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Brodsky v. Humanadental Insurance Co.

Citation: 269 F. Supp. 3d 841Docket: Case No. 10-cv-03233

Court: District Court, N.D. Illinois; August 28, 2017; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff alleges that the defendant, a dental insurance company, violated the Telephone Consumer Protection Act (TCPA) by sending unsolicited fax advertisements. The case's procedural history includes class certification in September 2016 for recipients of specific faxes, followed by the defendant's motions to decertify the class and stay proceedings. The core legal issue revolves around the application of the TCPA and the FCC's 'Solicited Fax Rule,' which requires opt-out notices on both unsolicited and solicited faxes. A pivotal development occurred when the FCC granted a waiver excusing the requirement for opt-out notices on solicited faxes, impacting class certification by introducing the need for individualized consent inquiries. The court found the waiver necessitated decertification due to the complexity of individualized consent issues, aligning with the D.C. Circuit's Bais Yaakov decision that invalidated the opt-out requirement for solicited faxes. Thus, the court granted the defendant's motion to decertify the class and denied the plaintiff's motion for class notice as moot, recognizing that individualized consent issues predominated over common issues for class adjudication.

Legal Issues Addressed

Class Certification and Decertification

Application: Class certification was initially granted but subsequently challenged due to the introduction of individual consent issues and the impact of the FCC waiver.

Reasoning: The Court grants HDIC's motion and denies Brodsky's as moot.

FCC Waiver of Opt-Out Notice Requirement

Application: The FCC granted waivers excusing certain senders from the opt-out notice requirement on solicited faxes, affecting the applicability of class certification in this case.

Reasoning: Consequently, in November 2016, HDIC received a waiver excusing it from the opt-out notice requirement for faxes sent with the recipient's prior express permission before April 30, 2015.

Impact of Bais Yaakov Decision

Application: The Bais Yaakov ruling invalidated the requirement for opt-out notices on solicited faxes, influencing the class certification considerations.

Reasoning: Regarding the Bais Yaakov case, the D.C. Circuit's ruling invalidates the Solicited Fax Rule, asserting it is unlawful to require opt-out notices on solicited faxes.

Individualized Consent in TCPA Cases

Application: The determination of consent requires individualized inquiries, particularly when there is evidence of varied relationships and potential revocation of consent among class members.

Reasoning: The Court emphasizes that courts assess individualized consent in TCPA cases on a case-by-case basis, particularly when Defendants present specific evidence of consent from a significant portion of the class.

Telephone Consumer Protection Act Compliance

Application: The TCPA prohibits unsolicited fax advertisements unless there is prior express permission, and mandates opt-out notices on both unsolicited and solicited faxes.

Reasoning: The TCPA generally prohibits sending unsolicited advertisements via fax unless the recipient has given prior express permission. It includes an opt-out notice requirement for unsolicited faxes, while the Federal Communications Commission (FCC) established the 'Solicited Fax Rule' in 2006, requiring both unsolicited and solicited faxes to contain an opt-out notice.