EDMOND E. CHANG, District Judge.
Groupon operates a website that allows users to buy tickets and book reservations for various sporting and entertainment events, as well as for hotel stays. R. 1, Compl. at ¶ 18.
For the purposes of this motion, the Court accepts as true the allegations in the Complaint. Erickson v. Pardus, 551 U.S. 89, 94 (2007). In July 2015, Huzar visited the Groupon website and tried to reserve a room in the Red Lion Hotel through a "Groupon Getaway" deal. Compl. ¶¶ 19-20. When Huzar navigated through the website, he noticed that there were no options for handicap-accessible rooms. Id. Huzar has spina bifida and uses a wheelchair to get around, so without an accessible room, he could not stay at the Red Lion using the deal that Groupon had advertised. See id. ¶ 4. So Huzar emailed Groupon and asked, "Is there any way to book a wheelchair accessible room with this offer?" Id. ¶ 21. Groupon responded that it was sorry, but that "unfortunately handicap-accessible rooms are not available." Id. ¶ 22. Since then, Huzar has been deterred from trying to reserve hotel rooms through Groupon's website. Id. ¶ 23.
About a year later, in July 2016, Huzar received an email, which advertised a "Groupon Deal" for New York Jets tickets at the MetLife Stadium. Compl. ¶ 25. He visited the website to buy tickets to one of the available Jets games, but discovered a complete lack of accessible-designated tickets. Id. ¶¶ 27-28.
Although Huzar still occasionally wants to buy tickets or reserve hotel rooms through Groupon, he does not because Groupon fails to offer accessible options for people with disabilities. See Compl. ¶ 24. By failing to offer accessible ticketing and reservation options, Huzar claims, Groupon is violating the ADA by excluding him from the services, programs, and accommodations it offers to the public. Id. ¶¶ 34, 44. And as the provider of ticketing and reservation services to places of public accommodation, Huzar alleges that Groupon serves as a "nexus" for individuals to access those places. Id. ¶ 37. At present, Groupon has supposedly not modified its site or practices to accommodate patrons that need accessible options. Id. ¶ 45. Huzar wishes to represent a class of other disabled persons denied access to accessible ticketing options through Groupon's website. See id. ¶¶ 45-46.
Under Federal Rule of Civil Procedure 8(a)(2), a complaint generally need only include "a short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a)(2). This short and plain statement must "give the defendant fair notice of what the . . . claim is and the grounds upon which it rests." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (cleaned up).
"A motion under Rule 12(b)(6) challenges the sufficiency of the complaint to state a claim upon which relief may be granted." Hallinan v. Fraternal Order of Police of Chi. Lodge No. 7, 570 F.3d 811, 820 (7th Cir. 2009). "[A] complaint must contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 570). These allegations "must be enough to raise a right to relief above the speculative level." Twombly, 550 U.S. at 555. The allegations that are entitled to the assumption of truth are those that are factual, rather than mere legal conclusions. Iqbal, 556 U.S. at 678-79.
Congress enacted the Americans with Disabilities Act "to provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities." 42 U.S.C. § 12101(b)(1). Generally speaking, the ADA forbids disability discrimination in employment, in state and local government services, and in public accommodations. Public-accommodations discrimination is the issue in this case. Specifically, Title III of the ADA provides that "[n]o individual shall be discriminated against on the basis of disability in the full and equal enjoyment of the goods, services, facilities, advantage, or accommodations of any place of public accommodation. . . ." 42 U.S.C. § 12182(a); Wigginton v. Bank of America Corp., 770 F.3d 521, 523 (7th Cir. 2014). This non-discrimination provision applies to "any person who owns, leases (or leases to), or operates a place of public accommodation." § 12182(a).
Hotels and stadiums—like the Red Lion hotel and MetLife Stadium—both are places of public accommodation under the ADA. The ADA's definitional provision specifically deems hotels and stadiums to be places of public accommodation. 42 U.S.C. § 12181(7)(A), (D). But of course, the question in this case is whether Groupon—not just the hotel and the stadium—is governed by Title III of the ADA. Remember that Title III applies to not just owners or lessors of public accommodations, but also to anyone who "operates" a public accommodation. § 12182(a). In his response brief, Huzar argues that Groupon "operates" a place of public accommodation.
That theory of liability cannot be squared with the plain meaning of the ADA. The problem is not that, as a matter of law, there cannot be more than one operator of a public accommodation. The problem is that, on the complaint's allegations, Groupon does not "operate" MetLife stadium or the Red Lion Hotel within the meaning of the ADA. The ADA does not set forth an explicit definition of "operates." See 42 U.S.C. § 12181. When a statute does not provide an express definition of a word, federal courts must look to the word's plain meaning. See Smith v. United States, 508 U.S. 223, 228 (1993). Dictionaries provide useful guidance in discerning a word's plain meaning. Id. (citing to dictionaries to interpret the word "use" in 18 U.S.C. § 924(c)(1)). The Seventh Circuit did just that in interpreting the word "operates" in a similar statutory context as the one presented here.
Specifically, in Village of Bedford Park v. Expedia, the Seventh Circuit had to decide whether municipal ordinances that imposed a duty on "operators" of hotels to collect taxes applied to online travel agencies. 876 F.3d 296, 303, 305 (7th Cir. 2017). The online travel agencies had entered into contracts with hotels so that rooms would be made available to the travel agencies to market. Id. at 299. Customers used the travel agencies' websites to book the rooms and to directly pay the agencies. Id. at 299-300. Several municipalities sought to enforce their tax-collection ordinances, which applied to "operators" of hotels, against the online travel agencies. The Seventh Circuit held that the travel agencies were not "operators" of the hotels. Id. at 304. In canvassing various dictionary definitions, Expedia explained that even the broadest definition of "operators" would not cover the travel agencies, that is, "one who performs a function or exerts power of influence." Id. (quoting Operate, Merriam-Webster Dictionary, https://www.merriam-webster.com/dictionary/operate (last visited Oct. 12, 2017)) (cleaned up). The Seventh Circuit reasoned that the agencies performed just one function (reservations) and did not perform the whole function of running a hotel:
Id.; see also Pitt Cty. v. Hotels.com, L.P., 553 F.3d 308, 313 (4th Cir. 2009) ("The online companies . . . have no role in the day-to-day operation or management of the hotels. Thus, they cannot be said to operate the hotels."). Just so here: Groupon sells some of the Red Lion Hotel's room reservations and some of MetLife Stadium's Jets tickets, but it does not "operate" the hotel or the stadium (or the Jets).
Huzar argues that Expedia is distinguishable because it is a case about taxes, where ambiguous statutes are strictly construed against the government and in favor of the taxpayer, so the Seventh Circuit was taking a narrow view of the tax ordinances. R. 37, Pl. Sur-reply at 3 (citing Expedia, 876 F.3d at 302). In contrast, Huzar argues, the ADA is a form of remedial legislation, so it should be construed broadly. Id. But nothing in Expedia hints that the Seventh Circuit's decision turned on the anti-tax presumption; it was mentioned in the introduction to the analysis, but then did not surface again. See id. at 302, 303-04. Instead, as discussed above, the Seventh Circuit applied the plain meaning of the word "operator." Id. at 303-04. That plain meaning applies here too, so the Court holds that Groupon does not "operate" the hotel or the stadium.
Huzar offers an alternative theory of liability: Groupon can be held liable under the ADA because there is a "nexus" between "the challenged service" and the "premises of a public accommodation." Pl. Resp. at 12. But what Huzar calls a "nexus theory," id., is not really an alternative theory of liability. Instead, some courts have noted that, in cases where a plaintiff contends that a service is being denied, a "nexus" between the service offered by a public accommodation and the physical premises of the public accommodation is required in order to impose liability on a defendant. See Rendon v. Valleycrest Prods., Ltd., 294 F.3d 1279, 1284 n.8 (11th Cir. 2002). In other words, there is no free-standing theory of liability under the ADA that ensnares anyone who "serves as a nexus or conduit for individuals to obtain access to places of public accommodation and is directly linked to places of public accommodation." Pl. Resp. at 13. The cases cited by Huzar only stand for the uncontroversial proposition that the owner (or operator) of a public accommodation cannot evade the ADA by engaging in disability discrimination off-site, such as through its website or in screening participants. Nat'l Fed'n of the Blind v. Target Corp., 452 F.Supp.2d 946, 949, 952 (N.D. Cal. 2006) (holding that inaccessibility of Target's website to the blind "impede[d] the full and equal enjoyment of goods and services offered in Target stores," because non-blind website users could access information on store location and hours, refill prescriptions and order photo prints for pick-up in stores, and print coupons to use in stores); Rendon, 294 F.3d at 1285-86 (holding that a television game-show studio's use of an automated telephone-screening system to screen potential contestants discriminated against hearing-impaired or upper-body mobility-impaired persons). But those do not hold that anyone with a "nexus" to the public accommodation, or anyone who is a "conduit" to the public accommodation (to use Huzar's terminology), qualifies as an owner, lessor, or operator of a public accommodation, as required by 42 U.S.C. § 12182(a). The absence of supporting case law is not surprising, because the ADA's pertinent text requires that the plaintiff be discriminated against "by" any person who "owns, leases (or leases to), or operates a place of public accommodation." § 12182(a) (emphasis added). The ADA's text does not support a "nexus" or "conduit" theory of liability.
Huzar's final argument is that a federal regulation has brought Groupon within the purview of ADA liability. Specifically, Huzar points to 28 C.F.R. § 36.302, which sets forth a general requirement that any public accommodation must make reasonable modifications to its policies, practices, and procedures to enable access to individuals with disabilities, and also details more specific requirements for certain public accommodations. As relevant here, one of the specific requirements is directed at "public accommodation[s] that sell[] tickets" for events. Id. § 36.302(f)(1)(ii). Those public accommodations must ensure that individuals with disabilities have an opportunity to buy tickets for accessible seating that is equal to the opportunity of non-disabled persons to buy tickets for ordinary seats. Id. § 36.302(f)(1)(ii)(A)-(E). Another pertinent specific requirement in § 36.302 covers "places of lodging." Id. § 36.302(e)(1). Like buying tickets to events, individuals with disabilities must be able to make accessible-room reservations during the same hours and in the same way as individuals who do not need accessible rooms. Id. § 36.302(e)(1)(i).
Neither the events-ticketing requirement nor the room-reservations requirement, however, applies to Groupon. The text of both requirements distinguishes between the "public accommodation" offering the events or the rooms and "third party" sellers. With regard to tickets, the regulation instructs the public accommodation to make accessible-seat tickets available to "third-party ticketing services." 28 C.F.R. § 36.302(1)(ii)(D).
Under the Federal Rules, a Court "should freely give leave" to amend a complaint. Fed. R. Civ. P. 15(a)(2). That permission is "especially advisable" when sought after the dismissal of the "first complaint." Barry Aviation Inc. v. Land O'Lakes Mun. Airport, Com'n, 377 F.3d 682, 687 (7th Cir. 2004). It is not clear that Huzar can amend the complaint to address the problems discussed in this Opinion, but he should be given a chance to do so.
For the reasons discussed, the current complaint fails to adequately state a claim against Groupon. The motion to dismiss is granted. For now, the dismissal is without prejudice. Huzar may file an amended complaint by August 20, 2018. If he does not, then the dismissal will convert into a dismissal with prejudice and final judgment will be entered. A status hearing is set for August 22, 2018, at 8:45 a.m. to check on whether an amended complaint was filed.