{"ID":63084,"name":"PDR Network, LLC v. Carlton \u0026 Harris Chiropractic Inc.","href":"https:\/\/api.oyez.org\/cases\/2018\/17-1705","view_count":0,"docket_number":"17-1705","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"PDR Network, LLC, et al.","second_party":"Carlton \u0026 Harris Chiropractic, Inc.","timeline":[{"event":"Granted","dates":[1542088800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54426"},{"event":"Argued","dates":[1553490000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54456"},{"event":"Decided","dates":[1561006800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/54538"}],"lower_court":{"ID":9,"name":"United States Court of Appeals for the Fourth Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/9"},"facts_of_the_case":"\u003Cp\u003EPetitioner PDR Network is a company that \u201cdelivers health knowledge products and services\u201d to healthcare providers and is perhaps most known for publishing the \u003Cem\u003EPhysicians\u2019 Desk Reference\u003C\/em\u003E, a popular reference book with information on various prescription drugs. In December 2013, PDR Network sent by fax to Carlton \u0026amp; Harris, a chiropractic office in West Virginia, an advertisement for a free eBook version of the 2014 \u003Cem\u003EPhysicians\u2019 Desk Reference\u003C\/em\u003E. The material advised that the recipient had received the offer \u201cbecause you are a member of the PDR Network.\u201d\u003C\/p\u003E\n\u003Cp\u003EOn behalf of itself and a class of similarly situated recipients of faxes from PDR Network, Carlton \u0026amp; Harris sued PDR Network in federal court under the Telephone Consumer Protection Act (\u201cTCPA\u201d), as amended by the Junk Fax Prevention Act of 2005, which generally prohibits the use of a fax machine to send \u201cunsolicited advertisement[s].\u201d Under that statute, the recipient of an unsolicited fax advertisement can sue the sender for damages and recover actual monetary loss or $500 in statutory damages for each violation. If a court finds the sender \u201cwillfully or knowingly violated\u201d the TCPA, the recipient is entitled to triple damages.\u003C\/p\u003E\n\u003Cp\u003EAs a preliminary matter, the court found that the Hobbs Act does not require the court to defer to the FCC\u2019s interpretation of an unambiguous term. Substituting its own definition of \u201cunsolicited advertisement\u201d for the FCC\u2019s definition of the term, which was promulgated by rule in 2006 (\u201c2006 FCC Rule\u201d), the court found that PDR Network\u2019s fax was not an unsolicited advertisement because it lacked a \u201ccommercial aim.\u201d Moreover, the court found that even under the 2006 FCC Rule, the fax would not be an \u201cunsolicited advertisement.\u201d For this reason, the district court granted PDR Network\u2019s motion to dismiss.\u003C\/p\u003E\n\u003Cp\u003ECarlton \u0026amp; Harris appealed, and the US Court of Appeals for the Fourth Circuit vacated the lower court\u2019s decision, finding that the Hobbs Act disallows district courts from considering the validity of orders like the 2006 FCC Rule, and that the district court\u2019s interpretation of the rule is at odds with the plain meaning of its text.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the Hobbs Act require the district court in this case to accept the Federal Communication Commission\u0027s legal interpretation of the Telephone Consumer Protection Act?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EThe extent to which a 2006 order by the Federal Communications Commission (FCC) is binding on a district court turns on two preliminary questions: (1) whether the order is the equivalent of a \u201clegislative rule\u201d with the \u201cforce and effect of law\u201d; and (2) whether the subject of the rule (in this case, PDR Network) had a prior and adequate opportunity to seek judicial review of the order.\u003C\/p\u003E\n\u003Cp\u003EJustice Stephen Breyer delivered the opinion of the Court that was unanimous in its judgment. Whether an agency\u2019s order is binding on courts depends on two preliminary considerations. First, the order must be equivalent to a \u201clegislative rule\u201d with the \u201cforce and effect of law,\u201d as opposed to an \u201cinterpretive rule,\u201d which merely \u201cadvises the public of the agency\u2019s construction of the statutes and rules which it administers.\u201d Second, the Administrative Procedure Act requires that an agency action be subject to judicial review except \u201cto the extent that a prior, adequate, and exclusive opportunity for judicial review is provided by law.\u201d The Hobbs Act requires certain challenges to FCC final orders to be brought in a court of appeals, so a court should determine whether this provision afforded PDR Network a prior and adequate opportunity for judicial review. The Court declined to resolve these questions, instead vacating the judgment of the Fourth Circuit and remanding for consideration of these preliminary questions.\u003C\/p\u003E\n\u003Cp\u003EJustice Clarence Thomas concurred in the judgment, joined by Justice Neil Gorsuch. Justice Thomas\u2019s concurrence highlights, in his view, the Court\u2019s mistaken understanding of the relationship between federal statutes and the agency orders interpreting them. Justice Thomas argues that federal courts cannot disregard the text of the governing statute when considering whether or not to treat agency orders as controlling law.\u003C\/p\u003E\n\u003Cp\u003EJustice Brett Kavanaugh concurred in the judgment, joined by Justices Clarence Thomas, Samuel Alito, and Neil Gorsuch. Justice Kavanaugh criticizes the majority for answering a question other than the one presented in this case. Rather than resolving a different question, Justice Kavanaugh would conclude that the Hobbs Act does not bar a defendant in an enforcement action from arguing that the agency\u2019s interpretation of the statute is wrong. He suggests that the Fourth Circuit on remand (and other courts, when the issue arises) can employ the analysis set forth in his separate concurrence.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":19760,"name":"Carter G. Phillips","href":"https:\/\/api.oyez.org\/people\/carter_g_phillips","view_count":0,"last_name":"Phillips","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"carter_g_phillips"},"advocate_description":"for the petitioners","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/22675"},{"advocate":{"ID":63114,"name":"Glenn L. 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