Karen Santiago v. Honeywell International, Inc.

Court of Appeals for the Eleventh Circuit·Decided May 28, 2024·No. 21-13752·Unpublished

Opinion

[DO NOT PUBLISH]

In the

United States Court of Appeals For the Eleventh Circuit

No. 21-13752

KAREN SANTIAGO, individually and on behalf of all others similarly situated, DEBORAH MOZINA, Plaintiffs-Appellants,

versus HONEYWELL INTERNATIONAL, INC., a Delaware Corporation,

Defendant-Appellee.

Appeal from the United States District Court for the Southern District of Florida

2 Opinion of the Court 21-13752

D.C. Docket No. 1:16-cv-25359-MGC

Before NEWSOM, LUCK, and TJOFLAT, Circuit Judges. LUCK, Circuit Judge:

Karen Santiago and Deborah Mozina sued Honeywell International , Inc., for negligently installing digital electric meters at their homes. The district court dismissed their amended complaint with prejudice because, although Santiago and Mozina had Article III standing, they failed to state a claim for relief. We do not reach whether Santiago and Mozina failed to state a claim because we conclude they lacked standing. Thus, we reverse and remand for the district court to dismiss their amended complaint, without prejudice , for lack of jurisdiction.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

In 2009, Florida Power and Light hired Honeywell to install new “Smart Meters” at over four million Florida homes, including Santiago and Mozina’s. Florida Power and Light uses the Smart Meter to track customers’ electricity usage for billing. Installing a Smart Meter required plugging its metal prongs into a home’s meter can receptacle, or “jaws.” The meter can jaws at the customers’ homes were not uniformly sized or designed; instead, their dimensions varied from home to home.

Honeywell’s contract with Florida Power and Light required it to inspect the meter cans to ensure the Smart Meters’ prongs would properly fit the jaws. A poor connection could spell

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21-13752 Opinion of the Court 3

serious trouble for a homeowner. It could cause system-wide arc-

1

ing, hot sockets, overheating, power surges, and burning of the meter can’s components—conditions that risk damaging a house’s electrical appliances or catching the house on fire. Honeywell’s technicians, however, did not inspect meter cans for defects or to make sure the Smart Meters would fit properly. Most of the technicians were not even licensed electricians trained to spot the warning signs of poor connectivity.

As Honeywell’s technicians installed the new Smart Meters, homeowners began having electrical problems that they didn’t experience with their old analog meters. Mozina, for instance, testified at her deposition that, since her Smart Meter was installed in 2013, several televisions, a fridge, an air conditioner, and “seven to ten” lightbulbs a year have all gone out. Her lights dim “at least a couple times a week,” too. Mozina suspects that the Smart Meter’s installation is causing these problems, but she has not called Florida Power and Light to report that suspicion. She “had called them before with some issues [about her] bill.” The “main” issue was that her electric bills were “high,” although her “bill always went up and down,” because Florida Power and Light “estimat[ed]” her usage based “on past bills” instead of checking her old meter for “an exact reading.”

1 “Arcing” occurs when an electrical current jumps across a gap between one connection and another.

4 Opinion of the Court 21-13752

Many malfunctioning Smart Meters have caused damage that requires “repairing or replacing the . . . meter enclosure and its components.” Florida Power and Light examined a sample of malfunctioning Smart Meters in 2013, and it found that seventy-eight percent of the meter cans required repair or replacement “to be in proper operating condition” again. Some homeowners have already hired inspectors and repairmen—all at their own expense. Mozina testified that she and her husband have “mentioned” having a licensed electrician inspect their meter “many times,” but they “just don’t have the money” for it. Her home hasn’t been inspected since she and her husband bought it in 1996.

Santiago and Mozina sued Honeywell on behalf of themselves and other Florida homeowners with Smart Meters. Their operative amended complaint alleged two counts: one for “negligence /products liability” and one for “gross negligence/products liability.” For relief, it requested an injunction requiring Honeywell “to remove—but not to replace—each [c]lass [m]ember’s Smart Meter,” use “a licensed electrician to adequately inspect [it] and the meter can” for damage, and give each class member photos and a report from the inspection. According to the amended complaint , “[t]here is simply no other way to alleviate [class members’] fear” of property damage “other than a proper inspection.”

Honeywell moved to dismiss the amended complaint for lack of standing and, alternatively, for failure to state a claim. It argued Santiago and Mozina did not suffer any Article III injury and, similarly, that they did not suffer “actual harm” as required for

21-13752 Opinion of the Court 5

their negligence claims. Santiago and Mozina responded they were injured and actually harmed in four ways: (1) Honeywell trespassed by entering and altering their property without their permission ; (2) Mozina’s Smart Meter was inaccurately inflating her bills; (3) the Smart Meters “exposed” Santiago and Mozina “to the cost [of] hiring an inspector to inspect the meter can for damage”; and (4) the Smart Meters’ improper installation caused ongoing property damage (like to Mozina’s appliances) and threatened future damage, diminishing property values.

After a hearing, the district court granted the motion to dismiss . First, as to standing, it treated Honeywell’s motion as a factual attack under Federal Rule of Civil Procedure 12(b)(1) because Honeywell relied on Mozina’s testimony during the hearing, and both plaintiffs “had the opportunity to respond” with their own evidence . It then concluded Santiago and Mozina had standing because there was a substantial risk the Smart Meters would damage their property. The district court rejected their other standing theories , though. It explained that: (1) the alleged trespass wasn’t sufficiently concrete; (2) Mozina’s inflated bills weren’t traceable to her Smart Meter because her testimony “clarified” that she received those bills before ever getting a Smart Meter; (3) neither Santiago nor Mozina had hired an inspector; and (4) the amended complaint didn’t allege that their properties diminished in value.

On the merits, the district court concluded the amended complaint failed to state either a negligence or gross negligence claim. Florida law required “some actual harm” to show

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6 Opinion of the Court 21-13752

negligence and gross negligence, and, the district court reasoned, the mere risk of future damage to Santiago and Mozina’s properties wasn’t enough. So, the district court dismissed the amended complaint with prejudice.

DISCUSSION

On appeal, Santiago and Mozina argue that the district court erred by dismissing their amended complaint for failing to state a claim. But before we can consider if Santiago and Mozina stated a claim, we must assure ourselves that one of them has standing to seek their requested injunctive relief. See Lewis v. Governor of Ala., 944 F.3d 1287, 1296 (11th Cir. 2019) (en banc) (“[S]tanding to sue implicates jurisdiction . . . .”); Wilding v. DNC Servs. Corp., 941 F.3d 1116, 1124–25 (11th Cir. 2019) (explaining that, in a putative class action like this one, at least one named plaintiff must have standing for each form of relief sought in the complaint). We conclude that

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neither Santiago nor Mozina have standing to seek that relief.

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