Callahan v. Ancestry.com Inc.

District Court, N.D. California·Decided June 15, 2021·No. 3:20-cv-08437·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 San Francisco Division 11 MEREDITH CALLAHAN, et al., Case No. 20-cv-08437-LB

12 Plaintiffs, ORDER DISMISSING FIRST 13 v. AMENDED COMPLAINT

14 ANCESTRY.COM INC., et al., Re: ECF No. 33 15 Defendants. 16 17 INTRODUCTION 18 The plaintiffs are California residents who sued Ancestry.com — individually and on behalf of a 19 putative California class — for using their decades-old yearbook records to solicit paying subscribers. 20 The plaintiffs claim (1) misappropriation of their likenesses, in violation of California’s Right of 21 Publicity Law, Cal. Civ. Code § 3344, (2) unlawful and unfair business practices, in violation of 22 California’s Unfair Competition Law, Cal. Bus. & Prof. Code § 17200, (3) intrusion upon seclusion, 23 in violation of California common law, and (4) unjust enrichment resulting from Ancestry’s selling 24 their personal information. 25 The court dismissed the first complaint for lack of Article III standing because use of data to 26 solicit customers — without something more, such as an inference that the profiled persons 27 personally endorsed Ancestry’s product — is not injury in fact. Also, Ancestry did not create the 1 plaintiffs amended their complaint, raising the same claims and adding allegations of harm that they 2 suffered: emotional harm from Ancestry’s profiting from their records, lost time spent investigating 3 Ancestry’s use of their records, and theft of their intellectual property. Ancestry moved to dismiss, 4 again for lack of standing and under the Communications Decency Act. The plaintiffs’ new 5 allegations do not change the analysis in the court’s earlier order: the plaintiffs do not have Article III 6 standing, and Ancestry is immune from liability under the Communications Decency Act. The court 7 dismisses the amended complaint. 8 STATEMENT 9 Ancestry makes money by selling subscription plans to its databases of personal and historical 10 information, including its Yearbook database, which has yearbook records. Ancestry solicits new 11 subscribers by sending promotional emails. For example, to solicit paying subscribers to the 12 Yearbook database, Ancestry might send a user an email that has yearbook information of 13 someone that Ancestry identifies as a potential former classmate.1 The amended complaint adds 14 new allegations of the plaintiffs’ injuries: anger and distress from Ancestry’s profiting from the 15 records, their lost time investigating Ancestry’s use (such as the five hours that named plaintiff 16 Geoffrey Abraham spent), and theft of their intellectual property.2 The court held a hearing on 17 Ancestry’s renewed motion to dismiss on June 10, 2021. All parties consented to magistrate-judge 18 jurisdiction under 28 U.S.C. § 636. The court has subject-matter jurisdiction under the Class 19 Action Fairness Act, 28 U.S.C. § 1332(d). 3 20 21 22 23 24

25 1 Order – ECF No. 30 at 2–4 (summarizing Ancestry’s business model). This order incorporates the summary by this reference because many allegations in the initial and amended complaints are the same. 26 See Blackline – ECF No. 32-1. Citations refer to material in the Electronic Case File (ECF); pinpoint citations are to the ECF-generated page numbers at the top of documents. 27 2 First Am. Compl. (FAC) – ECF No. 32 at 8 (¶¶ 24–25), 18 (¶ 37), 19 (¶ 45), 27 (¶¶ 57, 59), 32 (¶ 76). 1 STANDARD OF REVIEW 2 1. Rule 12(b)(1) 3 A complaint must contain a short and plain statement of the ground for the court’s jurisdiction. 4 Fed. R. Civ. P. 8(a)(1). The plaintiffs have the burden of establishing jurisdiction. Kokkonen v. 5 Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994); Farmers Ins. Exch. v. Portage La 6 Prairie Mut. Ins. Co., 907 F.2d 911, 912 (9th Cir. 1990). 7 A defendant’s Rule 12(b)(1) jurisdictional attack can be facial or factual. White v. Lee, 227 F.3d 8 1214, 1242 (9th Cir. 2000). “A ‘facial’ attack asserts that a complaint’s allegations are themselves 9 insufficient to invoke jurisdiction, while a ‘factual’ attack asserts that the complaint’s allegations, 10 though adequate on their face to invoke jurisdiction, are untrue.” Courthouse News Serv. v. Planet, 11 750 F.3d 776, 780 n.3 (9th Cir. 2014). This is a facial attack. The court thus “accept[s] all allegations 12 of fact in the complaint as true and construe[s] them in the light most favorable to the plaintiff[].” 13 Warren v. Fox Family Worldwide, Inc., 328 F.3d 1136, 1139 (9th Cir. 2003). 14 Ancestry contends that the plaintiffs lack standing. Standing pertains to the court’s subject- 15 matter jurisdiction and thus is properly raised in a Rule 12(b)(1) motion to dismiss. Chandler v. 16 State Farm Mut. Auto. Ins. Co., 598 F.3d 1115, 1121–22 (9th Cir. 2010). 17 Dismissal of a complaint without leave to amend should be granted only if the jurisdictional 18 defect cannot be cured by amendment. Eminence Capital, LLC v. Aspeon, Inc., 316 F.3d 1048, 19 1052 (9th Cir. 2003). 20 21 2. Rule 12(b)(6) 22 A complaint must contain a “short and plain statement of the claim showing that the pleader is 23 entitled to relief” to give the defendant “fair notice” of what the claims are and the grounds upon 24 which they rest. Fed. R. Civ. P. 8(a)(2); Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). A 25 complaint does not need detailed factual allegations, but “a plaintiff’s obligation to provide the 26 grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic 27 recitation of the elements of a cause of action will not do. Factual allegations must be enough to 1 To survive a motion to dismiss, a complaint must contain sufficient factual allegations, which 2 when accepted as true, “state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 3 U.S. 662, 678 (2009). “A claim has facial plausibility when the plaintiff pleads factual content that 4 allows the court to draw the reasonable inference that the defendant is liable for the misconduct 5 alleged.” Id. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for 6 more than a sheer possibility that a defendant has acted unlawfully.” Id. “Where a complaint 7 pleads facts that are merely consistent with a defendant’s liability, it stops short of the line 8 between possibility and plausibility of ‘entitlement to relief.’” Id. (cleaned up). 9 If a court dismisses a complaint, it should give leave to amend unless the “pleading could not 10 possibly be cured by the allegation of other facts.” United States v. United Healthcare Ins. Co., 11 848 F.3d 1161, 1182 (9th Cir. 2016) (cleaned up).

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Callahan v. Ancestry.com Inc., (N.D. Cal. 2021).

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