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Zauderer v. Cirrus Consulting Group (USA), Inc.

Citation: 265 F. Supp. 3d 104Docket: CIVIL ACTION NO. 16-11742-MPK

Court: District Court, D. Massachusetts; July 14, 2017; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff initiated a putative class action against two corporate defendants, Cirrus Consulting Group (USA) Inc. and Cirrus Consulting Group Inc., alleging violations of the Telephone Consumer Protection Act (TCPA) due to unsolicited fax advertisements. The defendants filed a motion to dismiss based on lack of standing, arguing insufficient allegations of an injury in fact. The plaintiff claimed that the unsolicited faxes caused concrete harm, including interference with business communications and invasion of privacy, which constituted a legally protected interest under the TCPA. The court found that the plaintiff had adequately demonstrated standing by showing concrete harm, despite the defendants' reliance on out-of-circuit cases suggesting otherwise. The court denied the motion to dismiss, affirming the sufficiency of the allegations to proceed under the TCPA. The plaintiff had voluntarily dismissed claims against three individual defendants and five John Does, narrowing the case to the corporate entities. The court clarified that the dismissal motion should have been based on Rule 12(b)(1) rather than Rule 12(b)(6), as the issues pertained to constitutional standing. Ultimately, the First Amended Class Action Complaint remains the operative pleading, allowing the case to continue.

Legal Issues Addressed

Injury in Fact

Application: Plaintiff's claims of unsolicited faxes interfering with business communications and infringing privacy satisfy the injury-in-fact requirement, as these constitute concrete harm under TCPA.

Reasoning: The central issue is whether Zauderer has sufficiently shown concrete harm. Courts have determined that a technical TCPA violation can constitute a concrete injury conferring standing.

Jurisdiction and Burden of Proof

Application: Federal courts require the party asserting jurisdiction to prove its existence, and the plaintiff's allegations are sufficient to survive a Rule 12(b)(1) motion challenging jurisdiction.

Reasoning: If a defendant challenges jurisdiction under Rule 12(b)(1), the plaintiff must then prove that jurisdiction is proper.

Standing under Article III

Application: The plaintiff must demonstrate an injury in fact, a causal connection, and redressability for Article III standing, which the plaintiff adequately shows by alleging unsolicited faxes caused concrete harm.

Reasoning: Defendants argue that the plaintiff lacks standing under Article III due to insufficient allegations of an injury in fact stemming from the defendants' fax.

Telephone Consumer Protection Act (TCPA) Violation

Application: The TCPA prohibits sending unsolicited advertisements via fax, and the plaintiff's allegations meet the prima facie requirements of the statute, allowing claims for statutory damages.

Reasoning: To establish a prima facie case under the TCPA, a plaintiff must demonstrate that the defendant sent faxes using a fax machine or similar device, the content of the faxes was advertising goods or services, and the plaintiff did not consent to receive these faxes.