Loc. Baking Prod. v. Kosher Bagel.
23 A.3d 469
N.J. Super. Ct. App. Div.2011Background
- TCPA prohibits sending unsolicited advertisements to fax machines and allows private action for damages.
- Local Baking sought to pursue a TCPA private action on behalf of itself and a proposed class of recipients.
- Defendant Kosher Bagel Munch allegedly transmitted a large volume of faxes via Business to Business Solutions.
- The trial court dismissed class allegations under Rule 4:32-1 and converted the claim to individual damages, awarding $500 to Local Baking.
- The issue on appeal was whether a TCPA private action may be maintained as a class action and whether the conversion claim could stand.
- The appellate court held that the TCPA class action is not a superior or permissible vehicle under Rule 4:32-1.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether TCPA permits class actions for private damages. | Local Baking argues TCPA allows class treatment. | Kosher Bagel Munch contends class action is improper under TCPA. | No, class action not permitted. |
| Whether the class action satisfies Rule 4:32-1 requirements (commonality, predominance, superiority). | Class theory viable due to common TCPA issues. | Predominance and superiority fail; individual issues predominate. | Predominance and superiority fail; class action inappropriate. |
| Whether the court correctly denied conversion claim based on fax costs. | Conversion supported by damages from fax receipt costs. | Costs are incidental; no conversion merits. | No merit; conversion claim properly dismissed. |
Key Cases Cited
- United Consumer Fin. Servs. Co. v. Carbo, 410 N.J. Super. 280 (App.Div.2009) (superiority analysis distinguished from aggregate penalties)
- Iliadis v. Wal-Mart Stores, Inc., 191 N.J. 88 (2007) (rigorous Rule 4:32-1 analysis required; commonality/predominance)
- Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011) (high court emphasizes rigorous predominance/superiority considerations)
- Forman v. Data Transfer, 164 F.R.D. 400 (E.D. Pa. 1995) (avoidance of class certification where liabilities are individualized)
- Kenro, Inc. v. Fax Daily, Inc., 962 F. Supp. 1162 (S.D. Ind. 1997) (individual inquiries needed to determine consent; affects class viability)