AT&T Mobility LLC v. T-Mobile USA Inc

CourtDistrict Court, E.D. Texas
DecidedJanuary 13, 2023
Docket4:22-cv-00760
StatusUnknown

This text of AT&T Mobility LLC v. T-Mobile USA Inc (AT&T Mobility LLC v. T-Mobile USA Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AT&T Mobility LLC v. T-Mobile USA Inc, (E.D. Tex. 2023).

Opinion

United States District Court EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

AT&T MOBILITY LLC, § § Plaintiff, § Civil Action No. 4:22-cv-00760 § Judge Mazzant v. § § T-MOBILE USA INC., § § Defendant. §

MEMORANDUM OPINION AND ORDER

Pending before the Court are Plaintiff AT&T Mobility LLC’s Application for Preliminary Injunction (Dkt. #3) and Defendant T-Mobile USA Inc.’s Motion to Dismiss the Complaint Pursuant to Rule 12(b)(2) (Dkt. #18). Having considered the motions and the relevant pleadings, the Court finds that Defendant’s Motion to Dismiss the Complaint Pursuant to Rule 12(b)(2) (Dkt. #18) should be DENIED.1 BACKGROUND This case involves allegations of false advertising between two of the nation’s three largest wireless carriers. Plaintiff AT&T Mobility LLC (“AT&T”) is a Delaware corporation with its principal place of business in Atlanta, Georgia (Dkt. #1 ¶ 13). Defendant T-Mobile USA Inc. (“T- Mobile”) is a Delaware corporation with its principal place of business in Bellevue, Washington (Dkt. #1 ¶ 14). AT&T alleges that T-Mobile is “registered to do business in the State of Texas” and that it “does business in the State of Texas” (Dkt. #1 ¶ 16). In fact, it is largely undisputed that T-Mobile does significant business in Texas. As AT&T alleges, T-Mobile employs “hundreds if not thousands of Texans,” maintains a Texas registered agent, pays Texas franchise taxes, and

1 The Court will address AT&T Mobility LLC’s Application for Preliminary Injunction (Dkt. #3) in a separate order. has an extensive physical presence in Texas, which includes cell towers, hundreds of retail stores, and a corporate office in Frisco (Dkt. #21 at pp. 3–8). I. Factual Background By their own admissions, T-Mobile and AT&T are engaged in a “fierce,” ongoing

competition to grow their respective customer bases (Dkt. #1 ¶ 1). Given the significant extent to which wireless phones have penetrated American consumer markets, the competition between the parties is largely a “switching game” in which both parties attempt to attract the other’s existing customers (Dkt. #25 at pp. 28–29). 2 As a part of that “switching game,” T-Mobile launched its “Banned Seniors” advertising campaign in August 2022 (Dkt. #19 at p. 1). “Banned Seniors” is a nationwide marketing and advertising initiative intended to attract customers over the age of fifty-five (Dkt. #1 ¶ 26). It consists of a website, www.BannedSeniors.com (the “Website”), which states that AT&T only offers its senior discount plan to residents of Florida. According to the Website, 92% of seniors in the United States cannot get a wireless discount from AT&T because they do not live in Florida

(Dkt. #1 ¶ 6). The Website includes a graphic that presents interested seniors outside of Florida with three options for obtaining a “55+ Discount”: (1) Switch to T-Mobile; (2) Move to Florida; or (3) Get a Virtual Florida Mailbox (Dkt. #1 ¶ 24). Below the “Switch to T-Mobile” graphic, there is a link that redirects the user to T-Mobile’s main website.3 The Website also includes a comparative map of the continental United States that

2 This testimony comes from the hearing on AT&T’s Application for Preliminary Injunction held on September 23, 2022 (Dkt. #25). In determining whether it has personal jurisdiction, the Court may consider the entire contents of the record before it. See, e.g., Quick Techs., Inc. v. Sage Grp. PLC, 313 F.3d 338, 343–44 (5th Cir. 2002) (“In making its [personal jurisdiction] determination, the district court may consider the contents of the record before the court at the time of the motion, including affidavits, interrogatories, depositions, oral testimony, or any combination of the recognized methods of discovery”) (internal quotations omitted).

3 There are similar links below the “Move to Florida” and “Get a Virtual Mailbox” graphics, which direct the user to the website of a Fort Lauderdale-based realtor and three different virtual mailbox companies, respectively. highlights the states in which T-Mobile and AT&T offer “discounted 55+ plans” (Dkt. #1 ¶ 25). In that map, Florida is the only state in which customers can receive AT&T’s “discounted 55+ plan,” while T-Mobile is shown offering discounts in each of the lower forty-eight states. AT&T contends that the core premise of the Banned Seniors campaign is false. According

to AT&T, rather than banning any discounts, it offers them to senior citizens across the country through the American Association of Retired Persons (“AARP”) (Dkt. #1 ¶¶ 8–10) (“[T]hrough AARP, AT&T offers millions of seniors across every state discounts on monthly service charges and activation fees.”) (emphasis in original). II. Procedural History On September 6, 2022, AT&T brought this case in which it alleges that T-Mobile violated § 43(a) of the Lanham Act by making false advertisements on the Website (Dkt. #1 ¶ 27). Specifically, AT&T alleges that T-Mobile’s claims that AT&T bans senior discounts and that “92% of seniors in the U.S. can’t get a wireless discount from Verizon or AT&T because they don’t live in Florida” are literally false (Dkt. #1 ¶¶ 8, 20). AT&T also filed an application for

preliminary injunction on the same day that it filed its original complaint (Dkt. #3). On September 16, 2022, T-Mobile filed the present motion to dismiss for lack of personal jurisdiction (Dkt. #18). On September 20, 2022, AT&T filed its response (Dkt. #21). On September 28, 2022, T-Mobile filed its reply (Dkt. #27). On October 5, 2022, AT&T filed its sur- reply (Dkt. #28). LEGAL STANDARD Federal Rule of Civil Procedure 12(b)(2) requires a court to dismiss a claim if the court does not have personal jurisdiction over the defendant. FED. R. CIV. P. 12(b)(2). After a non-resident defendant files a motion to dismiss for lack of personal jurisdiction, it is the plaintiff’s burden to establish that in personam jurisdiction exists. See, e.g., Luv N’ care, Ltd. v. Insta-Mix, Inc., 438 F.3d 465, 469 (5th Cir. 2006). To satisfy that burden, the party seeking to invoke the Court’s jurisdiction must “present sufficient facts as to make out only a prima facie case supporting jurisdiction,” if a court rules on

a motion without an evidentiary hearing. Alpine View Co. v. Atlas Copco AB, 205 F.3d 208, 215 (5th Cir. 2000). When considering the motion to dismiss, “[a]llegations in [a] plaintiff’s complaint are taken as true except to the extent that they are contradicted by defendant’s affidavits.” Int’l Truck & Engine Corp. v. Quintana, 259 F. Supp. 2d 553, 557 (N.D. Tex. 2003) (citing Wyatt v. Kaplan, 686 F.2d 276, 282–83 n.13 (5th Cir. 1982)). Thus, courts accept a plaintiff’s non- conclusory, uncontroverted allegations as true, and resolve factual conflicts contained in the parties’ affidavits in the plaintiff’s favor. See, e.g., Panda Brandywine Corp. v. Potomac Elec. Power Co., 253 F.3d 865, 868 (5th Cir. 2001). ANALYSIS I. Personal Jurisdiction

T-Mobile asks the Court to dismiss AT&T’s claims for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). The Court conducts a two-step inquiry when a defendant challenges personal jurisdiction. Frank v. P N K (Lake Charles) L.L.C., 947 F.3d 331, 336 (5th Cir. 2020).

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AT&T Mobility LLC v. T-Mobile USA Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/att-mobility-llc-v-t-mobile-usa-inc-txed-2023.