Christine Dancel v. Groupon, Inc.

949 F.3d 999
Court of Appeals for the Seventh Circuit·Decided December 18, 2019·No. 19-1831·Published·Cited by 23 cases

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 19-1831 CHRISTINE DANCEL, Plaintiff-Appellant, v.

GROUPON, INC., Defendant-Appellee. ____________________

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:18-cv-02027 — Ronald A. Guzmán, Judge. ____________________

ARGUED SEPTEMBER 16, 2019 — DECIDED DECEMBER 18, 2019 ____________________

Before BAUER, BRENNAN, and ST. EVE, Circuit Judges. ST. EVE, Circuit Judge. Is a person’s username a part of her identity? That is a complex question, but one that Christine Dancel proposes can be resolved categorically for all usernames and all people. The district court thought other- wise and declined to certify a class because it would have to be decided username-by-username whether each one is an as- pect of a given class member’s identity, at least as that word is defined by the Illinois Right of Publicity Act (IRPA), 765 2 No. 19-1831

ILCS 1075/5. Dancel contends this rejection of her theory was an improper decision on the merits of her and the class’s claims, and the court therefore abused its discretion at the class-certification stage. We see no such mistake in the district court’s reasoning and affirm the order denying certification. I. Background Groupon, Inc. is an online marketplace that sells vouchers for other businesses. Groupon’s website gives each business its own page with information about the business and the dis- counts available. Between April 2015 and February 2016, some visitors to the site could scroll down each page to see a “Photos” section that displayed up to nine pictures. If the vis- itor clicked a button, the page would reveal up to eighteen more. Groupon collected and displayed these pictures auto- matically using what it calls the “Instagram Widget.” As its name suggests, this Widget pulled publicly available pictures from the social networking service Instagram. It selected which pictures to assign to each page based on data linking the photos to the advertised business’s location. When a Groupon visitor hovered her cursor over a displayed photo, the Widget would show the unique, user-selected username of the Instagram account whose photo was being displayed and a caption, if the user had attached one to the photo. Dancel is an Instagram user, and like all Instagram users, her account had a username—namely, “meowchristine.” In 2015, Dancel uploaded to her account a picture of herself and her boyfriend visiting Philly G’s, a restaurant in Vernon Hills, Illinois. This picture was one of several Groupon displayed on Philly G’s page while the Widget was active. No. 19-1831 3

Dancel alleges that Groupon’s inclusion of her photo and username on Philly G’s page violated the IRPA, which pro- hibits the use of a person’s identity—meaning an “attribute of an individual that serves to identify that individual to an or- dinary, reasonable viewer or listener”—for commercial pur- poses without consent. 765 ILCS 1075/5, 30. She filed suit in the Circuit Court of Cook County and sought to maintain the action on behalf of a class of “Illinois residents” whose photo- graphs Groupon had similarly shown on its pages. The par- ties litigated in that posture for two years until Dancel moved to certify a different class, defined as “[a]ll persons who main- tained an Instagram Account and whose photograph (or pho- tographs) from such account was (or were) acquired and used on a groupon.com webpage for an Illinois business.” The class also had a sub-class: “All members of the Instagram Class whose likeness appeared in any photograph acquired and used by Groupon.” In response to these new class definitions, Groupon re- moved the case to federal court. Dancel tried to argue this re- moval came too late, but the district court disagreed, denied her motion to remand to state court, and proceeded to decide whether to certify her proposed class under Federal Rule of Civil Procedure 23(b)(3). That provision requires, among other things, “that the questions of law or fact common to class members predominate over any questions affecting only individual members.” Dancel identified the common ques- tion that united the class as “whether Instagram usernames categorically fall within the statutory definition of ‘identity.’” She distinguished this inquiry from the individualized ques- tion “whether any particular username identifies an individ- ual.” 4 No. 19-1831

The district court found Dancel’s categorical theory “un- persuasive.” Though the court accepted that a common ques- tion existed as to whether any username identifies an individ- ual, that question was not enough to certify a class because it “ignore[d] the individual inquiry that is the essence of deter- mining ‘identity’ under the IRPA.” The district court listed several of the usernames belonging to class members—e.g., eawhalen, artistbarbie, isa.tdg, loparse, johanneus—and con- cluded that it was “simply impossible to make any type of across-the-board determination as to whether these names ‘identify’ a particular person, as that term is defined by the IRPA.” Because it determined that the IRPA, as applied to the facts of this case, required a “username-by-username (photo- by-photo)” inquiry, the court found that common questions would not predominate over individual ones and denied cer- tification. Dancel petitioned for review of that decision, and we granted the petition. Fed. R. Civ. P. 23(f). II. Jurisdiction We start our analysis where we left off after our previous opinion: the district court’s jurisdiction. Dancel v. Groupon, Inc., 940 F.3d 381, 386 (7th Cir. 2019). The Class Action Fair- ness Act, 28 U.S.C. § 1332(d)(2), extends federal subject-matter jurisdiction to a proposed class action that is, among other things, minimally diverse—meaning one member of the plaintiff class is a citizen of a state different from any one de- fendant. Groupon is a Delaware corporation with its principal place of business in Illinois; it is therefore a citizen of those two states. Instead of alleging the citizenship of even one di- verse class member, Groupon asserted only that the class “un- doubtedly would include at least some undetermined num- ber of non-Illinois and non-Delaware citizens as class No. 19-1831 5

plaintiffs.” We agreed with Dancel that this allegation failed to carry Groupon’s burden and directed Groupon to amend its notice of removal. Dancel, 940 F.3d at 384–85. Though 28 U.S.C. § 1653 permits a party to amend jurisdictional allega- tions on appeal, see Heinen v. Northrop Grumman Corp., 671 F.3d 669, 670 (7th Cir. 2012), Groupon said it required discov- ery to make those amendments, so we ordered a limited re- mand for the district court to oversee that discovery and con- firm its jurisdiction. Dancel, 940 F.3d at 386. On remand, Groupon amended its allegations and supple- mented its notice of removal with three affidavits in which the affiants attested to their significant ties to their home states, which are not Illinois or Delaware. Groupon also provided the incorporation and registration documents for two Instagram- using businesses based in California and Missouri.

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Christine Dancel v. Groupon, Inc., 949 F.3d 999 (7th Cir. 2019).

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