I.B. ex rel. Bohannon v. Facebook, Inc.

82 F. Supp. 3d 1115, 91 Fed. R. Serv. 3d 111, 2015 U.S. Dist. LEXIS 29357, 2015 WL 1056178
CourtDistrict Court, N.D. California
DecidedMarch 10, 2015
DocketCase No. 12-cv-01894-BLF
StatusPublished
Cited by2 cases

This text of 82 F. Supp. 3d 1115 (I.B. ex rel. Bohannon v. Facebook, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
I.B. ex rel. Bohannon v. Facebook, Inc., 82 F. Supp. 3d 1115, 91 Fed. R. Serv. 3d 111, 2015 U.S. Dist. LEXIS 29357, 2015 WL 1056178 (N.D. Cal. 2015).

Opinion

[1118]*1118ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

[Re: ECF 82]

BETH LABSON FREEMAN, United States District Judge

As teenagers’ use of online social media has become ubiquitous, juvenile behaviors that previously occurred offline have migrated onto the Internet. One such behavior — a minor spending a parent’s money without permission — gives rise to this case.

Defendant Facebook, like many Internet companies, permits its users, including minors, to make purchases through its website. The named minor Plaintiffs in this case, I.B. and J.W., both spent a parent’s money without permission over Facebook, in slightly different ways: I.B. asked his mother for $20 to make purchases in a game called “Ninja Saga,” but then spent more than he was permitted; while J.W. took his parent’s debit card without permission and began making purchases. As parents across the United States know all too well, such situations are not unique to purchases made over the Internet.

Now, these two minors seek to invoke the protections of century-old protections enshrined in California law, which recognize that minors will occasionally use their lack of judgment to enter into contractual relationships and later assert the right to walk away from the contract. The named Plaintiffs contend that Facebook’s policy of representing that purchases made through its website are final, or otherwise nonrefundable, violates Section 6701(c) of the California Family Code, which states that a contract is void if the minor “make[s] a contract relating to any personal property not in the immediate control of the minor.” In the alternative, the named Plaintiffs contend that Facebook’s policy violates Family Code Section 6710, which permits a minor to disaffirm any contract “before majority or within a reasonable time after-wards.”

I.B. and J.W., each through a parent as guardian ad litem, presently move the Court to certify the following class and subclass under Federal Rule of Civil Procedure 23(b)(2):

All Facebook users who are or were minor children according to Facebook’s own records for the four years preceding the date on which the original complaint was filed through the date on which a class is certified (“the Minor Class”). Within the Minor Class is a subclass of Minors from whose Face-book accounts Facebook Credits were purchased, (“the Minor Purchasing Subclass”).

Third Amended Complaint (“TAC”) ¶ 36.

The parties appeared for oral argument on December 18, 2014. The Court then requested supplemental briefing on the question of whether it could certify a nationwide class of minors pursuant to the California Family Code, which the parties provided on January 9, 2015. Having reviewed the briefing and oral argument of the parties, and for the reasons outlined below, the Court GRANTS IN PART AND DENIES IN PART Plaintiffs’ motion for class certification.

I. BACKGROUND

A. Factual Background and Class Allegations

In October 2011, Plaintiff I.B., a minor, asked his mother Glynnis Bohannon for permission to spend $20 on his Facebook account to purchase Facebook Credits to use in a game called Ninja Saga.1 I.B. gave his mother $20, and used her Wells Fargo MasterCard to purchase Facebook [1119]*1119Credits. I.B. claims he was unaware that Facebook would store this credit card information, and thereafter continued to make in-game purchases in Ninja Saga. I.B. believed these purchases were being made with virtual currency, and that his mother’s credit card was not being charged for these purchases. Glynnis Bo-hannon’s card was ultimately charged several hundred dollars. Ms. Bohannon sought a refund from Facebook, but was not provided one until after this action was filed. See TAC ¶28; Second Amended Compl., ECF 18 at ¶ 28 (“Since being served with the initial complaint in this action, Facebook has apparently provided a ‘courtesy’ refund to Ms. Bohannon.”). I.B. is a resident of Arizona. TAC ¶ 8.

In December 2011, Plaintiff J.W., a minor, took his parents’ debit card without their permission and began to make a series of charges on Facebook through the use of Facebook Credits. These charges totaled over $1,000. Unlike I.B., J.W. did not have his parents’ initial permission to make charges on Facebook. Upon learning of J.W.’s actions, his father, Steven Wright, contacted Facebook to dispute the charges and request a refund. In this interaction with Facebook, Mr. Wright stated that neither he nor his wife had authorized the use of their debit card. Facebook provided Mr. Wright with a partial refund of $59.90, despite a Facebook representative telling him that he had “refunded the charges to your funding instrument.” TAC ¶ 33. At the time the TAC was filed, the Wrights had not been refunded the remaining $999.30 spent by J.W. without their permission. See TAC ¶¶ 31-33. J.W. is a resident of California. TAC ¶ 9.

Both Plaintiffs contend that Facebook misinforms its users, including minors, that “all sales are final.” TAC ¶4; see also Parker Decl. Exh. B. at 1 (stating under “Payment Terms,” revised on June 3, 2009, that “[p]urchases of credits are non-refundable”); Parker Decl. Exh. D at 32:4-16 (testimony by Bill Richardson stating that, as of 2012, Facebook’s refund policies for individuals between 13 and 17 were the same as its policies for adults, but that policies for minors under 13 were different). Plaintiffs contend that under its policies, Facebook “routinely refuses requests by children and their parents and legal guardians to provide refunds for transactions that are subject to disaffirmance under California law.” TAC ¶ 16.

Plaintiffs seek declaratory relief under 28 U.S.C. § 2201, requesting a determination by the Court that purchases made by minors through their Facebook accounts are void or voidable. See TAC ¶ 68. Plaintiffs also seek individualized restitution. See TAC at p. 20.

B. Procedural Background

Plaintiffs first filed this putative class action on April 17, 2012. The case has been subject to several rounds of motions to dismiss. Prior orders by Judge Claudia Wilken, to whom this case was assigned prior to being reassigned to the undersigned, eliminated a number of claims that the Plaintiffs sought to assert — notably, dismissing all claims by the parents of the minor children, and dismissing all of the minor children’s claims except those brought pursuant to Family Code Sections 6701(c) and 6710. See ECF 44, 58. Defendant ultimately answered Plaintiffs’ TAC on January 20, 2014. See ECF 62. This motion for class certification followed.2

[1120]*1120II. LEGAL STANDARD

Recognizing that “[t]he class action is an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only,” Federal Rule of Civil Procedure 23 demands that two requirements be met before a court certifies a class. Comcast Corp. v. Behrend, — U.S. —, 133 S.Ct. 1426, 1432, 185 L.Ed.2d 515 (2013).

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Bluebook (online)
82 F. Supp. 3d 1115, 91 Fed. R. Serv. 3d 111, 2015 U.S. Dist. LEXIS 29357, 2015 WL 1056178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ib-ex-rel-bohannon-v-facebook-inc-cand-2015.