MIMS v. ARROW FINANCIAL SERVICES, LLC
No. 10-1195
SUPREME COURT OF THE UNITED STATES
January 18, 2012
565 U.S. ___ (2012)
GINSBURG, J., delivered the opinion for a unanimous Court.
Syllabus
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
SUPREME COURT OF THE UNITED STATES
Syllabus
MIMS v. ARROW FINANCIAL SERVICES, LLC
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT
No. 10-1195. Argued November 28, 2011—Decided January 18, 2012
Consumer complaints about abuses of telephone technology—for example, computerized calls to private homes—prompted Congress to pass the Telephone Consumer Protection Act of 1991 (TCPA or Act),
Petitioner Mims filed a damages action in Federal District Court, alleging that respondent Arrow, seeking to collect a debt, violated the TCPA by repeatedly using an automatic telephone dialing system or prerecorded or artificial voice to call Mims‘s cellular phone without his consent. Mims invoked the court‘s “federal question” jurisdiction, i.e., its authority to adjudicate claims “arising under the . . . laws . . . of the United States,”
Held: The TCPA‘s permissive grant of jurisdiction to state courts does not deprive the U. S. district courts of federal-question jurisdiction
(a) Because federal law creates the right of action and provides the rules of decision, Mims‘s TCPA claim, in
Section 1331 is not swept away so easily. The principle that district courts possess federal-question jurisdiction under
(b) Arrow‘s arguments do not persuade this Court that Congress eliminated
Arrow argues that Congress had no reason to provide for a private action “in an appropriate [state] court,”
Arrow further asserts that making state-court jurisdiction over
Arrow‘s reliance on a statement by Senator Hollings, the TCPA‘s sponsor, is misplaced. The remarks nowhere mention federal-court jurisdiction or otherwise suggest that
421 Fed. Appx. 920, reversed and remanded.
GINSBURG, J., delivered the opinion for a unanimous Court.
NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press.
SUPREME COURT OF THE UNITED STATES
No. 10–1195
MARCUS D. MIMS, PETITIONER v. ARROW FINANCIAL SERVICES, LLC
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT
[January 18, 2012]
JUSTICE GINSBURG delivered the opinion of the Court.
This case concerns enforcement, through private suits, of the Telephone Consumer Protection Act of 1991 (TCPA or Act),
The question presented is whether Congress’ provision for private actions to enforce the TCPA renders state courts the exclusive arbiters of such actions. We have long recognized that “[a] suit arises under the law that creates the cause of action.” American Well Works Co. v. Layne & Bowler Co., 241 U. S. 257, 260 (1916). Beyond doubt, the TCPA is a federal law that both creates the claim Mims has brought and supplies the substantive rules that will govern the case. We find no convincing reason to read into the TCPA‘s permissive grant of jurisdiction to state courts any barrier to the U. S. district courts’ exercise of the general federal-question jurisdiction they have possessed since 1875. See
A
In enacting the TCPA, Congress made several findings relevant here. “Unrestricted telemarketing,” Congress determined, “can be an intrusive invasion of privacy.” TCPA, 105 Stat. 2394, note following
Subject to exceptions not pertinent here, the TCPA principally outlaws four practices. First, the Act makes it unlawful to use an automatic telephone dialing system or an artificial or prerecorded voice message, without the prior express consent of the called party, to call any emergency telephone line, hospital patient, pager, cellular telephone, or other service for which the receiver is charged for the call. See
The TCPA delegates authority to the FCC to ban artificial and prerecorded voice calls to businesses,
Congress provided complementary means of enforcing the Act. State Attorneys General may “bring a civil action on behalf of [State] residents,” if the Attorney General “has reason to believe that any person has engaged . . . in a pattern or practice” of violating the TCPA or FCC regulations thereunder.
“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.
“If the court finds that the defendant willfully or knowingly violated this subsection or the regulations prescribed under this subsection, the court may, in its discretion, increase the amount of the award to an amount equal to not more than 3 times the amount available under subparagraph (B) of this paragraph.”
A similar provision authorizes a private right of action for a violation of the FCC‘s implementing regulations.5
Mims, a Florida resident, alleged that Arrow, seeking to collect a debt, repeatedly used an automatic telephone dialing system or prerecorded or artificial voice to call Mims‘s cellular phone without his consent. Commencing suit in the U. S. District Court for the Southern District of Florida, Mims charged that Arrow “willfully or knowingly violated the TCPA.” App. 14. He sought declaratory relief, a permanent injunction, and damages. Id., at 18–19.
The District Court held that it lacked subject-matter jurisdiction over Mims‘s TCPA claim. Under Eleventh Circuit precedent, the District Court explained, federal-question jurisdiction under
We granted certiorari, 564 U. S. ___ (2011), to resolve a split among the Circuits as to whether Congress granted state courts exclusive jurisdiction over private actions brought under the TCPA. Compare Murphey v. Lanier, 204 F. 3d 911, 915 (CA9 2000) (U. S. district courts lack federal-question jurisdiction over private TCPA actions), ErieNet, Inc. v. Velocity Net, Inc., 156 F. 3d 513, 519 (CA3 1998) (same), Foxhall Realty Law Offices, Inc. v. Telecommunications Premium Servs., Ltd., 156 F. 3d 432, 434 (CA2 1998) (same), Nicholson, 136 F. 3d, at 1287–1288, Chair King, Inc. v. Houston Cellular Corp., 131 F. 3d 507, 514 (CA5 1997) (same), and International Science & Tech-
II
Federal courts, though “courts of limited jurisdiction,” Kokkonen v. Guardian Life Ins. Co. of America, 511 U. S. 375, 377 (1994), in the main “have no more right to decline the exercise of jurisdiction which is given, then to usurp that which is not given.” Cohens v. Virginia, 6 Wheat. 264 (1821). Congress granted federal courts general federal-question jurisdiction in 1875. See
Because federal law creates the right of action and provides the rules of decision, Mims‘s TCPA claim, in
Arrow agrees that this action arises under federal law, see Tr. of Oral Arg. 27, but urges that Congress vested exclusive adjudicatory authority over private TCPA ac-
Arrow readily acknowledges the presumption of concurrent state-court jurisdiction, but maintains that
Section 1331, our decisions indicate, is not swept away so easily. As stated earlier, see supra, at 8, when federal law creates a private right of action and furnishes the substantive rules of decision, the claim arises under federal law, and district courts possess federal-question jurisdiction under
“[D]ivestment of district court jurisdiction” should be found no more readily than “divestmen[t] of state court jurisdiction,” given “the longstanding and explicit grant of federal question jurisdiction in
III
Arrow‘s arguments do not persuade us that Congress has eliminated
The language of the TCPA—“A person or entity may, if otherwise permitted by the laws or rules of court of a State, bring [an action] in an appropriate court of that State,”
Nothing in the permissive language of
Title
Arrow urges that Congress would have had no reason to provide for a private action “in an appropriate [state] court,”
Making state-court jurisdiction over
We are not persuaded, moreover, that Congress sought only to fill a gap in the States’ enforcement capabilities. Had Congress so limited its sights, it could have passed a statute providing that out-of-state telemarketing calls directed into a State would be subject to the laws of the receiving State. Congress did not enact such a law. Instead, it enacted detailed, uniform, federal substantive prescriptions and provided for a regulatory regime administered by a federal agency. See
The federal interest in regulating telemarketing to “protec[t] the privacy of individuals” while “permit[ting] legitimate [commercial] practices,” 105 Stat. 2394, note following
Arrow emphasizes a statement made on the Senate floor by Senator Hollings, the TCPA‘s sponsor:
“Computerized calls are the scourge of modern civilization. They wake us up in the morning; they interrupt our dinner at night; they force the sick and elderly out of bed; they hound us until we want to rip the telephone right out of the wall.
“The substitute 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.
“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.” 137 Cong. Rec. 30821–30822 (1991).
This statement does not bear the weight Arrow would place on it.
claims would have no forum in which to sue.
Among its arguments for state-court exclusivity, Arrow raises a concern about the impact on federal courts were we to uphold
Arrow‘s floodgates argument assumes “a shocking degree of noncompliance” with the Act, Reply Brief 11, and seems to us more imaginary than real. The current federal district court civil filing fee is $350.
IV
Nothing in the text, structure, purpose, or legislative history of the TCPA calls for displacement of the federal-question jurisdiction U. S. district courts ordinarily have
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For the reasons stated, the judgment of the United States Court of Appeals for the Eleventh Circuit is reversed, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
