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True Health Chiropractic Inc v. McKesson Corporation
4:13-cv-02219
N.D. Cal.
Aug 13, 2019
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Background

  • Plaintiffs (True Health; later McLaughlin joined) allege McKesson sent unsolicited advertising faxes in violation of the TCPA; Plaintiffs seek an Exhibit A-only class (recipients listed on McKesson’s Exhibit A but not Exhibits B or C).
  • During discovery McKesson identified three consent-defense groups (Exhibits A, B, C); Exhibit A claimed consent via product registration and EULAs.
  • Ninth Circuit remanded: held Exhibit A-only subclass satisfied predominance, Exhibit C did not, and directed the district court to address Exhibit B issues on remand. True Health sought renewed certification limited to Exhibit A and McLaughlin as class rep.
  • The district court permitted narrow summary judgment briefing on whether providing a fax number via Medisoft product registration or agreeing to the Medisoft EULA constituted prior express invitation or permission for faxed advertisements.
  • The court denied McKesson’s summary judgment: neither registration-entry of a fax number nor assent to the EULA established prior express invitation/permission to receive advertising faxes as a matter of law.
  • The court granted Plaintiffs’ renewed motion certifying the Exhibit A-only class, appointed McLaughlin as class representative, and appointed class counsel.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether entering a fax number on Medisoft product registration constitutes "prior express invitation or permission" for advertising faxes Registration did not mention ads; at most it permits transactional follow-up, not advertising Entry of fax number in registration is voluntary and under Van Patten constitutes consent for related communications, including upgrade/compatibility ads Court: No — registration entry did not reasonably communicate consent to receive advertising faxes; summary judgment denied for defendants
Whether agreeing to the Medisoft EULA constitutes "prior express invitation or permission" for advertising faxes EULA only permits collection/transmission of usage information to McKesson; it does not notify users they will receive faxed ads EULA’s language that usage info may assist McKesson in offering features/services implies consent to marketing outreach, including faxes Court: No — EULA language did not clearly and unmistakably authorize sending fax advertisements; summary judgment denied for defendants
Standing and scope: whether McLaughlin can represent class claims for faxes sent before it intervened McLaughlin has individual standing for faxes it received; its claims relate back to the original complaint under Rule 15 and Ninth Circuit precedent Defendants argued intervention timing and China Agritech foreclose McLaughlin from representing older claims Court: McLaughlin’s claims relate back to original complaint; China Agritech does not bar intervention-based representation here; standing challenge rejected
Class certification: whether Exhibit A-only class satisfies Rule 23(b)(3) predominance and superiority given possible individual consent defenses Class satisfies numerosity, commonality, typicality, adequacy; Ninth Circuit already held Exhibit A-only subclass meets predominance Defendants asserted new evidence of individualized consent and that limiting defenses to Exhibits A/EULA would violate their rights Held: Law-of-the-case and Ninth Circuit mandate that Exhibit A-only subclass meets predominance; class certified; superiority satisfied

Key Cases Cited

  • Van Patten v. Vertical Fitness Grp., LLC, 847 F.3d 1037 (9th Cir.) (consent depends on transactional context; voluntary provision of number may permit related communications)
  • True Health Chiropractic, Inc. v. McKesson Corp., 896 F.3d 923 (9th Cir.) (on appeal: Exhibit A-only subclass satisfies predominance; remanded to address Exhibit B)
  • Amgen Inc. v. Connecticut Retirement Plans & Trust Funds, 568 U.S. 455 (2013) (limits on merits inquiry at class-certification stage)
  • A-S Medication Sols. LLC v. Physicians Healthsource, Inc., 324 F. Supp. 3d 973 (N.D. Ill. 2018) (entering fax number into CRM did not show consent to receive faxed advertisements)
  • China Agritech, Inc. v. Resh, 138 S. Ct. 1800 (2018) (American Pipe tolling does not permit successive class claims)
  • Tyson Foods, Inc. v. Bouaphakeo, 136 S. Ct. 1036 (2016) (predominance focuses on whether common, classwide proof can resolve central issues)
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Case Details

Case Name: True Health Chiropractic Inc v. McKesson Corporation
Court Name: District Court, N.D. California
Date Published: Aug 13, 2019
Docket Number: 4:13-cv-02219
Court Abbreviation: N.D. Cal.