliance $13,513.82. WestFax also produced an “opt-out list,” which included 7,435 fax numbers. (Id. at PageID.1320-1404.) The opt-out list shows when a

specific fax number contacted WestFax and requested that it no longer receive faxes from Alliance. The list does not show when Alliance sent a fax to the fax number. Although WestFax no longer had the fax transmission records, the President of WestFax stated that Alliance requested detailed transmission records be sent to two Alliance company email addresses. (Id. at PageID.1294.) Alliance, however, alleges that it no longer has those emails.

1 The record contains several examples of Alliance’s questionable conduct. For example, Alliance allegedly did not disclose potential witnesses, who were Alliance employees, during discovery. Vandenberg then had issues serving deposition subpoenas on these employees and these employees attending depositions. (ECF No. 69-4 at PageID.659-664; ECF No. 69-5 at PageID.687-689.) Another example occurred at Mr. Donahue’s deposition. In response to the question of whether Mr. Donahue had a work email address, he responded: “Yes, dumb ass.” (ECF 121-4 at PageID.1271.) Vandenberg has moved to certify two classes and has proposed the following class definitions: Class A. All persons or entities, identified in the WestFax opt-out list for Defendant, who were successfully sent the same or similar fax as Exhibit A to the Complaint from December 3, 2011 to December 3, 2015.

Class B. All persons who were successfully sent the same or similar fax as Exhibit A to the Complaint on January 18, 2013, January 23, 2013, February 25, 2013, March 9, 2013, March 19, 2013, April 3, 2013, April 10, 2013, May 6, 2013, June 5, 2013, June 17, 2013, July 9, 2013, September 3, 2013, and June 9, 2014.

(ECF No. 120 at PageID.1218.)

II. Legal Standard “The class action is ‘an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only.’” Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 348, 131 S. Ct. 2541, 2550 (2011) (quoting Califano v. Yamasaki, 442 U.S. 682, 700-01, 99 S. Ct. 2545, 2557 (1979)). Although the “trial court has broad discretion in deciding whether to certify a class,” the “discretion must be exercised within the framework of Rule 23.” In re Am. Med. Sys., Inc., 75 F.3d 1069, 1079 (6th Cir. 1996).

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