CIVIL ACTION NO. 20-1199
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA
September 28, 2020
SECTION “F”
ORDER AND REASONS
Before the Court are a pair of related motions brought by the defendant: a motion to dismiss under
Background
In this putative class action, the plaintiffs accuse the defendant Charter Communications, Inc. of repeatedly violating
That “government-debt exception” was short-lived. On July 6, 2020, the Supreme Court struck it down as an unconstitutional content-based restriction on speech and severed it from the rest of the statute. See Barr v. Am. Ass‘n of Political Consultants (AAPC), 140 S. Ct. 2335 (2020).
At primary issue here is that decision‘s effect on this Court‘s subject matter jurisdiction over this case. In its motion to dismiss, Charter contends that the Supreme Court‘s fractured decision1 in AAPC amounts to an adjudication that the entirety of
The plaintiffs argue just the opposite: namely, that by severing the new-fangled government-debt exception to preserve the general ban as a going concern, the Court confirmed that
What, then, does AAPC have to say of the matter? Unfortunately for all involved, precious little. In the few lines of nonbinding dicta shedding any light on the issue, the Court offered a pair of squarely contradictory answers. The three-Justice plurality opinion authored by Justice Kavanaugh concluded that while “no one should be penalized or held liable for making robocalls to collect government debt” as a result of the Court‘s invalidation of the exception that purported to authorize such robocalls, the Court‘s decision would not “negate the liability of parties who made robocalls covered by the robocall restriction” during the timeframe in which the exception remained operative. Id. at 2355 n.12. Justice Gorsuch (joined by Justice Thomas) disagreed. In his view, by “shield[ing] only government-debt collection callers from past liability under an admittedly unconstitutional law,” the plurality “[wound] up endorsing the very same kind of content discrimination [it said it was] seeking to eliminate.” Id. at 2366.
This, of course, places the Court in an uncomfortable position. (And to their credit, the parties make much of this decisive distinction.) In any event, confronted with a genuine issue of first impression, and with little more to guide it than passing Supreme Court dicta of no precedential force,2 the Court concludes that Justice Gorsuch‘s is the better argument as a matter of law and logic. Congress‘s 2015 enactment of the government-debt exception rendered
other categories of content, the entirety of the provision was, indeed, unconstitutional.
That fact deprives the Court of jurisdiction over much of this action.
I.
In the operative complaint, the plaintiffs allege that Charter violated
With respect to each of the pre-AAPC communications, Charter asserts that the Court lacks subject matter jurisdiction to adjudicate the legality of such communications because federal courts lack authority to enforce violations of unconstitutional laws. With respect to the July 11, 2020 text message to Creasy, Charter seeks dismissal on two independent grounds: first, it asserts that the Court lacks subject matter jurisdiction because the text is not traceable to Charter (
to adjudicate the plaintiffs’ claim with respect to that text, the plaintiffs nevertheless fail to state a claim upon which relief can be granted (
As an alternative ground for dismissal of plaintiff Tiffanie Hogans’ claims, Charter contends that the Court cannot assert personal jurisdiction over it because Charter is not subject to general jurisdiction in Louisiana and because specific jurisdiction is improper since Hogans’ claims do not arise from Charter‘s contacts with Louisiana.
The Court addresses each of these arguments in turn.
A.
Charter first argues that the Court lacks subject matter jurisdiction to adjudicate any violations of
1. Applicable Legal Standards
Motions filed under
adjudicating a suit. A district court should dismiss where it appears certain that the plaintiff cannot prove a plausible set of facts that establish subject-matter jurisdiction.” Bank of La. v. FDIC, 919 F.3d 916, 922 (5th Cir. 2019) (quoting Venable v. La. Workers’ Comp. Corp., 740 F.3d 937, 941 (5th Cir. 2013) (internal quotation marks omitted)). “A court may find that plausible set of facts by considering ‘(1) the complaint alone; (2) the complaint supplemented by undisputed facts evidenced in the record; or (3) the complaint supplemented by undisputed facts plus the court‘s resolution of disputed facts.‘” Id. (quoting Spotts v. United States, 613 F.3d 559, 566 (5th Cir. 2010)). “The party asserting jurisdiction bears the burden of proof.” Id. (citing Griener v. United States, 900 F.3d 700, 703 (5th Cir. 2018)).
Siebold, 100 U.S. at 376)). That principle colors many doctrines, but as relevant here, it suggests that—in the vast run of scenarios—a speaker should not be punished for engaging in speech that was restricted in an unconstitutional fashion. Cf. Grayned v. City of Rockford, 408 U.S. 104, 107 n.2 (1972) (holding, also with regard to an invalid time-place-manner restriction, that determining the speaker‘s fate required assessing “the facial constitutionality of the [restriction] in effect” at the time of the speech at issue). It also supports the general rule that “once a statute has been declared unconstitutional, the federal courts thereafter have no jurisdiction over alleged violations (since there is no valid ‘law of the United States’ to enforce).” United States v. Baucum, 80 F.3d 539, 541-42 (D.C. Cir. 1996) (per curiam).
2. Precedent, Plurality Opinions, and AAPC
Without exception, federal district courts are bound by Supreme Court precedent. See, e.g., Amy Coney Barrett, Precedent and Jurisprudential Disagreement, 91 TEX. L. REV. 1711, 1712 (2013) (observing that “vertical stare decisis, a court‘s obligation to follow the precedent of a superior court, . . . is an inflexible rule that admits of no exception” (footnote omitted)). Occasionally, however, “a fragmented Court decides a case,” but “no single rationale explaining the result enjoys the assent of five Justices.” Marks v. United States, 430 U.S. 188, 193 (1977).
In such scenarios, “the holding of the Court may be viewed as that position taken by those Members who concurred in the judgments on the narrowest grounds.” Id. (quoting Gregg v. Georgia, 428 U.S. 153, 169 n.15 (1976) (plurality opinion)). As a result, “when the Justices fail to converge on a single majority rationale for a decision,” the only precedent that comes of such a decision is the position adopted by the narrowest concurrence. See Williams, supra note 1, at 798.
Cognizant of this rule, the plurality in AAPC spelled out the technical holdings of the Court in explicit terms: (1) “Six Members of the Court . . . conclude that Congress has impermissibly favored debt-collection speech over political and other speech, in violation of the First Amendment,” and (2) “[S]even members of the Court conclude that the entire 1991 robocall restriction should not be invalidated, but rather that the 2015 government-debt exception must be invalidated and severed from the remainder of the statute.” AAPC, 140 S. Ct. at 2343 (plurality opinion). That much is binding on all other courts.
Nevertheless, although it is not binding on this Court, the AAPC plurality‘s footnoted statement that the Court‘s decision “does not negate the liability of parties who made robocalls covered by the robocall restriction [during the relevant
timeframe]” is extremely persuasive authority.4
3. Subject Matter Jurisdiction over Pre-AAPC Violations
As Charter contends, the Court indeed lacks subject matter jurisdiction over each of the supposed
content-discriminatory one. Indeed, when divorced from the exception enabling one category of speech above all others,
While that holding affirmatively binds this Court as one of just two holdings to command the votes of a majority of the Justices in AAPC, it is also inescapable as a logical matter. Indeed, while the plaintiffs argue that the Court‘s severance of the exception has no bearing on the constitutionality of the rule, the exception and the rule are in fact inextricably intertwined for the purposes of any reasonable analysis. Simply put, a restriction cannot possibly be content-based if it does not treat different categories of content differently; an exception cannot be unconstitutionally discriminatory without reference to the broader rule in which it appears. A review of the statutory text before and after the addition of the government-debt exception confirms as much.
Prior to the exception‘s enactment in 2015 (and now again, post-severance),
It shall be unlawful for any person within the United States, or any person outside the United States if the recipient is within the United States—
(A) to make any call (other than a call made for emergency purposes or made with the prior express consent of the called party) using any automatic telephone dialing system or an artificial or prerecord voice . . .
(iii) to any telephone number assigned to a paging service, cellular telephone service, specialized mobile radio service, or other radio common carrier
service, or any service for which the called party is charged for the call;
This neutral version of
It shall be unlawful for any person within the United States, or any person outside the United States if the recipient is within the United States—
(A) to make any call (other than a call made for emergency purposes or made with the prior express consent of the called party) using any automatic telephone dialing system or an artificial or prerecord voice . . .
(iii) to any telephone number assigned to a paging service, cellular telephone service, specialized mobile radio service, or other radio common carrier service, or any service for which the called party is charged for the call, unless such call is made solely to collect a debt owed to or guaranteed by the United States;
Viewing these provisions side-by-side shows how Congress‘s addition of a single exception could fundamentally alter the entire
provision. Without the exception,
This is not a situation where “one section of a [provision]” being “repugnant to the Constitution” does not “render[] the whole [provision] void.” See Seila Law LLC v. CFPB, 140 S. Ct. 2183, 2208 (2020) (plurality opinion) (quoting Loeb v. Columbia Twp. Trs., 179 U.S. 472, 490 (1900)).
Precisely the opposite is the case here: the entirety of the pre-severance version of
As a further matter, “severability” functions as a “remedy” in this context. See, e.g., id. at 2356 (plurality opinion) (rejecting Justice Gorsuch‘s “proposed remedy of injunctive relief“); id. at 2365-67 (Gorsuch, J., concurring in the judgment in part and dissenting in part) (criticizing the plurality‘s imposition of a severance “remedy“). A remedy is only necessary where there has first been a “wrong.” In this context, that wrong was experienced by Charter and all other robocallers (or would-be robocallers) whose constitutionally protected speech was outlawed while Congress affirmatively blessed robocalls of other content in violation
Court, to determine whether that price is unduly high.5 Legislative choices have consequences.
In any event, the unconstitutional amended version of
B.
With respect to the lone remaining violation asserted by the plaintiffs—the allegedly unlawful text message Charter sent Stacy Creasy on July 11, 2020—Charter likewise seeks dismissal for lack of subject matter jurisdiction. However, Charter offers little to no support for this argument, and the Court dismisses it out of hand—indeed, it flies in the face of each of the Court‘s
holdings with regard to the communications that pre-dated AAPC. See supra subsection I.A.3.
In the alternative, Charter urges the Court to dismiss this claim under
The foregoing presumptions are not to be applied mindlessly, however. Thus, in considering a motion to dismiss, the Court may review any documents attached to or incorporated into the plaintiff‘s complaint by reference. Causey v. Sewell Cadillac-
Chevrolet, Inc., 394 F.3d 285, 288 (5th Cir. 2004). In addition, the Court may judicially notice matters of public record and other facts not subject to
Applying these standards to the plaintiffs’ lone remaining claim is relatively straightforward. In Paragraph 40 of the Amended Complaint, the plaintiffs allege that plaintiff Stacy Creasy received an unwanted text message6 from Spectrum Mobile. “Spectrum Mobile” is a brand and subsidiary of defendant Charter Communications, Inc.7 And the plaintiffs allege, correctly, that Charter “offers its services to consumers and businesses under the Spectrum brand.” See Am. Compl. ¶ 9. Thus, Charter‘s argument that the plaintiffs fail to state a claim against Charter—as opposed to Spectrum, the alleged sender of the July 11, 2020 text message to Creasy—is unpersuasive at the motion to dismiss stage. Regardless, even if Charter Communications, Inc. and Spectrum Mobile, LLC are technically distinct entities as Charter avers,
this fact is without legal consequence as “the Federal Communications Commission has ruled that, under federal common-law principles of agency, there is vicarious liability for TCPA violations.” Campbell-Ewald Co. v. Gomez, 136 S. Ct. 663, 674 (2016) (citing In re Joint Petition Filed by Dish Network, LLC, 28 FCC Rcd. 6574 (2013)).
Accordingly, Charter falls one yard shy of the goal line in its effort to dispose of the entirety of the plaintiffs’ Amended Complaint. With respect to the only improper communication they allege to have occurred after the Supreme Court‘s decision in AAPC, the plaintiffs do state a plausible claim upon which relief can be granted.
C.
Because the Court lacks subject matter jurisdiction over each of the plaintiffs’ claims particular to plaintiff Tiffanie Hogans, Charter‘s personal jurisdiction arguments with regard to Ms. Hogans’ claims need not—and may not8—be addressed.
II.
As an alternative to total dismissal, Charter seeks a stay of these proceedings pending the Supreme Court‘s decision in Facebook, Inc. v. Duguid, No. 19-511. Oral argument in Facebook
has been set for December 8, 2020, and the Court will presumably enjoy a full complement of Justices by the end of October Term 2020. Accordingly, a 2021 decision in Facebook is probable. Because such a decision would illuminate an unsettled area of the law that is key to this case, and because a stay will promote judicial economy, conserve party resources, and increase the likelihood of a just and correct outcome, the Court determines that a stay of these proceedings is warranted.
A.
[T]he power to stay proceedings is incidental to the power inherent in every
court to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants. How this can best be done calls for the exercise of judgment, which must weigh competing interests and maintain an even balance.
Landis v. N. Am. Co., 299 U.S. 248, 254-55 (1936).
“The proponent of a stay bears the burden of establishing its need.” Clinton v. Jones, 520 U.S. 681, 708 (1997).
B.
The circumstances here firmly favor a stay for several related reasons. All stem from the fact that a decision in Facebook promises to significantly hone the issues in this case. In Facebook, the Court will resolve a circuit split9 concerning the
scope of the TCPA‘s definition of an “automatic telephone dialing system” (ATDS). In particular, the Court will determine “[w]hether the definition of ATDS in the TCPA encompasses any device that can ‘store’ and ‘automatically dial’ telephone numbers, even if the device does not ‘us[e] a random or sequential number generator.‘” Facebook, Inc. v. Duguid, No. 19-511 (U.S. July 9, 2020).
The answer to that question has immediate bearing on the scope of the plaintiffs’ action. Because the plaintiffs allege that Charter was attempting to contact a particular customer in its July 11, 2020 text message to Ms. Creasy, a decision by the Supreme Court that an ATDS must employ a random or sequential number generator for liability to attach under the TCPA would likely be dispositive of the plaintiffs’ action.
Thus, in its significant potential to narrow and refine the issues in this case, a decision in Facebook promises to benefit the parties and the Court in a multitude of ways. Among other likely benefits, pausing this litigation in wait of a ruling in Facebook may (1) prevent a waste of judicial and party resources in the event that Facebook clearly dictates that the plaintiffs’ remaining claims are without merit, (2) limit and streamline discovery in the event that the plaintiffs’ claims do have merit, and (3) reduce the risk of an incorrect decision by sharpening the legal issues at play.
Against these benefits, there is little conceivable risk to any party. Indeed, while a stay will slow the plaintiffs’ pursuit of a possible recovery, it will not pose a substantial risk of loss of evidence (since Charter is a sophisticated defendant that is presumably well aware of its preservation obligations) or continued, unremedied harm.
Largely for these reasons, a great number of similarly situated courts have issued stays pending a decision in Facebook. See Mot. to Stay at 9 (collecting cases).
Accordingly, in its best “exercise of judgment,” the Court deems Charter‘s proposed stay to be well warranted. See Landis, 299 U.S. at 254.
Conclusion
The Supreme Court‘s decision in AAPC cannot logically be read as anything other than a ruling that
An unconstitutional statute being “as no law,” the Court may not enforce the pre-AAPC version of
with regard to the single communication they allege to have occurred after AAPC cured
Because the viability of the plaintiffs’ surviving claim will turn in large part on the Supreme Court‘s forthcoming decision in Facebook, Inc. v. Duguid, staying this action in wait of such a decision is the best course.
* * *
Accordingly, for the foregoing reasons, IT IS ORDERED:
- That the defendant‘s motion to dismiss is GRANTED with respect to all asserted TCPA violations alleged to have occurred before July 6, 2020;
- That the defendant‘s motion to dismiss is DENIED with respect to all asserted TCPA violations alleged to have occurred after July 6, 2020;
- That the defendant‘s motion to stay is GRANTED; and
- That these proceedings are accordingly STAYED pending dispositive action by the Supreme Court in Facebook, Inc. v. Duguid, No. 19-511.
New Orleans, Louisiana, September 28, 2020
MARTIN L. C. FELDMAN
UNITED STATES DISTRICT JUDGE
Notes
Complicating matters immensely is the Court‘s inability to reach a clear majority decision in AAPC. Justice Kavanaugh announced the judgment of the Court in a plurality opinion which Chief Justice Roberts and Justice Alito joined in whole, and which Justice Thomas joined in part. AAPC, 140 S. Ct. at 2343-56. Justice Sotomayor concurred in the judgment. Id. at 2356-57. Justice Breyer, joined by Justices Ginsburg and Kagan, concurred in the judgment with respect to severability, but dissented as to the plurality‘s application of strict scrutiny to
The Court‘s failure to unite behind a sufficiently agreeable rationale does a disservice to litigants and lower courts. See generally Ryan C. Williams, Questioning Marks: Plurality Decisions and Precedential Constraint, 69 STAN. L. REV. 795 (2017) (observing the confusion that commonly results from fractured plurality decisions like AAPC and proposing a renewed approach for drawing doctrinal significance from such decisions). Here, it has led the parties to wildly dissimilar understandings of AAPC‘s legal effect—all in the utmost good faith and preparation. In the future, it may engender a circuit split which confronts the Court anew.
