EDWARD J. DAVILA, District Judge.
Pending before the court is Defendant Google Inc.'s ("Google") motion to dismiss the First Amended Complaint ("FAC"). On May 16, 2011, Google filed this motion to dismiss. The court heard oral argument on October 28, 2011. For the reasons discussed below, Google's motion is GRANTED IN PART as to claims 2-7 and DENIED IN PART as to claim 1.
On October 25, 2010, Plaintiff Paloma Gaos ("Gaos") filed the Complaint initiating this action. On April 7, 2011, Chief Judge Ware granted Google's motion to dismiss the Complaint with leave to amend because Gaos had failed to allege an "injury in fact" sufficient to establish Article III standing.
Gaos is a resident of San Francisco County, California. FAC ¶ 6. Google is a Delaware corporation that maintains its headquarters in Mountain View, California.
Defendant's primary business enterprise centers on its proprietary search engine.
Since the launch of Defendant's search service, and continuing until the present, Defendant's search engine has intentionally included the search terms in the URL of the search results page.
Search terms could be linked together with the identity of the user through the process of "reidentification," either by linking the terms with the user's IP address, which is also sometimes released with the clicked link; with any cookies stored on the user's computer; or with "vanity searches," where the user searches for their own name.
On the basis of the allegations outlined above, Plaintiff brings seven causes of action: (1) Violation of the Electronic Communications Privacy Act, 18 U.S.C. § 2510, specifically of the Stored Communications Act ("SCA"), 18 U.S.C. § 2701; (2) Fraudulent Misrepresentation; (3) Negligent Misrepresentation; (4) Public Disclosure of Private Facts; (5) Actual and Constructive Fraud; (6) Breach of Contract; and (7) Unjust Enrichment.
On May 16, 2011, Google filed this motion to dismiss arguing that this court lacks subject matter jurisdiction because Gaos has again failed to establish that she has standing under Article III of the United States Constitution because she has not alleged she suffered an injury in fact. In the alternative, Google argues that the FAC should be dismissed because Gaos has failed to state a claim upon which relief can be granted as to her privacy claim, breach of contract claim, fraud-based claims, and unjust enrichment claim. Additionally, Google argues that all the state-law claims are preempted by the SCA.
An Article III federal court must ask whether a plaintiff has suffered sufficient injury to satisfy the "case or controversy" requirement of Article III of the U.S. Constitution. To satisfy Article III standing, plaintiff must allege: (1) an injury in fact that is concrete and particularized, as well as actual and imminent; (2) that the injury is fairly traceable to the challenged action of the defendant; and (3) that it is likely (not merely speculative) that injury will be redressed by a favorable decision.
Google argues that Gaos has failed to allege that she has suffered an injury in fact that is concrete and particularized as well as actual and imminent. As the sole named plaintiff in this action, Gaos alleged she "has suffered actual harm in the form of Google's unauthorized and unlawful dissemination of Plaintiff's search queries, which contained sensitive personal information, to third parties." FAC ¶ 80. Gaos does not identify what injury resulted from this dissemination. Additionally, the FAC states only that Gaos searched for her name and her family's names. FAC ¶ 77. Thus, the FAC does not plead facts sufficient to show that the disseminated information is of a nature that places her in imminent danger of harm.
Accordingly, Google's motion to dismiss is GRANTED with leave to amend as to claims 2-7.
The injury required by Article III, however, can exist solely by virtue of "statutes creating legal rights, the invasion of which creates standing."
Gaos argues she has alleged an injury in fact based on a violation of her rights under the SCA, which prohibits an electronic communication service from divulging the contents of a communication in electronic storage, 18 U.S.C. § 2702(a)(1), and prohibits a remote computing service from divulging the contents of communications carried or maintained on that service, 18 U.S.C. § 2702(a)(2).
First, Google argues that Gaos has failed to allege any injury resulting from the SCA violation. Google, however, has not cited any authority supporting its argument that injury beyond a violation of the SCA itself is required to allege a concrete injury. The court finds that the SCA creates a right to be free from the unlawful disclosure of communications as prohibited by the statute. The SCA explicitly creates a private right of action for persons aggrieved by a disclosure of their communications in violation of the statute. 18 U.S.C. § 2702(a) (providing that "any . . . person aggrieved by any violation of this chapter" may maintain a civil action if the violation was done knowingly or intentionally). Google's argument fails because the SCA provides a right to judicial relief based only on a violation of the statute without additional injury. Thus, a violation of one's statutory rights under the SCA is a concrete injury.
Gaos must also allege that the injury she suffered was particularized to her. "The critical question is whether she `has alleged such a personal stake in the outcome of the controversy as to warrant . . . invocation of federal court jurisdiction.'"
Additionally, Google argues that Gaos failed to correct the deficiencies identified by Chief Judge Ware in the order dismissing the original complaint. Specifically, Google argues that the FAC still includes "conclusory allegations of disclosures of communications resulting in unspecified harm in violation of the ECPA, not supported by any facts, [which] are insufficient to allege violation of [Gaos's] statutory rights." Google Inc.'s Mot. to Dismiss at 6, ECF No. 29 (quoting Order Granting Defs.' Mot. To Dismiss at 5, ECF No. 24). Gaos argues the FAC remedied the problems identified by Chief Judge Ware by adding allegations about the disclosure of her own search queries. Google does not identify any element of an SCA claim that it argues has been pleaded in a conclusory or otherwise insufficient manner in the FAC.
The court finds that Gaos has alleged a concrete and particularized injury in fact as a result of the alleged violation of her statutory rights under the SCA. Accordingly, Google's motion to dismiss is DENIED as to Gaos's SCA claim.
Google's motion to dismiss is DENIED IN PART as to Gaos's SCA claim and GRANTED IN PART with leave to amend as to all other claims. Gaos may file any amended complaint no later than May 1, 2012.