Second Circuit Reinstates Federal TCPA Class Action


On December 3, the U.S. Court of Appeals for the Second Circuit held that federal rules govern when determining whether a federal TCPA suit may proceed as a class action and reinstated a case dismissed based on New York state class action rules. Bank v. Independence Energy Group LLC, No. 13-1746, 2013 WL 6231563 (2nd Cir. Dec. 3, 2013). A federal district court dismissed, sua sponte, a TCPA class action complaint based on the application of New York state civil procedure, which prohibits class-action suits for statutory damages. On appeal, the Second Circuit agreed with the named plaintiff that, based on the U.S. Supreme Court’s holding last year in Mims v. Arrow Financial Services, LLC, 132 S. Ct. 140 (2012), Federal Rule of Civil Procedure 23 applies when deciding whether a federal TCPA suit can proceed as a class action. In Mims, the Court had held that TCPA Section 227(b)(3) permits private parties to bring an action in an appropriate state court, but does not require that private actions seeking redress under the TCPA be heard only by state courts. Here, the Second Circuit reasoned that Mims “suggests that in enacting the TCPA, Congress merely enabled states to decide whether and how to spend their resources on TCPA enforcement,” and that “Congress had a strong federal interest in uniform standards for TCPA claims in federal court.” Based on Mims, the Second Circuit rejected its prior interpretation of section 227(b)(3) as having “substantive content” and providing a delegation of authority to state courts to set the terms of TCPA claims. Accordingly, the court held that Federal Rule of Civil Procedure 23, not state law, governs when a federal TCPA suit may proceed as a class action.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.