Gordon v. Softech International, Inc.

828 F. Supp. 2d 665, 2011 U.S. Dist. LEXIS 137209, 2011 WL 6211160
District Court, S.D. New York·Decided November 30, 2011·No. No. 10 Civ. 5162(RMB)·Published·Cited by 4 cases

Opinion

DECISION & ORDER

RICHARD M. BERMAN, District Judge.

I. Introduction

On January 19, 2011, Erik H. Gordon (“Gordon” or “Plaintiff’) filed an amended complaint (“Amended Complaint”) against Softech International, Inc. (“Softech”), Softech’s Chief Operating Officer Reid Rodriguez (“Rodriguez”), Arcanum Investigations, Inc. (“Arcanum”), Arcanum’s President Dan Cohn (“Cohn” and, together with Softech, Rodriguez, and Arcanum, the “Reseller Defendants”), and Aron Leifer (“Leifer” and, together with the Reseller Defendants, “Defendants”) pursuant to the Driver’s Privacy Protection Act of 1994, 18 U.S.C. §§ 2721-2725 (“DPPA”).1 Gordon alleges that Leifer obtained Gordon’s personal information (through the Reseller Defendants’ services) from the New York [668] Department of Motor Vehicles (“DMV”) for the impermissible use of (Leifer) placing “a series of phone calls designed to harass, threaten and annoy” Gordon in violation of the DPPA. (Am. Compl. ¶¶ 72-86, 94.) Gordon alleges that the Reseller Defendants also violated the DPPA, notwithstanding that Leifer represented and certified to the Reseller Defendants that he was “requesting the information pursuant to a [DPPA] permissible use.” (Am. Compl. ¶¶ 34-35, 81.) At oral argument held on November 22, 2011, Gordon’s counsel stated, “I think [the Reseller Defendants] are strictly liable” under the DPPA. (Hearing Transcript, dated Nov. 22, 2011 (“Oral Arg. Tr.”), at 5:11-14; 7:8-12 (THE COURT: “You are saying it’s a strict liability statutef?]” PL. COUNSEL: “I think that’s how the statute reads, that’s correct.”).)

Gordon also asserts state law claims of prima facie tort and intentional infliction of emotional distress against Leifer, alleging that Leifer’s “series of threatening phones calls” caused Gordon to experience “emotional distress” and “fear for his safety as well as the safety of his family and employees.” (Am. Compl. ¶¶ 88, 90, 94, 96.)2

On June 8, 2011, Arcanum and Cohn filed cross-claims against Leifer for common law indemnification, contractual indemnification, and contribution, alleging that Leifer’s “primary carelessness, recklessness or affirmative acts of omission or commission” caused Plaintiffs damages, if any, and that Leifer had signed a written indemnity agreement. (Arcanum & Cohn’s Answer, dated June 8, 2011, ¶¶ BO-JO.) On June 9, 2011, Softech and Rodriguez also filed cross-claims against Leifer for common law indemnification, contractual indemnification, and contribution, alleging that Leifer’s “negligent, reckless, wanton, willful and/or intentional acts” caused Plaintiffs damages, if any. (Softech and Rodriguez’s Answer, dated June 9, 2011, ¶¶ 11-12.)3

On August 12, 2011, Defendants filed a joint motion for summary judgment against Gordon pursuant to Rule 56 of the Federal Rules of Civil Procedure, arguing, among other things, that (1) Leifer represented and certified that his permissible use of Gordon’s DMV information was “to obtain Plaintiffs insurance information” and “to perform [an] investigation in anticipation of litigation”; (2) the Reseller Defendants disseminated DMV information for a permissible use under the DPPA [669] based upon, among other things, Leifer’s written certification; (3) Plaintiff’s prima facie tort claim against Leifer fails because Plaintiff has failed to show that Leifer’s “sole motivation was ‘disinterested malevolence’ ” as required under New York law; and (4) Plaintiff’s intentional infliction of emotional distress claim against Leifer fails because Leifer’s conduct does not “rise to the level of ‘outrageous conduct,’ ” and because Plaintiff’s “few sleepless nights” do not constitute severe emotional distress. (Defs.’ Mem. of Law in Supp. of Joint Mot. for Summ. J. by Defs., dated Aug. 12, 2011 (“Defs. Mem.”), at 1, 16, 19-20.)4

On September 5, 2011, Plaintiff filed an opposition to Defendants’ motion and also cross-moved for summary judgment (on his DPPA claims only), arguing that (1) Leifer “cannot credibly claim” that his permissible use under the DPPA was to obtain Gordon’s insurance information or to conduct an investigation in anticipation of litigation because “[n]o ... collision took place” between Gordon’s taxicab and Leif-er’s SUV on October 10, 2009; (2) the DPPA “does not contain an intent requirement” and, therefore, the Reseller Defendants are strictly liable, i.e., according to Gordon, they could not have had a permissible use because Leifer did not (ultimately) have a permissible use, notwithstanding that Leifer “communicated [and certified] a permissible purpose” in seeking to obtain DMV information; (3) “there is ample evidence to demonstrate that [Leifer] intended to cause Gordon emotional harm”; and (4) Leifer’s phone calls, “in particular, his call to Gordon’s ill mother in which he alleged that Gordon had been involved in a sexual assault,” constituted extreme and outrageous conduct that caused Gordon “pain and suffering.” (Pl.’s Mem. of Law in Opp’n to Defs.’ Joint Mot. for Summ. J. and in Supp. of PL’s Cross-Mot. for Summ. J., dated Sept. 5, 2011 (“Pl. Opp’n”), at 4,14,16-17, 21, 24-25.)

On September 12, 2011, Defendants filed a reply and opposition to Plaintiffs cross-motion, arguing, among other things, that the Reseller Defendants “properly relied upon Leifer’s stated permissible use” and that, under Gordon’s interpretation of the DPPA, a reseller would be (strictly) liable for any “misinformation by the end user,” which is not what the DPPA provides. (See Reply Mem. of Law in Further Supp. of Defs.’ Joint Mot. for Summ. J. and in Opp’n to PL’s Cross Mot. for Summ. J., dated Sept. 12, 2011 (“Defs. Reply”), at 3, 7.) As noted, oral argument was held on November 22, 2011. (See Oral Arg. Tr.)

For the reasons set forth below, Defendants’ motion for summary judgment is granted in part and denied in part, and Plaintiffs cross-motion for summary judgment on his DPPA claims is denied.

II. Background

The following summary reflects facts which are undisputed and some that are disputed (as noted).

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Gordon v. Softech International, Inc., 828 F. Supp. 2d 665, 2011 U.S. Dist. LEXIS 137209, 2011 WL 6211160 (S.D.N.Y. 2011).

828 F. Supp. 2d 665 (Gordon v. Softech International, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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