Hood v. American Auto Care, LLC

CourtDistrict Court, D. Colorado
DecidedMarch 23, 2020
Docket1:18-cv-02807
StatusUnknown

This text of Hood v. American Auto Care, LLC (Hood v. American Auto Care, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hood v. American Auto Care, LLC, (D. Colo. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Chief Judge Philip A. Brimmer Civil Action No. 18-cv-02807-PAB-SKC ALEXANDER HOOD, on behalf of himself and all similarly situated persons, Plaintiff, v. AMERICAN AUTO CARE, LLC, a Florida limited liability company, BEACON FINANCIAL SOLUTIONS, LLC, a Florida limited liability company, JESSIE BRITT, an individual, KYLIE BRITT, an individual, DAVID GLENWINKEL, an individual, ROYAL ADMINISTRATION SERVICES, INC., a Florida corporation, CARGUARD ADMINISTRATION, INC., a Kansas corporation, MATRIX WARRANTY SOLUTIONS, INC., d/b/a Element Protection Plans, a Nevada corproration, and EGV COMPANIES, INC., d/b/a Omega Auto Care, a Delaware corporation, Defendants. _____________________________________________________________________ ORDER _____________________________________________________________________ This matter is before the Court on the AAC Defendants’ Rule 12(b)(2) Motion to Dismiss [Docket No. 57], Defendant Matrix Warranty Solutions, Inc.’s Motion to Dismiss Under 12(b)(6) for Failure to State A Claim & 12(b)(2) for Lack of Personal Jurisdiction [Docket No. 71], and plaintiff’s Motion for Jurisdictional Discovery [Docket No. 82]. The Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1331. I. BACKGROUND This matter arises out of an unwanted phone call. Defendant American Auto Care, LLC (“AAC”) sells vehicle service contracts, which provide customers with vehicle repair coverage after the vehicle manufacturer’s warranty expires. Docket No. 45 at 5, ¶ 15 and at 8, ¶ 39. AAC uses telemarketing to sell these vehicle service contracts nationwide, including in Colorado by calling Colorado telephone numbers. Id. at 5, ¶ 15. AAC’s website includes a link to a website called “ConsumerAffairs,” which

includes 412 reviews from customers who bought vehicle service contracts from AAC. Id., ¶¶ 16-17. The reviews indicate the residence of the reviewer; the reviewers are from states all around the United States, including Colorado. Id. at 5-7, ¶¶ 18-31. AAC is the wholly owned subsidiary of defendant Beacon Financial Solutions, LLC (“Beacon”). Id. at 3, ¶ 7. Beacon, in turn, is owned by defendants Jessie Britt, Kylie Britt, and David Glenwinkel (the “individual defendants”). Id. at 3-4, ¶ 8. The vehicle service contracts sold by AAC are provided by defendants Royal Administration

Services, Inc. (“Royal”), Carguard Administration, Inc. (“Carguard”), Matrix Warranty Solutions, Inc. (“Matrix”), and EGV Companies, Inc. (“EGV”). Id. at 4, ¶ 9.1 Plaintiff Alexander Hood is a citizen of Colorado. Id. at 2, ¶ 5. On August 17, 2018, plaintiff received a phone call on his cell phone, which has a Vermont area code. Id. at 9, ¶ 44; Docket No. 68-1 at 1-2, ¶ 6.2 Using an artificial or prerecorded voice, the caller stated that plaintiff’s vehicle warranty was expired and asked if plaintiff was interested in extending his warranty. Docket No. 45 at 10, ¶ 45. Plaintiff pressed “1” and was taken to a live person, who indicated that she was from “America Auto Care.”

1 Plaintiff alleges that AAC acts as an “agent” of Royal, Carguard, Matrix, and EGV and that the five entities are a “joint venture” for the purpose of selling vehicle service contracts. Docket No. 45 at 4, ¶ 10. Similarly, plaintiff alleges that AAC acts as an agent of Beacon and that the two entities are a “joint venture.” Id. at 3, ¶ 7. 2 The parties dispute whether plaintiff received or placed the call. 2 Id. Plaintiff indicated that he was not interested and hung up the call. Id. Plaintiff alleges that this call was “made by or on behalf of” defendants. Id. at 9, ¶ 44. On November 2, 2018, plaintiff filed this lawsuit. Docket No. 1. The operative complaint brings a claim against all defendants for knowingly and/or willfully violating

the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227 et seq. Docket No. 45 at 13-14, ¶¶ 61-65. Plaintiff’s claim is brought as a class action, pursuant to Fed. R. Civ. P. 23, on behalf of a nationwide class. Id. at 11-13, ¶¶ 51-60. On April 29, 2019, AAC, Beacon, and the individual defendants (together, the “AAC defendants”) filed a motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(2). Docket No. 57. The AAC defendants argue that this Court does not have personal jurisdiction over them. Id. On June 7, 2019, Matrix filed a motion to dismiss pursuant

to Rules 12(b)(2) and (6). Docket No. 71. Matrix argues that the Court does not have personal jurisdiction over it, and that the complaint fails to state a claim against it for violating the TCPA. Id. On October 15, 2019, plaintiff filed a motion for jurisdictional discovery. Docket No. 82. II. LEGAL STANDARD The purpose of a motion to dismiss under Rule 12(b)(2) is to determine whether a court has personal jurisdiction over a defendant. The plaintiff bears the burden of

establishing personal jurisdiction. Rambo v. Am. S. Ins. Co., 839 F.2d 1415, 1417 (10th Cir. 1988). A plaintiff can satisfy its burden by making a prima facie showing. Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514 F.3d 1063, 1070 (10th Cir. 2008). The court will accept the well-pleaded allegations of the complaint as true in

3 determining whether plaintiff has made a prima facie showing that personal jurisdiction exists. AST Sports Sci., Inc. v. CLF Distrib. Ltd., 514 F.3d 1054, 1057 (10th Cir. 2008). “The allegations of a complaint must be taken as true unless contradicted by the defendant’s affidavits, . . . and to the extent that the affidavits contradict allegations in

the complaint or opposing affidavits, all disputes must be resolved in the plaintiff’s favor.” Iselo Holdings, LLC v. Coonan, No. 09-cv-02126-MSK-MJW, 2010 WL 3630125, at *3 (D. Colo. Sept. 10, 2010) (citing Behagen v. Amateur Basketball Ass’n of U.S.A., 744 F.2d 731, 733 (10th Cir. 1984)). III. ANALYSIS A. Personal Jurisdiction In establishing whether a federal court has personal jurisdiction over a

defendant, “the court must determine (1) whether the applicable statute potentially confers jurisdiction by authorizing service of process on the defendant and (2) whether the exercise of jurisdiction comports with due process.” Trujillo v. Williams, 465 F.3d 1210, 1217 (10th Cir. 2006) (quoting Peay v. BellSouth Med. Assistance Plan, 205 F.3d 1206, 1209 (10th Cir. 2000)). The TCPA is silent regarding service of process. Keim v. ADF MidAtlantic, LLC, 199 F. Supp. 3d 1362, 1367 (S.D. Fla. 2016). The Colorado long-arm statute has been construed to extend jurisdiction to the full extent permitted

by the Constitution, so the jurisdictional analysis here reduces to a single inquiry of whether jurisdiction offends due process. See Archangel Diamond Corp. v. Lukoil, 123 P.3d 1187, 1193 (Colo. 2005). Personal jurisdiction comports with due process where a defendant has minimum contacts with the forum state and where those contacts are

4 such that assuming jurisdiction does not offend “traditional notions of fair play and substantial justice.” Int’l Shoe Co. v.

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Bluebook (online)
Hood v. American Auto Care, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hood-v-american-auto-care-llc-cod-2020.