Shefts v. Petrakis

931 F. Supp. 2d 916, 2013 WL 1087695, 2013 U.S. Dist. LEXIS 35091
CourtDistrict Court, C.D. Illinois
DecidedMarch 14, 2013
DocketCase No. 10-cv-1104
StatusPublished
Cited by8 cases

This text of 931 F. Supp. 2d 916 (Shefts v. Petrakis) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shefts v. Petrakis, 931 F. Supp. 2d 916, 2013 WL 1087695, 2013 U.S. Dist. LEXIS 35091 (C.D. Ill. 2013).

Opinion

ORDER & OPINION

JOE BILLY McDADE, Senior District Judge.

This matter is before the Court on Plaintiffs brief to proceed with the remaining claim within Count III of Plaintiffs First Amended Complaint under the Stored Communications Act (“SCA”). (Doc 270). Plaintiff originally claimed that Defendants violated the SCA by accessing his Access2Go email, his Blackberry text messages, and his Yahoo! email, but the Court already determined that Plaintiff could not recover for Defendants’ conduct as to the Access2Go email and Blackberry text messages. (Docs. 249 & 268). On February 20, 2013, the Court issued an Order resolving a number of questions relating to the calculation of damages for remaining claims, should liability be found. (Doc. 269). Because it appeared that [917]*917Plaintiff dropped the SCA claim regarding the Yahoo! email messages in his initial brief on damages, the Court did not address those damages in the previous Order. (Doc. 269; Doc. 261 at 8). Plaintiff has since notified the Court of his intent to pursue the Yahoo! SCA claim; thus, the Court will address the remaining question raised in Defendants’ brief on damages asking “whether, under the SCA, the fact that Plaintiff does not seek actual damages will prevent his recovery of statutory damages.” (Doe. 270; Doc. 263 at 5). As noted in the last Order, any assumptions made do not prejudice Defendants’ arguments against liability as the Court assumes that the jury will find in Plaintiffs favor for the purpose of analysis only.

I. Does the fact that Plaintiff does not seek actual damages under the SCA prevent his recovery of statutory damages?

In his brief responding to Defendants’ initial brief on damages, Plaintiff asserts that the SCA’s language permits him to recover statutory damages as an alternative to actual damages, and thus, that his decision not to seek actual damages does not prevent his recovery of statutory damages. (Doc. 264 at 2). The Court agrees with Plaintiffs position. Defendants’ argument relies heavily on Van Alstyne v. Electronic Scriptorium, Ltd., in which the Fourth Circuit held that “the plain language of [18 U.S.C.] § 2707(c) unambiguously requires proof of actual damages as a prerequisite to recovery of statutory damages.” 560 F.3d 199, 206 (4th Cir. 2009). The Van Alstyne court based this interpretation on a prior Supreme Court decision, in which the Supreme Court interpreted language in the Privacy Act that was “substantively identical” to § 2707(e) to limit a Plaintiffs recovery in this way. Id. at 204-06 (citing Doe v. Chao, 540 U.S. 614, 124 S.Ct. 1204, 157 L.Ed.2d 1122 (2004)).

As noted by the Southern District of New York in Pure Power Boot Camp, Inc. v. Warrior Fitness Boot Camp, LLC, though, there are arguments suggesting that this Supreme Court precedent should not control the interpretation of § 2707(c), as several other district courts have also concluded. 759 F.Supp.2d 417, 427 (S.D.N.Y.2010) (“Doe is dubious authority for the proposition that Section 2707(c) does not mean what it provides, recovery of ‘minimum statutory damages of $1,000’ ” (quoting Freedman v. Town of Fairfield, No. 3:03CV01048, 2006 WL 2684347, at *3 (D.Conn. Sept. 19, 2006))); In re Hawaiian Airlines, Inc., 355 B.R. 225, 230 (D.Haw.2006) (noting that the structures of the Privacy Act and the SCA are not similar enough for the former to be directly applicable to the latter); Cedar Hill Assocs., Inc. v. Paget, No. 04 C 0557, 2005 WL 3430562, at *2 (N.D.Ill. Dec. 9, 2005) (holding that 18 U.S.C. § 2701 et seq. does not require actual damages as a precursor to recovery).

First, the decision in Van Alstyne is not based on a Supreme Court interpretation of the SCA, but of the earlier Privacy Act. In the Doe case itself, the Supreme Court distinguished the SCA as irrelevant to the interpretation of the Privacy Act when it rejected the plaintiffs attempt to analogize the two in support of his argument that the Privacy Act authorized liquidated damages remedies similarly to the SCA. Doe, 540 U.S. at 626, 124 S.Ct. 1204. The Court refused to draw a connection between the two statutes, explicitly stating that “the trouble with Doe’s position is its reliance on the legislative histories of completely separate statutes passed well after the Privacy Act.” Id. The court in Van Alstyne, nonetheless, was not persuaded by this language, reasoning that “the Doe Court’s refusal to interpret a statute not before it does not carry the authoritative weight [plaintiff] would prescribe it.” Van Al[918]*918styne, 560 F.3d at 208. While this Court agrees that the Doe Court’s refusal to interpret the SCA does not conclusively determine that the SCA permits an award of statutory damages without proof of actual damages, there is also no language to conclusively determine the contrary. What can be extracted from the Court’s language in Doe is that the Court did not refute plaintiffs proposition that the SCA authorizes true liquidated damages remedies, and that despite similar constructions, the damages provision under the Privacy Act is decidedly distinct and not “substantively identical to § 2707(c).” Van Alstyne, 560 F.3d at 206. Simply put, Doe does not apply to the case at hand.

Thus, as no Supreme Court case pointedly decides the issue of statutory damages under the SCA and the only appellate case relies on an interpretation of a different statute, the Court shall assess the statutory construction, legislative history, and other district court decisions regarding § 2707(c) to support its conclusions.

a. Statutory Construction

The relevant portion of 18 U.S.C. § 2707(c) provides:

(c) Damages. — The court may assess as damages in a civil action under this section the sum of the actual damages suffered by the plaintiff and any profits made by the violator as a result of the violation, but in no case shall a person entitled to recover receive less than the sum of $1,000.

18 U.S.C. § 2707(c).

A plain reading of the statute seems to indicate that § 2707(c) provides a means of calculating damages allowing the court to assess the sum of actual damages and any profits, but in the absence of those variables, a person entitled to recovery can at least recover the statutory minimum. 18 U.S.C. § 2707(c). From a practical standpoint, this viewpoint bears logic as actual damages may often be very difficult to prove in SCA cases, when, for example, the SCA violation is an unauthorized access of email which results in no financial harm to the plaintiff. To contrast this provision with that which the Supreme Court analyzed in the Doe case, the relevant portion of 5 U.S.C. § 552a

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Cite This Page — Counsel Stack

Bluebook (online)
931 F. Supp. 2d 916, 2013 WL 1087695, 2013 U.S. Dist. LEXIS 35091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shefts-v-petrakis-ilcd-2013.