Chapman v. National Health Plans & Benefits Agency, LLC

CourtDistrict Court, E.D. Michigan
DecidedAugust 4, 2022
Docket2:22-cv-10229
StatusUnknown

This text of Chapman v. National Health Plans & Benefits Agency, LLC (Chapman v. National Health Plans & Benefits Agency, LLC) 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
Chapman v. National Health Plans & Benefits Agency, LLC, (E.D. Mich. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION CRYSTAL CHAPMAN,

Plaintiff, Case No. 22-10229 v. Honorable Laurie J. Michelson

NATIONAL HEALTH PLANS & BENEFITS AGENCY, LLC,

Defendant.

OPINION AND ORDER DENYING NHP’S MOTION TO DISMISS [7] Crystal Chapman says she received a telemarketing call in November 2021 from an unknown number. Because she did not recognize the number, Chapman rejected the call. (ECF No. 1, PageID.7.) The same number called on December 1, and again, Chapman rejected the call. (Id.) But when the third call came on December 28, Chapman’s husband decided to answer. (Id. at PageID.8.) After all, Chapman had put her number on the National Do Not Call Registry, so her husband wanted to know who was on the other end of the call. (Id. at PageID.7–8.) A prerecorded message asked if he was over 65 years old and if he was interested in “a family or individual quote[.]” (Id. at PageID.8.) After providing automated responses, he was transferred to a live employee, who offered him insurance services from National Health Plans & Benefits Agency, LLC (NHP). (Id.) At this point, he ended the phone call. (Id.) After Chapman’s husband spoke to NHP, Chapman’s counsel wrote to NHP, telling it to stop calling her phone. (Id.) NHP agreed. (Id.) Despite NHP’s representation, Chapman says she received a fourth phone on February 2, 2022. (Id.) This fourth call was from the same number as the prior three. (Id. at PageID.7.) So Chapman brought this suit against NHP on behalf of a purported class.

(ECF No. 1.) She alleges that NHP’s four calls to her personal phone violated the prerecorded-message and the Do-Not-Call provisions of the Telephone Consumer Protection Act (TCPA). Chapman alleges that these calls invaded her privacy and the privacy of other class members. (Id. at PageID.9.) In response, NHP filed a motion to dismiss for lack of standing and failure to state a claim. Given the extensive briefing and relevant allegations, the Court considers the motion without further argument. See E.D. Mich. LR 7.1(f). And for the

reasons set forth below, the Court will DENY the motion to dismiss. I. Jurisdiction The Court begins, as it must, with NHP’s challenge to its jurisdiction. See Am. Telecom Co. v. Republic of Lebanon, 501 F.3d 534, 537 (6th Cir. 2007) (“Subject matter jurisdiction is always a threshold determination.”). Specifically, NHP argues that Chapman does not have standing to bring her claims.

A. 12(b)(1) Standard of Review A motion to dismiss under Federal Rule of Civil Procedure 12(b)(1) may challenge a federal court’s subject matter jurisdiction through either a facial or factual attack. Crugher v. Prelesnik, 761 F.3d 610, 613 (6th Cir. 2014) (citing Golden v. Gorno Bros., Inc., 410 F.3d 879, 881 (6th Cir. 2005)). A facial attack tests the pleading’s sufficiency, not the veracity of its allegations. Stout v. United States, 721 F. App’x 462, 465 (6th Cir. 2018). Facial attacks require allegations to be taken as true and construed in the light most favorable to the non-moving party. United States v. Richie, 15 F.3d 592, 598 (6th Cir. 1994). NHP takes Chapman’s factual allegations

as true but attacks their sufficiency, so the Court will follow suit and construe its motion to dismiss as a facial attack. B. Standing To begin, the Court clarifies the scope of the motion to dismiss. Chapman spends some time in her response arguing that the TCPA authorizes users or subscribers of affected phone numbers to bring claims alleging TCPA violations. (See ECF No. 10, PageID.74.) But NHP apparently concedes that she has statutory

standing, and instead it argues only that Chapman lacks Article III standing. Indeed, statutory standing “does not in isolation create [Article III] standing.” Garland v. Orlans, PC, 999 F.3d 432, 436 (6th Cir. 2021). In short, where a plaintiff alleges a statutory violation, that plaintiff must also fulfill Article III standing irrespective of the statutory violation. Id. For a plaintiff to have Article III standing, the plaintiff must claim, among

other things, to have suffered an injury-in-fact, meaning their injury is “concrete and particularized” and “actual or imminent, not conjectural or hypothetical.” Friends of the Earth, Inc. v. Laidlaw Env’t Servs., 528 U.S. 167, 180 (2000) (citing Lujan v. Defenders of Wildlife, 504 U.S. 555, 560–61 (1992)). NHP contends that Chapman has failed to sufficiently allege an injury-in-fact because Chapman’s alleged harm is neither particularized nor concrete. (ECF No. 7, PageID.43.) The Court will take each element in turn.

1. Particularized Injury For an injury to be particularized, it “must affect the plaintiff in a personal and individual way . . . not in a general manner that affects the entire citizenry[.]” Gerber v. Herskovitz, 14 F.4th 500, 506 (6th Cir. 2021) (citing Lujan, 504 U.S. at 560 n.1). For example, in Ward v. National Patient Account Services Solutions, Inc., the Sixth Circuit found that the plaintiff fulfilled the particularity requirement because the Fair Debt Collection Practices Act (FDCPA) violation (failure to disclose identity)

“affected Ward personally[.]” 9 F.4th 357, 361 (6th Cir. 2021). Here, NHP claims that Chapman’s injury is not particularized because “she has not alleged any facts showing that she suffered any harm whatsoever from any of the four calls.” (ECF No. 7, PageID.46.) But this does not construe the allegations in the light most favorable to Chapman. Chapman alleges that NHP’s phone calls went directly to her personal phone line. (ECF No. 1, PageID.7.) Chapman also said

that after she did not recognize the number, she “rejected” the first two calls, which implies that she was with her phone when the calls were made and that she took the time to screen and reject them. (Id. at PageID.7.) And the Court infers that Chapman was annoyed, frustrated, or confused by the calls enough to have her husband answer the third one and have an attorney write a letter to NHP, requesting that it stop calling her. Therefore, the injury affected her individually even if, as NHP argues, Chapman did not answer the calls. NHP’s reliance on Cox v. Blue Cross Blue Shield of Michigan does not persuade

the Court otherwise. See 216 F. Supp. 3d 820 (E.D. Mich. 2016). The Cox court found that the plaintiffs lacked standing for their ERISA claim because the fines, which were the alleged injury, were paid by the plaintiffs’ insurance companies rather than the plaintiffs themselves. Id. at 826. Thus, the injury was too far removed from the plaintiffs and was therefore not particularized. Unlike the plaintiff in Cox, NHP’s phone calls went directly to Chapman’s personal phone line. (ECF No. 1, PageID.7.) No other party suffered that harm on behalf of Chapman. Because the TCPA

violations affected Chapman individually, Chapman alleged a particularized injury. 2.

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Bluebook (online)
Chapman v. National Health Plans & Benefits Agency, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-national-health-plans-benefits-agency-llc-mied-2022.