Gulf South Communications, Inc. v. WOOF Inc.

CourtDistrict Court, M.D. Alabama
DecidedJune 11, 2021
Docket1:21-cv-00040
StatusUnknown

This text of Gulf South Communications, Inc. v. WOOF Inc. (Gulf South Communications, Inc. v. WOOF Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf South Communications, Inc. v. WOOF Inc., (M.D. Ala. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA SOUTHERN DIVISION

GULF SOUTH COMMUNICATIONS, ) INC., CLAY HOLLADAY, and BRYAN ) HOLLADAY, ) ) Plaintiffs, ) ) v. ) CIV. ACT. NO. 1:21-cv-40-ECM ) (WO) WOOF INC. and BRYANT CORBITT, ) ) Defendants. )

MEMORANDUM OPINION and ORDER

Now pending before the Court are partial motions to dismiss filed by Defendant WOOF, Inc. (“WOOF”) and Defendant Bryant Corbitt (“Corbitt”)(collectively “the Defendants”). (Docs. 13 & 15). On December 18, 2020, Plaintiffs Gulf South Communications, Clay Holladay, and Bryan Holladay (collectively “the Plaintiffs”), filed a complaint in the Circuit Court of Houston County, Alabama. The case was removed pursuant to 28 U.S.C. §§ 1441 and 1331, on the basis of federal-question jurisdiction. No motion to remand was filed. The Court has subject-matter jurisdiction pursuant to 28 U.S.C. § 1331 and § 1367. On February 5, 2021, the Plaintiffs filed an amended complaint which brings claims for violation of the federal Electronic Communications Privacy Act (count I), violation of the federal Computer Fraud and Abuse Act (count II), violation of the federal Defend Trade Secrets Act (count III), violation of the Alabama Trade Secrets Act (count IV), intentional interference with contract (count V), violation of the Alabama Digital Crime Act (count VI), violation of the Alabama Identity Theft Act (count VII), criminal impersonation (count VIII), commercial misappropriation/invasion of privacy (count IX), conversion (count X), trespass to chattels (count XI), unjust enrichment (count XII), negligent or wanton

supervision (count XIII), and injunctive relief (count XIV). (Doc. 8). WOOF’s motion to dismiss seeks dismissal of counts I, II, V, VI, VIII—XII, and XIV, and Corbitt’s motion seeks dismissal of counts I, II, V, VI, VIII—XII. Upon consideration of the amended complaint, motions, and the briefs of the parties, and for the reasons that follow, the motions to dismiss are due to be GRANTED in part

and DENIED in part. II. LEGAL STANDARD A Rule 12(b)(6) motion to dismiss tests the sufficiency of the complaint against the

legal standard set forth in Rule 8: “a short and plain statement of the claim showing that the pleader is entitled to relief.” FED. R. CIV. P. 8(a)(2). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U. S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U. S. 544, 570 (2007)).

“Determining whether a complaint states a plausible claim for relief [is] ... a context- specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. at 663 (alteration in original) (citation omitted). The plausibility standard requires “more than a sheer possibility that a defendant has acted unlawfully.” Iqbal, 556 U. S. at 678. Conclusory allegations that are merely “conceivable” and fail to rise “above the speculative level” are insufficient to meet the plausibility standard. Twombly, 550 U. S. at 555, 570. This pleading standard “does not require ‘detailed factual allegations,’ but it demands more than an unadorned, the-defendant-unlawfully-harmed-

me accusation.” Id. at 678. Indeed, “[a] pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action will not do.’” Id. III. FACTS Gulf South operates WKMX radio. Clay Holladay is the President of Gulf South and Bryan Holladay is the station manager for WKMX. In June 2014, Gulf South entered

into a license agreement with Creative Radio Services, LLC (“Creative”). Pursuant to this contract, Creative licensed to Gulf South the exclusive right for WKMX radio to use Creative’s licensed preparation materials. (Doc. 8 ¶9). The Creative licensed preparation materials include unique daily content such as trending stories. At the time this license agreement was entered into, Corbitt was employed by Gulf South as an on-air radio

personability on WKMX. (Id. ¶9). In April 2018, Corbitt resigned his employment with Gulf South and went to work for WOOF, a competing radio station. The amended complaint alleges that without permission from Gulf South, Corbitt created and began using the email address wkmxradio@yahoo.com and registered that email address with Creative. Corbitt held

himself out as Clay Holladay, the President of Gulf South. (Id. ¶¶ 17-19). Corbitt accessed the Creative licensed preparation materials 876 times from April 26, 2018 through September 21, 2020. He is alleged to have obtained a competitive advantage for himself and WOOF in order to increase ratings and advertising revenue. Corbitt’s usual time slot on the air at WOOF is 7:00 p.m. to 12:00 a.m. The amended complaint alleges that he accessed the licensed preparation material at or around 1:00 a.m., “contemporaneously with it being posted or uploaded by Creative on its website.” (Id.

¶25). Corbitt continues to be employed at WOOF. IV. DISCUSSION WOOF seeks dismissal of ten of the fourteen claims brought by Gulf South, Clay Holladay, and Bryan Holladay. Corbitt seeks the dismissal of nine claims. A. Count I

Count I asserts claims pursuant to both 18 U.S.C. § 2511 and 18 U.S.C. § 2701. The Plaintiffs allege that the Defendants intercepted a communication in violation of § 2511 and accessed the material on Creative’s website in violation of § 2701. WOOF seeks dismissal only of the claim for violation of § 2511 (doc. 14 at 2, n.2), which Corbitt joins (doc. 15). The Defendants move to dismiss this aspect of the claim in

count I on the ground that the facts of the amended complaint are sufficient only to allege access, and not interception, because Corbitt is alleged to have obtained material from Creative’s website, not to have intercepted a transmission from Creative. The Plaintiffs respond that the amended complaint sufficiently alleges that Corbitt intercepted electronic communications because it alleges that he logged on at 1:00 a.m.,

contemporaneously with the material being transmitted by Creative to the website. The Plaintiffs’ position is that it is premature to determine in the context of a motion to dismiss whether there was a contemporaneous interception. “Interception” is defined by the statute as “the aural or other acquisition of the contents of any wire, electronic, or oral communication through the use of any electronic, mechanical, or other device.” 18 U.S.C. § 2510(4). Some courts have interpreted this

provision to mean that there is an interception if information is received within a second of transmission. See, e.g., United States v. Szymuszkiewicz, 622 F.3d 701, 706 (7th Cir. 2010). The Eleventh Circuit has addressed the “interception” issue, albeit in a criminal case, in United States v. Steiger, 318 F.3d 1039, 1050 (11th Cir. 2003).

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Gulf South Communications, Inc. v. WOOF Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-south-communications-inc-v-woof-inc-almd-2021.