Cullen v. Netflix, Inc.

880 F. Supp. 2d 1017, 2012 WL 2906245, 2012 U.S. Dist. LEXIS 97884
CourtDistrict Court, N.D. California
DecidedJuly 13, 2012
DocketCase No. 5:11-cv-01199-EJD
StatusPublished
Cited by37 cases

This text of 880 F. Supp. 2d 1017 (Cullen v. Netflix, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cullen v. Netflix, Inc., 880 F. Supp. 2d 1017, 2012 WL 2906245, 2012 U.S. Dist. LEXIS 97884 (N.D. Cal. 2012).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS SECOND AMENDED COMPLAINT WITH LEAVE TO AMEND

EDWARD J. DAVILA, District Judge.

Presently before the court is Defendant Netflix, Inc.’s (“Netflix”) Motion to Dismiss the Second Amended Complaint (“SAC”) filed by Plaintiff Donald Cullen (“Cullen”), on behalf of himself and all others similarly situated. See Docket No. 31. Having fully reviewed the moving and responding papers, and the oral arguments of counsel presented at the hearing on January 6, 2012, Netflix’s motion is GRANTED with leave to amend for the reasons described below.

I. FACTUAL AND PROCEDURAL BACKGROUND

The allegations contained in this section are taken largely from the SAC. Being a deaf individual, Cullen, like millions of hearing-impaired Americans, relies on closed captioning (or subtitles) to view video programs.1 SAC, Docket No. 26, ¶¶ 4-5, 9. To ensure access to closed captioning programs, Congress enacted laws requiring video programming distributors and providers to caption their video programming. Id. ¶ 5.

Netflix is a provider of both on-demand streaming video programming over the internet and flat-rate online DVD-Video and Blu-ray Disc rental-by-mail. Id. ¶ 6. Customers of Netflix pay a monthly subscription fee, which differs based on options [1021]*1021selected. Id. Netflix began providing streaming video programming in or about January 2008. Id. ¶ 16. Although Netflix has offered streaming video programming since 2008, currently, only a small portion of its library is subtitled. Id. ¶ 7. Cullen became a Netflix member in May 2009, initially subscribing to an “unlimited 3 DVD” plan because of the streaming library’s lack of captioned content. Id. ¶¶ 33, 51.

In a June 12, 2009 blog entry posted on Netflix’s website, Neil Hunt (“Hunt”), Netflix’s Chief Product Officer, announced that “[c]aptioning is in our development plans,” and that Netflix would “expect to deliver subtitles or captions ... and roll the same technology out to each CE device as we are able to migrate the technology. ...” Id. ¶ 17, Ex. A. Four months later, on October 5, 2009, Netflix’s Director of Communications, Catherine Fisher, reiterated Hunt’s statement in a public communication with the advocacy group, the National Association of the Deaf, stating that Netflix “developers continue to work on closed captioning.” Id. ¶ 20, Ex. B. Over the next year, Netflix made similar statements, announcing in an April 15, 2010 blog entry that 100 titles had been captioned, that there was “much more to come,” (id. ¶ 22, Ex. C), and in a November 22, 2010 “tweet” that Netflix “offers [closed captioning] on a growing [number] of titles,” that could be accessed from a number of devices. Id. ¶ 25, Ex. D. On February 24, 2011, Hunt represented that there were “more than 3,500 TV episodes and movies” with subtitles in Netflix’s streaming library “representing about 30% of viewing.” Id. ¶ 27. Hunt also stated that “[m]ore subtitles are being added every week, and [Netflix] expect[s] to get to 80% viewing coverage by the end of 2011.” Id. ¶ 28, Ex. E.

Cullen alleges Netflix’s statements “were designed to and did have the effect of conveying to Netflix’s deaf and hard of hearing members that Netflix would meaningfully subtitle its streaming library within a reasonable period of time.” Id. ¶ 31. Cullen and the class members relied on these statements in purchasing or maintaining monthly Netflix subscriptions. Id. ¶ 32. In addition, the SAC further alleges that Netflix’s failure to caption imposed on Cullen and putative class members a veritable “deaf tax” because the DVD-by-mail plans that gave them sufficient access, to video programming were sold at a significant premium (up to $11.99) to Netflix’s streaming subscription. Id. ¶¶ 41-49.

On March 11, 2011, Cullen filed a class action lawsuit in this court. See Docket No. ,1.2 Cullen filed his SAC on September 9, 2011. Plaintiff brings discrimination based claims on behalf of himself and similarly situated consumers under California’s Unruh Civil Rights Act, Cal. Civ. Code §§ 51, et' seq., (“Unruh Act”) and California’s Disabled Persons Act, Cal. Civ. Code §§ 54, et seq., (“DPA”) for Netflix’s failure to provide full and equal access to its services. SAC ¶¶ 103-112. In addition, Plaintiff brings consumer protection based claims under California’s Unfair Competition Law, Cal. Bus. & Prof.Code §§ 17200, et seq., (“UCL”), False Advertising Law, Cal. Bus. & Prof.Code §§ 17500, et seq., (“FAL”), and Consumer Legal Remedies Act, Cal. Civ. Code §§ 1750, et seq., (“CLRA”) for Netflix’s false promises, misrepresentations, and material omissions [1022]*1022concerning the amount of subtitled content, the rate at which Netflix was adding subtitled content, and the date by which a substantial portion of its streaming library would be subtitled. Id. ¶¶ 72-102.

On October 5, 2011, Netflix filed this motion to dismiss. See Docket No. 31. On November 4, 2011, Cullen filed written opposition to the motion. See Docket No. 32. On November 18, 2011, Netflix filed its reply brief. See Docket No. 33. On January 5, 2012, with leave of court, Cullen filed his sur-reply brief. See Docket No. 40. On January 6, 2012, oral argument on the motion to dismiss was heard. On March 23, 2012, Cullen and Netflix filed a joint status report regarding the impact of the FCC regulations governing closed captioning of streaming video programming. See Docket No. 47. On June 19, 2012, Cullen filed a statement of recent decision. See Docket No. 48. On July 9, 2012, Netflix filed a statement of recent decision as well. See Docket No. 49.

II. LEGAL STANDARD

A complaint may be dismissed for failure to state a claim upon which relief may be granted if a plaintiff fails to proffer “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Allegations of material fact must be taken as true and construed in the light most favorable to the nonmoving party. Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337-38 (9th Cir.1996). However, the court need not accept as true allegations that are conclusory, unwarranted deductions of fact, or unreasonable inferences. See Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir.2001); see also Twombly, 550 U.S. at 561, 127 S.Ct. 1955 (“a wholly conclusory statement of [a] claim” will not survive a motion to dismiss).

On a motion to dismiss, the court’s review is limited to the face of the complaint and matters judicially noticeable. MGIC Indem. Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir.1986); N. Star Int’l v. Ariz. Corp. Comm’n, 720 F.2d 578, 581 (9th Cir.1983).

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Cite This Page — Counsel Stack

Bluebook (online)
880 F. Supp. 2d 1017, 2012 WL 2906245, 2012 U.S. Dist. LEXIS 97884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cullen-v-netflix-inc-cand-2012.