Campbell-Ewald Co. v. Gomez
136 S. Ct. 663
SCOTUS2016Background
- Gomez sued Campbell-Ewald under the TCPA alleging unsolicited recruiting text(s) and sought treble statutory damages and injunctive relief on behalf of himself and a putative nationwide class.
- Campbell (a Navy contractor) had the Navy's approval to send texts only to recipients who "opted in"; Mindmatics (a subcontractor) actually sent the messages.
- Before class-certification motion, Campbell served a Rule 68 offer and a separate settlement offer offering Gomez full individual relief (statutory damages/costs and a stipulated injunction) but denying liability; Gomez did not accept.
- Campbell moved to dismiss for lack of Article III jurisdiction, arguing the unaccepted offer mooted Gomez’s individual claim (and thus the class action); the district court denied dismissal.
- Campbell separately moved for summary judgment asserting derivative sovereign immunity as a federal contractor; the district court granted that motion but the Ninth Circuit reversed on both mootness and immunity grounds.
- The Supreme Court granted certiorari to resolve (1) whether an unaccepted Rule 68/settlement offer can moot an individual claim and (2) whether a federal contractor enjoys derivative sovereign immunity from the TCPA.
Issues
| Issue | Plaintiff's Argument (Gomez) | Defendant's Argument (Campbell) | Held |
|---|---|---|---|
| Whether an unaccepted offer of complete relief moots the plaintiff's individual claim | An unaccepted offer is a mere proposal with no operative effect; rejection leaves the controversy live | An unaccepted Rule 68 offer that would fully satisfy the claim removes the plaintiff's stake and thus moots the case | An unaccepted offer/Rule 68 offer does not moot the plaintiff's claim; adversity remains absent acceptance or actual payment |
| Whether an unaccepted offer of relief to the named plaintiff moots putative class claims made before class certification | Named-plaintiff retains a live claim, so class-certification opportunity remains; offer to individual cannot extinguish class claims | If the named plaintiff's individual claim is fully satisfied by the offer, class claims are moot if no live representative remains | Offer to named plaintiff (if unaccepted) does not moot class claims; class process may proceed if representative's claim remains live |
| Whether deposit or payment (versus mere offer) is required to moot a claim | Mootness requires actual transfer/assurance of relief, not mere offer | An offer that will in fact be paid (given defendant’s means) can moot a claim even if unaccepted | Court did not decide whether payment or deposit would moot a claim; reserved that question for another case |
| Whether Campbell, as a government contractor, is entitled to derivative sovereign immunity from TCPA liability | Plaintiff: contractor not shielded when contractor allegedly violated federal law and government instructions | Campbell: Yearsley and related precedents protect contractors performing authorized government work from suit | Rejected derivative sovereign immunity; a contractor does not inherit the sovereign’s blanket immunity when it violates federal law or explicit government directions |
Key Cases Cited
- Yearsley v. W.A. Ross Constr. Co., 309 U.S. 18 (U.S. 1940) (contractor immune where work was authorized/directed by the Government and within Congress's power)
- California v. San Pablo & Tulare R. Co., 149 U.S. 308 (U.S. 1893) (case held moot where defendant deposited full sum and state law treated deposit as payment)
- U.S. Bancorp Mortgage Co. v. Bonner Mall Partnership, 513 U.S. 18 (U.S. 1994) (court declined vacatur when case became moot by settlement; parties cannot manipulate jurisdictional outcomes)
- Alvarez v. Smith, 558 U.S. 87 (U.S. 2009) (claims for declaratory/injunctive relief can be moot where defendants have ceased the challenged conduct and plaintiffs received full relief)
- Already, LLC v. Nike, Inc., 568 U.S. 85 (U.S. 2013) (unilateral covenant not to sue that affords complete protection can render a dispute moot)
