Crouch v. Ruby Corp

District Court, S.D. California·Decided November 7, 2022·No. 3:22-cv-00711·Unknown

Opinion

HARRY CROUCH, on behalf of himself Case No. 22-cv-711-MMA (JLB) and all others similarly situated, ORDER GRANTING DEFENDANTS’ Plaintiff, MOTION TO DISMISS; AND v. [Doc. No. 12] RUBY CORP., et al., Defendants. DENYING DEFENDANTS’ MOTION TO STRIKE AS MOOT [Doc. No. 13] On May 18, 2022, Plaintiff Harry Crouch filed a putative class action complaint against Defendants Ruby Corp and Ruby Life, Inc. (“Defendants”). See Doc. No. 1 (“Compl.”). Defendants now move to dismiss the Complaint, see Doc. No. 12, and strike Plaintiff’s class allegations, see Doc. No. 13. Both motions are fully briefed, see Doc. Nos. 14–18, and the Court took the matters under submission and without oral argument pursuant to Civil Local Rule 7.1.d.1, see Doc. No.19. For the reasons set forth below, the Court GRANTS Defendants’ motion to dismiss and DENIES Defendants’ motion to strike as moot. Defendants Ruby Corp and Ruby Life are Canadian companies that do business as Ashley Madison and www.AshleyMadison.com, respectively. Compl. ¶¶ 2–3. Ashley Madison is a dating website and cell phone application that uses global positioning system (“GPS”) and IP address information to match subscribers. Id. ¶ 15. Ashley Madison allows users to create free Guest Member accounts. Id. However, in order to initiate contact, users must purchase credits. Id. Thereafter, follow-up messaging is free. Id. Generally speaking, Plaintiff alleges that Defendants unlawfully discriminate against men by charging male consumer more than females for their matchmaking services. Id. at 1; id. ¶ 13. According to Plaintiff, Ashely Madison prohibits men of all sexual orientations from initiating contact with women without first purchasing credits. Id. ¶ 16. Plaintiff contends that women do not have to pay to initiate contact with men. Id. Instead, if a woman wishes to initiate contact with a man, she sends a “collect” message indicating interest, and the man is then required to use his credits to open the woman’s “collect” message. Id. The man must then use more credits to respond. Id. Plaintiff brings seven causes of action against Defendants on behalf of himself and similarly situated persons. The seven claims fall into three categories. Claims 1–3 are for violation of California’s Unruh Civil Rights Act, Cal. Civ. Code § 51, for denial of equal treatment based upon: (1) sex; (2) sexual orientation; and (3) gender identity. Claims 4–6 are for violation of California Civil Code § 51.5 for: (4) sex discrimination; (5) sexual orientation discrimination; and (6) gender identity discrimination. Lastly, Claim 7 is for price discrimination based on gender in violation of the Gender Tax Repeal Act of 1995, Cal. Civ. Code § 51.6. 1 Because this matter is before the Court on a motion to dismiss, the Court must accept as true the allegations set forth in the Complaint. See Hosp. Bldg. Co. v. Trs. of Rex Hosp., 425 U.S. 738, 740 As an initial matter, Plaintiff has filed a request for judicial notice in support of his opposition to Defendants’ motion to dismiss. See Doc. No. 14-2. Pursuant to the Federal Rules of Evidence, courts may judicially notice an adjudicative fact if it is not subject to reasonable dispute in that it is either (1) generally known within the territorial jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned. Fed. R. Evid. 201(b); see also Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 999 (9th Cir. 2018) (quoting Fed. R. Evid. 201(b)). Plaintiff asks the Court to judicially notice eight exhibits: (1) the complaint filed in Avid Life Media, Inc., et al. v. Marital Affair Ltd., C.D. Cal. Case No. 2:12-cv-07604- MMM-MAN; (2) the complaint filed in Avid Life Media, Inc., et al. v. Digisec Media As et al., C.D. Cal. Case No. 2:12-cv-8602-JAK-MAN; (3) Avid Life Media, Inc., et al. v. Infostream Group, Inc. et al., C.D. Cal. Case No. 2:12-cv-9201-DDP-AJW; (4) the complaint filed in Lewis v. Avid Dating Life Inc., et al., C.D. Cal. 2:14-cv-763-DMG- MRW (the “Lewis Case”); (5) a motion to compel arbitration in the Lewis Case; (6) the stipulation for dismissal in the Lewis Case; and (7–8) Ontario Ministry of Government and Consumer Services website pages. Defendants oppose Plaintiff’s requests. Doc. No. 16. Defendants first challenge Exhibits 1–6, arguing that the Court should not take judicial notice of the alleged facts contained in pleadings in other legal proceedings. Doc. No. 16 at 2–3. “Courts may take judicial notice of their own records, and may also take judicial notice of other court proceedings if they ‘directly relate to matters before the court.’” Stewart v. Kodiak Cakes, LLC, 568 F. Supp. 3d 1056, 1063 (S.D. Cal. 2021) (quoting Hayes v. Woodford, 444 F. Supp. 2d 1127, 1136–37 (S.D. Cal. 2006)). For the purpose of the present motion and the Court’s determination of whether it has personal jurisdiction over Defendants, the existence of these cases and filings appear to be relevant. Moreover, the existence of these publicly recorded filings is not subject to reasonable dispute. Consequently, the Court GRANTS Plaintiff’s request and judicially notices Exhibits 1–6. That said, the Court does not accept the content of these filings for the truth of the matters asserted therein. See, e.g., NuCal Foods, Inc. v. Quality Egg LLC, 887 F. Supp. 2d 977, 984 (E.D. Cal. 2012). Turning to Exhibits 7 and 8, while Defendants concede that material published on a government website may be subject to judicial notice, they nonetheless argue that the facts contained therein are not verifiable. Doc. No. 16 at 4. Exhibits 7 and 8 are screenshots of the search results for “Ruby Corp” and “Ruby Life Corp” on the Ontario Ministry of Government and Consumer Services website. Defendants do not argue that these exhibits are not true and correct copies of the website pages. Instead, Defendants take issue with the adjudicative fact allegedly contained therein that Ruby Corp was “previously known as” Avid Life Media, Inc. and that Ruby Life was “previously known as” Avid Dating Life, Inc. Doc. No. 16 at 4. For example, Defendants assert that the two profiles representing these notations list the status of the corporations as “Inactive.” Id. However, Defendants do not argue or dispute the fact that these entities are their predecessors. In fact, in their reply, Defendants concede that they are. See, e.g., Doc. No. 17 at 2, 4–6. Accordingly, the Court finds that Exhibits 7 and 8 are governmental sources whose accuracy cannot be, and are not, reasonably questioned. Accordingly, the Court GRANTS Plaintiff’s request as to Exhibits 7 and 8. III. MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION Federal Rule of Civil Procedure 12(b)(2) provides the district court with the authority to dismiss an action for lack of personal jurisdiction. Data Disc, Inc. v. Systems Tech. Assoc., Inc., 557 F.2d 1280, 1285 (9th Cir. 1977). Plaintiff has the burden of demonstrating personal jurisdiction over Defendants. See Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004). “Where, as here, the defendant’s motion is based on written

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