ANDERSON v. GANNETT CO., INC.

CourtDistrict Court, D. New Jersey
DecidedMay 23, 2023
Docket3:22-cv-05088
StatusUnknown

This text of ANDERSON v. GANNETT CO., INC. (ANDERSON v. GANNETT CO., INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ANDERSON v. GANNETT CO., INC., (D.N.J. 2023).

Opinion

NOT FOR PUBLICATION UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

NICHOLE ANDERSON, on behalf of herself and all others similarly situated, Plaintiff, Civil Action No. 22-05088 (GC) (RLS) v. MEMORANDUM OPINION GANNETT CO., INC., Defendant.

CASTNER, U.S.D.J. THIS MATTER comes before the Court upon Defendant Gannett Co., Inc.’s Motion to Dismiss and to Strike the Class Action Complaint pursuant to Federal Rules of Civil Procedure (“Rule”) 12(b)(1), 12(b)(6), and 12(f). (ECF No. 12.) Plaintiff Nichole Anderson opposed (see ECF No. 21), and Defendant replied (see ECF No. 23). The Court has carefully considered the parties’ submissions and decides the matter without oral argument pursuant to Rule 78 and Local Civil Rule 78.1. For the reasons set forth below, and other good cause shown, the present motion shall be STAYED pending limited discovery and additional briefing on Defendant’s factual attack as to whether Plaintiff has an injury-in-fact sufficient for Article III standing. As detailed in the Order that follows, the parties shall be given sixty (60) days in which to conduct said discovery and additional time to submit their jurisdictional briefing to the Court prior to a decision on the Rule 12(b)(1) grounds for dismissal.

I. BACKGROUND A. Factual Background! Plaintiff Nichole Anderson (“Plaintiff’ or “Anderson”) is a resident of Franklin Park, New Jersey. (ECF No. 1 § 8.) Anderson alleges that, on November 18, 2021, she purchased a Courier News subscription from Defendant Gannett Co., Inc. (““Defendant” or “Gannett”), which was priced at $1.00 for the first six months and, upon automatic renewal, $9.99 (plus any applicable sales tax) per month. Ud. J§ 2, 8, 23.) The subscription was “digital only” and provided 24/7 access to the local news website mycentraljersey.com. (/d. { 22.) Gannett is a subscription-led and digitally focused media and marketing solutions company whose portfolio includes USA Today and hundreds of local media outlets in 46 states, including the Courier News based in Bridgewater, New Jersey. (Ud. §[ 13-14.) When Anderson purchased her subscription to the Courier News in 2021, Gannett’s contractual terms promised Anderson and customers like her that they could cancel their subscription “at any time,” at no added cost, up to the date when the subscription was set to automatically renew at the higher price. Ud. 9] 3, 18-20, 33.) On or about May 14, 2022, Anderson used Gannett’s online chat service to notify Gannett that she wished to end her subscription to the Courier News. Ud. § 24.) Gannett tried to persuade Anderson to keep the subscription, but when Anderson insisted on canceling, Gannett confirmed that the subscription would be canceled. (/d. §[ 25-26.) Despite Anderson’s attempt at canceling her subscription to the Courier News before it was set to automatically renew, Gannett charged

] When reviewing a motion to dismiss pursuant to either Rule 12(b)(1) or 12(b)(6), a court typically accepts as true all well-pleaded facts in the complaint. See Doe v. Princeton Univ., 30 F.4th 335, 340 (3d Cir. 2022) (quoting Umland v. PLANCO Fin. Servs., Inc., 542 F.3d 59, 64 Gd Cir. 2008)); Plains All Am. Pipeline L.P. v. Cook, 866 F.3d 534, 538 Gd Cir. 2017) (citing NE Hub Partners, L.P. v. CNG Transmission Corp., 239 F.3d 333, 341 (3d Cir. 2001)).

Anderson the higher $9.99 per month subscription fee approximately one month later. Ud. f 4, 27.) As result, Anderson paid nearly $10.00 for a monthly subscription to the Courier News even after she had attempted to cancel. Ud. [J] 6, 30.) When Anderson became aware of the charge, she once again used Gannett’s online chat service to try to cancel her subscription. Ud. § 28.) Gannett confirmed that Anderson’s subscription would be canceled, and she subsequently received email confirmation that the subscription had been canceled. Ud. ¥ 29.) There are purportedly several online reviews (though Anderson does not plead either the online location of the reviews or who allegedly posted them or when they were posted) that complain of the same problem as that faced by Anderson, i.e., individuals attempting to cancel subscriptions at Gannett publications and continuing to be charged notwithstanding their attempt(s) to cancel. Ud. 35.) B. Procedural Background On August 17, 2022, Anderson filed a putative class action Complaint, which alleges that Gannett “routinely fails to honor consumers’ requests to stop their newspaper subscriptions from automatically renewing and[,] instead, continues to charge them subscription fees without their authorization in breach of the express terms of its contract.” (ECF No. 1 § 34.) Pursuant to Rule 23, Anderson seeks to represent a class consisting of “[a]ll consumers who... cancelled their Gannett-owned newspaper subscription but were subsequently charged,” and a subclass consisting of “[a]ll consumers who . . . cancelled their Courier News subscription but were subsequently charged.”” (/d. § 36.) Those excluded from the proposed class include “persons who received refunds . . . after being charged any additional amounts after they cancelled

2 The proposed classes are temporally limited to “within the applicable statute of limitations preceding the filing of th[e] action to the date of class certification.” (Ud. 36.)

their subscription.” (Ud. § 37.) Anderson alleges that the classes are “likely to include thousands of individuals.” (Ud. § 40.) Anderson brings a claim against Gannett on behalf of the subclass for violations of New Jersey’s Consumer Fraud Act (““NJCFA”), N.J. Stat. Ann. §§ 56:8-1, ef seg. (Count I). Ud. JJ 45- 52.) She also brings claims on behalf of both the class and subclass for violations of the Electronic Fund Transfer Act (“EFTA”), 15 U.S.C. §§ 1693, e¢ seg. (Count II); breach of contract, including breach of the covenant of good faith and fair dealing (Count III); and unjust enrichment (Count IV). Ud. {9 53-80.) On October 18, 2022, Gannett moved to dismiss the Complaint pursuant to Rule 12(b)(1) and Rule 12(b)(6), and to strike the class allegations pursuant to Rule 12(f). ECF No. 12.) After an extension of time, Anderson opposed on December 5, 2022. (ECF No. 21.) Gannett replied on January 9, 2023. (ECF No. 23.) C. The Parties’ Arguments In moving to dismiss the Complaint, Gannett contends that Anderson wants to improperly “turn the alleged human error of one employee into a class action litigation.” (ECF No. 12-1 at 72) Gannett submits that there are several grounds to dismiss and/or strike the claims against it pursuant to Rules 12(b)(1), 12(b)(6) and 12(f). The preliminary Rule 12(b)(1) ground advanced by Gannett is that Anderson never actually paid the disputed subscription fee, and as a result, has no injury-in-fact sufficient for Article III] standing. (U/d. at 12.) To substantiate this allegation, Gannett submits an October 17, 2022 declaration from Blair Yoke (“Yoke”), Gannett’s Executive Escalations Manager, who is “responsible for overseeing the customer service escalations process.” (ECF No. 12-2 42.) Yoke declares under penalty of perjury that Gannett has no record

3 Page numbers for record cites (7.e., “ECF Nos.”) refer to the page numbers stamped by the Court’s e-filing system and not the internal pagination of the parties.

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ANDERSON v. GANNETT CO., INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-gannett-co-inc-njd-2023.