Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Court Decides Upon Class Member Notification

Author: Scarinci Hollenbeck, LLC

Date: March 1, 2014

Key Contacts

Back

In a touch of irony not lost upon the court, a recent Opinion has determined the method of notice to be utilized to advise class members of a pending class action matter. 

The case, City Select Auto Sales, Inc. v. David Randall Associates, Inc., et al., before the United States District Court for the District of New Jersey, involves a class action suit brought pursuant to the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. §227.  Among other things, the TCPA prohibits “unsolicited advertisements” sent via facsimile, except under specific enumerated situations.  The statute provides a private cause of action for the greater of actual monetary loss or $500.00 per violation.  Thus, in the present instance, where the defendants purportedly sent unsolicited fax advertisements to some 29,000 recipients, the damages could be substantial.

The court had previously certified the class, and there was no dispute as to the substance of the notice to be sent by the plaintiff to the 29,000 class members.  The only remaining question concerned the method of notification.  Fed. R. Civ. P. 23(c)(2)(B) provides that “[f]or any class certified under Rule 23(b)(3), the court must direct to class members the best notice that is practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort.”  The method determined by the court to be most appropriate (drum roll!!):  faxes.  Moreover, there exists the real possibility of multiple fax transmissions to the class members, with U.S. mail to be utilized only in the event that three separate facsimile attempts have been unsuccessful.  The TCPA was adopted, in part, to reduce the amount of unsolicited faxes sent out by businesses.  Nevertheless, and despite defendants’ protest that sending the notices via fax “would compound the injury,” the court concluded that under the circumstances facsimile delivery would be the most practicable.

Also notable was the court’s observation that court notices are not covered by the TCPA.

    No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

    Scarinci Hollenbeck, LLC, LLC

    Related Posts

    See all
    Does Your Homeowners Insurance Provide Adequate Coverage? post image

    Does Your Homeowners Insurance Provide Adequate Coverage?

    Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]

    Author: Jesse M. Dimitro

    Link to post with title - "Does Your Homeowners Insurance Provide Adequate Coverage?"
    Understanding the Importance of a Non-Contingent Offer post image

    Understanding the Importance of a Non-Contingent Offer

    Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]

    Author: Jesse M. Dimitro

    Link to post with title - "Understanding the Importance of a Non-Contingent Offer"
    Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC post image

    Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC

    Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]

    Author: Scarinci Hollenbeck, LLC

    Link to post with title - "Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC"
    Novation Agreement Process: Step-by-Step Guide for Businesses post image

    Novation Agreement Process: Step-by-Step Guide for Businesses

    Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]

    Author: Dan Brecher

    Link to post with title - "Novation Agreement Process: Step-by-Step Guide for Businesses"
    What Is a Trade Secret? Key Elements and Legal Protections Explained post image

    What Is a Trade Secret? Key Elements and Legal Protections Explained

    What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]

    Author: Ronald S. Bienstock

    Link to post with title - "What Is a Trade Secret? Key Elements and Legal Protections Explained"
    What Is Title Insurance? Safeguarding Against Title Defects post image

    What Is Title Insurance? Safeguarding Against Title Defects

    If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]

    Author: Patrick T. Conlon

    Link to post with title - "What Is Title Insurance? Safeguarding Against Title Defects"

    No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

    Sign up to get the latest from our attorneys!

    Explore What Matters Most to You.

    Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

    Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

    Court Decides Upon Class Member Notification

    Author: Scarinci Hollenbeck, LLC

    In a touch of irony not lost upon the court, a recent Opinion has determined the method of notice to be utilized to advise class members of a pending class action matter. 

    The case, City Select Auto Sales, Inc. v. David Randall Associates, Inc., et al., before the United States District Court for the District of New Jersey, involves a class action suit brought pursuant to the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. §227.  Among other things, the TCPA prohibits “unsolicited advertisements” sent via facsimile, except under specific enumerated situations.  The statute provides a private cause of action for the greater of actual monetary loss or $500.00 per violation.  Thus, in the present instance, where the defendants purportedly sent unsolicited fax advertisements to some 29,000 recipients, the damages could be substantial.

    The court had previously certified the class, and there was no dispute as to the substance of the notice to be sent by the plaintiff to the 29,000 class members.  The only remaining question concerned the method of notification.  Fed. R. Civ. P. 23(c)(2)(B) provides that “[f]or any class certified under Rule 23(b)(3), the court must direct to class members the best notice that is practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort.”  The method determined by the court to be most appropriate (drum roll!!):  faxes.  Moreover, there exists the real possibility of multiple fax transmissions to the class members, with U.S. mail to be utilized only in the event that three separate facsimile attempts have been unsuccessful.  The TCPA was adopted, in part, to reduce the amount of unsolicited faxes sent out by businesses.  Nevertheless, and despite defendants’ protest that sending the notices via fax “would compound the injury,” the court concluded that under the circumstances facsimile delivery would be the most practicable.

    Also notable was the court’s observation that court notices are not covered by the TCPA.

    Let`s get in touch!

    * The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

    Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

    Please select a category(s) below: