G.M. Sign, Inc. v. Elm Street Chiropractic, Ltd.
871 F. Supp. 2d 763
N.D. Ill.2012Background
- G.M. Sign sent a one-page unsolicited fax advertisement to Elm Street on September 7, 2011.
- G.M. Sign claims Elm Street faxed the advertisement to 39+ other recipients without permission and without providing a call-back number.
- G.M. Sign filed a three-count class action in Illinois state court; Elm Street removed to federal court on October 12, 2011.
- Counts: FTCA (Count I), conversion of paper/toner/time (Count II), ICFA violation (Count III); class certification not yet granted.
- Elm Street moved to dismiss Counts II and III for failure to state claims; court granted dismissal with prejudice.
- G.M. Sign alleges loss of a single sheet of paper and minor toner; court emphasizes de minimis damages and lack of substantial injury.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Elm Street’s fax support a conversion claim under Illinois law? | Sign contends Elm Street achieved unauthorized control over paper, toner, and time via fax. | Elm Street did not possess Sign’s property; damages are de minimis. | Conversion claim dismissed as de minimis. |
| Does the unsolicited fax support an unfair practice under ICFA? | ICFA claim alleging unfair or deceptive practice from unsolicited fax. | One-page fax not sufficiently oppressive or injurious to consumers; public policy not met for ICFA. | ICFA claim dismissed for lack of substantial injury. |
| Are Elm Street's attorney’s fees recoverable under ICFA § 10a(a)? | Bad faith not established; fees not recoverable. | Prevailing party may seek fees if bad faith shown. | Court declined to award fees at this time. |
Key Cases Cited
- Stonecrafters, Inc. v. Foxfire Printing & Packaging, Inc., 633 F. Supp. 2d 610 (N.D. Ill. 2009) (de minimis damages bar conversion; one-page fax not actionable)
- G.M. Sign, Inc. v. Stergo, 681 F. Supp. 2d 929 (N.D. Ill. 2009) (conversion defenses; de minimis damages; non-aggregation)
- Centerline Equip. Corp. v. Banner Personnel Service, Inc., 545 F. Supp. 2d 768 (N.D. Ill. 2008) (Robinson factors; ICFA unfairness analysis; oppressive conduct discussion)
- Rossario’s Fine Jewelry, Inc. v. Paddock Publications, 443 F. Supp. 2d 976 (N.D. Ill. 2006) (de minimis concept in conversion context)
- Savanna Group, Inc. v. Truan, 2011 WL 703622 (N.D. Ill. 2011) (discusses nominal damages vs. de minimis in ICFA context)