Grayson v. AT & T CORP.

15 A.3d 219, 2011 D.C. App. LEXIS 22, 2011 WL 165843
CourtDistrict of Columbia Court of Appeals
DecidedJanuary 20, 2011
Docket07-CV-1264, 08-CV-1089
StatusPublished
Cited by136 cases

This text of 15 A.3d 219 (Grayson v. AT & T CORP.) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grayson v. AT & T CORP., 15 A.3d 219, 2011 D.C. App. LEXIS 22, 2011 WL 165843 (D.C. 2011).

Opinions

REID, Associate Judge:

In these consolidated cases1 appellant Alan Grayson appeals the trial court’s judgment granting appellees’2 Super. Ct. Civ. R. 12(b) motion to dismiss his District of Columbia Consumer Protection Procedures Act (“CPPA”) claims for unlawful trade practices.3 These claims involve the unused balance on telephone calling cards (escheated telephone calling card prepayments), and Mr. Grayson describes his lawsuit as “a ‘whistleblower’ action” to recover funds belonging to the District. The trial court dismissed Mr. Grayson’s CPPA claim on the ground that he lacked standing (Rule 12(b)(1)), and even if he suffered injury, his complaint failed to state a claim for which relief may be granted (Rule 12(b)(6)).

Appellant Paul M. Breakman appeals the trial court’s judgment granting the Super. Ct. Civ. R. 12(b)(1) motion of appel-lee, AOL LLC (“AOL”), to dismiss his CPPA claim for unlawful trade practice on the ground that he does not have standing. He alleged, in essence, that AOL failed to disclose to its current and existing mem[224]*224bers the cheaper option for monthly Dial-Up ISP Service charged to new members.

Confronting us in both cases is a fundamental threshold issue of standing, which is not to be confounded with the question of whether appellants can prevail on the merits of their respective claims. Rather, we must determine whether the trial court properly dismissed these claims, in response to appellees’ motions to dismiss, because appellants do not have standing to assert their CPPA claims. To answer that question, we focus first on the standing requirement in the District of Columbia. Second, we examine whether the Council of the District of Columbia intended to disturb or override this court’s constitutional standing requirement. Third, we determine whether the factual allegations in Mr. Grayson’s and Mr. Breakman’s respective complaints are sufficient to enable them to survive a standing challenge on a motion to dismiss. Finally, because the trial court also dismissed Mr. Grayson’s complaint under Super. Ct. Civ. R. 12(b)(6), we consider whether his complaint states a cause of action within the meaning of that rule.

We conclude that even though Congress created the District of Columbia court system under Article I of the Constitution, rather than Article III, this court has followed consistently the constitutional standing requirement embodied in Article III. Thus, appellants must allege “some threatened or actual injury resulting from ... putatively illegal action”4 in order for this court to assume jurisdiction. “The actual or threatened injury required by Art. Ill may exist solely by virtue of ‘statutes creating legal rights, the invasion of which creates standing.’ ”5

We hold that the Council of the District of Columbia did not disturb or override our constitutional standing requirement in amending the CPPA in 2000; the words of the 2000 amendments, viewed in the context of the legislative and drafting history of these amendments, do not reveal an explicit intent of the Council to erase the constitutional standing requirement6 to which this court has adhered during the past several decades.7

Furthermore, we hold that the trial court properly dismissed Mr. Breakman’s complaint under Rule 12(b)(1) because he failed to plead sufficient facts showing that he meets the constitutional standing requirement, that is that he suffered an injury in fact or that he is entitled to lodge a representative action. And, we hold that Mr. Grayson has individual standing to seek injunctive or other relief under the principle that the “actual or threatened injury required by Art. III [of the Constitution] may exist solely by virtue of ‘stat[225]*225utes creating legal rights, the invasion of which creates standing.’ ” Warth.8 However, we conclude that Mr. Grayson failed to allege legally viable claims under D.C.Code § 28-3904(a), (e), (f), (h), and (r).

Accordingly, we affirm the trial court’s dismissal of Mr. Breakman’s complaint; we disagree with its ruling as to Mr. Gray-son’s standing, but affirm its dismissal of Mr. Grayson’s complaint under Super. Ct. Civ. R. 12(b)(6). We also amend and reissue Grayson I as an opinion covering only Mr. Grayson’s claim under the District of Columbia False Claims Act (“FCA”).

I.

FACTUAL SUMMARY

Mr. Grayson’s Amended Complaint and Mr. Breakman’s Complaint

On March 26, 2004, Mr. Grayson filed an amended complaint in which he set forth a cause of action under the CPPA. He alleged the following, in part. He brought “this cause of action for the interests of himself and the general public.” Paragraph 157. He described himself essentially as a businessman who had served in 1990 and 1991 as the President of a Fortune 500 international communications company, with over $1 billion in assets, which “operates in a variety of different markets, including prepaid calling cards.”9 “He has obtained and used prepaid calling cards in [the] District, the unused value of which the Defendants have failed to report and pay to the Mayor.” Paragraph 6. Mr. Grayson alleges further that the unused portion of a prepaid calling card is “breakage,” and “[t]he defendants have been retaining breakage since 1992,” in the amount of millions of dollars, instead of reporting and turning over the breakage to the Mayor of the District, as unclaimed property. Paragraphs 27-35. As of some time in 2003, “each of the[] Defendants held around $200,000 in communications prepayments received in 1999 from owners whose last known address was in the District”; these sums “had remained dormant during the statutory dormancy period,” but “[t]he[] defendants failed to report and pay or deliver these deposits and advance payments to the Mayor by November 1, 2003.” Paragraph 64. When “the amount of communications prepayments that the[ ] with District addresses in other years since 1997,” are taken into consideration, “the total amount of communications prepayments that each of the[] [D]efen-dants had received from owners whose last known address was in the District that had remained dormant during the statutory dormancy period, as of June 30, 2003, exceeded $500,000 for Verizon, AT & T, MCI and Sprint.” These sums were not reported or paid to the District, and “[a]s noted above, the ... Plaintiff has obtained and used prepaid calling cards in the District, the unused value of which the Defendants have failed to report and pay to the May- or.” Paragraph 32.

The complaint alleged that by their actions, the Defendants engaged in unlawful trade practices under D.C.Code § 28-3904 (2003).10.Paragraph 165. “The Defendants [226]*226have engaged in the trade practice of soliciting and accepting communications prepayments, and then failing to pay or deliver to the Mayor the unused balances of prepaid calling cards ..., in violation of [the District of Columbia Unclaimed Property Act, in particular, D.C.Code § 41-119 (2003) ].” Paragraph 164.

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

Related

Roberts v. Advanced Building Design
District of Columbia Court of Appeals, 2025
Earth Island Institute v. The Coca-Cola Company
District of Columbia Court of Appeals, 2024
Velasquez Cardozo v. United States
District of Columbia Court of Appeals, 2024
Morris v. District of Columbia
District of Columbia Court of Appeals, 2024
Kids Holdings, Inc. v. Hinojosa
District of Columbia Court of Appeals, 2024
Whiting v. Merrill Lynch & Co.
District of Columbia, 2024
Colbert v. District of Columbia
District of Columbia Court of Appeals, 2023
Meta Platforms, Inc. v. District of Columbia
District of Columbia Court of Appeals, 2023
Ethiopian Orthodox Tewahedo Church, Inc. v. Akilu Habte
District of Columbia Court of Appeals, 2023
Rayner v. Yale Steam Laundry Condo. Ass'n.
District of Columbia Court of Appeals, 2023
United States v. Facon
District of Columbia Court of Appeals, 2023
Kalorama Citizens Ass'n v. SunTrust Bank, Co.
District of Columbia Court of Appeals, 2022
Scott v. FedChoice Federal Credit Union
District of Columbia Court of Appeals, 2022
Autrey v. United States
District of Columbia Court of Appeals, 2021
Animal Legal Defense Fund v. Hormel Corp.
District of Columbia Court of Appeals, 2021
Cardozo v. United States
District of Columbia Court of Appeals, 2021
Gable v. Gable
West Virginia Supreme Court, 2021
Carragher v. District of Columbia
District of Columbia Court of Appeals, 2020

Cite This Page — Counsel Stack

Bluebook (online)
15 A.3d 219, 2011 D.C. App. LEXIS 22, 2011 WL 165843, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grayson-v-at-t-corp-dc-2011.