2023 Supreme(US)(ca7) 187
COURT OF APPEALS FOR THE SEVENTH CIRCUIT
Angel Bakov – Appellant
Versus
Consolidated World Travel – Respondent
United States Court of Appeals For the Seventh Circuit ____________________ No. 21-2653 ANGEL BAKOV, et al., Plaintiffs-Appellees, v. CONSOLIDATED WORLD TRAVEL, INC., Defendant-Appellant. ____________________
Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 15 C 2980 — Harry D. Leinenweber, Judge. ____________________
ARGUED FEBRUARY 10, 2022 — DECIDED MAY 19, 2023 ____________________
Before WOOD, KIRSCH, and JACKSON-AKIWUMI, Circuit Judges. * WOOD, Circuit Judge. This case presents a narrow but im- portant question about the administration of class actions:
*
The case was originally argued before Judges Manion, Kanne, and
Jackson-Akiwumi. After Judge Kanne’s death and Judge Manion’s retire-
ment, it was reassigned to this panel.
2 No. 21-2653 what authority do district courts have to impose the cost of
class notice on a defendant that already has been found liable
to the class? The court in the case before us ruled that defend-
ant Consolidated World Travel, Inc. (CWT) had to bear those
costs. We explain below how this came about. We conclude
that in the unusual circumstances of this case, the district
court had the authority to assign these costs to CWT and that
it did not abuse its discretion in doing so. We thus affirm its
order.
I
The class asserts in this action that CWT violated the Tele-
phone Consumer Protection Act (TCPA) by calling class mem-
bers using prerecorded voice messages, a practice the law ex-
pressly prohibits. See 47 U.S.C. § 227(b)(1)(B). Operating un-
der a fictitious name, CWT employed a company called Vir-
tual Voice Technologies Pvt. Ltd. (VVT), which is based in In-
dia, to call millions of people across the United States and of-
fer them “a free cruise simply to show you a great time.” On
these calls, agents would communicate by using a sound-
board, which enabled them to choose among 47 prerecorded
prompts. For every customer who agreed to have their call
transferred from VVT to CWT and then stayed on the line for
at least 60 seconds, CWT paid VVT a $3.50 commission.
Relying on Federal Rule of Civil Procedure 23(b)(3), Plain-
tiffs initially moved to certify a nationwide class of people
who had received VVT’s calls. On March 21, 2019, the district
court granted in part and denied in part the motion. It certi-
fied a class of Illinois residents, but to the extent the motion
asked for a nationwide class, the court denied it. The judge
took this step based on his belief that the Supreme Court’s de-
cision in Bristol-Myers Squibb Co. v. Superior Court of California,
No. 21-2653 3 582 U.S. 255 (2017), required a finding of no personal jurisdic-
tion over CWT for purposes of the claims of the proposed
nonresident class members. With that decision in hand, Plain-
tiffs used two third-party service providers to identify and
send notice to the 28,239 Illinois class members. Plaintiffs cov-
ered that cost.
About six months later, the parties submitted cross-mo-
tions for summary judgment. The district court granted the
class’s motion on the TCPA claim. The court also determined
that CWT’s TCPA violations were committed willfully or
knowingly. That finding permitted an award of anything
from actual to treble damages. See 47 U.S.C. § 227(b)(3)(C).
Shortly after the liability determination, we issued our
opinion in Mussat v. IQVIA, Inc., holding that “the principles
announced in Bristol-Myers do not apply to the case of a na-
tionwide class action filed in federal court under a federal
statute.” 953 F.3d 441, 443 (7th Cir. 2020).