Susan Drazen v. Mr. Juan Pinto

74 F.4th 1336
Court of Appeals for the Eleventh Circuit·Decided July 24, 2023·No. 21-10199·Published·Cited by 28 cases

Opinion

[PUBLISH]

In the

United States Court of Appeals For the Eleventh Circuit

No. 21-10199

SUSAN DRAZEN, on behalf of herself and other persons similarly situated, Plaintiff-Appellee,

Godaddy.com, LLC, a Delaware Limited Liability Company, Defendant-Appellee,

versus MR. JUAN ENRIQUE PINTO,

Movant-Appellant.

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Appeal from the United States District Court for the Southern District of Alabama D.C. Docket No. 1:19-cv-00563-KD-B

Before WILLIAM PRYOR, Chief Judge, WILSON, JORDAN, ROSENBAUM, JILL PRYOR, NEWSOM, BRANCH, GRANT, LUCK, BRASHER, ABUDU and TJOFLAT, Circuit Judges. ∗ ROSENBAUM, Circuit Judge, delivered the opinion for the unanimous Court. JORDAN, Circuit Judge, and NEWSOM, Circuit Judge, filed a concurring opinion. BRANCH, Circuit Judge, filed a concurring opinion. ROSENBAUM, Circuit Judge:

A case is not a “Case[]” (or a “Controvers[y]) if the plaintiff lacks standing. And we can’t hear matters that aren’t “Cases” or “Controversies.” Under Article III of the Constitution, we lack jurisdiction over them.

So to evaluate our jurisdiction, today’s case requires us to determine whether a person who receives an unwanted, automated telemarketing text message has standing to sue the sender. To establish standing, a plaintiff must show that she has suffered an

∗ Senior Circuit Judge Tjoflat elected to participate in this decision, pursuant to 28 U.S.C. § 46(c). Judge Lagoa did not participate in this decision, as she is recused.

21-10199 Opinion of the Court 3

injury in fact, which the defendant likely caused and which a favorable decision can likely redress. This case zooms in on standing’s injury-in-fact component—a requirement that demands, among other things, that a plaintiff’s injury be concrete. The concreteness requirement ensures that the plaintiff has a real stake in the litigation . Only when a plaintiff has that concrete stake in the lawsuit can she bring her claim in federal court.

Obvious concrete harms include physical injury and financial loss. But intangible harms—an invasion of privacy, for example —may also satisfy the concreteness requirement. Because Congress is well-suited to identify such harms, we find Congress’s judgment instructive when it creates a cause of action for an intangible harm. But Congress’s judgment is not necessarily dispositive. Once Congress identifies a harm by enacting a statute with a cause of action to redress that harm, we consider whether the statutory harm shares a “close relationship” with a harm that has traditionally provided a basis for a lawsuit in English or American courts. If it does, then the plaintiff’s alleged intangible harm satisfies standing ’s concreteness requirement.

The question at the core of this appeal is whether the plaintiffs who received a single unwanted, illegal telemarketing text message suffered a concrete injury. To answer that question, we consider whether the harm from receiving such a text message shares a close relationship with a traditional harm. The plaintiffs contend that it does—namely, with the harm that underlies a

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lawsuit for the common-law claim of intrusion upon seclusion. We agree.

Both harms reflect an intrusion into the peace and quiet in a realm that is private and personal. A plaintiff who receives an unwanted , illegal text message suffers a concrete injury. Because Drazen has endured a concrete injury, we remand this matter to the panel to consider the rest of the appeal.

I.

A. District Court Proceedings In August 2019, Suzan Drazen filed a class action against Go-

Daddy. The putative class alleged that the web-hosting company embarked on an unlawful telemarketing campaign. According to the complaint, for about two years, between November 2014 and December 2016, GoDaddy used a prohibited automatic telephone dialing system1 (“ATDS”) “to make promotional calls and text messages attempting to sell additional or more expensive services and products and/or to contact individuals who are no longer customers .” In other words, the complaint asserted that GoDaddy violated the Telephone Consumer Protection Act of 1991 (“TCPA”). See 47 U.S.C. § 227(b)(1)(A)(iii).

1An “automatic telephone dialing system” refers to equipment with the capacity “to store or produce telephone numbers to be called, using a random or sequential number generator;” and the capacity “to dial such numbers.”47 U.S.C. § 227(a)(1).

21-10199 Opinion of the Court 5

Meanwhile, Jason Bennett was litigating the same claim in the District of Arizona. See Bennett v. GoDaddy.Com, LLC, Case No. 2:16-cv-03908 (D. Ariz. 2016). And John Herrick filed a third case in the District of Arizona. See Herrick v. GoDaddy.com, LLC, Case No. 2:16-cv-00254 (D. Ariz. 2016).

The district court in Drazen’s case eventually consolidated her case with Bennett’s. And after Drazen and Bennett eventually reached a settlement agreement with GoDaddy, Herrick’s case was “incorporated into and resolved by” the same settlement agreement .

Then, in January 2020, Drazen filed an unopposed motion for preliminary approval of that agreement. The settlement agreement defined the class to include “all persons within the United States who received a call or text message to his or her cellular phone from” GoDaddy between November 2014 and December 2016.

In response to this motion, the district court issued a sua sponte order “to examine its own jurisdiction.” In that order, the court cited our decision in Salcedo v. Hanna, 936 F.3d 1162 (11th Cir. 2019), which held that the “receipt of a single text message” is not a concrete injury. Id. at 1172. Because the parties’ settlement de- fined the class to include people who received only one text message , the district court ordered the parties to brief “how this case is distinguishable from Salcedo v. Hanna.”

In their briefing, the parties proposed the following class definition , subject to certain exclusions that are not relevant here:

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All persons within the United States to whom, from November 4, 2014[,] through December 31, 2016, Defendant placed a voice or text message call to their cellular telephone pursuant to an outbound campaign facilitated by the web-based software application used by 3Seventy, Inc., or the software programs and platforms that comprise the Cisco Unified Communications Manager.

GoDaddy determined that this “proposed settlement class includes approximately 1.26 million individuals.” And according to Go- Daddy, of that group, about 7% received only one text message. The balance of the class received either one phone call or some combination of phone calls and text messages. As for the remedy for class members, the proposed settlement agreement offered “the choice between a $150 Voucher or a $35 cash award.”

Upon considering the parties’ briefing, the district court concluded that only the named plaintiffs must have standing. And because Herrick received only one text, the district court determined, based on Salcedo, that he was disqualified from being a named plaintiff. As for the roughly 91,000 other class members who also received only one text and therefore lacked a viable claim in this Circuit under Salcedo, the district court noted that “this is a nationwide settlement” and opined that those class members “do have a viable claim in their respective Circuit.” For that reason, the district court reasoned that GoDaddy could “settle those claims in this class action” even though those litigants’ claims were “meritless” in

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this Circuit. 2 And if the parties agreed to remove Herrick as a class representative, the district court said, it would approve the proposed settlement agreement.

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Susan Drazen v. Mr. Juan Pinto, 74 F.4th 1336 (11th Cir. 2023).

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