Salaiz v. Ehealthinsurance Services, Inc.

District Court, N.D. California·Decided March 22, 2023·No. 5:22-cv-04835·Unknown

Opinion

ERIK SALAIZ, Case No. 22-cv-04835-BLF

Plaintiff, ORDER GRANTING MOTION TO v. DISMISS AND MOTION TO STRIKE CLASS ALLEGATIONS WITH LEAVE EHEALTHINSURANCE SERVICES, INC., TO AMEND AND DENYING MOTION TO STAY DISCOVERY Defendant. [Re: ECF Nos. 15, 16, 17] This is a putative class action brought by Plaintiff Erik Salaiz against Defendants eHealthInsurance Services, Inc. (“eHealth” or “Defendant”) and John Doe for allegedly making unlawful calls in violation of the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227(b), and California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200. Now before the Court are three motions: (1) Defendant’s motion to dismiss under Rule 12(b)(6), see ECF Nos. 15 (“MTD”), 23 (“MTD Reply”); (2) Defendant’s motion to strike class allegations, see ECF Nos. 16 (“MTS”), 25 (“MTS Reply”); and (3) Defendant’s motion to stay discovery, see ECF Nos. 17 (“MTSD”), 24 (“MTSD Reply”). Plaintiff opposes all three motions. See ECF Nos. 19 (“MTD Opp.”), 20 (“MTS Opp.”), 21 (“MTSD Opp.”). The Court held a hearing on the motions on March 16, 2023. See ECF No. 31. For the reasons discussed on the record and explained below, the Court GRANTS the motion to dismiss WITH LEAVE TO AMEND, it GRANTS the motion to strike class allegations WITH LEAVE TO AMEND, and it DENIES the motion to stay discovery. As alleged in the Complaint, eHealth is a company that sells Medicare insurance to Salaiz alleges that on December 20, 2021, at 1:42 p.m., he received a phone call from (515) 474-6906. Compl. ¶¶ 29-30. When he answered the phone, Salaiz “heard an artificial or prerecorded voice pretending to be a real person.” Id. ¶ 31. The voice said, “this is Medicare rewards, can you hear me OK? I’m with Medicare rewards and, press one to be removed, I just wanted to get in touch with you today to tell you that you may be paying too much for your Medicare insurance.” Id. ¶ 32. Salaiz alleges that he asked, “Where are you from?” and the voice continued, “One of our senior insurance professionals can look over your current plan and make sure you aren’t missing out on any savings.” Id. ¶ 33. A live agent then came on the phone and asked for “David,” which is the name of Salaiz’s father. Id. ¶ 34. The agent solicited Plaintiff for eHealth’s Medicare insurance services. Id. Salaiz never consented to receive calls from eHealth or John Doe. Id. ¶ 35. Plaintiff alleges that, to increase sales, eHealth hired John Doe to market the company and produce inbound calls. Compl. ¶ 24. John Doe allegedly amassed a list of thousands of phone numbers from unknown sources. Id. ¶ 25. And upon calling those numbers, John Doe would play an artificial or prerecorded voice message. Id. ¶ 27. Salaiz alleges that Defendants did not have consent from the called parties before making the calls. Id. ¶ 28. Plaintiff alleges that eHealth gave actual authority to John Doe to generate customers. Compl. ¶ 55. He alleges that “eHealth’s integration of robocalling into their sales process was so seamless that it appeared to outside parties like Plaintiff that John Doe was the telemarketing department of eHealth.” Id. ¶ 56; see also id. ¶ 64. And he further alleges that “eHealth acted in concert with John Doe and has been able to enjoy the benefits of mass robocalling.” Id. ¶ 57; see also id. ¶ 66 (“Defendant eHealth actively accepted business that originated through the illegal robocalls placed by John Doe.”). This lawsuit was filed on August 23, 2022. See Compl. The Complaint asserts two causes of action: (1) violation of the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227(b) and (2) violation of the unlawful prong of the California Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200. Id. ¶¶ 80-92. Plaintiff seeks to represent a class defined as follows: his or her cellular telephone; (4) that used an artificial or prerecorded voice; (5) for the purpose of selling Defendants’ products or services; (6) where Defendants did not have the recipient’s express written consent prior to placing the calls. Id. ¶ 72. A. Legal Standard “A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted ‘tests the legal sufficiency of a claim.’” Conservation Force v. Salazar, 646 F.3d 1240, 1241-42 (9th Cir. 2011) (quoting Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001)). When determining whether a claim has been stated, the Court accepts as true all well-pled factual allegations and construes them in the light most favorable to the plaintiff. Reese v. BP Expl. (Alaska) Inc., 643 F.3d 681, 690 (9th Cir. 2011). But the Court need not “accept as true allegations that contradict matters properly subject to judicial notice” or “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotation marks and citation omitted). While a complaint need not contain detailed factual allegations, it “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is facially plausible when it “allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. On a motion to dismiss, the Court’s review is limited to the face of the complaint and matters judicially noticeable. MGIC Indem. Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir. 1986); N. Star Int’l v. Ariz. Corp. Comm’n, 720 F.2d 578, 581 (9th Cir. 1983). B. Analysis The TCPA makes it “unlawful for any person within the United States . . . (A) to make any call (other than a call made for emergency purposes or made with the prior express consent of the called party) using any automatic telephone dialing system or an artificial or prerecorded voice . . . (iii) to any telephone number assigned to a . . . cellular telephone service.” 47 U.S.C. § initiate any telephone call to any residential telephone line using an artificial or prerecorded voice to deliver a message without the prior express consent of the called party.” 47 U.S.C. § 227(b)(1)(B). “For a person to ‘make’ a call under the TCPA, the person must either (1) directly make the call, or (2) have an agency relationship with the person who made the call.” Abante Rooter & Plumbing v. Farmers Grp., Inc., No. 17-cv-03315-PJH, 2018 WL 288055, at *4 (N.D. Cal. Jan. 4, 2018) (citing Gomez v. Campbell-Ewald Co., 768 F.3d 871, 877-79 (9th Cir.

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Salaiz v. Ehealthinsurance Services, Inc., (N.D. Cal. 2023).

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