Goodell v. Berkshire Hathaway Automotive Incorporated

CourtDistrict Court, D. Arizona
DecidedMarch 29, 2023
Docket2:20-cv-01657
StatusUnknown

This text of Goodell v. Berkshire Hathaway Automotive Incorporated (Goodell v. Berkshire Hathaway Automotive Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goodell v. Berkshire Hathaway Automotive Incorporated, (D. Ariz. 2023).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Brian Goodell, et al., No. CV-20-01657-PHX-JJT

10 Plaintiffs, ORDER

11 v.

12 BH Automotive, LLC, et al.

13 Defendants. 14 15 At issue is the Motion to Dismiss Plaintiffs’ Second Amended Complaint (Doc. 55, 16 “MTD”) filed by Defendant BH Automotive, LLC (“BHA”), to which Plaintiffs filed a 17 Response in opposition (Doc. 60, “Resp.,” unredacted version under seal)1 and in support 18 of which BHA filed a Reply (Doc. 70). The Court finds this matter appropriate for 19 disposition without oral argument, see LRCiv 7.2(f), which none of the parties have 20 requested in any event. Having considered the arguments and evidence presented by the 21 parties, the Court grants BHA’s Motion to Dismiss for the reasons set forth below. 22 I. BACKGROUND 23 The instant Motion to Dismiss follows the Court’s Order of September 22, 2021 24 (Doc. 41, “MTD Order”), in which the Court denied without prejudice BHA’s prior motion 25 to dismiss challenging the Court’s subject-matter jurisdiction over the claim against BHA. 26 27 1 Plaintiffs lodged a redacted version of their Response and accompanying exhibits, which 28 the Court ordered filed on the public docket (Doc. 63). Because it refrains from referencing or discussing information under seal, the Court files this Order on the public docket. 1 The Court authorized Plaintiffs to conduct limited jurisdictional discovery and permitted 2 BHA thereafter to file another motion to dismiss for lack of subject-matter jurisdiction. 3 The Court described the nature of Plaintiffs’ claim and the procedural history of the 4 case up to that point in its prior MTD Order. In a nutshell, Plaintiffs seek relief under the 5 Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227, on behalf of themselves 6 and a putative class of similarly situated persons and entities, for repeated, unsolicited calls 7 from car dealerships promoting their vehicles. Plaintiff Wolski alleges that starting in 8 August 2018, she received three or four such calls from Chv Motors, LLC dba Camelback 9 Kia, from which she had previously purchased two vehicles in 2011 and 2015. Plaintiff 10 Goodell alleges that starting in approximately July 2019, he received at least ten such calls 11 from Showcase Honda, LLC dba Showcase Honda, from which he had purchased a vehicle 12 in 2017. Both dealerships are located in Phoenix, Arizona. 13 Plaintiffs allege that their experiences are representative of a pattern of unlawful 14 calls made by car dealerships associated with Berkshire Hathaway Automotive, an 15 automotive group based in Irving, Texas. Plaintiffs initially named as defendant Berkshire 16 Hathaway Automotive, Inc. (“BHAI”), a holding company with an ownership interest in 85 17 car dealerships throughout the United States, including the two dealerships that placed the 18 offending calls to Plaintiffs. (Doc. 13-1, First Declaration of Assane Faye (“First Faye 19 Decl.”) ¶¶ 6, 7.) After BHAI moved to dismiss the Complaint for lack of subject-matter 20 jurisdiction, Plaintiffs filed a First Amended Complaint naming BHA as defendant in its 21 place (Doc. 16, “FAC”).2 BHA is a Delaware limited liability company and wholly owned 22 subsidiary of BHAI. (First Faye Decl. ¶¶ 1–2.) Plaintiffs allege that BHA is vicariously 23 liable for the car dealerships’ offending calls under the TCPA. 24 BHA then brought its own motion to dismiss, arguing Plaintiffs lack standing to 25 assert a TCPA claim against BHA and the Court therefore lacks subject-matter jurisdiction 26 over the claim. In its prior Order, the Court agreed and found, based on the evidence then

27 2 The FAC specifically named as defendant Van Tuyl Group, LLC, dba Berkshire Hathaway Automotive. In the interim between the filing of the FAC and the operative 28 Second Amended Complaint, Van Tuyl Group, LLC changed its legal name to BH Automotive, LLC. (See MTD at 2 n.1.) The Court refers to the entity as “BHA.” 1 before it, that Plaintiffs did not have standing to assert a TCPA claim against BHA. (MTD 2 Order at 4–7.) The Court declined to dismiss the FAC outright, however, and exercised its 3 discretion to allow Plaintiffs jurisdictional discovery on the issue. (MTD Order at 7–10.) 4 After several extensions of the deadline for completion of jurisdictional discovery, 5 Plaintiffs filed the operative Second Amended Complaint (Doc. 49, “SAC”). The SAC 6 names as defendants not only BHA, but also the two car dealerships that placed the 7 offending calls, Chv Motors, LLC, and Showcase Honda, LLC (collectively, the “Car 8 Dealerships”). Among other changes, the SAC also adds new allegations pertaining to 9 BHA’s vicarious liability under the TCPA. (See SAC ¶¶ 79–103.) The Car Dealerships 10 timely filed Answers to the SAC. (Docs. 56 and 57.) BHA filed the instant Motion to 11 Dismiss. BHA maintains that even after jurisdictional discovery, Plaintiffs fail to produce 12 evidence to support their theory of vicarious liability and therefore lack standing to sue 13 BHA, depriving this Court of subject-matter jurisdiction over the claim against BHA and 14 requiring dismissal of the same under Federal Rule of Civil Procedure 12(b)(1). 15 II. LEGAL STANDARD 16 The legal standard applicable to BHA’s Motion to Dismiss remains the same. To 17 bring a judicable lawsuit into Federal Court, Article III requires that one have “the core 18 component of standing.” Lujan v. Defenders of Wildlife, 504 U.S. 555, 560 (1992). To 19 satisfy Article III’s standing requirements, a plaintiff must show that he or she suffered a 20 “concrete and particularized” injury that is “fairly traceable to the challenged action of the 21 defendant,” and that a favorable decision would likely redress the injury. Friends of the 22 Earth, Inc. v. Laidlaw Env’t Servs. (TOC), Inc., 528 U.S. 167, 180 (2000). In the complaint, 23 the plaintiff must “alleg[e] specific facts sufficient” to establish standing. Schmier v. U.S. 24 Court of Appeals for Ninth Circuit, 279 F.3d 817, 821 (9th Cir. 2002). Accordingly, courts 25 should dismiss a plaintiff’s complaint if he or she has failed to provide facts sufficient to 26 establish standing. See, e.g., Chandler v. State Farm Mut. Auto. Ins. Co., 598 F.3d 1115, 27 1123 (9th Cir. 2010). 28 1 A motion to dismiss for lack of subject-matter jurisdiction brought pursuant to Rule 2 12(b)(1) may facially attack the existence of subject-matter jurisdiction or may challenge 3 the truth of the alleged facts that would confer subject-matter jurisdiction on the court. 4 Renteria v. United States, 452 F. Supp. 2d 910, 919 (D. Ariz. 2006) (citing Thornhill Publ’g 5 Co. v. Gen. Tel. & Elecs. Corp., 594 F.2d 730, 733 (9th Cir. 1979)). Courts are permitted 6 to consider evidence to decide a factual attack on subject-matter jurisdiction. Thornhill, 7 594 F.2d at 733. The party asserting jurisdiction has the burden of showing that the court 8 has subject-matter jurisdiction. See Indus. Tectonics, Inc. v. Aero Alloy, 912 F.2d 1090, 9 1092 (9th Cir. 1990).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Chandler v. State Farm Mutual Automobile Insurance
598 F.3d 1115 (Ninth Circuit, 2010)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Satterfield v. Simon & Schuster, Inc.
569 F.3d 946 (Ninth Circuit, 2009)
Renteria v. United States
452 F. Supp. 2d 910 (D. Arizona, 2006)
A-J Marine, Inc. v. Corfu Contractors, Inc.
810 F. Supp. 2d 168 (District of Columbia, 2011)
Douglas Leite v. Crane Company
749 F.3d 1117 (Ninth Circuit, 2014)
Jose Gomez v. Campbell-Ewald Co.
768 F.3d 871 (Ninth Circuit, 2014)
Campbell-Ewald Co. v. Gomez
577 U.S. 153 (Supreme Court, 2016)
M. S. v. Kate Brown
902 F.3d 1076 (Ninth Circuit, 2018)
In re Carrier IQ, Inc.
78 F. Supp. 3d 1051 (N.D. California, 2015)
Jones v. Royal Admin. Servs., Inc.
887 F.3d 443 (Ninth Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Goodell v. Berkshire Hathaway Automotive Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goodell-v-berkshire-hathaway-automotive-incorporated-azd-2023.