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Defendant's Attorney: John H. Bedard, Jr., Michael K. Chapman, and Matthew Robert Rosenkoff

Description:
Atlanta, Georgia consumer law Federal Communications Act violation lawyer represened the Plaintiff.


Plaintiff Robert Doane filed suit in federal court against Tele Circuit Network Corporation and its sole owner Ashar Syed (“Defendants”), alleging that Defendants had unlawfully “spoofed” his phone number during a telemarketing campaign, causing Plaintiff to receive numerous angry calls from Defendants’ prospective customers. After dismissing Plaintiff's federal claims for lack of standing, the district court declined to exercise supplemental jurisdiction over Plaintiff's Massachusetts state-law claims. As to those state-law claims, the court further ruled sua sponte that it lacked diversity jurisdiction to entertain the state-law claims because it was “clear” to the court that the amount-in-controversy requirement was not satisfied. After careful consideration, we vacate the district court's ruling and remand for further consideration as to whether diversity jurisdiction exists.

In 2017, Plaintiff sued Defendants in the United States District Court for the District of Massachusetts. Plaintiff alleged that, as part of an unlawful telemarketing scheme, Defendants had “spoofed” Plaintiff's name and cellphone number, making it appear to thousands of call recipients that Plaintiff was the caller. According to Plaintiff, Defendant's conduct resulted in him receiving hundreds of angry and threatening calls from Defendant's prospective customers, many of whom were on the do-not-call registry.

Based on these allegations, Plaintiff asserted numerous claims arising under federal statutes, Massachusetts statutes, and Massachusetts common law. Plaintiff alleged that the district court had federal-question jurisdiction over his federal claims and supplemental jurisdiction over his state-law claims. He also alleged that diversity jurisdiction existed because “Plaintiff is a resident of a different state from each defendant,” Massachusetts and Georgia, respectively, and “the value of the matter in controversy exceeds $75,000.” In a first amended complaint, Plaintiff realleged the same.

In 2018, Defendant Tele Circuit Network Corporation filed for Chapter 11 bankruptcy in the Northern District of Georgia, resulting in an automatic stay of the Massachusetts litigation. The Bankruptcy Court then modified the automatic stay to permit Plaintiff to continue the lawsuit if he sought to transfer the case to Georgia. Accordingly, Plaintiff filed a motion to lift the stay and transfer the case to the United States District Court for the Northern District of Georgia, which the Massachusetts district court granted.

Following the transfer to the Northern District of Georgia, Plaintiff filed a second amended complaint. Plaintiff asserted federal claims for violations of the Telephone Consumer Protection Act and the Truth In Caller ID Act. He also asserted numerous state-law claims for violations of Massachusetts statutes regarding the unlawful use of blocking devices or services, identity fraud, violations of the right to privacy, unauthorized use of a person's name, and unlawful business practices. Finally, Plaintiff asserted Massachusetts common law claims for defamation, trespass and nuisance, and intentional infliction of emotional distress.

Plaintiff alleged that Defendants caused him to suffer “severe emotional distress with physical manifestations” and “monetary losses” resulting in damages “exceed[ing] $75,000.00.” Specifically, Plaintiff alleged that he had previously been diagnosed with chronic pain and sleep disorders, and that, as a result of receiving angry and threatening calls, he had suffered “tension,” “interference with sleep,” “exacerbation of his chronic pain,” “exacerbation of sleep disturbance,” and “increased daytime somnolence, requiring him to increase his medications and supplements.” As for financial losses, Plaintiff alleged that he had incurred “attorney fees,” “wear and tear on his cellphone,” “[cellphone] battery depletion and electricity used for recharge,” and “the expense of software to track the calls of those angry callers.” Plaintiff sought “actual, compensatory, and special damages to be determined at trial in an amount exceeding $500,000.00,” “statutory damages of not less than $500 for each of the negligent violations of the [Telephone Consumer Protection Act], subject to trebling for knowing and willful violations thereof,” “punitive damages ․ in the amount of not less than twice and up to three times his actual damages,” and attorney's fees.

Defendants each filed a motion to dismiss the second amended complaint, arguing that it failed to state a claim under Federal Rule of Civil Procedure 12(b)(6). The district court granted Defendants’ motions to dismiss. The court first concluded that Plaintiff lacked standing to bring his federal claims. Accordingly, it dismissed those claims with prejudice. The court then sua sponte concluded that it lacked diversity jurisdiction over the remaining state-law claims because “it is clear to this Court that the amount in controversy requirement is not satisfied.” Although the court noted that it had supplemental jurisdiction over the state-law claims, it declined to exercise that jurisdiction because discovery had not yet commenced and the claims would be best resolved by a state court. Accordingly, the district court dismissed Plaintiff's state-law claims without prejudice. This appeal followed.

Outcome: Defendants' Motions to Dismiss Docs. 72 and 73 are GRANTED IN PART AND DENIED IN PART. The Court believes that this case could benefit from mediation. The parties are ordered to mediate no later than October 25, 2024. In light of the pending mediation, the Clerk is DIRECTED to ADMINISTRATIVELY CLOSE this case for docket management purposes. If settlement negotiations fail, the parties need only file a motion to reopen the case. The parties shall file a status report regarding the outcome of mediation no later than five days after mediation is completed. If mediation is unsuccessful, the parties shall also present proposals as to how they would like the case to proceed. Signed by Judge J. P. Boulee on 8/26/2024. (gww) (Entered: 08/26/2024)

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