Knapke v. PeopleConnect Inc

CourtDistrict Court, W.D. Washington
DecidedAugust 10, 2021
Docket2:21-cv-00262
StatusUnknown

This text of Knapke v. PeopleConnect Inc (Knapke v. PeopleConnect Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knapke v. PeopleConnect Inc, (W.D. Wash. 2021).

Opinion

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5 6 7 UNITED STATES DISTRICT COURT 8 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 9 10 BARBARA KNAPKE, CASE NO. C21-262 MJP 11 Plaintiff, ORDER DENYING MOTION TO DISMISS 12 v. 13 PEOPLECONNECT INC, 14 Defendant. 15 16 This matter comes before the Court on the Defendant’s Motion to Dismiss. (Dkt. No. 13.) 17 Having reviewed the Motion, Plaintiff Barbara Knapke’s Opposition (Dkt. No. 18), the Reply 18 (Dkt. No. 19), the notices of supplemental authority (Dkt. Nos. 23, 24), and all supporting 19 materials, the Court DENIES the Motion. 20 BACKGROUND 21 PeopleConnect owns and operates Classmates.com, a website that offers visitors access 22 to Classmates’ digital records database that contains “information from school yearbooks, 23 including names, photographs, schools attended, and other biographical information.” 24 1 (Complaint ¶¶ 2-3.) (Note: the Court refers to Defendant as Classmates.) “Classmates provides 2 free access to some of the personal information in its database to drive users to purchase its two 3 paid products – reprinted yearbooks that retail for up to $99.95, and a monthly subscription to 4 Classmates.com that retails for approximately $3 per month – and to get page views from non-

5 paying users, from which Classmates profits by selling ad space on its website.” (Id. ¶ 2.) 6 Classmates allows internet visitors to search for their school from Classmates’ database for free, 7 which may return a result corresponding to a school of which Classmates sells their yearbook 8 services. (Id. ¶ 4-6.) The search results provide a free preview of the services and products with a 9 photo and name of an individual to entice the user to purchase Classmates’ services and 10 products. (Id. ¶¶ 6-8.) 11 Knapke alleges she “discovered that Classmates uses her name and photo in 12 advertisements on the Classmates website to advertise and/or actually sell Defendant’s products 13 and services.” (Compl. ¶ 20.) Knapke identified herself from the image and believes that others 14 could reasonably do so, as well. (Id. ¶ 21.) She has not consented to the use. (Id. ¶ 23.) Knapke is

15 not a customer of Classmates and has no relationship to Classmates. (Id. ¶ 24.) Knapke alleges 16 that her image and identity have commercial value to Classmates to sell its online services. (Id. ¶ 17 25.) Yet Knapke has not been compensated by Classmates for the use of her identity. (Id. ¶ 26.) 18 Knapke, a resident of Ohio, seeks to represent a class of similarly-situated Ohio residents who 19 have appeared in an advertisement preview on Classmates. (Id. ¶¶ 15, 27.) She pursues a single 20 claim under the Ohio Right of Publicity Law, Ohio Rev. Code Ann. § 2741.02 (West). 21 ANALYSIS 22 Classmates presents seven arguments in favor of dismissal, as follows: (A) Knapke 23 agreed to arbitrate her claim; (B) Knapke’s claim is barred by the Communications Decency Act;

24 1 (C) Knapke’s claim is preempted by the Copyright Act; (D) Knapke has not alleged a viable 2 claim under the Ohio Right of Publicity Law; (E) Knapke’s claims fall within an exemption 3 under the Ohio Right of Publicity law; (F) the First Amendment protects Classmates from 4 Knapke’s claims; and (G) the “dormant” Commerce Clause renders Knapke’s claims subject to

5 dismissal. The Court reviews these arguments, none of which convinces the Court dismissal is 6 proper. 7 A. Legal Standard 8 The Court may dismiss a complaint for “failure to state a claim upon which relief can be 9 granted.” Fed. R. Civ. P. 12(b)(6). “A complaint may fail to show a right of relief either by 10 lacking a cognizable legal theory or by lacking sufficient facts alleged under a cognizable legal 11 theory.” Woods v. U.S. Bank N.A., 831 F.3d 1159, 1162 (9th Cir. 2016). In ruling on a Rule 12 12(b)(6) motion, the Court must accept all material allegations as true and construe the complaint 13 in the light most favorable to the non-movant. Wyler Summit P’Ship v. Turner Broad. Sys., Inc., 14 135 F.3d 658, 661 (9th Cir. 1998). The complaint “must contain sufficient factual matter,

15 accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 16 U.S. 662, 678 (2009) (citing Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). 17 B. Arbitration 18 Classmates argues that while acting as Knapke’s agent, Knapke’s counsel assented to 19 Classmates’ terms of service which require arbitration of the present claims. This argument lacks 20 merit. 21 Though neither party provides adequate briefing on what state’s law should apply to 22 resolve this argument, the Court finds Ohio law applies. The Court so concludes because Knapke 23 resides in Ohio and Ohio law should apply to interpreting any attorney-client relationship that

24 1 she entered into from her domicile. Classmates suggests that Washington law applies because 2 that is the location of its headquarters. (Mot. at 2 n.2.) But Washington law only applies to 3 interpreting the terms of service, not the question of whether Knapke’s attorney was acting as her 4 agent when he assented to the terms of service.

5 Under Ohio law “for a principal to be bound by the acts of his agent under the theory of 6 apparent agency, evidence must affirmatively show: (1) [t]hat the principal held the agent out to 7 the public as possessing sufficient authority to embrace the particular act in question, or 8 knowingly permitted him to act as having such authority, and (2) that the person dealing with the 9 agent knew of the facts and acting in good faith had reason to believe and did believe that the 10 agent possessed the necessary authority.” Master Consol. Corp. v. BancOhio Natl. Bank, 61 11 Ohio St. 3d 570, 576, 575 N.E.2d 817, 822 (1991) (citation and quotation omitted). “The 12 apparent power of an agent is to be determined by the act of the principal and not by the acts of 13 the agent; a principal is responsible for the acts of an agent within his apparent authority only 14 where the principal himself by his acts or conduct has clothed the agent with the appearance of

15 the authority and not where the agent’s own conduct has created the apparent authority.” Id. at 16 576-77. 17 There is no evidence that Knapke gave her counsel any authority to bind her to 18 Classmates’ terms of service. Knapke alleges she has never used Classmates’ services and there 19 is no evidence she agreed to the terms of service. Nor is there any evidence that her counsel 20 acted at her direction. Knapke’s Opposition to the Motion states that Knapke did not discuss with 21 counsel creating an account on Classmates. (Opp. at 24 (Dkt. No. 18 at 30).) And Classmates has 22 failed to provide any evidence that Classmates viewed counsel’s creation of an account to have 23 been undertaken on Knapke’s behalf. As Knapke points out, the terms of service themselves

24 1 forbid the creation of accounts on the behalf of others. Moreover, as counsel notes, his use of the 2 Classmates account was done to satisfy his obligations to the Court under Rule 11 to ensure an 3 adequate investigation of the claim presented. In sum, Classmates has not carried its burden to 4 show counsel bound his client when he agreed to the terms of service.

5 This outcome finds support from a similar case brought against Classmates that rejected a 6 nearly identical argument under California law. See Callahan v. PeopleConnect, Inc., 2021 WL 7 1979161, at *6-*7 (N.D. Cal. May 18, 2021).

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Knapke v. PeopleConnect Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knapke-v-peopleconnect-inc-wawd-2021.