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., etal., 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.
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
