Academy of Doctors of Audiology v. International Hearing Society

237 F. Supp. 3d 644, 2017 WL 679354, 2017 U.S. Dist. LEXIS 23652
CourtDistrict Court, E.D. Michigan
DecidedFebruary 21, 2017
DocketCivil Case No. 16-13839
StatusPublished
Cited by3 cases

This text of 237 F. Supp. 3d 644 (Academy of Doctors of Audiology v. International Hearing Society) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Academy of Doctors of Audiology v. International Hearing Society, 237 F. Supp. 3d 644, 2017 WL 679354, 2017 U.S. Dist. LEXIS 23652 (E.D. Mich. 2017).

Opinion

OPINION & ORDER GRANTING DEFENDANT’S MOTION TO DISMISS AND DENYING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION AS MOOT

Sean F. Cox, United States District Judge

In December of 2016, Defendant International Hearing Society held a training program on tinnitus care in Orlando, Florida. Defendant’s program description states that Defendant' will provide a “Tinnitus Care Provider Certificate” to certain persons who complete the-program and pass an examination. .

Before the program was actually held, Plaintiff Academy of Doctors of Audiology brought this action against Defendant, asserting false advertising claims under the Lanham Act and Michigan common law, and a claim under the Michigan Consumer Protection Act. The sole relief sought by Plaintiff is a preliminary and permanent injunction barring Defendarit from issuing a certifícate to some of the persons who attended that.program, specifically, hearing aid dealers.

Currently pending before the Court are: 1) Plaintiffs Motion for Preliminary Injunction; and 2) a Motion to Dismiss filed by Defendant. Defendant’s Motion to Dismiss challenges Plaintiff’s standing to bring- this action and- also asserts that Plaintiff’s Complaint fails to state a claim under Fed. R. Civ. P. • 12(b)(6). The motions have been-fully briefed by the parties. The 'Court finds that oral- argument would not aid the decisional process. See Local Rule 7.1(f)(2), U.S. District Court, Eastern District of Michigan. The Court [649]*649therefore orders, .that the motions will be decided upon the briefs.

As explained below, the Court shall GRANT Defendant’s Motion to Dismiss. Defendant’s motion raises a facial attack to standing—which challenges the sufficiency of the allegations in the complaint. Plaintiff, as the party invoking federal jurisdiction, bears the burden to demonstrate standing and it must plead its components with specificity. Plaintiff has failed to do so. First, Plaintiff contends in its response brief that it has standing on its own to bring this ease, based upon a “diversion of resources” theory. But there are no allegations in the complaint to support that theory. Second, Plaintiff contends that it has organizational or representative standing to bring this action on behalf of its members. In order to have such' standing, Plaintiffs members must have - standing themselves. As explained below, ADA has failed to do so because it has failed to sufficiently allege the injury-in-fact component, and because it is not likely that Plaintiffs members’ claimed injury will be redressed by the injunction sought here.

In addition, although the Court need not reach of any Defendant’s 12(b)(6) challenges, the Court concludes that Plaintiffs claims would also be properly dismissed as to those challenges. For example, Plaintiff fails to state a claim under Michigan’s Consumer Protection Act because the conduct at issue here does not involve consumer purchases (purchases made primarily for personal, family, or household purposes); instead it involves the issuance of a certificate in connection with a business seminar. Plaintiffs “contributory false advertising” claim under the Lanham Act is subject to dismissal because the Sixth Circuit has not recognized such a claim. Finally, Plaintiffs false advertising claim under the Lanham Act fails for multiple reasons.

BACKGROUND

On October 28, 2016, Plaintiff Academy of Doctors of Audiology (“Plaintiff’ or “ADA”) filed this action against Defendant International Hearing Society (“Defendant” or “IHS”) in federal court, based upon federal-question jurisdiction and diversity jurisdiction. Plaintiffs Complaint asserts the following claims: 1) .“FIRST CLAIM (False Advertising—Lanham Act);” 2) “SECOND CLAIM (Contributory False. Advertising—Lanham Act);” 3) “THIRD CLAIM (Deceptive Trade. Practices under M.C.L, § 445.903(l)(a)-(c));” and 4) “FOURTH CLAIM (Unfair Competition under Michigan Common Law).” Plaintiffs Complaint requests the following relief:

REQUESTS FOR RELIEF
Wherefore ADA requests the following relief against IHS:
A. Judgment granting preliminary and permanent injunctions against IHS and all persons affiliated with it as set forth in Fed. R. Civ. Proc. 65(d)(2)(A), (B) and (C), prohibiting the issuance by IHS of a “Tinnitus Care Provider Certificate” to Hearing Aid Dealers (persons licensed under M.C. L. §§ 339.Í301 et seq. or the comparable statutes of other States); - ■
B. ADA’s costs, reasonable attorney fees and expenses of litigation; and
C. Such other and further relief to which ADA may be found to be entitled, upon the evidence and.law.

(D.E. No. 1 at Pg ID 16). ■

On November 16, 2017, Plaintiff filed a Motion for Preliminary Injunction. Thereafter, the Court brought the parties in for a Status Conference on November IS, 2016. The parties • believed that they had reached an agreement that would resolve [650]*650the Motion for Preliminary Injunction and Plaintiff then withdrew the motion on the record that day.

On November 22, 2016, the Court issued a Scheduling Order in this action that provides that discovery closes on May 18, 2017, and the deadline for filing motions is June 19, 2017.

On December 15, 2016, Plaintiffs filed a Renewed Motion for Preliminary Injunction. (D.E. No. 12).' Defendant filed á response to that motion (D.E. No. 14), and Plaintiff filed a reply. (D.E. No. 16). Thus, the motion has been fully briefed.

On December 20,2016, Defendant filed a Motion to Dismiss. (D.E. No. 13). Plaintiff filed a response to that motion (D.E. No. 15), and Defendant filed a Reply. (D.E. Nl. 17). Thus, this motion has also been fully briefed.

ANALYSIS

Defendant’s Motion to Dismiss asks this Court to dismiss all of Plaintiffs claims in this action. If the Court were to grant that motion, then Plaintiffs Motion for Preliminary Injunction would be moot. In addition, the motion raises a standing challenge and if this Court determines that Plaintiff lacks standing to bring this action, the Court should not proceed any further and should dismiss the case. As such, the Court considers this motion first.

I. Standard Applicable To Defendant’s Motion To Dismiss

Defendant’s motion challenges Plaintiffs standing to bring this action and also asserts that Plaintiff fails to state a claim upon which relief may be granted. Thus, Defendant brings the instant Motion to Dismiss under Fed. R. Civ. P. 12(b)(1) and 12(b)(6).

“Standing is, of course, a threshold requirement for federal jurisdiction. If a party does not have standing to bring an action, then the court has no authority to hear the ■ matter and must dismiss the case.” Binno v. American Bar Assoc., 826 F.3d 338, 344 (6th Cir. 2016). Thus, this Court should “consider the 12(b)(1) motion first, since the Rule 12(b)(6) challenge becomes moot if this court lacks subject matter jurisdiction.” Wayside Church v. Van Buren Cty., 847 F.3d 812, 816 (6th Cir. 2017).

As explained by the Sixth Circuit, subject-matter-jurisdiction challenges under Fed. R. Civ. P.

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Bluebook (online)
237 F. Supp. 3d 644, 2017 WL 679354, 2017 U.S. Dist. LEXIS 23652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/academy-of-doctors-of-audiology-v-international-hearing-society-mied-2017.