Esparza v. UAG Escondido A1 Inc.

CourtDistrict Court, S.D. California
DecidedFebruary 12, 2024
Docket3:23-cv-00102
StatusUnknown

This text of Esparza v. UAG Escondido A1 Inc. (Esparza v. UAG Escondido A1 Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Esparza v. UAG Escondido A1 Inc., (S.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 Case No.: 23cv0102 DMS(KSC) MIGUEL ESPARZA, individually and on

11 behalf of all others similarly situated, ORDER GRANTING DEFENDANT’S 12 Plaintiff, MOTION TO DISMISS v. 13 UAG ESCONDIDO A1 INC., a Delaware 14 corporation, dba 15 ACURAOFESCONDIDO.COM, and DOES 1 through 10, inclusive 16 Defendants. 17

18 19 This case comes before the Court on Defendant’s motion to dismiss. Plaintiff filed 20 an opposition to the motion, Defendant filed a reply, and Plaintiff filed two notices of 21 supplemental authority. After reviewing the parties’ briefs, the relevant legal authority, 22 and the record, the motion is granted. 23 I. 24 BACKGROUND 25 On November 30, 2022, Plaintiff Miguel Esparza filed the present case against 26 Defendant UAG Escondido A1 Inc. in San Diego Superior Court. In the original 27 Complaint, Plaintiff alleged he used his smart phone to visit Defendant’s website 28 www.acuraofescondido.com. Through the website’s chat feature, Plaintiff had a 1 conversation with Defendant. (Compl. ¶ 18.) Plaintiff alleged Defendant was secretly 2 recording that conversation or “allowing, aiding, and abetting a third party to intercept 3 and eavesdrop on them in real time.” (Id. ¶ 20.) Indeed, Plaintiff alleged Defendant 4 “secretly wiretaps the private conversations of everyone who communicates through the 5 chat feature” on Defendant’s website, and “allows at least one third party to eavesdrop on 6 such communications in real time and during transmission to harvest data for financial 7 gain.” (Id. at 2.) Plaintiff alleged the wiretapping and eavesdropping was enabled by 8 embedding software code on Defendant’s website. (Id. ¶ 12.) Specifically, Plaintiff 9 alleged “Defendant allows at least one independent third-party vendor to use a software 10 device or contrivance to secretly intercept (during transmission and in real time), 11 eavesdrop upon, and store transcripts of Defendant’s chat communications with 12 unsuspecting website visitors – even when such conversations are private and deeply 13 personal.” (Id.) Plaintiff further alleged “[t]he data from those transcripts are then used 14 for targeted marketing or other purposes.” (Id.) 15 As a result of Defendant’s alleged secret recording of its web chats with Plaintiff 16 and others, Plaintiff filed the present case alleging claims under California’s Invasion of 17 Privacy Act (“CIPA”). Defendant removed the case to this Court alleging jurisdiction 18 under the Class Action Fairness Act (“CAFA”), and then moved to dismiss the Complaint. 19 On July 23, 2023, this Court granted that motion, dismissing with prejudice Plaintiff’s 20 claims under clauses one, two, and three of California Penal Code § 631(a), and 21 dismissing without prejudice Plaintiff’s claim under section 631(a), clause four. 22 Following that ruling, Plaintiff filed a First Amended Complaint (“FAC”). In the 23 FAC, Plaintiff alleges that “[w]ithin the last year and while physically within California,” 24

25 1 In the original Complaint, Plaintiff alleged he was “a consumer privacy advocate with 26 dual motivations for initiating a conversation with Defendant.” First, Plaintiff was 27 genuinely interested in learning more about the goods and services offered by Defendant.” (Id. ¶ 16.) Second, Plaintiff alleged he “is a ‘tester’ who works to ensure that companies 28 1 he “visited Defendant’s Website using a smartphone and conducted a brief conversation 2 through the Website’s chat feature.” (FAC ¶ 2.) Plaintiff alleges he was not advised that 3 his chat with Defendant “was being monitored, intercepted, or recorded, nor did [he] 4 consent thereto.” (Id.) 5 Plaintiff now alleges the interloper in his web chat with Defendant was CarNow. 6 (Id. ¶ 9.) According to Plaintiff, Defendant allowed CarNow “to embed its chat 7 technology code into the chat feature” on Defendant’s website. (Id.) Through the use of 8 that code, all chats on Defendant’s website are “routed through CarNow’s servers so they 9 may simultaneously collect a transcript of that chat, along with other user data, in real 10 time and save it for later access.” (Id.) Plaintiff alleges “CarNow is integrated with social 11 media platforms like Meta/Facebook and can become a ‘lead generation machine.’” (Id. 12 ¶ 13.) He further alleges that Defendant, CarNow, and Meta “profit from secretly 13 exploiting the chat data through targeted social media advertising ….” (Id. ¶ 16.) In 14 short, Plaintiff alleges “CarNow uses its record for Website user’s interaction with 15 Defendant’s chat feature for data analytics and marketing/advertising to consumers ….” 16 (Id. ¶ 17.) 17 II. 18 DISCUSSION 19 Given the Court’s ruling on Defendant’s previous motion to dismiss, the only claim 20 that remains is Plaintiff’s claim under section 631(a), clause four. This clause imposes 21 liability on those who “who aid[ ], agree[ ] with, employ[ ], or conspire[ ]” with any person 22 who violates clauses one through three. Cal. Penal Code § 631(a). Defendant argues 23 Plaintiff has failed to state a claim under clause four, and thus the case should be dismissed 24 with prejudice and without further leave to amend. 25 A. Legal Standard 26 To survive a motion to dismiss under Rule 12(b)(6), “a complaint must contain 27 sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its 28 face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Bell Atlantic Corp. v. Twombly, 1 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual 2 content that allows the court to draw the reasonable inference that the defendant is liable 3 for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). 4 “Determining whether a complaint states a plausible claim for relief will ... be a 5 context-specific task that requires the reviewing court to draw on its judicial experience 6 and common sense.” Id. at 679 (citing Iqbal v. Hasty, 490 F.3d 143, 157-58 (2d Cir. 2007)). 7 In Iqbal, the Court began this task “by identifying the allegations in the complaint that are 8 not entitled to the assumption of truth.” Id. at 680. It then considered “the factual 9 allegations in respondent’s complaint to determine if they plausibly suggest an entitlement 10 to relief.” Id. at 681. 11 As stated above, the only claim that remains here is Plaintiff’s claim under clause 12 four of section 631(a). To state a claim under this clause, Plaintiff must allege that a person 13 or entity has violated one of the first three clauses of section 631(a), and that Defendant 14 aided, agreed with, employed, or conspired with that person or entity to commit those 15 unlawful acts. 16 B. Section 631(a), Clause One 17 As stated above, Plaintiff alleges the underlying wrongdoer in this case is CarNow. 18 To show that CarNow violated section 631(a), clause one, Plaintiff must allege CarNow 19 intentionally tapped or made an unauthorized connection “with any telegraph or telephone 20 wire, line, cable, or instrument, including the wire, line, cable, or instrument of any internal 21 telephonic communication system[.]” Cal. Penal Code § 631(a). Defendant argues the use 22 of a chat feature on a website does not meet the “telegraph or telephone” element of this 23 claim, therefore Plaintiff cannot show a violation of clause one. Plaintiff disagrees, and 24 asserts that clause one applies to communications via a smartphone. 25 In Valenzuela v. Keurig Green Mountain, Inc., ___ F.Supp.3d ___, No. 22-CV- 26 09042-JSC, 2023 WL 3707181, at *2 (N.D. Cal.

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Bluebook (online)
Esparza v. UAG Escondido A1 Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/esparza-v-uag-escondido-a1-inc-casd-2024.