Parker v. Time Warner Entertainment Co., L.P.

198 F.R.D. 374, 2001 U.S. Dist. LEXIS 96, 2001 WL 28490
CourtDistrict Court, E.D. New York
DecidedJanuary 9, 2001
DocketNo. 98 CV 4265(ILG)
StatusPublished
Cited by14 cases

This text of 198 F.R.D. 374 (Parker v. Time Warner Entertainment Co., L.P.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parker v. Time Warner Entertainment Co., L.P., 198 F.R.D. 374, 2001 U.S. Dist. LEXIS 96, 2001 WL 28490 (E.D.N.Y. 2001).

Opinion

MEMORANDUM & ORDER

GLASSER, District Judge.

Before the court are plaintiffs’ objections to Magistrate Judge Azracks’ recommenda[376]*376tion that class certification under 28(b)(3) be denied and that certification under 23(b)(2) be limited to plaintiffs’ declaratory and injunctive claims under the subscriber policy provisions of the Cable Communications Policy Act of 1984. For the reasons that follow and after careful consideration of her Report & Recommendation (“R & R”), Magistrate Judge Azrack’s recommendations are adopted and the plaintiffs’ objections are denied.

Background

Plaintiffs Andrew Parker and Eric De-Brauwere are cable television subscribers who receive their cable service from defendant Time Warner Cable, a division of defendant Time Warner Entertainment Co. Plaintiffs allege that defendants violated the subscriber privacy provisions of the Cable Communications Policy Act of 1984 (“Cable Act”), 47 U.S.C. §§ 521 et seq., as well as a host of state consumer protection laws, by disclosing and selling personally identifiable information about its subscribers to third parties and by failing to provide subscribers with clear and conspicuous notice of its disclosure of such information. Plaintiffs’ Amended Complaint seeks redress for the alleged Cable Act violations in the form of monetary relief (statutorily mandated individual damages and actual damages resulting from defendant’s unjust enrichment) and injunctive relief (a declaratory judgment and an injunction restraining defendants from further Cable Act violations).

In an Amended Memorandum & Order entered on November 8, 1999, Judge Korman of this Court, reversing his prior decision, denied defendants’ motion to dismiss the Amended Complaint on the ground that it failed to state a cause of action under the Cable Act. Judge Korman found that the Amended Complaint stated a claim in alleging that Time Warner (i) failed adequately to notify subscribers that it was selling information gathered from third party sources along with information it collected directly from subscribers, 1999 WL 1132463 at *5 (E.D.N.Y.1999), and (ii) improperly disclosed subscribers’ programming selections without first providing a valid opt-out. Id. at *11. Prior to the issuance of the Amended Memorandum & Order. Time Warner revised its privacy notice by including, for example, a warning that personally identifiable information may be combined with information obtained directly from a subscriber and disclosed for marketing purposes and that programming selections similarly may be disclosed unless a subscriber indicates that he wishes to opt out.

Plaintiffs have not yet moved for class certification, as this court stayed them from filing a class certification motion pending resolution of defendant’s motion to deny certification, but indicate in their complaint that they will pursue certification pursuant to Rules 23(b)(2) and (3) for a plaintiff class of approximately 12 million cable subscribers in 23 states whose privacy interests allegedly were violated by defendants’ disclosure and sale of subscriber information. (Pls.’ Amended Class Action Complaint, UH 32-37) Defendants argue that certification should be denied as a matter of law under both subdivisions. No discovery has been conducted concerning the purported class, and plaintiffs accordingly contend that defendants’ motion for denial of certification should be viewed as a premature motion to dismiss under Rule 12(b)(6) and that defendants carry the burden of proving why a class action is not warranted.

Before a plaintiff moves for class certification, a defendant may “test the propriety of the action” by a motion for denial of class certification. Brown v. Milwaukee Spring Co., 82 F.R.D. 103, 104 (E.D.Wis. 1979) (denying certification on defendants’ motion). Even where defendant moves for denial of class certification before plaintiff has sought certification, the burden of establishing the propriety of a class action remains with the plaintiff. See id.; see also Cook Co. College Teachers Union v. Byrd, 456 F.2d 882 (7th Cir.), cert. denied, 409 U.S. 848, 93 S.Ct. 56, 34 L.Ed.2d 90 (1972) (same); Campbell v. A.C. Petersen Farms, 69 F.R.D. 457 (D.Conn.1975) (same). In order to maintain a class action, Rule 23, Fed.R.Civ.P., requires a movant to satisfy all four requirements of Rule 23(a)- — numerosity, commonality, typicality, and fair and adequate protection of the class by the repre[377]*377sentative plaintiffs — and to qualify under one of the three subdivisions of 23(b). Fed. R.Civ.P. 23; Newberg & Conte, Newberg on Class Actions, § 3.01, at 3-7 (3d ed.1992). Subdivision 23(b)(2) provides for class litigation where a defendant has acted on grounds generally applicable to the class, thereby making injunctive or declaratory relief appropriate for the class. Subdivision 23(b)(3) provides for class litigation where the court, upon closely examining the case, determines that common issues of law or fact dominate over individual issues, and that a class action would be a superior means of adjudicating the controversy. If a class is certified pursuant to Rule 23(b)(3), strict notice and opt out requirements will apply which are not mandated for the other subdivisions of Rule 23.

In an R & R issued on October 2, 2000, Magistrate Judge Azrack recommended that the court grant in part defendants’ motion to deny certification as a matter of law under both Rules 23(b)(2) and (3). The Magistrate Judge presumed that plaintiffs could satisfy the requirements of Rule 23(a), but concluded that certification of plaintiffs’ damages claim under 23(b)(2) should be denied as a matter of law because plaintiffs’ request for monetary relief predominates. (R & R, 10-11) The Magistrate rested her predominance determination on two pillars: first, plaintiffs’ own argument that, without injunctive relief, defendant would be “immunized” from liability, and second, that plaintiffs were seeking a “significant” sum of money in connection with the alleged Cable Act violations. As for plaintiffs’ efforts to obtain injunctive and declaratory relief, however, the Magistrate recommended that 23(b)(2) certification was appropriate pursuant to 23(c)(4), which permits a district court to limit the issues as to which certification is granted. (R & R, 13-14) With respect to plaintiffs’ efforts to obtain certification under Rule 23(b)(3), Magistrate Judge Azrack found that plaintiffs failed to demonstrate the superiority of a class action over individual actions and, accordingly, recommended that certification be denied. (R & R, 14-16) Finally, in view of her determinations with respect to the purported class action, the Magistrate recommended that the court decline to exercise supplemental jurisdiction over plaintiffs’ state law claims.

Class certification under 23(b)(2)

Certification under 23(b)(2) is only appropriate for class actions where the relief sought is exclusively or predominantly declaratory or injunctive. Rules Advisory Committee Notes to 1966 Amendments to Rule 23 (reprinted at 39 F.R.D. 69, 102 (1966)). The issue of whether injunctive relief predominates is committed to the discretion of the district court, presumably because reasonable courts can and do reach opposite results on similar facts. Newberg, § 4.14, at 4-49.

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Bluebook (online)
198 F.R.D. 374, 2001 U.S. Dist. LEXIS 96, 2001 WL 28490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-v-time-warner-entertainment-co-lp-nyed-2001.