Brignac v. Yelp Inc.

District Court, N.D. California·Decided October 17, 2019·No. 3:19-cv-01188·Unknown

Opinion

JARON LAMAR BRIGNAC, Case No. 19-cv-01188-EMC

Plaintiff, ORDER GRANTING DEFENDANT’S v. MOTION TO DISMISS

YELP INC., Docket No. 64 Defendant.

Pro se Plaintiff Jaron Brignac brings this suit against Defendant Yelp, Inc. (“Yelp”) alleging that Yelp discriminated against him on the basis of race in violation of 42 U.S.C. § 1981. Pending before the Court is Yelp’s Motion to Dismiss Mr. Brignac’s Second Amended Complaint (“Mot.”), Docket No. 64, which the Court previously determined it would hear—in part—as a motion under Federal Rule of Civil Procedure 56. Principally, the question currently before the Court is whether Mr. Brignac brings this suit on behalf of a corporation or whether he brings it on behalf of a sole proprietorship. If the former, the corporation must comply with Local Civil Rule 3-9(b), which requires that a corporation appearing before the Court be represented by counsel. The Motion to Dismiss on the merits was stayed, pending resolution of this issue. A. Factual Background As alleged in his Second Amended Complaint, Mr. Brignac is the “sole proprietor of BPCS Law Evictions,” which is a sole proprietorship. Second Amended Complaint (“SAC”) ¶ 5, EVICTIONS is a Black American owned business.” Id. ¶ 6. Mr. Brignac alleges that Yelp “offers contracts to business owners to advertise on Yelp’s platform” and that these contracts “specifically determine[] the ranking position for business owners.” Id. ¶ 7. Mr. Brignac further alleges that there are two types of contracts. Id. ¶ 7–8. One type of contract is free and requires the “click of a hyperlink button,” which links to a page where a business owner can “confirm their business information.” Id. ¶ 8(a). Using that type of contract, Mr. Brignac alleges that a user “must follow Yelp’s algorithm in order [to] obtain a user ranking that can rank the business owner in a number one or two position on the first page.” Id. The other type of contract is a “paid advertising contract.” Id. ¶ 8(b). This is “a separate contract” from the first service, which Yelp offers to business owners for free. Id. ¶ 12. Mr. Brignac alleges that he first “took advantage of the free contract” and was advised by a Yelp representative about how to “help his ranking and user views.” Id. ¶ 9. Plaintiff attempted to follow this advice for months, but “did not notice any change in his ranking or user views.” Id. ¶ 10. However, during that same time period, he “noticed other non-black business owners, who were offering the same service as Plaintiff ranking above Plaintiff.” Id. Because Mr. Brignac “wasn’t seeing any progress in free advertising,” he “explored the paid contract” option and “on or about October of 2017, Plaintiff and Yelp executed a paid advertising contract.” Id. ¶ 10–11. After executing the paid contract, “Plaintiff did not notice his ads ranking above his competitors, rather Plaintiff continued to see other non-black business owners offering the same service ads as him ranking above him.” Id. ¶ 13. As a result, Mr. Brignac believes that “Yelp intentionally did not uphold their promise in his paid advertising contract, but did uphold their contract promises to other nonblack business owners” and that this “explains why the nonblack business owners of legal services ads were and are continuously ranking above Plaintiff’s ads.” Id. ¶ 18. In addition, Mr. Brignac believes that “all non-paid ads of Plaintiff are intentionally placed in lower rankings below nonblack business owners despite Plaintiff’s efforts in following all of Yelp’s advice for optimizing his page on their platform” and that “Yelp offered different advertising performance contracts to other nonblack business owners similarly situated in the owners providing the same services.” Id. ¶ 19, 20. He asserts a claim for discrimination in the making and enforcement of contracts under 42 U.S.C. § 1981. Mot. at 6–7. B. Procedural Background On November 19, 2018, Mr. Brignac filed a lawsuit (naming himself, as an individual, as the plaintiff) against Yelp. See Complaint for Damages and Equitable Relief (“Original Complaint”), Docket No. 1. That complaint identified Mr. Brignac as the “sole business owner of BPCS LAW which was founded by Plaintiff and licensed on August 04, 2015.” Id. ¶ 5. It also highlighted his successful online presence as “a Corporation providing legal services for law firms, and attorneys,” id. ¶ 6, and noted that BPCS Law sometimes did business at BPCS Law Evictions, id. ¶¶ 15, 21. That complaint alleged violations of the Sherman Act based on Mr. Brignac’s allegation that Yelp had “created a monopoly in the [Search Engine Optimization] market and a monopoly on GOOLGLE’S first page ranking.” Id. ¶ 14. After the case was removed to federal court by defendants, see Notice of Removal, Docket No. 1, Mr. Brignac filed an amended complaint (also naming himself, as an individual, as the plaintiff), see First Amended Complaint (“FAC”), Docket No. 17. That amended complaint also described Mr. Brignac as “the sole business owner of BPCS LAW” and noted his online presence “as a Corporation providing legal services for law firms, and attorneys.” Id. ¶¶ 5–6. The case was then transferred to the Northern District of California. See Order Granting Defendant’s Motion to Transfer Venue, Docket No. 26. On June 5, 2019, the Court granted Yelp’s Motion to Dismiss Mr. Brignac’s First Amended Complaint, dismissing his Sherman Act claim with prejudice and his § 1981 claim with leave to amend. Order Granting Defendant’s Motion to Dismiss (“Dismissal Order”) at 8, 10, Docket No. 62. As to the § 1981 claim, the Court noted, “Yelp argues that Brignac lacks statutory standing to bring a § 1981 claim because the contract that is being allegedly impaired is between BPCS Law and Yelp, not Brignac and Yelp. Assuming that BPCS Law is a corporation, Yelp would be correct.” Dismissal Order at 9 (internal citations omitted). However, the Court also corporation” which would mean that “Brignac . . . [would have] standing to bring a § 1981 claim.” Id. The Court encouraged Mr. Brignac to “clarify the status of his business,” should he decide to amend his complaint. Id. at 6. On July 1, 2019, Mr. Brignac filed a Second Amended Complaint. See SAC. That Complaint names “JARON BRIGNAC, an individual and sole proprietor of BPCS LAW EVICTIONS” as the plaintiff. Id. at 1. In the complaint, Mr. Brignac states, “Plaintiff, JARON BRIGNAC, is the sole proprietor of BPCS LAW EVICTIONS, and BPCS LAW EVICTIONS is a sole proprietorship.” SAC ¶ 5. The Second Amended Complaint does not mention the entity “BPCS Law”; it only mentions “BPCS Law Evictions.” Id. The only cause of action contained in the Second Amended Complaint is a violation of 42 U.S.C. § 1981, alleging intentional or purposeful racial discrimination against Mr. Brignac, who is a “black American male individual.” Id. ¶ 24–33. More specifically, Mr. Brignac contends (1) that “Yelp intentionally did not uphold their promise in his paid advertising contract, but did uphold their contract promises to other nonblack business owners,” (2) that “all non-paid ads of Plaintiff are intentionally placed in lower rankings below nonblack business owners,” and (3) that “Yelp offered different advertising performance contracts to other nonblack business owners similarly situated in the same locality as Plaintiff.” Id. ¶¶ 27–31. On July 15, 2019, Yelp filed a Motion to Dismiss Mr. Brignac’s Second Amended Complaint. See Motion to Dismiss Second Amended Complaint (“Mot.”), Docket No. 64. The motion alleges that the “advertising agreeme

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