TCPA v. Young

CourtColorado Court of Appeals
DecidedSeptember 19, 2024
Docket23CA0891
StatusUnknown

This text of TCPA v. Young (TCPA v. Young) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TCPA v. Young, (Colo. Ct. App. 2024).

Opinion

23CA0891 TCPA v Young 09-19-2024

COLORADO COURT OF APPEALS

Court of Appeals No. 23CA0891 El Paso County District Court No. 21CV31668 Honorable William B. Bain, Judge

TCPA Litigator List,

Plaintiff-Appellant,

v.

Adam Young; Tubmanburg Limited, a Bahamas corporation a/k/a Ringba; and Ringba, LLC, a Delaware limited liability company,

Defendants-Appellees.

JUDGMENT AFFIRMED

Division II Opinion by JUDGE JOHNSON Fox and Schock, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced September 19, 2024

Allen Vellone Wolf Helfrich & Factor P.C., Patrick D. Vellone, Matthew M. Wolf, Vandana S. Koelsch, Jordan Factor, Denver, Colorado, for Plaintiff-Appellant

Lewis Roca Rothgerber Christie LLP, Kendra N. Beckwith, Caitlin C. McHugh, Denver, Colorado, for Defendants-Appellees ¶1 Plaintiff, TCPA Litigator List (plaintiff or the company), appeals

the district court’s order granting summary judgment in favor of

defendants, Adam Young (Young); Tubmanburg Limited, a/k/a

Ringba (Tubmanburg); and Ringba, LLC (collectively Ringba or

defendants). Plaintiff also appeals the court’s two sanctions orders.

We affirm.

I. Background

¶2 Michael O’Hare (O’Hare) created the plaintiff company in

March 2019. Plaintiff’s business model compiles and tracks

telephone numbers of individuals who are likely to file lawsuits

under the Telephone Consumer Protection Act (the Act). The

company has a subscription service that allows subscribers to

scrub their telephone lists by removing those names who, if called

by the subscriber, may initiate a lawsuit.

¶3 Young founded and is the current CEO of Ringba.

Tubmanburg was Ringba’s owner until January 1, 2021. Ringba is

an inbound call tracking service. In October 2019, Ringba began to

contemplate incorporating a scrubbing service that also included

names of those who might file a lawsuit under the Act. The product

1 would be an ancillary service to other analytic and tracking services

Ringba already provided. To accomplish this, Ringba investigated

the possibility of outsourcing this service, creating its own software,

or purchasing an existing organization dedicated to this service. In

April 2020, Ringba was actively researching its options including

hiring a third-party consultant to develop a research strategy to

compile information.

¶4 As part of its research, Young purchased a subscription with

plaintiff on April 5, 2020 and downloaded the company’s Litigator

List (List). Five days later, an agent of Young’s contacted plaintiff to

discuss a possible acquisition of the company. Plaintiff and

Tubmanburg, Ringba’s owner at the time, signed a mutual

nondisclosure agreement (NDA) related to the discussions on April

10, 2020. Neither Young nor Ringba were signatories to the NDA.

After the discussions, Ringba offered to purchase the company for

$70,000. Plaintiff rejected the offer and there were no further

negotiations.

¶5 In July 2020, Ringba launched its own scrubbing service

called TCPA Shield that incorporated many of the names from

2 plaintiff’s List. After O’Hare found out about TCPA Shield, plaintiff

filed this lawsuit in October 2021. The company alleged that

Ringba manipulated the company’s website by changing the date

range to enable Young to download the complete List and use the

“private information and proprietary listings” for Ringba’s own

product in violation of the company’s terms and conditions.

¶6 Plaintiff asserted five claims for relief, with all except one

asserted against all defendants: (1) breach of contract (against

Tubmanburg); (2) unjust enrichment; (3) fraud; (4) civil conspiracy;

and (5) violation of the Colorado Uniform Trade Secrets Act.

¶7 Throughout the litigation, the parties had numerous discovery

disputes. Plaintiff retained Jason Frankovitz (Frankovitz) as a

computer programmer and software expert. Frankovitz opined in a

sworn declaration that Young downloaded the complete List by

bypassing the website interface “through direct manipulation of the

parameters in the URL” because the web application had a date

restriction feature.

¶8 Ringba filed a motion for summary judgment on all claims.

On May 8, 2023, the district court granted partial summary

3 judgment in favor of Ringba on all claims except the trade secrets

claim, concluding that “there is just enough evidence for a jury to

conclude that the list was a trade secret.”

¶9 Before and after the court granted summary judgment, there

were more discovery disputes. Most of them involved Ringba’s

repeated efforts to obtain plaintiff’s source code for the website as it

existed on April 5, 2020, when Young downloaded the List. To that

end, Ringba filed two motions to compel and two motions for

sanctions, including the sanctions motion terminating the case.

The court granted the motions following hearings that revealed (1) a

person could download the complete List from plaintiff’s website

without any manipulation of a date range restriction; (2) a person

could download the List from plaintiff’s website without having to

agree to the company’s terms and conditions; (3) plaintiff withheld

documents that showed that Young had “permission” to download

the List; and (4) plaintiff possessed substantial portions of this

information throughout litigation. As a result, the district court

terminated the case.

4 ¶ 10 Plaintiff appeals contending that the district court (1) abused

its discretion by prohibiting Frankovitz from testifying and

terminating the action as a sanction and (2) erred by granting

summary judgment on its claims for breach of contract and fraud.1

II. Sanctions

¶ 11 Plaintiff asserted two theories for its claims. Both parties

retained experts who opined on the manipulation of website theory

and agreement to the terms and conditions theory. As discussed

above, plaintiff disclosed Frankovitz and defendants retained Dr.

Mark Gianturco (Gianturco). Both experts were deposed and both

were expected to testify at trial.

¶ 12 Plaintiff contends that the district court abused its discretion

when it terminated the action for belated discovery productions that

were timely, cumulative of other evidence, and made available to

and declined inspection by Ringba. We disagree.

1 Plaintiff appeals the summary judgment order on the breach of

contract and fraud claims. Because plaintiff does not reassert the other claims on appeal, we deem them abandoned. See People v. Osorio, 170 P.3d 796, 801 (Colo. App. 2007). 5 A. Standard of Review and Applicable Law

¶ 13 We review a district court’s imposition of sanctions under

C.R.C.P. 37 for an abuse of discretion. Pinkstaff v. Black & Decker

(U.S.) Inc., 211 P.3d 698, 702 (Colo. 2009). A district court “abuses

its discretion if its decision is manifestly arbitrary, unreasonable, or

unfair,” id., or a misapplication of the law, Freedom Colo. Info., Inc.

v. El Paso Cnty. Sheriff’s Dep’t, 196 P.3d 892, 899 (Colo. 2008).

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