Crystal Byrd v. Aaron's Inc

784 F.3d 154, 2015 U.S. App. LEXIS 6190, 2015 WL 1727613
CourtCourt of Appeals for the Third Circuit
DecidedApril 16, 2015
Docket14-3050
StatusPublished
Cited by232 cases

This text of 784 F.3d 154 (Crystal Byrd v. Aaron's Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crystal Byrd v. Aaron's Inc, 784 F.3d 154, 2015 U.S. App. LEXIS 6190, 2015 WL 1727613 (3d Cir. 2015).

Opinions

OPINION

SMITH, Circuit Judge.

Plaintiffs Crystal and Brian Byrd bring this interlocutory appeal under Rule 23(f) of the Federal Rules of Civil Procedure. The Byrds brought a putative class action against Aaron’s, Inc. and its franchisee store Aspen Way Enterprises, Inc. (collectively “Defendants”), who they allege violated the Electronic Communications Privacy Act of 1986 (“ECPA”), 18 U.S.C. § 2511. Concluding that the Byrds’ proposed classes were not ascertainable, the District Court denied their motion for class certification. Because the District [159]*159Court erred in applying our ascertainability precedent, we will reverse and remand.

I.

Aaron’s operates company-owned stores and also oversees independently-owned franchise stores that sell and lease residential and office furniture, consumer electronics, home appliances, and accessories. On July 30, 2010, Crystal Byrd entered into a lease agreement to rent a laptop computer from Aspen Way, an Aaron’s franchisee. Although Ms. Byrd asserts that she made full payments according to that agreement, on December 22, 2010, an agent of Aspen Way came to the Byrds’ home to repossess the laptop on the grounds that the lease payments had not been made. The agent allegedly presented a screenshot of a poker website Mr. Byrd had visited as well as a picture taken of him by the laptop’s camera as he played. The Byrds were troubled and surprised by what they considered a significant and unauthorized invasion of their privacy.

Aspen Way obtained the picture and screenshot through spyware — a type of computer software — designed by DesignerWare, LLC and named “PC Rental Agent.” This spyware had an optional function called “Detective Mode,” which could collect screenshots, keystrokes, and webcam images from the computer and its users. Between November 16, 2010 and December 20, 2010, the Byrds alleged that this spyware secretly accessed their laptop 347 times on eleven different days.1 In total, “the computers of 895 customers across the country ... [had] surveillance conducted through the Detective Mode function of PC Rental Agent.” Byrd v. Aaron’s, Inc., No. CIV.A. 11101E, 2014 WL 1316055, at *2 (W.D.Pa. Mar. 31, 2014).

The Byrds’ operative class-action complaint asserts claims against Aaron’s, Aspen Way, more than 50 other independent Aaron’s franchisees, and DesignerWare, LLC.2 The complaint alleges violations of and conspiracy to violate the ECPA, common law invasion of privacy, and aiding and abetting. On Defendants’ motion to dismiss, the District Court dismissed the claims against all Aaron’s franchisees other than Aspen Way for lack of standing and also all claims for common law invasion of privacy, conspiracy, and aiding and abetting. Thus, the Byrds’ remaining claims, and those of the class, are against Aaron’s and Aspen Way for direct liability under the ECPA.

In the meantime, the Byrds moved to certify the class under Federal Rules of [160]*160Civil Procedure 23(b)(2) and 23(b)(3), in which the Byrds provided two proposed classes and one alternative proposed class.3 In briefing the motion, the Byrds proposed the following alternative class definitions:

Class I — All persons who leased and/or purchased one or more computers from Aaron’s, Inc., and their household members,' on whose computers Designer-Ware’s Detective Mode was installed and activated without such person’s consent on or after January 1, 2007.
Class II — All persons who leased and/or purchased one or more computers from Aaron’s, Inc. or an Aaron’s, Inc. franchisee, and their household members, on whose computers DesignerWare’s Detective Mode was installed and activated without such person’s consent on or after January 1, 2007.

Byrd, 2014 WL 1316055, at *5.

The Magistrate Judge recommended denying the Byrds’ motion for certification because the proposed classes were not ascertainable. Regarding owner and lessee class members, the Magistrate Judge concluded that the proposed classes were underinclusive because they did “not encompass all those individuals whose information [was] surreptitiously gathered by Aaron’s franchisees.” Id. The Magistrate Judge also determined that the classes were “overly broad” because not “every computer upon which Detective Mode was activated will state a claim under the ECPA for the interception of an electronic communication.” Id. Regarding “household members,” the Magistrate Judge took issue with the fact that the Byrds did not define the phrase. Id. Further, although the Byrds stated that the identity of household members could be gleaned from “public records,” the Magistrate Judge, citing to Carrera v. Bayer Corp., 727 F.3d 300, 306, 308 (3d Cir.2013), reasoned that “[i]t [was] not [161]*161enough to propose a method by which this information may be obtained.” Byrd, 2014 WL 1316055, at *5. The District Court adopted the Report and Recommendation as the opinion' of the court over the Byrds’ objections. The Byrds timely appealed.

II.

The District Court had federal question jurisdiction under 28 U.S.C. § 1331. We have jurisdiction under 28 U.S.C. § 1292(e) and Federal Rule of Civil Procedure 23(f). ‘We review a class certification order for abuse of discretion, which occurs if the district court’s decision rests upon a clearly erroneous finding of fact, an errant conclusion of law or an improper application of law to fact.” Grandalski v. Quest Diagnostics Inc., 767 F.3d 175, 179 (3d Cir.2014) (quoting Hayes v. Wal-Mart Stores, Inc., 725 F.3d 349, 354 (3d Cir.2013)) (internal quotation marks omitted). We review de novo a legal standard applied by a district court. Carrera, 727 F.3d at 305.

III.

The central question in this appeal is whether the District Court erred in determining that the Byrds’ proposed classes were not ascertainable. Because the District Court confused ascertainability with other relevant inquiries under Rule 23, we conclude it abused its discretion and will vacate and remand.

Before discussing these errors, however, we believe it is necessary to address the scope and source of the ascertainability requirement that our cases have articulated. Our ascertainability decisions have been consistent and reflect a relatively simple requirement. Yet there has been apparent confusion in the invocation and application of ascertainability in this Circuit. (Whether that is because, for example, the courts of appeals have discussed ascertainability in varying and distinct ways,4 or the ascertainability requirement [162]*162is implicit rather than explicit in Rule 23,5 we need not say.) Not surprisingly, defendants in class actions have seized upon this lack of precision by invoking the ascertain-ability requirement with increasing frequency in order to defeat class certification.6.

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784 F.3d 154, 2015 U.S. App. LEXIS 6190, 2015 WL 1727613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crystal-byrd-v-aarons-inc-ca3-2015.