MIMS v Arrow Financial Services, LLC

Supreme Court Decision in TCPA Telemarketer Claims


SCOTUS decision that reverses an Appeals Court judgment in MIMS v Arrow Financial Services to do with bringing private claims in federal court against telemarketers.

The Supreme Court decision opens the door for additional Telephone Consumer Protection Act (TCPA) claims against telemarketers - and apparently may permit federal class action litigation against TCPA violations (with potentially unlimited damages).

"The question presented is whether Congress’ provision for private actions to enforce the TCPA renders state courts the exclusive arbiters of such actions. We have long recognized that “[a] suit arises under the law that creates the cause of action.” American Well Works Co. v. Layne & Bowler Co., 241 U. S. 257, 260 (1916). Beyond doubt, the TCPA is a federal law that both creates the claim Mims has brought and supplies the substantive rules that will govern the case. We find no convincing reason to read into the TCPA’s permissive grant of jurisdiction to state courts any barrier to the U. S. district courts’ exercise of the general federal-question jurisdiction they have possessed since 1875. See Act of Mar. 3, 1875, §1, 18 Stat. 470; 13D C. Wright, A. Miller, E. Cooper, & R. Freer, Federal Practice and Procedure §3561, p. 163 (3d ed. 2008) (hereinafter Wright & Miller). We hold, therefore, that federal and state courts have concurrent jurisdiction over private suits arising under the TCPA..."

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Reference Info:Decision | Federal, U.S. Supreme Court | United States

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