Gorss Motels, Inc. v. Safemark Systems, LP, No. 18-12511 (11th Cir. 2019)Annotate this Case
Hotels filed suit against Safemark on behalf of a putative class, alleging that faxes sent to franchisees violated the Telephone Consumer Protection Act, which makes it unlawful to send certain unsolicited fax advertisements. The district court denied certification and held that the solicited-fax rule, a regulation of the FCC that required solicited faxes to include compliant opt-out notices, was invalid. The district court subsequently granted summary judgment to Safemark. While the appeals were pending, the Commission eliminated the solicited-fax rule in light of the DC Circuit's decision that the rule is invalid.
The Fifth Circuit held that the district court did not err when it ruled that the faxes were solicited because the hotels gave their prior express permission to receive faxes from Safemark. Furthermore, because the Commission eliminated the solicited-fax rule during the pendency of his consolidated appeal, Safemark's faxes need not have contained opt-out notices. Accordingly, the court affirmed the district court's judgment for Safemark.