Tuso v. National Health Agents, LLC

District Court, E.D. California·Decided June 21, 2021·No. 2:20-cv-02130·Unknown

Opinion

RICHARD TUSO, on behalf of No. 2:20-cv-02130-JAM-CKD himself and others similarly situated, Plaintiff, ORDER GRANTING FCL AND SITA’S MOTION TO DISMISS AND DENYING IN v. PART AND GRANTING IN PART IBA AND NHA’S MOTION TO DISMISS NATIONAL HEALTH AGENTS,LLC, a Florida company, et al., Defendants. Plaintiff Richard Tuso brings this putative class action under the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227. First Amended Complaint (“FAC”) ¶ 7, ECF No. 36. Defendants are: National Health Agents, LLC (“NHA”) and Interstate Brokers of America, LLC (“IBA”), two Florida companies that place telemarketing calls selling the insurance services and supplemental health plans of other companies; Service Industry Trade Alliance (“SITA”), a membership-based organization that provides consumers with discounted health plans; and First Continental Life & Accident Insurance Company, Inc. (“FCL”), a provider of supplemental insurance products. Id. ¶¶ 2-5, 22, 31, 35. Plaintiff alleges that IBA and NHA place telemarketing calls on behalf of FCL and SITA. FAC ¶¶ 37,40. Before the Court are two Motions to Dismiss.1 Mot. to Dismiss by FCL and SITA (“FCL/SITA Mot.”), ECF No. 39; Mot. to Dismiss by IBA and NHA (“IBA/NHA Mot.”), ECF No. 40. Plaintiff opposed these motions. Opp’n by Tuso to FCL/SITA Mot. (“FCL/SITA Opp’n”), ECF No. 41; Opp’n by Tuso to IBA/NHA Mot. (“IBA/NHA Opp’n”), ECF No. 42. Defendants replied. Reply by FCL and SITA (“FCL/SITA Reply”), ECF No. 43; Reply by IBA and NHA (“IBA/NHA Reply”), ECF No. 44. After consideration of the parties’ briefing on the motions and relevant legal authority, the Court GRANTS FCL and SITA’s Motion to Dismiss and DENIES IN PART and GRANTS IN PART IBA and NHA’s Motion to Dismiss. The parties are familiar with the factual background of this case—it is set forth extensively in the amended complaint, the parties’ briefings, and the Court’s prior order. See Order, ECF No. 35. The Court also highlights material allegations throughout this decision. The Court therefore does not restate those allegations here. A. Legal Standard A Rule 12(b)(1) motion to dismiss tests whether a complaint alleges grounds for federal subject-matter jurisdiction. See

1 These motions were determined to be suitable for decision without oral argument. E.D. Cal. L.R. 230(g). The hearing was scheduled for May 18, 2021. Fed. R. Civ. P. 12(b)(1). Once a party has moved to dismiss for lack of subject-matter jurisdiction under Rule 12(b)(1), the opposing party bears the burden of establishing the court’s jurisdiction. See Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). A Rule 12(b)(6) motion challenges the complaint as not alleging sufficient facts to state a claim for relief. See Fed. R. Civ. P. 12(b)(6). “To survive a motion to dismiss [under 12(b)(6)], a complaint must contain sufficient factual matter, accepted as true, to state a claim for relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal quotation marks and citation omitted). While “detailed factual allegations” are unnecessary, the complaint must allege more than “[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements.” Id. In considering a motion to dismiss for failure to state a claim, the court generally accepts as true the allegations in the complaint, construes the pleading in the light most favorable to the party opposing the motion, and resolves all doubts in the pleader’s favor. Lazy Y Ranch LTD. v. Behrens, 546 F.3d 580, 588 (9th Cir. 2008). “In sum, for a complaint to survive a motion to dismiss, the non-conclusory ‘factual content,’ and reasonable inferences from that content, must be plausibly suggestive of a claim entitling the plaintiff to relief.” Moss v. U.S. Secret Serv., 572 F.3d 962, 969 (9th Cir. 2009). B. Analysis: FCL and SITA’s Motion In their Motion, Defendants FCL and SITA argue Plaintiff has not stated a plausible TCPA claim as to FCL and SITA because Plaintiff has failed to allege an agency relationship between FCL and SITA on the one hand and IBA and NHA on the other. FCL/SITA Mot. at 5-8. As an initial matter, it is undisputed that IBA and NHA, not FCL and SITA, actually placed the calls to Plaintiff now at issue. FCL/SITA Mot. at 3; FCL/SITA Opp’n at 4. Thus, Plaintiff is not asserting any direct liability claim against FCL and SITA; rather, he is alleging FCL and SITA are vicariously liable for IBA and NHA’s actions which he claims violated the TCPA. FCL/SITA Opp’n at 1, 4. “[A] defendant may be held vicariously liable for TCPA violations where the plaintiff establishes an agency relationship, as defined by federal common law, between the defendant and a third-party caller.” Gomez v. Campbell-Ewald Co., 768 F.3d 871, 879 (9th Cir. 2014); see also Henderson v. United Student Aid Funds, Inc., 918 F.3d 1068, 1072 (9th Cir. 2019). “Agency is the fiduciary relationship that arises when one person (a ‘principal’) manifests assent to another person (an ‘agent’) that the agent shall act on the principal’s behalf and subject to the principal’s control, and the agent manifests assent or otherwise consents so to act.” Henderson, 918 F.3d at 1073 (internal citation omitted). In determining whether an agency relationship exists, a key factor is the degree of control exercised by the principal over the agent: for an agency relationship to exist, the principal “must have a right to control the actions of the agent.” Naiman v. TranzVia LLC, No. 17-cv-4813-PJH, 2017 WL 5992123 at *6 (N.D. Cal. Dec. 4, 2017) (internal citations omitted). Additionally, “agency can be established expressly, via a showing of actual authority, or it can be inferred, by finding apparent authority or ratification.” Id. at *10 (internal citations omitted). Here, Plaintiff contends he has sufficiently alleged an agency relationship between FCL and SITA on the one hand and IBA and NHA on the other, under all three theories: actual authority, apparent authority, and ratification. FCL/SITA Opp’n at 4. 1. Actual Authority To state a plausible claim under a theory of actual authority, Plaintiff must allege facts showing that FCL and SITA had the right to control IBA and NHA and the manner and means of the calls IBA and NHA made. Naiman, 2017 WL 5992123 at *6 (internal citation omitted). FCL and SITA contend Plaintiff’s failure to allege either exercised control over IBA or NHA is fatal to their actual authority theory. FCL/SITA Mot. at 6-7; FCL/SITA Reply at 2-3. The Court agrees. Plaintiff has not alleged any facts indicating FCL or SITA directed, instructed, or commanded IBA or NHA to place the calls, let alone that either controlled the manner and means of the calls IBA and NHA placed. See FAC. All Plaintiff has alleged is that: (1) “SITA and First Continental rely on companies such as IBA and NHA to engage in telemarketing on their behalf in order to sell SITA memberships that also include First Continental plans” and (2) “SITA and First Continental all benefit financially from the health plans that are sold by telemarketers such as NHA and Interstate Brokers.” FAC ¶¶ 37, 40; see also FCL/SITA Opp’n at 5 (referring the Court to paragraph 37). From these bare conclusory allegations, the Court cann

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