LaFleur v. Yardi Systems, Inc.

CourtDistrict Court, N.D. Ohio
DecidedFebruary 11, 2025
Docket1:24-cv-01262
StatusUnknown

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

Bluebook
LaFleur v. Yardi Systems, Inc., (N.D. Ohio 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO

Patricia LaFleur, et al., Case No. 1:24-cv-1262 individually and as the representatives of a class of similarly situated persons, JUDGE PAMELA A. BARKER Plaintiffs,

-vs- MEMORANDUM OPINION & ORDER Yardi Systems, Inc.,

Defendant.

Currently pending is the Motion to Dismiss of Defendant Yardi Systems, Inc. (“Defendant” or “Yardi”), filed on September 16, 2024 (“Defendant’s Motion”). (Doc. No. 10.) On October 16, 2024, Plaintiffs Patricia LaFleur and Michael Grose Sr. (individually, “LaFleur” and “Grose,” together, “Plaintiffs”) filed a Response to Defendant’s Motion (“Plaintiff’s Opposition”). (Doc. No. 13.) On November 6, 2024, Yardi filed a Reply in Support of Defendant’s Motion (“Defendant’s Reply”). (Doc. No. 15.) On January 22, 2025, Yardi filed a Notice of Supplemental Authority in Support of Defendant’s Motion (“Defendant’s Notice”), on January 27, 2025, Plaintiffs filed a Response to Defendant’s Notice (“Plaintiffs’ Response”), and on February 4, 2025, Yardi filed a Reply to Plaintiffs’ Response. (Doc. Nos. 16, 18 and 20.) For the following reasons, Defendant’s Motion is GRANTED. I. Background A. Plaintiffs’ Allegations In their Complaint, Plaintiffs set forth the following allegations. In 2010, Yardi acquired a web-based platform known as PropertyShark, a property research website that offers reports for commercial residential properties, including ownership details, property values, and sales history. (Doc. No. 1. at PageID # 5, ¶ 24.) Visitors to the PropertyShark website can “view detailed property reports, which include personal identifying information corresponding to the property, such as the property owner’s full name, the owner’s address, the property’s purchase date and price, and its property tax information[,]” which enables users to accurately identify an individual. (Id. at PageID # 2, ¶ 4.)

Yardi gathers the information necessary to generate and present property reports by aggregating data “from over 400 different sources,” both “public and proprietary” through a “dedicated data research team [that] makes sure the information it gathers is as accurate as it can be,” and Yardi obtains this information without the knowledge or consent of the individuals identified in the property reports. (Id. at PageID #s 5-6, ¶¶ 25-27; Id. at PageID # 9, ¶ 39.) 1. Accessing PropertyShark Property Reports A visitor to PropertyShark can access the ownership information contained in a property report in two ways. First, the visitor can search by property. Under this method, the visitor browses PropertyShark’s already-compiled list of properties “through utilizing the ‘Property Lists’ tab,” or searches for a property “by address, neighborhood, city, and/or zip code[.]” (Id. at PageID # 2, ¶ 5).

Once the visitor has selected a specific property for which the visitor wishes to view the property report (and thus, the ownership information contained therein), PropertyShark prompts the visitor to “unlock” the property report “by signing up for a free account.” (Id. at PageID # 6, ¶¶ 27-28.) After making the account, the visitor “can view one free report.” (Id. at PageID # 7, ¶ 31.) Alternatively, the visitor can search by owner. The visitor can “enter a person’s name along with their ‘City/County, State, Zip or Borough’ to view that person’s portfolio of current and

2 previously owned properties.” (Id. at PageID # 2, ¶ 6; Id. at PageID # 6, ¶ 29.) By selecting an individual owner’s name from the search results, the visitor can access the property reports associated with that owner. (Id. at PageID # 6, ¶ 29.) As with the first method, the visitor must “sign up for a free PropertyShark account” before the visitor can view a property report associated with that owner. (Id. at PageID # 7, ¶ 31.) In summary, to access a property report—either for a given property or a property report

associated with an individual owner—the visitor must first create a free PropertyShark account. (Id. at PageID # 2, ¶¶ 5-7; Id. at PageID # 7, ¶¶ 31-32.) 2. PropertyShark’s Commercialization of Property Reports Even after a visitor creates a free account, however, PropertyShark provides only one free property report. (Id. at PageID # 2, ¶ 7; Id. at PageID # 7, ¶¶ 33-34.) PropertyShark advertises to account-holding visitors the option to “either upgrade to a premium account or purchase individual [property] reports.” (Id. at PageID # 7, ¶ 33.) For “$49.95 per month or $499.95 per year,” PropertyShark markets to account-holding visitors a “‘Pro’ plan,” which allows subscribers to access 175 property reports per month. (Id. at PageID # 8, ¶¶ 35-36.) Otherwise, an account-holding visitor can access one (1) report for $4.95 each. (Id. at PageID # 8, ¶ 36.)

“[T]he free account and [property] report” that Yardi provides to each account-holding visitor “serve[s] as a preview of the [PropertyShark] platform’s features and the type of information available[.]” (Id.) That free account, according to Plaintiffs, is a “commercial strategy mainly aimed at enticing users to commit to a monthly or yearly subscription” and secondarily aimed at selling the individual property reports. (Id.) Plaintiffs allege that “the purpose of the free trial, along with access to the Plaintiffs’ and Class Members’ personas, is to advertise and entice prospective customers to

3 purchase either individual reports, or monthly or yearly subscriptions to PropertyShark.” (Id. at PageID # 9, ¶ 37.) Plaintiffs allege that “Plaintiffs’ and the Class Members’ Personas have intrinsic commercial value for the simple reason that they are used for advertising purposes and are a significant asset to the appeal of Yardi’s PropertyShark platform. Yardi would not have misappropriated them for advertising purposes if they did not have intrinsic commercial value.” (Id. at PageID # 9, ¶ 38.)

3. Patricia LaFleur and Michael Grose Sr. In May 2024, Plaintiffs1 “discovered that [their] persona[s] w[ere] accessible through PropertyShark” in that a piece of property LaFleur owns in Ohio and a piece of property Grose owns in Ohio are each listed in one of PropertyShark’s property reports. (Id. at PageID # 9, ¶ 40; Id. at PageID # 11, ¶ 51.) Consequently, “potential customers” are “able to view [and] have viewed information on” LaFleur and Grose by using free PropertyShark accounts. (Id. at PageID # 9, ¶ 41; Id. at PageID # 11, ¶ 52.) Plaintiffs did not consent to let Yardi “use [their] persona[s] for its PropertyShark platform[,]” and Yardi “did not obtain prior written permission to use [their] name[s] and other identifying information to advertise paid subscriptions for PropertyShark or the purchase of other individual property reports on the platform.” (Id. at PageID #10, ¶¶ 44-46; Id. at PageID #

12, ¶¶ 55-57.) They allege, upon information and belief, that “PropertyShark compiled [their] information from various sources of information, including public records” and that “Yardi did not obtain written permission from any sources from which it compiled [their] personal identifying

1 The factual allegations in the Complaint for LaFleur and Grose are identical, (compare Doc. No. 1 at PageID #s 9-11, ¶¶ 40-50 with id. at PageID #s 11-13, ¶¶ 51-61), except that the Complaint contains a typo by referring to “Shephard” in Paragraph 49 where Plaintiffs apparently meant to refer to LaFleur. (Id. at PageID #11, ¶ 49.)

4 information for its PropertyShark platform.” (Id. at PageID #10, ¶¶ 45, 46; Id. at PageID # 12, ¶¶ 56, 57.) According to Plaintiffs, “[p]otential customers availing themselves of Yardi’s PropertyShark platform are able to view and, on information and belief, have viewed information on [Plaintiffs] using their free account.” (Id. at PageID #9, ¶ 41; Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ashwander v. Tennessee Valley Authority
297 U.S. 288 (Supreme Court, 1936)
Fidelity Union Trust Co. v. Field
311 U.S. 169 (Supreme Court, 1941)
Escambia County v. McMillan
466 U.S. 48 (Supreme Court, 1984)
Papasan v. Allain
478 U.S. 265 (Supreme Court, 1986)
Salve Regina College v. Russell
499 U.S. 225 (Supreme Court, 1991)
Sosa v. Alvarez-Machain
542 U.S. 692 (Supreme Court, 2004)
Erickson v. Pardus
551 U.S. 89 (Supreme Court, 2007)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Wankier v. Crown Equipment Corp.
353 F.3d 862 (Tenth Circuit, 2003)
Hudson Savings Bank v. United States
479 F.3d 102 (First Circuit, 2007)
Etw Corporation v. Jireh Publishing, Inc.
332 F.3d 915 (Sixth Circuit, 2003)
Rutherford v. Columbia Gas
575 F.3d 616 (Sixth Circuit, 2009)
Bassett v. National Collegiate Athletic Ass'n
528 F.3d 426 (Sixth Circuit, 2008)
Lacey v. Cessna Aircraft Co.
674 F. Supp. 10 (W.D. Pennsylvania, 1987)
Cheatham v. Paisano Publications, Inc.
891 F. Supp. 381 (W.D. Kentucky, 1995)
Reeves v. Fox Television Network
983 F. Supp. 703 (N.D. Ohio, 1997)
Perlberger v. Perlberger
32 F. Supp. 2d 197 (E.D. Pennsylvania, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
LaFleur v. Yardi Systems, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafleur-v-yardi-systems-inc-ohnd-2025.