Elgindy v. AGA Service Company

District Court, N.D. California·Decided November 2, 2021·No. 4:20-cv-06304·Unknown

Opinion

ADAM ELGINDY, et al., Case No. 20-cv-06304-JST (RMI)

Plaintiffs, ORDER RE: DISCOVERY DISPUTE v. LETTER BRIEF

AGA SERVICE COMPANY, et al., Re: Dkt. No. 67 Defendants.

Now pending before the court is a jointly filed letter brief (dkt. 67) through which Plaintiffs seek to compel certain discovery. As set forth below, Plaintiffs’ request is granted in part and denied in part.1 Plaintiffs’ class action complaint presents three causes of action under California law: (1) unlawful, unfair, and fraudulent trade practices; (2) false advertising; and (3) common law fraud, deceit, and / or misrepresentation. See Compl. (dkt. 1) at 29-36. The gist of the allegations underlying these claims is that Plaintiffs, and others like them, were unfairly charged additional fees, in addition to the calculated premium, by the insurer Defendants, when Plaintiffs purchased insurance for event tickets and travel arrangements on certain vendors’ websites. Id. at 2. Defendants allegedly justify these additional fees as representing the cost of certain assistance services that would allow customers to contact Defendants’ customer service representatives to ask about things such as where one might refill prescriptions as well as information about child- care equipment, pet-care services, business services, gift deliveries, passport replacement, legal referrals, translation services, driving directions, and weather reports. Id. at 2, 13. While Plaintiffs content that the process by which they were sold “ticket insurance” did provide them with a hyperlink for “plan details and disclosures,” they maintain that those disclosures did not provide them with sufficient notice “that they are being charged for supposed non-insurance services on top of the premium for the insurance product.” Id. at 7. Plaintiffs also allege that “[t]here is no significant demand in the market for the assistance benefits offered” by Defendants, and that the pricing sheets of the non-insurance services with which consumers are being saddled are difficult to find, “requiting access through multiple hyperlinks.” Id. at 8-9. Indeed, Plaintiffs allege that Defendants hide the agency fee and assistance service from consumers at the point of purchase; that they use a formula that increases the fee according to the purchase and risk at issue; that they do not actually invest in providing a convenient informational assistance service; that they send contradictory messages – telling consumers during the solicitation that there is just a single insurance premium, while telling regulators that the fee-for- assistance service is distinct from the insurance premium. Id. at 10. In short, Plaintiffs allege that “Defendants collect more from consumers than they should . . . [a]nd if Defendants disclosed the fees to consumers prior to purchase, consumers would not pay [] the fees.” Id. Plaintiffs’ Complaint presents an example of this by showing a screenshot from an airline reservation webpage indicating that “a single total price is identified for the ‘trip insurance’ prior to purchase.” Id. at 12. After making such a purchase, customers are sent a confirmation email that contains a policy number and a hyperlink to policy documents – the policy documents include a cover letter which, for the first time, identifies a separate charge for these concierge type services. Id. at 13. While providing certain exemplars, Plaintiffs also allege that Defendants pricing sheets are even sometimes inconsistent with the fees Defendants actually charge customers. Id. at 14-15. The exemplars include one Plaintiff’s experience on the website of Ticketmaster.com, involving the purchase of event insurance for a concert by Rammstein, a German musical ensemble – and another Plaintiff’s experience while purchasing roundtrip air tickets from San Francisco to Francisco on the United Airlines website. Id. at 16-18, 18-20. Through their class-allegations, Plaintiffs identify two classes: the event ticket insurance class and the trip insurance class – both of which are concerned with purchases from September 4, 2016 to the present. Id. at 26. In this regard, Plaintiffs posit that the questions of law and fact that are common to the classes include: whether the fees Defendants charges for their assistance services constitute unlawful agents’ fees; whether Defendants have conspired to circumvent regulatory scrutiny while charging unlawful and excessive agents’ fees and / or premium charges, thus charging consumers more than they are legally permitted to charge; whether the premium rates and the assistance fee rates at issue were approved for use in California; and, inter alia, whether class members are entitled to restitution, injunctive and other equitable relief, and whether class members are entitled to the payment of actual, incidental, consequential, exemplary, and / or statutory damages and interest. Id. at 27-28. When moving to compel discovery, the moving party has the burden of demonstrating relevance. See e.g., Soto v. City of Concord, 162 F.R.D. 603, 610 (N.D. Cal. 1995). Further, “[w]hile it is true that the standard for relevance is not very demanding (see Fed. R. Evid. 401 – evidence is relevant if (a) it has any tendency to make a fact more or less probable than it would be without the evidence; and (b) the fact is of consequence in determining the action), the rule still requires that any evidence that is to be offered must ‘logically advance a material aspect of the party’s case.’” In re Glumetza Antitrust Litig., No. 19-cv-05822-WHA (RMI), 2020 U.S. Dist. LEXIS 113361, at *31-32 (N.D. Cal. June 29, 2020) (quoting Estate of Barabin v. AstenJohnson, Inc., 740 F.3d 457, 463 (9th Cir. 2014)). Beyond that, in order to succeed on a motion to compel, a moving party bears the burden of not only demonstrating the above-described entitlement to the requested discovery, but also that it has satisfied proportionality and other requirements of Rule 26. See Rodriguez v. Barrita, Inc., No. 09-04057 RS-PSG, 2011 U.S. Dist. LEXIS 134079, at *4 (N.D. Cal. Nov. 21, 2011). In light of this, courts are required to limit discovery if its burden or expense outweighs its likely benefit; this is “the essence of proportionality,” a frequently ignored at *31-32 (citing Apple Inc. v. Samsung Elecs. Co., No. 12-cv-0630-LHK (PSG), 2013 U.S. Dist. LEXIS 116493, at *34-36 (N.D. Cal. Aug. 14, 2013)). The currently pending letter brief presents a dispute regarding a number of Plaintiff’s requests for production (“RFP”) and a single interrogatory. See generally Ltr. Br. (dkt. 67). As to the interrogatory, on May 12, 2021, Plaintiffs served an interrogatory asking Defendants to identify annual sales revenues for each insurance product sold in California during the class period. Id. at 4. Plaintiffs add that Defendants have still not responded to this interrogatory, “despite representing to the Court in a joint filing that they would produce such information by August 28.” Id. (citing dkt. 55). A review of the Parties’ Fourth Joint Case Management Statement does indeed reflect a statement to the effect that “Defendants agreed to produce, on or before August 28, 2021 . . . a list of all products sold in California during the class period, with annual sales identified for each product [] [and that] Defendants are willing to thereafter produce the policy forms for any product(s) Plaintiffs request[].” See Case Mgmt. Statement (dkt. 55) at 5. Defendants’ portion of the letter brief does not address this matter. See Ltr. Br. (dkt. 67) at 5-6. Accordingly, as to this interrogatory, Defendants are ORDERED to provide Plaintiffs with this information forthwith. As to the RFPs, Plaintiffs’ motion to compel addresses 4 individual RFPs – specifically, RFP Nos. 9, 10, 24

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