ROBERT S. LASNIK, District Judge.
These matters come before the Court on defendants' motion to dismiss plaintiff's second amended complaint. Dkt. #45. Plaintiff Torey Gragg alleges that defendants Orange Cab Company, Inc. and Ridecharge, Inc. violated three consumer protection statutes. The claims arise from a text message that defendants sent to plaintiff stating that a taxi cab was being dispatched to him and providing an advertising web link to download a smart phone application ("app") for booking defendants' taxis.
The Court previously granted in part and denied in part defendants' motion for judgment on the pleadings. Dkt. #42. The Court dismissed plaintiff's federal Telephone Consumer Protection Act ("TCPA") claim because plaintiff did not plausibly allege that defendants used an automatic telephone dialing system ("ATDS"), an essential element of the claim. The Court, however, granted leave to amend the complaint on this claim. The Court held plaintiff's claim under Washington State's Commercial Electronic Mail Act ("CEMA") was adequately pled, but declined to decide at that time whether plaintiff's claim under Washington State's Consumer Protection Act ("CPA") was adequately pled because defendants raised a new argument on the CPA claim in their reply brief to which plaintiff did not have an opportunity to respond.
Plaintiff amended his complaint and retained all his initial claims, Dkt. #44, and defendants filed a motion to dismiss the TCPA and CPA claims, Dkt. #45.
When ruling on a motion to dismiss, the Court must assume the truth of the plaintiff's factual allegations and draw all reasonable inferences in the plaintiff's favor. OSU Student Alliance v. Ray, 699 F.3d 1053, 1061 (9th Cir.2012). While detailed factual allegations are not required, the complaint must provide more than legal "labels and conclusions" or a "formulaic recitation of the elements of a cause of action." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). The allegations must give rise to something more than mere speculation that plaintiff has a right to relief. Id. The ultimate issue is whether the facts in the complaint, taken as true, state a "plausible" claim for relief. Id. at 570, 127 S.Ct. 1955. If the Court dismisses the complaint or portions of it, the Court must consider whether to grant leave to amend. Lopez v. Smith, 203 F.3d 1122, 1130 (9th Cir.2000).
The TCPA makes it unlawful for any person "to make any call (other than a call made ... with prior express consent of the called party) using any automatic telephone dialing system ["ATDS"]... to any telephone number assigned to a... cellular telephone service ..." 47 U.S.C. § 227(b)(1). For the purposes of this statute, the term "call" encompasses text messages. Satterfield v. Simon & Schuster, Inc., 569 F.3d 946, 951-52 (9th Cir.2009).
The sufficiency of plaintiff's TCPA claim turns on whether he plausibly pleads that defendants used an ATDS. An ATDS is "equipment" with "the capacity to store or produce telephone numbers to be called, using a random or sequential number generator" and the capacity "to dial such numbers." 47 U.S.C. § 227(a)(1). The Federal Communications Commission ("FCC") slightly altered this definition when it determined that equipment that dials a list of numbers (such as a business's list of customers), rather than dials random or sequential numbers, is still an ATDS, because "the basic function of such dialing equipment" is the same — "the capacity to dial numbers without human intervention." Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, 73 Fed.Reg. 6041, 6042 (Feb. 1, 2008) ("2008 FCC Clarification").
The Court previously dismissed plaintiff's TCPA claim, but granted leave to amend it. Dkt. #42. Plaintiff's initial complaint contained the wholly conclusory allegation that "[d]efendants sent the unsolicited text message by means of an automated telephone dialing system." Dkt. #24, ¶ 10. While hypothetically possible, the Court held this did not support a plausible inference that an ATDS generated the text message. Dkt. #42, at 4. Instead, the Court held it was eminently reasonable to infer that the text message was generated through "human agency" and was a "customer-specific text" or a "personal and individual response to a request for a taxi." Id. However, the Court carefully noted that the mere existence of personalized information in a text message does not necessarily mean an ATDS was not used. Id. at 4 n. 3. The key inquiry is whether plaintiff's allegations create a plausible inference that the text message was sent using "equipment" that generated or stored the cell phone number and sent the text message, as the statutory definition of an ATDS requires. 47 U.S.C. § 227(a)(1).
Contrary to plaintiff's arguments about the pleading standard for alleging the use of an ATDS, a bare allegation that defendants used an ATDS is not enough. Instead, well-pled allegations of an ATDS "rely on indirect allegations, such as the content of the message, the context in which it was received, and the existence of similar messages to raise an inference" that an ATDS was used. Dkt. #42, at 5 n. 3.
As in the first complaint, plaintiff still does not disavow a prior business relationship with defendants. Also, as in the first complaint, Dkt. #24, ¶ 9, plaintiff still "carefully avoids stating that he did not provide his wireless number to defendants," Dkt. #42, at 4. Instead, plaintiff only states he did not provide his number "for marketing purposes," Dkt. #44, ¶ 22.
Plaintiff argues, however, that these are irrelevant facts because they relate to plaintiff's consent to receive a text message, not to defendants' use of an ATDS. Dkt. #46, at 16. The Court disagrees insofar as these facts support the inference that the text message was a "personal and individual" response through "human agency." Dkt. #42, at 4. Although they certainly do not prove that an ATDS was not used, the existence of a business relationship and plaintiff's provision of his phone number when requesting services raise an inference of personal, rather than automated, interactions.
Unlike in the first complaint, plaintiff's amended complaint substantiates with specific facts the volume of similar text messages defendants sent. The Court in its prior Order suggested plaintiff could cure its deficient pleading by alleging "the number of texts defendants sent containing substantially the same message regarding Taxi Magic." Dkt. #42, at 4-5. Plaintiff accordingly pleads in his amended complaint that defendants used equipment that had the capability of sending millions of texts per month, Dkt. #44, ¶ 16, and that defendants used this equipment to send at least tens of thousands of text messages to Washington consumers containing substantially the same marketing message that plaintiff received, id. ¶¶ 14, 25. The allegation that defendants sent at least tens of thousands of text messages containing substantially the same marketing message, taken as true, supports the inference that defendants used an ATDS because the large number of sent text
Defendants argue that these new allegations regarding text message volume are no less conclusory than the prior complaint's allegations. The initial complaint alleged only that defendants' equipment sent "numerous" texts. By contrast, the current allegation that defendants' equipment sent at least tens of thousands of similar text messages, and had the capacity to send millions, provides specific, quantitative values that give rise to a plausible inference of the use of an ATDS. The previous vague allegation that defendants sent "numerous" text messages did not create an inference beyond a mere hypothetical possibility that an ATDS was used.
Defendants also argue that because plaintiff never pleads that defendants sent text messages with generic content (i.e., free from personalized information), the Court must necessarily reject an inference that defendants used an ATDS. For this proposition, defendants rely on numerous district court opinions. All of these opinions, however, held that generic message content may be sufficient to support an inference that an ATDS was used. Contrary to defendants' misreading, none of these opinions held that generic message content is necessary to infer that an ATDS was used.
In granting leave to amend its complaint, the Court suggested that an allegation of a temporal disconnect between when plaintiff used the cab services and when he received the text would support an inference that an ATDS was used. Dkt. #42, at 4-5. The amended complaint alleges the text message, which states a taxi was dispatched at 5:20 p.m., was received on a Sunday night after 9:00 p.m., Dkt. #44, ¶ 23, and that plaintiff "had not booked a taxi cab for that day," id. ¶ 24. From this, plaintiff argues that there was "no temporal connection whatsoever" between plaintiff's use of the cab service and receiving the text message, and that a human would not have made the mistake of sending the message when a taxi was not in fact being dispatched. Defendants, by contrast, contend that the complaint is a tacit admission that a taxi was dispatched the prior day, and the text message was an individual response to the request for a taxi that was delayed from delivery to plaintiff's cell phone due to "any number of reasons," such as a poor cell phone signal. Dkt. #45, at 10.
On this factor, the amended complaint supports an inference that an ATDS was used. Even assuming that plaintiff's complaint is a "tacit admission" that he used a taxi on the prior day at 5:20 p.m., a delay of more than 24 hours to send a text
Plaintiff's amended complaint alleges that the web link in the text message he received would, if the link was used, allow defendants to track his app usage and to direct all future bookings through the app to one company. Plaintiff argues this supports an inference of an ATDS, but the Court rejects this argument because the use of the link and its tracking would have been a subsequent event to plaintiff receiving the text message. The link's tracking ability thus has nothing to do with whether there is a plausible inference that an ATDS was used to generate the text message plaintiff received.
Three facts do not support a plausible inference that defendants used an ATDS. Plaintiff still does not disavow a business relationship with defendants; plaintiff still carefully avoids stating he did not provide his phone number to defendants; and the data tracking capabilities of the web link in defendants' text message are irrelevant. However, plaintiff plausibly supports an inference that defendants used an ATDS by alleging that defendants' equipment sent tens of thousands of substantially similar messages, and by alleging a temporal disconnection between using defendants' taxi services and receiving the text message. Considering the totality of the amended complaint, the Court DENIES defendants' motion to dismiss plaintiff's TCPA claim.
The CPA provides: "Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are ... unlawful." RCW 19.86.020. A private right of action to enforce this provision is available to any person "who is injured in his or her business or property." RCW 19.86.90. Based on these two provisions and a third provision discussing the Legislature's purpose in enacting the CPA, RCW 19.86.920, the Washington State Supreme Court held a private plaintiff's CPA claim "must establish five distinct elements: (1) unfair or deceptive act or practice; (2) occurring in trade or commerce; (3) public interest impact; (4) injury to plaintiff in his or her business or property; [and] (5) causation." Hangman Ridge Training Stables, Inc. v. Safeco Title Insur. Co., 105 Wn.2d 778, 780, 719 P.2d 531 (1986). The Legislature can, and has, enacted independent statutes that expressly provide that if they are violated, some or all of the five CPA elements are automatically satisfied. Id. at 787, 719 P.2d 531.
In its prior Order, the Court held that plaintiff sufficiently pled a violation of CEMA. This is relevant to plaintiff's CPA claim because CEMA provides:
RCW 19.190.060. Therefore, at least the first three elements of plaintiff's CPA claim are automatically well-pled. The Court reserved ruling on the sufficiency of plaintiff's CPA claim, however, because defendants raised a novel argument regarding injury in their reply brief. The current issue is whether plaintiff's amended complaint plausibly pleads the fourth and fifth CPA elements: injury and causation.
Plaintiff argues that a well-pled CEMA claim per se establishes a well-pled CPA claim for all five CPA elements, not just the first three. Plaintiff's theory is that CEMA's statutory damages provision, RCW 19.190.040(1), implicitly establishes CPA's fourth and fifth elements of injury and causation. The Court disagrees. "If the meaning of the statute is plain on its face, then the court must give effect to that plain meaning." Manary v. Anderson, 176 Wn.2d 342, 352, 292 P.3d 96 (2013). If violated, CEMA unambiguously establishes only the first three Hangman Ridge elements:
RCW 19.190.060. The Legislature enacted CEMA in 1998, well after Hangman Ridge clearly held that a private CPA claim has five elements. Nevertheless, RCW 19.190.060 does not speak to "injury to plaintiff in his or her business or property," nor to causation. Because the Legislature expressly defined the relationship between CEMA and CPA in this provision, it would contravene the plain language to infer that CEMA's statutory damages also impliedly satisfied CPA's fourth and fifth element. See Hangman Ridge, 105 Wash.2d at 787, 719 P.2d 531 ("Where the Legislature specifically defines the exact relationship between a statute and the CPA, this court will acknowledge that relationship.") (emphasis added). The plain language thus dictates that a violation of CEMA establishes only the CPA's first three elements.
The injury element of a CPA claim requires that the plaintiff be "injured in his or her business or property." RCW 19.86.090. The Washington Supreme Court explicated this element:
Panag v. Farmers Ins. Co. of Wash., 166 Wn.2d 27, 57, 204 P.3d 885 (2009) (internal quotations and citations omitted). The causation element requires a casual connection between the unfair or deceptive act and the injury suffered by the plaintiff. Hangman Ridge, 105 Wash.2d at 792-93, 719 P.2d 531.
Plaintiff's amended complaint alleges five injuries: (a) paying his cell phone service provider; (b) invasion of privacy; (c) aggravation and annoyance; (d) loss of use of the full capacities of his cell phone, such as storage space; and (e) impairments and burdens on the cell phone network. Dkt. #44, ¶ 27. For the following reasons, all these alleged injuries fail to plausibly support a CPA claim.
Because plaintiff does not allege he paid his cell phone service provider any additional money because of defendants' text message, the allegation does not plausibly establish causation under the CPA. Moreover, in any event, plaintiff waived this basis for supporting a claim by entirely failing to respond to defendants' argument regarding the insufficiency of this allegation.
Plaintiff alleged the receipt of defendants' text message was an "invasion of privacy." Dkt. #44, ¶ 27(b). The two opinions plaintiff cites to establish that he has a right to privacy are far afield of the CPA and are plainly inapplicable.
Plaintiff's alleged injury of "aggravation and annoyance" does not support a CPA claim. Those feelings are plainly personal injuries, not business or property injuries. Panag, 166 Wash.2d at 57, 204 P.3d 885 ("damages for mental distress [and] inconvenience are not recoverable under the CPA.").
Plaintiff alleges that defendants' text message caused his "loss of use of the full capacities and capabilities" of his cell phone, such as diminished electronic storage space. Dkt. #44, ¶ 27(b). On two occasions, Washington courts have recognized that the temporary loss of use of property is a cognizable injury under the CPA: when a defendant unlawfully asserted of a possessory lien over a plaintiff's car, Webb v. Ray, 38 Wn.App. 675, 679-80, 688 P.2d 534 (1984), and when a lender, in violation of its agreement with a borrower, wrongfully acquired title to the borrower's real property, Mason v. Mortgage America, Inc., 114 Wn.2d 842, 845-55, 792 P.2d 142 (1990).
Inferring that defendants' text messages impacted the entire relevant cell phone network in such a way that plaintiff suffered a pecuniary loss is far beyond speculative, and therefore fails to plausibly allege an injury under the CPA. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007).
Plaintiff fails plausibly to state a claim for relief under the CPA. Plaintiff's contention that his well-pled CEMA claim automatically establishes a CPA claim is incorrect under CEMA's plain language, and plaintiff's five alleged injuries also do not state a plausible claim for relief under the CPA's injury and causation elements. Defendants' motion to dismiss the CPA claim is therefore GRANTED. Because there is no indication that plaintiff can allege other facts consistent with his amended complaint that would cure the deficiencies of plaintiff's CPA claim, the Court DENIES leave to amend the complaint.
For all the foregoing reasons, defendants' motion to dismiss (Dkt. #45) is DENIED with respect to plaintiff's TCPA claim and GRANTED with respect to plaintiff's CPA claim. Defendants' request for taking judicial notice (Dkt. #48, at 7 n. 1) is GRANTED. Defendants' motion to strike (Dkt. #48, at 5-6) is GRANTED. The Court declines to grant further leave to amend.
Nor will the Court strike defendants' other contentions regarding whether a violation of CEMA per se satisfies all of CPA. Defendants cannot be required to foresee all conceivable arguments in their motion to dismiss, especially arguments that are inconsistent with the plain language of the relevant statute, as here.
Last, the Court rejects striking defendants' reliance on Gordon v. BAC Home Loans Servicing, 2011 WL 1565363 (E.D.Wash. Apr. 25, 2011), because plaintiffs' surreply on this point is an inappropriate fourth-round briefing merely disputing how defendants characterized the holding of Gordon.