Marriott Seeks to Compel Discovery in Novel Va. TCPA Case

Marriott International filed a motion Friday to compel discovery from Dynasty Marketing Group, one of several defendants in its novel Telephone Consumer Protection Act complaint in U.S. District Court in Alexandria, Virginia, alleging infringement of Marriott trademarks by robocalling Marriott impersonators. Marriott seeks "full and complete answers," plus the production of documents, "responsive" to its discovery requests, said a memorandum in support of its motion (docket 1:21-cv-00610).

The motion to compel came a day after Marriott finalized a confidential settlement agreement with another defendant, VoIP Essential. The defendant agreed to stop leveraging the hotel chain’s brand name and reputation in telemarketing robocalls made to consumers, according to a consent order signed Thursday by U.S. District Judge Anthony Trenga.

Marriott brought suit in May 2021 seeking “the disabling of robocall scams that violate consumers’ rights.” Robocallers typically attempt “to establish legitimacy of their promotion and seek to induce consumers to remain on the line by falsely claiming to be associated with a well-known brand,” said the complaint. “Marriott experienced an exponential increase in the number of complaints received about these illicit robocall scams from irate Marriott customers.”

In its motion to compel discovery, Marriott lawyers acted "in good faith" to resolve the dispute with Dynasty "without court intervention," said the memorandum in support. "Without the prompt production of full and complete responses to Marriott’s discovery requests, Marriott’s preparation for depositions and trial will be compromised," it said. Dynastry's lawyers didn't comment.

In the settlement agreement, VoIP Essential vowed not to use Marriott's name or trademarks, and it agreed to take steps to be sure it doesn’t profit from other telemarketers that use the Marriott brand without authorization, said the proposed consent order. The agreement obligates VoIP Essential, consistent with a Marriott-approved “mitigation plan,” to take "affirmative and effective measures" to prevent new and renewing customers from using its network to originate calls using Marriott's name,” it said.

The agreement requires VoIP Essential to report any wrongdoing to Marriott lawyers within five days of learning of it, said the proposed order. The defendant also agreed to cooperate fully with Marriott “in its prosecution of this case” in bringing unlawful robocallers to justice, it said. The agreement binds the company to provide “truthful testimony without subpoena if requested by Marriott,” it said.

VoIP Essential agrees that enforcement of the consent order will reside within the Eastern district of Virginia for three years, said the filing. Any breaches of the consent order will obligate VoIP Essential to pay Marriott liquidated damages of $25,000 for the first offense, $50,000 for the second and $100,000 for each subsequent violation, payable within 14 days after the court confirms the violations, it said. Marriott and VoIP agreed to move for dismissal of the litigation with prejudice, subject to the court’s “continuing jurisdiction” to enforce the terms of the consent order.