6th Circuit Affirms Denial of Motion To Dismiss Junk Fax Suit, Cites Campbell-Ewald

An appeals court upheld a district court's denial of a motion to dismiss a junk fax lawsuit, citing a recent Supreme Court ruling that found rejected settlement offers aren't grounds for suit dismissal (see 1601200057). "Because the Supreme Court’s decision in Campbell-Ewald Co. v. Gomez, No. 14-857, 2016 WL 228345 (U.S. Jan. 20, 2016), controls the issue in this appeal, the district court’s denial of the motion to dismiss was proper," said a three-judge panel of the 6th U.S. Circuit Court of Appeals in an order Tuesday (Family Health Chiropractic v. MD On-Line Solutions, No. 15-3508). The 6th Circuit said Family Health Chiropractic had sued MD On-Line Solutions under the Junk Fax Prevention Act, prompting MD On-Line to extend a settlement offer, but FHC rejected the offer and sought class certification. MD On-Line then filed a motion to dismiss, arguing FHC's claims were moot because the rejected settlement offer covered all the relief it sought, said the 6th Circuit, which said the scope of the relief was disputed. "Campbell-Ewald, however, held as a general matter that 'an unaccepted settlement offer or offer of judgment does not moot a plaintiff’s case.' Campbell-Ewald, 2016 WL 228345, at *8. Thus, even if MD On- Line offered complete relief to FHC, FHC’s lack of acceptance of that offer means that this case remains a live case or controversy under Article III," the 6th Circuit said. It affirmed the decision of the U.S. District Court for the Eastern District of Michigan to not dismiss the case.