LAUREL BEELER, Magistrate Judge.
Defendants First American Financial Corp. and First American Title Co. (collectively, "First American") are the largest title insurer in the country.
At least 21 class actions have been filed against First American relating to this exposure of confidential customer documents.
This case is chronologically the sixteenth or seventeenth of the 21 cases to be filed.
First American moves to transfer this case to the Central District of California under (1) the first-to-file rule and (2) 28 U.S.C. § 1404(a).
The court can decide First American's motion to transfer without oral argument. N.D. Cal. Civ. L.R. 7-1(b). The first-to-file rule applies, and the plaintiffs do not offer any cognizable reason in response why this case should stay here. The court transfers the case to the Central District of California under the first-to-file rule. The court does not transfer the case to any particular division in the Central District and leaves it to the Central District to determine the division assignment.
"[T]he well-established `first to file rule,' . . . allows a district court to transfer, stay, or dismiss an action when a similar complaint has already been filed in another federal court[.]" Alltrade, Inc. v. Uniweld Prods., Inc., 946 F.2d 622, 623 (9th Cir. 1991). "The rule is primarily meant to alleviate the burden placed on the federal judiciary by duplicative litigation and to prevent the possibility of conflicting judgments." Wallerstein v. Dole Fresh Vegetables, Inc., 967 F.Supp.2d 1289, 1292 (N.D. Cal. 2013) (citing Church of Scientology of Cal. v. U.S. Dep't of the Army, 611 F.2d 738, 750 (9th Cir. 1979)). "The first-to-file rule is intended to serve the purpose of promoting efficiency well and should not be disregarded lightly." Kohn Law Grp, Inc. v. Auto Parts Mfg. Miss., Inc., 787 F.3d 1237, 1239 (9th Cir. 2015) (internal quotation marks and brackets omitted) (quoting Alltrade, 964 F.2d at 625). Courts analyze three factors in determining whether to apply the first-to-file rule: "chronology of the lawsuits, similarity of the parties, and similarity of the issues." Id. at 1240 (citing Alltrade, 946 F.2d at 625). "The issues in both cases . . . need not be identical, only substantially similar." Id. (citing cases).
When dealing with class actions, courts look to whether the putative classes are similar, as opposed to whether the named plaintiffs are the same. See, e.g., Dist. Council 37 Health & Sec. Plan v. McKesson Corp., No. C06-00718 SBA, 2006 WL 1305235, at *1 (N.D. Cal. May 11, 2006) (citing Peak v. Green Tree Fin. Servicing Corp., No. C 00-0953, 2000 WL 973685, at *2 (N.D. Cal. July 7, 2000)).
"[D]istrict court judges can, in the exercise of their discretion, dispense with the first-filed principle for reasons of equity. But it is not an abuse of discretion, and therefore not reversible error, for a district court judge to weigh the facts and conclude that the rule should apply." Alltrade, 946 F.2d at 628.
The first-to-file factors are satisfied here.
First, the first of the class actions against First American — Gritz v. First American Financial Corp., No. 8:19-cv-01009-DSF-E (C.D. Cal. filed May 27, 2019) — was filed nearly a month before this case was. In addition to Gritz, thirteen of the other class actions against First American pending in the Central District were filed before this case was as well.
Second, the parties here are substantially similar to the parties in Gritz. The putative class in this case is substantially similar to the putative class in Gritz: both are classes of persons who used First American's title-insurance services and had their personally identifiable information ("PII") compromised.
Third, the issues here are substantially similar to the issues in Gritz. Both cases allege that First American failed to protect its customers' PII and made publicly available 885 million confidential customer documents.
The plaintiffs do not offer any cognizable reason why this case should not be transferred. The plaintiffs argue that courts stay motions to transfer while JPML motions are pending. They cite no applicable cases in support of that proposition.
First American asks that the court transfer this case specifically to the Central District of California, Western Division. Even assuming that this court has the authority to transfer the case to a specific division in another judicial district, it declines to do so. The Central District can manage its own docket and determine the division assignment.
The court grants First American's motion to transfer and transfers this case to the Central District of California under the first-to-file rule.