`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`SAN JOSE DIVISION
`
`LINDA BRADLEY, et al.,
`
`Plaintiffs,
`
`v.
`
`T-MOBILE US, INC., et al.,
`
`Case No. 17-cv-07232-BLF
`
`
`ORDER GRANTING MOTION TO
`DISMISS FOURTH AMENDED CLASS
`AND COLLECTIVE ACTION
`COMPLAINT
`
`Defendants.
`
`[Re: ECF 143, 165]
`
`
`
`
`
`
`
`
`
`
`
`This is a case about employment discrimination in “the Cyber Age,” S. Dakota v. Wayfair,
`
`Inc., 138 S. Ct. 2080, 2097 (2018). It has often been said that the Internet has wrought “far-
`
`reaching systemic and structural changes in the economy.” Id. One of these changes is the ability
`
`for companies like Facebook to collect enormous amounts of data about people through their
`
`social media activity and online behavior more generally. These companies have harnessed that
`
`information in many ways, including crafting so-called “targeted ads.” Targeted ads are
`
`personalized to the user, featuring the products, services, and opportunities of greatest interest to
`
`that user. In theory, both advertisers and users benefit: Advertisers can spend their marketing
`
`dollars more efficiently, and users see more interesting content. In Plaintiffs’ view, however, this
`
`kind of targeting can also be used in insidious ways—namely, to deny access to information to
`
`certain groups of people and thereby advance discriminatory aims. Specifically, the plaintiffs in
`
`this case believe that Defendants T-Mobile US, Inc. (“T-Mobile”) and Amazon.com, Inc.
`
`(“Amazon”) routinely exclude older individuals from viewing the employment ads they post on
`
`Facebook. In an effort to stop that practice, Plaintiffs have brought this putative class action
`
`alleging violations of various federal and state laws.
`
`Defendants move to dismiss the Fourth Amended Complaint (“4AC”) on multiple grounds,
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 2 of 32
`
`
`
`including lack of Article III standing, lack of personal jurisdiction, and failure to state a claim
`
`upon which relief may be granted. As set forth below, the Court holds that the 4AC does not
`
`currently contain the allegations necessary to establish standing or personal jurisdiction, but that
`
`Plaintiffs have adequately justified their narrow request for jurisdictional discovery. Accordingly,
`
`the Court GRANTS the motion to dismiss with LEAVE TO AMEND and GRANTS the request
`
`for jurisdictional discovery.
`
`I. BACKGROUND
`
`The following facts are drawn from the 4AC, which the Court must treat as true at the
`
`pleading stage, Maya v. Centex Corp., 658 F.3d 1060, 1068 (9th Cir. 2011).
`
`A. Defendants’ Alleged Conduct
`
`The defendants in this case are T-Mobile US, Inc. (“T-Mobile”) and Amazon.com, Inc.
`
`(“Amazon”). These two major U.S. companies need little introduction. T-Mobile is one of the
`
`largest wireless companies in the United States”; it provides “wireless communications services
`
`including voice, messaging and data, to more than 71 million customers” and, as of December
`
`2016, employs “approximately 50,000 full-time and part-time employees.” 4AC ¶ 39. Amazon is
`
`“one of the largest online retailers in the world.” Id. ¶ 40. Headquartered in Seattle, Washington,
`
`it “employed 341,400 full-time and part-time employees as of December 31, 2016.” Id.
`
`This suit concerns Defendants’ methods of recruiting prospective employees, which
`
`Plaintiffs believe discriminate against older workers. In particular, both Defendants allegedly use
`
`Facebook’s ad platform to advertise employment opportunities at their various stores and
`
`operations. 4AC ¶¶ 39-40. According to Plaintiffs, “Facebook has emerged as one of the largest
`
`venues for employers to seek applicants for employment and for workers to find job
`
`opportunities.” Id. ¶ 46. As “the most popular social media platform in the world,” id. ¶ 41,
`
`Facebook collects a vast amount of information about its users, id. ¶ 44. Facebook then gives its
`
`advertisers “the power to use that information to determine which Facebook users will be included
`
`or excluded in the population that will receive their ads.” Id. Facebook promotes such targeted
`
`advertising to employers as helping them to “minimize the cost of reaching people who are
`
`interested in news jobs and maximize the number of people who respond to employment ads.” Id.
`
`2
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 3 of 32
`
`
`
`¶ 45. Factors that advertisers can use to target ads include “age, gender, location, interests, and
`
`behaviours.” Id.
`
`Defendants are alleged to have used Facebook’s ad targeting functionality to recruit
`
`younger workers and not older workers. They did this by imposing a “ceiling on the age of people
`
`who will receive their job advertisements.” 4AC ¶ 82. Plaintiffs summarize the basic practice at
`
`issue as follows:
`
`When an employer or an employment agency creates, purchases, and
`sends a Facebook ad to make workers aware of job opportunities and
`encourage them to apply for various jobs, Facebook requires the
`employers or employment agencies to select the population of
`Facebook users who will be eligible to receive the ad, including the
`age range of the users who will receive the ad. Following Facebook’s
`encouragement to narrowly focus ad campaigns on the “right people,”
`including by targeting younger people, upon information and belief,
`Defendants have routinely focused their Facebook employment ads
`on users who are under 40-years-old (and sometimes on users who
`are under higher age thresholds). This prevents workers who are
`above the selected age threshold from receiving employment ads and
`pursuing relevant job opportunities.
`
`Id. ¶ 17. Plaintiffs further allege that “[t]he default age setting for ads is 18 to 65+, which means
`
`that anyone who is 18-years-old or older would receive the ad.” Id. ¶ 63. As a result, Plaintiffs
`
`say, “any employer or employment agency that selects a narrower and younger age range (such as
`
`ages 18 to 40) is consciously and purposefully choosing to target younger prospective applicants
`
`and thereby excluding older applicants who will not receive the ad.” Id.
`
`Defendants’ employment ads—and Facebook employment ads in general—are not
`
`typically for individual job opportunities; rather, they “direct the Facebook user to [the
`
`advertiser’s] ‘Careers’ or company Facebook pages, in addition to a page on the company’s
`
`website page that has information about a range of job opportunities throughout the company.”
`
`4AC ¶ 49. Thus, the prospective applicant can view “all available positions for which she or he
`
`could apply and encourages prospective employees to apply for such positions.” Id.
`
`Also relevant to this case is a function called “Why am I seeing this.” When a Facebook
`
`user sees an ad, he or she can click on the “Why am I seeing this” function to view why he or she
`
`has been selected to see that particular ad. 4AC ¶¶ 84-85. For instance, a user might see that “T-
`
`Mobile wants to reach people ages 18 to 38 who live or were recently in the United States.” Id. ¶
`
`3
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 4 of 32
`
`
`
`85. Thus, the user can view the age range that the advertiser selected.
`
`The 4AC included the below exemplars of two age-restricted ads and the associated “Why
`
`am I seeing this” pages:
`
`4AC ¶¶ 2, 92. Other exemplars are attached the 4AC as Exhibit A. ECF 140-1.
`
`Plaintiffs allege that Defendants have employed age-restricted ads on Facebook to
`
`advertise “jobs that were located throughout the states where these employers employ workers,
`
`including jobs in this District and elsewhere in California, the District of Columbia, and Ohio.”
`
`4AC ¶ 97. Specifically, as to T-Mobile, the 4AC alleges that “T-Mobile advertised jobs in 42
`
`states and the District of Columbia,” id. ¶ 39; as to Amazon, the 4AC alleges that Amazon
`
`4
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 5 of 32
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`advertised “for a range of positions . . . throughout the United States,” id. ¶ 40.
`
`B. The Instant Suit
`
`Plaintiffs contend that Defendants’ use of age-restricted employment ads is part of a
`
`“pattern or practice of age discrimination in employment advertising, recruitment, and hiring.”
`
`4AC ¶¶ 89, 150. Accordingly, Plaintiffs filed this putative class action, alleging two basic legal
`
`theories. First, the Age Discrimination in Employment Act (“ADEA”) makes it unlawful for an
`
`employer “to print or public, or cause to be printed or published, any notice or advertisement
`
`relating to employment by such employer . . . indicating any preference, limitation, specification,
`
`or discrimination, based on age.” 29 U.S.C. § 623(e). Plaintiffs believe that Defendants’
`
`advertisements “indicate a preference” for younger workers and against older workers by (1) being
`
`targeted to younger workers and excluded from older workers, and (2) informing users of the
`
`targeting through the “Why am I seeing this” function. 4AC ¶¶ 12, 151; see Opp. at 18-19, 22.
`
`Second, the ADEA makes it unlawful for an employer “to fail or refuse to hire or . . .
`
`otherwise discriminate against any individual with respect to his compensation, terms, conditions,
`
`or privileges of employment, because of such individual’s age.” 29 U.S.C. § 623(a)(1). Plaintiffs
`
`contend that Defendants’ age-restricted advertising constitutes disparate treatment in hiring
`
`because it is disparate treatment in recruiting. See Opp. at 23. That is, employers only hire the
`
`people who apply, who are the people they recruit; by favoring younger workers in recruitment,
`
`Defendants necessarily favor them in hiring. Id.; see 4AC ¶¶ 166, 168.
`
`Plaintiffs allege these theories under the ADEA and similar state laws. The operative 4AC
`
`contains eleven counts: (1) discriminatory publication or advertising by an employer, in violation
`
`of the ADEA, 29 U.S.C. § 623(e); (2) disparate treatment in recruiting and hiring, in violation of
`
`the ADEA, 29 U.S.C. § 623(a); (3) discriminatory publication or advertising by an employer, in
`
`violation of the California Fair Employment and Housing Act (“California FEHA”), Cal. Gov.
`
`Code § 12940(d); (4) discriminatory publication or advertising, in violation of the District of
`
`Columbia Human Rights Act (“DCHRA”), D.C. Code § 2-1402.11(a); (5) discriminatory
`
`publication or advertising, in violation of the Ohio Fair Employment Practices Law (“OFEPL”),
`
`Ohio Rev. Code § 4112.02(E)(4); (6) intentional discrimination in recruiting and hiring, in
`
`5
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 6 of 32
`
`
`
`violation of the California FEHA, Cal. Gov. Code § 12940(a); (7) intentional discrimination in
`
`recruiting and hiring, in violation of the DCHRA, D.C. Code § 2-1402.11(a)(1); (8) intentional
`
`discrimination in recruiting and hiring, in violation of the OFEPL, Ohio Rev. Code §§ 4112.02(A),
`
`4112.14(A); (9) violation of the California Unruh Civil Rights Act, Cal. Civ. Code § 51; (10)
`
`violation of the California Unruh Civil Rights Act (“Unruh Act”), Cal. Civ. Code § 51.5; (11)
`
`violation of the California Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200 et
`
`seq. Plaintiffs seek an injunction permanently enjoining Defendants from using age-restricted
`
`employment ads, as well as the other forms of relief available under the above-listed statutes. See
`
`4AC ¶ 3, p. 68.
`
`The Plaintiffs in this case consist of the Communications Workers of America (“CWA”),
`
`four individual Named Plaintiffs, a “Plaintiff Class,” and a “Plaintiff Collective.” The CWA is
`
`“an international labor union representing over 700,000 workers in a broad range of industries,
`
`including telecommunications, cable, information technology, airline, manufacturing, print and
`
`broadcast news media, education, public service, and healthcare.” 4AC ¶ 30. The four individual
`
`Named Plaintiffs are: Linda Bradley, a 45-year-old woman living in Franklin County, Ohio, 4AC
`
`¶ 31; Maurice Anscombe, a 57-year-old man living in Baltimore County, Maryland, id. ¶ 33; Lura
`
`Callahan, a 67-year-old woman living in Franklin County, Ohio, id. ¶ 35; and Richard Hayne, a
`
`61-year-old man living in Oakland, California, id. ¶ 37. All four Named Plaintiffs are proposed
`
`representatives of a nationwide “Plaintiff Collective” of
`
`All persons in the United States who from the earliest date actionable
`under the limitations applicable to the given claim until the date of
`judgment in this action (1) were 40 years old or older (2) used
`Facebook during a time in which they were searching for
`employment, and (3) were excluded from being eligible to receive an
`employment-related advertisement or notice because one or more of
`the Defendants placed an upper age limit on the population of
`Facebook users that was eligible to receive an advertisement or
`notice.
`
`Id. ¶ 140.1 In addition, Haynie is the proposed representative of a smaller “Plaintiff Class” of
`
`All persons who from the earliest date actionable under the limitations
`
`
`1 The ADEA incorporates enforcement provisions of the Fair Labor Standards Act, including the
`collective action provisions of 29 U.S.C. § 216(b). See 29 U.S.C. § 621.
`6
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 7 of 32
`
`
`
`Id. ¶ 121.
`
`applicable to the given claim until the date of judgment in this action
`(1) were 40 years old or older (2) used Facebook during a time in
`which they were searching for employment and resided in California,
`and (3) were excluded from being eligible to receive an employment-
`related advertisement or notice because one or more Defendants
`placed an upper age limit on the population of Facebook users that
`was eligible to receive an advertisement or notice.
`
`The counts in the 4AC are brought by various combinations of these Plaintiffs.
`
`Specifically, the ADEA claims (Counts 1 and 2) are brought by the Named Plaintiffs and the
`
`Plaintiff Collective; the California FEHA claims (Counts 3 and 6) are brought by Haynie and the
`
`Plaintiff Class; the UCL and Unruh Act claims (Counts 10 and 11) are brought by Haynie, the
`
`CWA, and the Plaintiff Class; and the remaining claims under D.C. and Ohio state law (Counts 4,
`
`5, 7, 8, and 9) are brought by certain Named Plaintiffs in their individual capacities.
`
`Defendants now move to dismiss the 4AC on various grounds. ECF 143 (“Mot.”). This is
`
`Defendants’ third motion to dismiss the operative complaint, but the first that has come before the
`
`Court for a ruling. See ECF 73 (Motion to Dismiss the Third Amended Complaint (“TAC”)), ECF
`
`63 (Motion to Dismiss the First Amended Complaint (“FAC”)). The motion has been fully
`
`briefed, ECF 147 (“Opp.”), ECF 155 (“Reply”), and the Court conducted a hearing on January 30,
`
`2020, ECF 164.
`
`II. LEGAL STANDARDS
`
`In the instant motion, Defendants raise three grounds for dismissing the various claims in
`
`the 4AC: lack of subject matter jurisdiction, under Federal Rule of Civil Procedure 12(b)(1); lack
`
`of personal jurisdiction, under Federal Rule of Civil Procedure 12(b)(2); and failure to state a
`
`claim, under Federal Rule of Civil Procedure 12(b)(6). Mot. at 4, 9, 15. Below, the Court reviews
`
`the relevant legal standards for each type of motion.
`
`C. Rule 12(b)(1) Motion to Dismiss for Lack of Subject Matter Jurisdiction
`
`A motion pursuant to Federal Rule of Civil Procedure 12(b)(1) tests whether the court has
`
`subject matter jurisdiction to hear the claims alleged in the complaint. A Rule 12(b)(1) motion
`
`may be either facial, where the inquiry is limited to the allegations in the complaint, or factual,
`
`where the court may look beyond the complaint to consider extrinsic evidence. Wolfe v.
`
`7
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 8 of 32
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Strankman, 392 F.3d 358, 362 (9th Cir. 2004). Here, Defendants lodge a facial attack on the
`
`sufficiency of the allegations in the 4AC. See Safe Air for Everyone v. Meyer, 373 F.3d 1035,
`
`1039 (9th Cir. 2004) (in a facial attack under Rule 12(b)(1), “the challenger asserts that the
`
`allegations contained in a complaint are insufficient on their face to invoke federal jurisdiction.”).
`
`A district court “resolves a facial attack as it would a motion to dismiss under Rule 12(b)(6):
`
`Accepting the plaintiff’s allegations as true and drawing all reasonable inferences in the plaintiff's
`
`favor, the court determines whether the allegations are sufficient as a legal matter to invoke the
`
`court’s jurisdiction.” Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014). As with a Rule
`
`12(b)(6) motion, however, a court is not required “to accept as true 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); see Thomas v. Mundell, 572 F.3d 756, 763 (9th Cir.
`
`2009) (finding allegations “too vague” to support standing).
`
`In the instant motion, Defendants contend that Plaintiffs lack Article III standing, which “is
`
`a necessary component of subject matter jurisdiction.” In re Palmdale Hills Prop., LLC, 654 F.3d
`
`868, 873 (9th Cir. 2011). The Supreme Court has repeatedly stated that the “irreducible
`
`constitutional minimum of standing” consists of three elements. Lujan v. Defs. of Wildlife, 504
`
`U.S. 555, 560 (1992). “The plaintiff must have (1) suffered an injury in fact, (2) that is fairly
`
`traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a
`
`favorable judicial decision.” Spokeo, Inc. v. Robins, 136 S. Ct. 1540, 1547 (2016). These
`
`elements are often referred to as injury in fact, causation, and redressability. See, e.g., Planned
`
`Parenthood of Greater Washington & N. Idaho v. U.S. Dep’t of Health & Human Servs., 946 F.3d
`
`1100, 1108 (9th Cir. 2020). Plaintiffs, as the parties invoking federal jurisdiction, bear the burden
`
`of establishing the existence of Article III standing and, at the pleading stage, “must clearly allege
`
`facts demonstrating each element.” Spokeo, 136 S. Ct. at 1547 (internal quotation marks and
`
`citation omitted); see also Baker v. United States, 722 F.2d 517, 518 (9th Cir. 1983) (“The facts to
`
`show standing must be clearly apparent on the face of the complaint.”).
`
`“In a class action, this standing inquiry focuses on the class representatives.” NEI
`
`Contracting & Eng’g, Inc. v. Hanson Aggregates Pac. Sw., Inc., 926 F.3d 528, 532 (9th Cir.
`
`8
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 9 of 32
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`2019). Standing for the putative class “is satisfied if at least one named plaintiff meets the
`
`requirements.” Bates v. United Parcel Serv., Inc., 511 F.3d 974, 985 (9th Cir. 2007). But if none
`
`of the named plaintiffs purporting to represent a class can establish standing to sue, the class
`
`action cannot proceed. See NEI Contracting, 926 F.3d at 532 (citing O’Shea v. Littleton, 414 U.S.
`
`488, 494 (1974)).
`
`Finally, the Court notes that standing, as a limit upon the power of a federal court, must be
`
`established before the Court may proceed to the merits. Virginia House of Delegates v. Bethune-
`
`Hill, 139 S. Ct. 1945, 1950 (2019).
`
`D. Rule 12(b)(2) Motion to Dismiss for Lack of Personal Jurisdiction
`
`Federal Rule of Civil Procedure 12(b)(2) authorizes a defendant to seek dismissal of an
`
`action for lack of personal jurisdiction. See Fed. R. Civ. P. 12(b)(2). “In opposing a defendant's
`
`motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing
`
`that jurisdiction is proper.” CollegeSource, Inc. v. AcademyOne, Inc., 653 F.3d 1066, 1073 (9th
`
`Cir. 2011). Courts may consider evidence presented in affidavits and declarations in determining
`
`personal jurisdiction. Doe v. Unocal Corp., 248 F.3d 915, 922 (9th Cir. 2001). “Where, as here,
`
`the defendant’s motion is based on written materials rather than an evidentiary hearing, the
`
`plaintiff need only make a prima facie showing of jurisdictional facts to withstand the motion to
`
`dismiss.” Ranza v. Nike, Inc., 793 F.3d 1059, 1068 (9th Cir. 2015) (internal quotation marks and
`
`citation omitted). “Uncontroverted allegations in the complaint must be taken as true, and factual
`
`disputes are construed in the plaintiff’s favor,” Freestream Aircraft (Bermuda) Ltd. v. Aero Law
`
`Grp., 905 F.3d 597, 602 (9th Cir. 2018), but a court is not “required to accept as true allegations
`
`that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences,” In re
`
`Gilead Scis. Sec. Litig., 536 F.3d at 1055.
`
`In general, a court may exercise personal jurisdiction “if a rule or statute authorizes it to do
`
`so and the exercise of such jurisdiction comports with the constitutional requirement of due
`
`process.” Myers v. Bennett Law Offices, 238 F.3d 1068, 1072 (9th Cir. 2001). “When no federal
`
`statute governs personal jurisdiction, the district court applies the law of the forum state.” Id.; see
`
`Fed. R. Civ. P. 4(k)(1)(A). “California’s long-arm statute allows the exercise of personal
`
`9
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 10 of 32
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`jurisdiction to the full extent permissible under the U.S. Constitution.” Daimler AG v. Bauman,
`
`571 U.S. 117, 125 (2014) (citing Cal. Civ. Proc. Code Ann. § 410.10). Constitutional due process,
`
`in turn, requires that a defendant “have certain minimum contacts” with the forum state “such that
`
`the maintenance of the suit does not offend traditional notions of fair play and substantial justice.”
`
`Freestream Aircraft, 905 F.3d at 602 (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316
`
`(1945)).
`
`“The strength of contacts required depends on which of the two categories of personal
`
`jurisdiction a litigant invokes: specific jurisdiction or general jurisdiction.” Ranza, 793 F.3d at
`
`1068 (citing Daimler AG, 571 U.S. at 127). General jurisdiction exists when the defendant’s
`
`contacts “are so continuous and systematic as to render [it] essentially at home in the forum State.”
`
`Daimler AG, 571 U.S. at 127 (internal quotation marks omitted). Where a defendant is subject to
`
`general jurisdiction, it may be sued “on any and all claims,” id. at 137, including claims “arising
`
`from dealings entirely distinct” from its forum-related activities, id. at 127 (internal quotation
`
`marks omitted). By contrast, specific jurisdiction is proper when the defendant’s contacts with the
`
`forum state may be more limited but the plaintiff’s claims “arise out of or relate to” those contacts.
`
`Bristol-Myers Squibb Co. v. Superior Court of California, San Francisco Cty., 137 S. Ct. 1773,
`
`1786 (2017). The Court discusses the requirements for specific jurisdiction in greater detail
`
`below. See Part III.B.
`
`E. Rule 12(b)(6) Motion to Dismiss for Failure to State a Claim
`
`Rule 8(a)(2) of the Federal Rules of Civil Procedure requires a complaint to include “a
`
`short and plain statement of the claim showing that the pleader is entitled to relief.” A complaint
`
`that fails to meet this standard may be dismissed pursuant to Federal Rule of Civil Procedure
`
`12(b)(6). In other words, “[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)). To survive a Rule 12(b)(6) motion, a
`
`complaint must contain “enough facts to state a claim to relief that is plausible on its face.” Bell
`
`Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility when the
`
`10
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 11 of 32
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`plaintiff pleads factual content that allows the court to draw the reasonable inference that the
`
`defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “The
`
`plausibility standard is not akin to a probability requirement, but it asks for more than a sheer
`
`possibility that a defendant has acted unlawfully.” Id. (internal quotation marks omitted).
`
`In evaluating the complaint, the court must “accept factual allegations in the complaint as
`
`true and construe the pleadings in the light most favorable to the nonmoving party.” Manzarek v.
`
`St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). At the same time, a 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, 536 F.3d at 1055 (internal quotation marks and citations omitted).
`
`III. DISCUSSION
`
`Again, Defendants move to dismiss the 4AC on three grounds: lack of subject matter
`
`jurisdiction, under Federal Rule of Civil Procedure 12(b)(1); lack of personal jurisdiction, under
`
`Federal Rule of Civil Procedure 12(b)(2); and failure to state a claim, under Federal Rule of Civil
`
`Procedure 12(b)(6). The Court begins, as it must, with Defendants’ jurisdictional arguments under
`
`Rules 12(b)(1) and 12(b)(2). Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 577 (1999)
`
`(“[J]urisdiction generally must precede merits in dispositional order.”). Finding them to be
`
`meritorious, the Court must dismiss the 4AC without ruling on Defendants’ Rule 12(b)(6) motion.
`
`However, because the Court grants leave to amend the 4AC, the Court also provides brief
`
`guidance as to the substantive elements of Plaintiffs’ causes of actions.
`
`A. Motion to Dismiss for Lack of Standing
`
`The Court begins with Defendants’ motion to dismiss the 4AC for lack of standing. As
`
`noted above, Article III standing requires injury in fact, causation, and redressability. Defendants
`
`first argue that the individual named plaintiffs have failed to meet their burden of pleading these
`
`elements, which precludes standing for the putative Plaintiff Class and Plaintiff Collective.
`
`Defendants also raise several separate objections to CWA’s associational standing.
`
`The Court separately addresses the parties’ arguments as to the individual named plaintiffs
`
`and their arguments regarding CWA.
`
`11
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 12 of 32
`
`
`
`i.
`
`Individual Named Plaintiffs
`
`To briefly review, there are four individual named plaintiffs in this case: Linda Bradley,
`
`Maurice Anscombe, Lura Callahan, and Richard Haynie (collectively, the “Named Plaintiffs”).
`
`Plaintiffs say they have suffered various injuries as a result of Defendants’ allegedly illegal
`
`conduct, including: informational injury; the denial of jobs, and the lost wages incident thereto;
`
`the denial of the opportunity to apply for jobs; and stigmatic injury. The Court holds that the
`
`denial of the opportunity to apply for jobs, if properly alleged, would confer standing upon the
`
`Named Plaintiffs. Nevertheless, the Court must grant the motion to dismiss because the
`
`allegations in the 4AC are too vague and conclusory to establish that the Named Plaintiffs—rather
`
`than unidentified members of the Plaintiff Class—personally experienced the complained-of
`
`injuries.
`
`a. Standing, In General
`
`The Supreme Court has written at length about Article III’s requirements of injury in fact,
`
`causation, and redressability. An injury in fact is “an invasion of a legally protected interest” that
`
`is (1) “concrete,” (2) “particularized,” and (3) “actual or imminent, not conjectural or
`
`hypothetical.” Spokeo, 136 S. Ct. at 1548 (quoting Lujan, 504 U.S., at 560). First, a “concrete”
`
`injury is one that “actually exist[s]”; that is, it is “real” and not “abstract.” Id. Although both
`
`tangible and intangible injuries may be concrete, id., the courts have sometimes struggled with
`
`identifying when intangible harms are sufficiently concrete. Fortunately, that issue is not
`
`presented here. Second, “[f]or an injury to be ‘particularized,’ it must affect the plaintiff in a
`
`personal and individual way,” id.; the plaintiff must have a “direct stake in the controversy.”
`
`United States v. Students Challenging Regulatory Agency Procedures (SCRAP), 412 U.S. 669, 687
`
`(1973). It is pursuant to this principle that the Supreme Court has rejected suits by litigants
`
`asserting “generalized grievances about the conduct of government,” Hein v. Freedom From
`
`Religion Found., Inc., 551 U.S. 587, 612 (2007), which are “undifferentiated and common to all
`
`members of the public.” Lujan, 504 U.S. at 575; see also Summers v. Earth Island Inst., 555 U.S.
`
`488, 494 (2009) (“[G]eneralized harm to the forest or the environment will not alone support
`
`standing.”). Third, the requirement that an injury be “actual or imminent” “ensure[s] that the
`
`12
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`
`
`Case 5:17-cv-07232-BLF Document 169 Filed 03/13/20 Page 13 of 32
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`alleged injury is not too speculative for Article III purposes—that the injury is certainly
`
`impending.” Clapper v. Amnesty Int’l USA, 568 U.S. 398, 409 (2013).
`
`There must, moreover, be a sufficient “causal connection between the injury and the
`
`conduct complained of.” United States v. Hays, 515 U.S. 737, 743 (1995). Standing theories that
`
`depend on a “speculative chain of possibilities”—such as those that turn on “the decisions of
`
`independent actors”—lack the necessary causal connection. Clapper, 568 U.S. at 414; see also
`
`Yesler Terrace Cmty. Council v. Cisneros, 37 F.3d 442, 447 (9th Cir. 1994) (“[W]hen standing
`
`hinges on choices made by a third party, plaintiff must “adduce facts showing that those choices
`
`have been or will be made in such manner as to produce causation and permit redressability of
`
`injury.”) (quoting Lujan, 504 U.S. at 562). This causation requirement is closely linked to