Wednesday, April 21, 2010

Supreme Court Overturns 2nd Circuit in TCPA Case

In Holster v. Gatco, Inc. (U.S. Apr. 19, 2010) the Supreme Court vacated dismissal of of Telephone Consumer Protection Act Suit for further consideration in light of a 2010 Supreme Court ruling.

The plaintiff filed a class action suit in federal court over unsolicited faxes. The TCPA does not allow for suits in federal court, but permits suits in state court.

The district court, hearing the case in diversity, applied the Erie doctrine and found that New York law CPLR 901(b) does not permit such suits. The court dismissed the case for lack of subject-matter jurisdiction. The Court of Appeals for the Second Circuit affirmed.

After Bonime was decided the U.S. Supreme Court decided Shady Grove Orthopedic Associates, in which the court found that 901(b) does not apply to state law claims in federal court.