Mims v. Arrow Financial Services, LLC (2012)

The short version

Private lawsuits under the Telephone Consumer Protection Act (TCPA) can be filed in federal court. The Supreme Court unanimously held that federal and state courts have concurrent jurisdiction over private TCPA suits.

Background

The TCPA permits a private person to sue for violations "in an appropriate court of [a] State," "if otherwise permitted by the laws or rules of court of [that] State." See 47 U.S.C. § 227(b)(3) and (c)(5). By contrast, the statute provides that suits by states lie exclusively in federal district courts. Some lower courts read that difference as evidence that Congress intended private TCPA suits to be heard only in state courts.

Marcus Mims claimed that Arrow Financial Services, a debt collector, repeatedly contacted his cell phone with an autodialer or prerecorded or artificial voice, without his permission. He sued in federal district court in Florida under the federal-question jurisdiction statute, 28 U.S.C. § 1331, which gives federal courts jurisdiction over claims "arising under" federal law. The district court dismissed his claim for lack of jurisdiction and the Eleventh Circuit affirmed.

What the Court decided

The Court reversed. Justice Ginsburg wrote for a unanimous Court. Because federal law creates the TCPA claim and supplies the rules for deciding it, a private TCPA claim "arises under" federal law. The statute's permissive language about state courts does not take away the federal-question jurisdiction that federal district courts already have. The Court wrote: "We hold, therefore, that federal and state courts have concurrent jurisdiction over private suits arising under the TCPA."

Why it matters

• Federal court is available. Plaintiffs can file TCPA claims in federal court. Because the claims arise under federal law, a defendant sued in state court may be able to remove the case to federal court under the general removal statute, 28 U.S.C. § 1441.
• Federal procedure applies. TCPA cases, including class actions, in federal court are governed by the Federal Rules of Civil Procedure.
• Uniform federal law. Federal courts across the country now interpret the TCPA, which is part of why circuit splits on TCPA questions matter. See How TCPA Litigation Works.