Case Information
*1 I LLINOIS O FFICIAL R EPORTS Supreme Court
Italia Foods, Inc. v. Sun Tours, Inc.
,
Docket No. 110350
Filed June 3, 2011
Rehearing denied September 26, 2011
Held Under the federal Telephone Consumer Protection Act of 1991, the Illinois General Assembly did not have to enact enabling legislation ( Note: This syllabus before a private action could be brought under the Act in state court, constitutes no part of since, under the “acknowledgment approach” followed by the majority of the opinion of the court but has been prepared jurisdictions, state courts must, as a matter of supremacy clause by the Reporter of jurisprudence, remain open to litigants with federal causes of action and Decisions for the are not free to refuse enforcement.
convenience of the
reader . )
Decision Under Appeal from the Appellate Court for the Second District; heard in that court on appeal from the Circuit Court of Lake County, the Hon. Mitchell Review
L. Hoffman, Judge, presiding.
Judgment Certified question answered; cause remanded.
Counsel on Michael D. Richman and Henry Pietrkowski, of Reed Smith LLP, of Chicago, and Charles W. Smith, of Smith & Laluzerne, Ltd., of Appeal
Waukegan, for appellants.
Michael T. Reagan, of Ottawa, Phillip A. Bock and Robert M. Hatch, of Bock & Hatch, LLC, of Chicago, and Brian J. Wanca and David M. Oppenheim, of Anderson + Wanca, of Rolling Meadows, for appellee.
Justices
JUSTICE FREEMAN delivered the judgment of the court, with opinion.
Chief Justice Kilbride and Justices Thomas, Garman, Karmeier, Burke, and Theis concurred in the judgment and opinion.
OPINION
The circuit court of Lake County certified several questions of law for interlocutory
appeal (Ill. S. Ct. R. 308 (eff. Feb. 1, 1994)). The appellate court concluded that its answers
to the following two questions were dispositive. First, does the federal Telephone Consumer
Protection Act of 1991 (TCPA) (47 U.S.C. § 227 (2000)) require that the Illinois General
Assembly enact legislation to enable Illinois state courts to hear and enforce private TCPA
claims? The second certified question asks essentially whether the TCPA claim in this case
is assignable under Illinois law. The appellate court answered the first question in the
negative and the second question in the affirmative.
inter alia , that Hinman’s claims were time-barred because he brought them over five years *3 after he allegedly received the four faxes. In January 2008, over defendants’ objection, the circuit court granted Italia Foods, Inc., leave to file the instant third amended complaint, in which Italia substituted itself for Hinman. Italia alleged that from June 2005 through April 2007 defendants sent Italia 28 unsolicited faxes of discount travel advertisements. Further, defendants faxed the same and similar advertisements to more than 39 other recipients without first receiving their permission or invitation. Italia claimed that defendants: (1) violated the TCPA, and (2) committed common law conversion. [1] Defendants filed a combined motion to dismiss pursuant to section 2-619.1 of the Code of Civil Procedure (735 ILCS 5/2-619.1 (West 2008)). Defendants asserted that private TCPA claims are not cognizable in Illinois state courts. 735 ILCS 5/2-615 (West 2008). Defendants also contended that TCPA claims are not assignable as a matter of Illinois law. Defendants alternatively sought dismissal arguing that Italia’s TCPA claim was time- barred. 735 ILCS 5/2-619 (West 2008). [2] The circuit court denied defendants’ motion. However, the court certified the following
questions for interlocutory review pursuant to Supreme Court Rule 308 (Ill. S. Ct. R. 308 (eff. Feb. 1, 1994)):
“I. Does the language and purpose of the federal Telephone Consumer Protection Act (‘TCPA’) require that the Illinois General Assembly enact enabling legislation before private TCPA claims can be brought and enforced in Illinois state courts? II. Are the TCPA claims alleged in this case ‘statutory penalties’ under Illinois law? And if so:
(a) Are those claims assignable under Illinois law?
(b) Does Illinois’ two year statutory penalty limitations period [citation] apply to such claims, as opposed to [the federal limitations period for civil actions]? III. If the claim is not assignable, then should absent class members’ putative claims against defendants be treated as tolled when no class representative with proper standing represented the putative class for a 27-month period?” The appellate court allowed defendants’ application for leave to appeal (Ill. S. Ct. R. 308 (eff. Feb. 1, 1994)). The court answered the first question in the negative. 399 Ill. App. 3d at 1043-63. As to the second certified question, the appellate court concluded that the TCPA claim in this case is assignable under Illinois law and that, based on the admitted facts, the court need not answer subsection (b) concerning the appropriate statute of limitations. 399 Ill. App. 3d at 1063-72. Lastly, because the appellate court concluded that the TCPA claim in this case is assignable, the court did not address the third certified question. 399 Ill. App. *4 3d at 1072. We allowed defendants’ petition for leave to appeal (Ill. S. Ct. R. 315(a)).
¶ 8 II. ANALYSIS
¶ 9 Because this appeal concerns questions of law certified by the circuit court pursuant to
Supreme Court Rule 308 (Ill. S. Ct. R. 308 (eff. Feb. 1, 1994)), our review is
de novo
.
Barbara’s Sales, Inc. v. Intel Corp.
,
Assembly to enact legislation to enable Illinois state courts to hear and enforce private TCPA claims. Defendants contend that the General Assembly is required to so act. It is undisputed that the legislature has not enacted legislation authorizing TCPA suits in Illinois state courts. Therefore, defendants ask this court to direct that Italia’s TCPA claim be dismissed with prejudice. This issue is a matter of statutory construction, which we analyze within a settled framework. “ ‘Our task is to give effect to the will of Congress, and where its will has been expressed
in reasonably plain terms, that language must ordinarily be regarded as conclusive.’ ”
Negonsott v. Samuels
,
bring a civil action on behalf of a state’s residents. 47 U.S.C. § 227(f)(1). Second, the Federal Communications Commission (FCC) may bring a civil action for violations of the TCPA. Id. §§ 227(f)(3), (f)(7). Federal district courts have exclusive jurisdiction over TCPA claims brought by state attorneys general and the FCC. Id. § 227(f)(2). Third, individuals may bring actions on their own behalf in state courts. Id. §§ 227(b)(3), (c)(5). [3] The TCPA provides in relevant part: “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 *** to use any telephone facsimile machine, computer, or other device to send, to a telephone facsimile machine, an unsolicited advertisement.” Id . § 227(b)(1)(C). Subsection (b)(3) provides as follows:
“(3) Private right of action.
A person or entity may, if otherwise permitted by the laws or rules of court of a State , bring in an appropriate court of that State– (A) an action based on a violation of this subsection or the regulations prescribed under this subsection to enjoin such violation, (B) an action to recover for actual monetary loss from such a violation, or to receive $500 in damages for each such violation, whichever is greater, or
(C) both such actions.” (Emphasis added.) Id. § 227(b)(3). If the court finds that the defendant “willfully or knowingly violated” this section, the court has the discretion to award an amount up to three times the amount specified above. Id. [4] The first certified question concerns the congressional intent underlying the phrase “if otherwise permitted by the laws or rules of court of a State.” § 227(b)(3). Defendants contend that this statutory language requires that the Illinois General Assembly enact legislation to enable Illinois circuit courts to hear private TCPA claims. Because the legislature has not enacted such a law, defendants argue that circuit courts may not hear these claims. On the other hand, Italia contends that Illinois circuit courts may hear private TCPA *6 claims with no need for enabling legislation.
¶ 17 Where, as here, resolution of a question of federal law turns on a statute and
congressional intent, we look first to the statutory language and then to the legislative history
if the statutory language is ambiguous. See
Toibb v. Radloff
,
¶ 18 In the present case, we conclude that the statutory phrase “if otherwise permitted by the
laws or rules of court of a State” is ambiguous. Many courts from across the country have
been faced with construing this statutory language. These decisions indicate that it is unclear
what, if any, state legislative action is required in order for state courts to hear private TCPA
claims. Courts have used one of three interpretative approaches in construing this statutory
language. See,
MLC Mortgage Corp. v. Sun America Mortgage Co.
,
laws or rules of court of a State” to merely acknowledge that states have the right to structure
their own court systems; that neutral state laws and court rules concerning state court
jurisdiction and procedure apply to TCPA claims; and that state courts are not obligated to
change their procedural rules to accommodate TCPA claims.
Consumer Crusade
, 121 P.3d
at 354;
Ponte
,
States Constitution.”
MLC Mortgage
,
“Federal law is enforceable in state courts not because Congress has determined that federal courts would otherwise be burdened or that state courts might provide a more convenient forum–although both might well be true–but because the Constitution and laws passed pursuant to it are as much laws in the States as laws passed by the state legislature. The Supremacy Clause makes those laws ‘the supreme Law of the Land,’ and charges state courts with a coordinate responsibility to enforce that law according to their regular modes of procedure.” Howlett v. Rose , 496 U.S. 356, 367 (1990).
Therefore: “The obligation on State courts to hear Federal causes of action is not self-
imposed by enabling legislation, but arises under the supremacy clause.”
Mulhern v.
MacLeod
,
may not deny a federal right when the parties and the controversy are properly before it. Howlett , 496 U.S. at 369. The supremacy clause forbids state courts to disassociate themselves from federal law because they disagree with its substance or because they refuse to recognize the superior authority of federal law. Id. at 371. By virtue of the United States Constitution, state courts must remain open to litigants with federal causes of action “ ‘on the same basis that they are open to litigants with causes of action springing from a different source.’ ” at 372 (quoting Miles v. Illinois Central R.R. Co. , 315 U.S. 698, 703-04 (1942)). Second, a state court may refuse jurisdiction of a federal claim based on “a neutral state
rule regarding the administration of the courts.”
Howlett
,
“The requirement that a state court of competent jurisdiction treat federal law as the law of the land does not necessarily include within it a requirement that the State create a court competent to hear the case in which the federal claim is presented. The general rule, ‘bottomed deeply in belief in the importance of state control of state judicial procedure, is that federal law takes the state courts as it finds them.’ [Citations.] The States thus have great latitude to establish the structure and jurisdiction of their own courts. [Citations.] In addition, States may apply their own neutral procedural rules to federal claims, unless those rules are pre-empted by federal law.” Id.
However, when a state court has jurisdiction “adequate and appropriate under established
local law to adjudicate” a federal claim, the court is “not free to refuse enforcement.”
Testa
v. Katt
,
system of federalism in which the state courts share responsibility for the application and
*8
enforcement of federal law.”
Howlett
,
“The [bill] contains a private right-of-action provision that will make it easier for consumers to recover damages from receiving these computerized calls. The provision would allow consumers to bring an action in State court against any entity that violates the bill. The bill does not, because of constitutional constraints, dictate to the States which court in each State shall be the proper venue for such an action, as this is a matter for State legislators to determine. Nevertheless, it is my hope that States will make it as easy as possible for consumers to bring such actions, preferably in small claims court. The consumer outrage at receiving these calls is clear. Unless Congress makes it easier for consumers to obtain damages from those who violate this bill, these abuses will undoubtedly continue.
Small claims court or a similar court would allow the consumer to appear before the court without an attorney. The amount of damages in this legislation is set to be fair to both the consumer and the telemarketer. However, it would defeat the purposes of the bill if the attorneys’ costs to consumers of bringing an action were greater than the potential damages. I thus expect that the States will act reasonably in permitting their citizens to go to court to enforce this bill.” (Emphasis added.) 137 Cong. Rec. 30,821-22 (1991) (quoted in Portuguese American Leadership Council956 A.2d at 677 , and Ponte ,857 A.2d at 13-14 ).
Senator Hollings’ explanation of the TCPA’s private cause of action makes clear that the “if
otherwise permitted” clause simply reflects supremacy clause jurisprudence. “The
substantive issue of whether the federal cause of action should be entertained in the
appropriate state court was
not
a matter left to state legislators.” (Emphasis in original.)
Ponte
,
procedures specifically for small claims actions–the type of proceeding Senator Hollings
envisioned for private TCPA claims. These are neutral state rules regarding the
administration of the courts (see
Howlett
,
This court has repeatedly recognized that the Illinois Constitution, not the legislature, confers
jurisdiction on Illinois circuit courts. Pursuant to article VI, section 9, of our constitution, the
circuit courts have jurisdiction over all justiciable matters. Ill. Const. 1970, art. VI, § 9;
People ex rel. Alvarez v. Skryd People v. Davis
,
“In contrast to the reasoning of the overwhelming majority of jurisdictions, only one state has unequivocally espoused the ‘opt in’ theory. In [ Chair King ], the Texas Supreme Court held that the TCPA did not create an immediately enforceable private right of action for unsolicited faxes and that such a cause of action would not be recognized in Texas courts until the Legislature amended the state’s business and commerce code to provide for such a suit by private parties. Such a provision was added ***. Therefore, there are now no states who have considered the issue of enforcement under the TCPA which do not allow such actions in their respective courts. ” (Emphasis in original.) MLC Mortgage ,2009 OK 37 , ¶ 15.
This result obtains for a good reason. Given supremacy clause principles, the plain language
of 47 U.S.C. § 227(b)(3) and its legislative history, we doubt that Congress intended to
require the states to adopt additional laws or court rules to enable TCPA claims to be heard
*10
in state courts. See
Consumer Crusade
,
¶ 34 3. “Opt Out” Approach
¶ 35 The appellate court discussed a third interpretative approach to the statutory phrase “if
otherwise permitted by the laws or rules of court of a State.” The “opt out” approach
construes the statutory language as creating an immediately enforceable private TCPA claim
in state courts without the need for state enabling legislation. However, according to this
theory, a state may “opt out” of the TCPA through legislation or court rule that specifically
refuses to entertain private TCPA claims.
even point to any statute or court rule that purports to “opt out” of the TCPA. Therefore, we need not and do not discuss the merits of this interpretative approach. See, Mulhern , 808 A.2d at 782.
¶ 37 For the foregoing reasons, we conclude that the TCPA “forms part of the law enforceable
in Illinois courts” (
First Capital Mortgage
,
we hold that the appellate court’s analysis led the court to discuss an issue that it need not have discussed, and to fail to answer a question that it should have answered. In the instant third amended complaint, Italia does not merely rely on the same TCPA
violations that Eclipse alleged in the original complaint. Italia does not allege that it acquired its TCPA claim through assignment from Eclipse or Hinman. Rather, the third amended complaint alleges a TCPA claim based on junk faxes that Italia itself received from defendants. Thus, the appellate court’s discussion of assignability in the context of the third amended complaint does not affect the outcome of this litigation, but is only advisory. Generally, Illinois courts do not decide moot questions, render advisory opinions, or consider issues where the result will not be affected regardless of how those issues are decided. In re Alfred H.H. Golden Rule Insurance Co. v. Schwartz , 203 Ill. 2d 456, 469 (2003).
¶ 42 Accordingly, the appellate court need not and should not have discussed this issue. We
vacate that portion of the appellate court’s opinion (399 Ill. App. 3d at 1064-72) that
discussed the issue of assignability. See,
e.g.
,
Golden Rule Insurance
,
¶ 43 Applicable Statute of Limitations
¶ 44 As part of the second certified question, defendants also asked what was the applicable
statute of limitations for the instant TCPA claim, the Illinois two-year limitations period for
actions including personal injuries and statutory penalties (735 ILCS 5/13-202 (West 2002))
or the four-year limitations period for federal civil actions (28 U.S.C. § 1658 (2000)). The
appellate court concluded that it need not answer this question.
¶ 45 The appellate court should have answered this question. Italia filed the third amended
complaint in January 2008. Italia alleged that defendants sent it 28 junk faxes from June
2005 through April 2007. Thus, application of either the federal four-year limitations period
(28 U.S.C. § 1658) or the Illinois two-year limitations period (735 ILCS 5/13-202 (West
2002)) would render a different outcome for some of Italia’s alleged TCPA violations.
Accordingly, we remand the cause to the appellate court to answer this and any other
remaining questions consistent with this opinion. See,
Carter v. SSC Odin Operating
Co. Pooh-Bah Enterprises, Inc. v. County of Cook
,
Regarding the second certified question, we vacate the appellate court’s discussion of assignability. The cause is remanded to the appellate court for further proceedings consistent with this opinion. Certified question answered; cause remanded.
Notes
[1] The original and first amended complaints included a third count claiming a violation of the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/1 et seq. (West 2002)). However, the circuit court granted defendants’ motion to dismiss this count with prejudice, and Italia does not appeal therefrom.
[2] Defendants also raised sections 2-615 and 2-619 challenges to Italia’s common law conversion claim.
[3] The majority of federal courts that have considered the issue have held that they lack
jurisdiction to hear private TCPA actions. 399 Ill. App. 3d at 1046 n.4;
Portuguese American
Leadership Council
,
[4] The TCPA also includes a subsection that protects residential telephone subscribers’ privacy rights against telephone solicitations. This subsection also establishes a private right of action, which likewise applies “if otherwise permitted by the laws or rules of court of a State.” Id. § 227(c)(5).
