DirecTV, Inc. v. Perez

279 F. Supp. 2d 962, 2003 U.S. Dist. LEXIS 14929, 2003 WL 22038403
CourtDistrict Court, N.D. Illinois
DecidedAugust 27, 2003
Docket03 C 3504
StatusPublished
Cited by11 cases

This text of 279 F. Supp. 2d 962 (DirecTV, Inc. v. Perez) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DirecTV, Inc. v. Perez, 279 F. Supp. 2d 962, 2003 U.S. Dist. LEXIS 14929, 2003 WL 22038403 (N.D. Ill. 2003).

Opinion

MEMORANDUM OPINION AND ORDER

COAR, District Judge.

Plaintiff DIRECTV, Inc., has sued Defendant Fermín Perez and others for violations of, among other statutes, provisions of 18 U.S.C. § 2512 under 18 U.S.C. § 2520. Defendant Perez has moved to dismiss Count III of the Complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). The parties have briefed the issue fully and it is now ripe for decision.

Factual and Procedural Background

On May 22, 2008, Plaintiff Directv, Inc. (“Plaintiff’ or “Directv”) filed a five count complaint in this Court against all Defendants. In general terms, the Complaint charges the defendants with using pirate materials to intercept satellite signals that are intended solely for Plaintiffs paying customers. Count III, which Defendant Perez seeks to dismiss here, alleges that defendants knowingly possessed, manufactured, or assembled devices primarily useful for surreptitious interception of electronic communication that had been sent through the mail in violation of 18 U.S.C. § 2512. Count III also incorporates by reference the earlier allegations that the defendants intercepted, disclosed, and/or intentionally used Plaintiffs electronic communications.

The Court accepts the well-pleaded allegations of the Complaint as true on a Motion to Dismiss. In his Motion, Defendant Perez wisely does not seek to challenge the facts in the Complaint. Instead, Perez’ Motion to Dismiss rests solely on the argument that, as a matter of law, 18 U.S.C. § 2520 does not support a civil cause of action for violations of 18 U.S.C. § 2512. As with all motions to dismiss, it will only be granted if the facts as alleged would not entitle the plaintiff to relief.

The statute under which this lawsuit is filed is somewhat unusual. Ordinarily, the task of policing violations of the federal criminal code is the exclusive province of the U.S. Attorney’s Office. In some areas, though, Congress determines that it is appropriate to provide the opportunity for aggrieved parties to redress their grievances without regard to criminal prosecution. This statute provides a private right of action for “any person whose wire, oral, or electronic communication is intercepted, disclosed, or intentionally used in violation of this chapter” to seek damages from “the person or entity ... which engaged in that violation.” 18 U.S.C. § 2520(a).

The Defendant’s position is that the first clause of § 2520(a) which mentions “interception], disclosure], or intentional use[ ]” of the electronic communication limits the private right of action to violations of those portions of the chapter which prohibit interception, disclosure, or intentional use. Since § 2512 does not prohibit interception, disclosure, or intentional use of electronic communications, under Defendant’s interpretation, a private right of action could not stand based on this section of the chapter.

Defendant seeks support in an unpublished order in litigation from the Middle District of Florida. See Directv, Inc. v. Thacker, No. 6:03-cv-239-Orl-28DAB (M.D.Fla. Apr. 15, 2003) (order dismissing *964 complaint under 18 U.S.C. § 2512 without prejudice) (attached to Def. Mot. Dismiss). The order in that case does not support Defendant’s position, though, as it dismissed the complaint with leave to amend due to a pleading defect. There are two soon to be published cases that do support the Defendant’s position. See DIRECTV, Inc. v. Cardona, 275 F.Supp.2d 1357, 1365-66, 2003 WL 21910578, at *7 (M.D.Fla.2003); Directv, Inc. v. Amato, 269 F.Supp.2d 688, 691 (E.D.Va.2003). In Cardona, the court unambiguously held that civil liability under 18 U.S.C. § 2520 is limited to “persons who intercept, disclose, or use electronic communications; that class of persons does not include manufacturers, assemblers, possessors, and sellers of satellite decrypters.” Cardona, 275 F.Supp.2d at 1366, 2003 WL 21910578, at *7. Similarly, in Amato, the Court dismissed a complaint under 18 U.S.C. § 2512 because there is no rationale for private recovery for possession. Amato, at 691 (“mere possession of [ ] a device, as banned by § 2512, creates no individualized harm and, thus, no justification for private recovery”).

Amato relied on an older case, Flowers v. Tandy Corp., 773 F.2d 585 (4th Cir. 1985), to support its conclusion. In Flowers, the Fourth Circuit vacated a jury verdict holding the defendant civilly liable under 18 U.S.C. § 2520 for a violation of 18 U.S.C. § 2512. The Fourth Circuit noted that it was error to “permitf ] the jury to consider ... 18 U.S.C. § 2512 as a basis for imposing civil liability.” Flowers, 773 F.2d 585, 588. According to the Fourth Circuit in Flowers, “The express language of § 2520 is ... not susceptible to a construction which would provide a cause of action against one who manufactures or sells a device in violation of § 2512 but does not engage in conduct violative of § 2511.” Id. at 589. After the Fourth Circuit’s decision in Flowers, the statute was amended to broaden its scope somewhat. Though the Amato court believed Flowers’ logic “has not been affected by subsequent statutory amendments,” Amato, at 691, other courts have disagreed. See Oceanic Cablevision, Inc. v. M.D. Elec., 771 F.Supp. 1019, 1028 (D.Neb.1991) (“the 1986 amendments to § 2512 extended the statute’s scope”).

While Defendant’s argument is compelling and not without support, the Court does not accept the proffered interpretation of the statute. In this Court’s view, 18 U.S.C. § 2520

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Bluebook (online)
279 F. Supp. 2d 962, 2003 U.S. Dist. LEXIS 14929, 2003 WL 22038403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/directv-inc-v-perez-ilnd-2003.