throbber
Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 1 of 28
`
` GEORGE A. ZELCS (pro hac vice)
`ROBERT E. LITAN (pro hac vice)
`RYAN Z. CORTAZAR (pro hac vice)
`KOREIN TILLERY LLC
`205 North Michigan Avenue
`Suite 1950
`Chicago, Illinois 60601
`Telephone: (312) 641-9750
`Facsimile: (312) 641-9751
`
`MICHAEL E. KLENOV (277028)
`CAROL O’KEEFE (pro hac vice)
`KOREIN TILLERY LLC
`505 North Seventh Street
`Suite 3600
`St. Louis, Missouri 63101-1625
`Telephone: (314) 241-4844
`Facsimile: (314) 241-3525
`
`ANN RAVEL (62139)
` aravel@mcmanislaw.com
`McMANIS FAULKNER
`a Professional Corporation
`50 West San Fernando Street, 10th Floor
`San Jose, California 95113
`Telephone:
`(408) 279-8700
`Facsimile:
`(408) 279-3244
`
`
`GLEN E. SUMMERS (176402)
` glen.summers@bartlitbeck.com
`KARMA M. GIULIANELLI (184175)
` karma.giulanelli@bartlitbeck.com
`ALISON G. WHEELER (180748)
` alison.wheeler@bartlitbeck.com
`BARTLIT BECK LLP
`1801 Wewatta Street, Suite 1200
`Denver, Colorado 80202
`Telephone:
`(303) 592-3100
`Facsimile:
`(303) 592-3140
`
`
`Attorneys for Plaintiffs,
`Joseph Taylor, Edward Mlakar, Mick Cleary, and
`Eugene Alvis
`
`
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`SAN JOSE DIVISION
`
`
`JOSEPH TAYLOR, EDWARD MLAKAR,
`MICK CLEARY, and EUGENE ALVIS
`individually and on behalf of all others similarly
`situated,
`
`Plaintiffs,
`
`vs.
`
`GOOGLE LLC,
`
`Defendant.
`
`
`
`
`
` Case No. 5:20-cv-07956-VKD
`
`
`PLAINTIFFS’ OPPOSITION TO
`GOOGLE LLC’S MOTION TO
`DISMISS
`
`Date: March 30, 2021
`Time: 10:00 a.m.
`Judge: Hon. Virginia K. DeMarchi
`
`
`
`
`
`
`1
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 2 of 28
`
`TABLE OF CONTENTS
`
`
`
`
`
`STATEMENT OF THE ISSUES TO BE DECIDED ........................................................................ 7
`
`INTRODUCTION ..................................................................................................................................... 7
`
`THE PLEADED FACTS ........................................................................................................................ 10
`
`ARGUMENT ............................................................................................................................................. 12
`
`I. PLAINTIFFS HAVE STANDING IF THEY ADEQUATELY PLEAD THE
`INVASION OF A LEGAL INTEREST PROTECTED BY CALIFORNIA
`COMMON LAW ............................................................................................................. 12
`
`II. PLAINTIFFS HAVE ADEQUATELY PLEADED CONVERSION ................................... 14
`
`A. Purchased Bytes of Cellular Data Are Property That Can Be
`Converted ........................................................................................................ 14
`
`1. Plaintiffs’ Interests Bear the Hallmarks of Property ................... 15
`
`2. Google Incorrectly Characterizes Plaintiffs’ Interest
`as a Contractual Right to Services .................................................. 19
`
`B. Google’s Interference with Plaintiffs’ Bytes Was Complete
`and Total ......................................................................................................... 21
`
`C. Plaintiffs Have Adequately Pleaded Conversion Damages ...................... 22
`
`II. PLAINTIFFS DID NOT CONSENT TO THE CONVERSION ....................................... 24
`
`CONCLUSION ......................................................................................................................................... 28
`
`ATTESTATION ....................................................................................................................................... 28
`
`
`
`
`
`
`
`
`
`
`2
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 3 of 28
`
`
`
`TABLE OF AUTHORITIES
`
`
`
`Page(s)
`
`Cases
`
`Acme Paper Co. v. Goffstein,
`125 Cal. App. 2d 175 (Cal. App. 1st Dist. 1954) .................................................................................. 23
`
`APL Co. Pte Ltd v. Extreme Linen, LLC,
`216CV06885CASFFMX, 2017 WL 3271704 (C.D. Cal. July 31, 2017) ........................................... 27
`
`Bastanchury v. Times–Mirror Co.
`68 Cal.App.2d 217 (Cal. App. 4th Dist. 1945) ..................................................................................... 17
`
`Bentley v. Mountain,
`51 Cal. App. 2d 95 (Cal. App. 1st Dist. 1942) ...................................................................................... 22
`
`Boon Rawd Trading Intern. Co., Ltd. v. Paleewong Trading Co., Inc.,
`688 F. Supp. 2d 940 (N.D. Cal. 2010) ................................................................................................... 20
`
`Bradford v. Flagship Facility Services Inc.,
`17-CV-01245-LHK, 2017 WL 3130072 (N.D. Cal. July 24, 2017) ................................................... 14
`
`Camp v. Ortega
`209 Cal. App. 2d 275 (Cal. App. 1st Dist. 1962) ............................................................................ 23, 24
`
`Clark v. State,
`14 Okla. Crim. 284 (Okla. Crim. App. 1917) ....................................................................................... 21
`
`Corey v. Struve,
`149 P. 48 (Cal. 1915) ................................................................................................................................ 23
`
`Crocker-Anglo Nat. Bank v. Kuchman,
`224 Cal. App. 2d 490 (Cal. App. 3d Dist. 1964) .................................................................................. 27
`
`Csupo v. Alphabet, Inc.,
`No. 19CV352557 (Cal. Super. Ct. Aug. 24, 2020) ............................................................................... 14
`
`DeLong v. Osage Valley Electric Cooperative Association,
`716 S.W.2d 320 (Mo.Ct.App.1986) ........................................................................................................ 20
`
`DIRECTV, Inc. v. Pahnke,
`405 F. Supp. 2d 1182 (E.D. Cal. 2005)...................................................................................... 15, 19, 22
`
`In re Facebook, Inc. Internet Tracking Litigation,
`956 F.3d 589 (9th Cir. 2020) ............................................................................................................... 8, 13
`
`Farmers Ins. Exch. v. Zerin,
`53 Cal. App. 4th 445 (Cal. App. 3d Dist. 1997) ................................................................................... 17
`
`3
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 4 of 28
`
`
`
`Feldman v. Allstate Ins. Co.,
`322 F. 3d 660 (9th Cir. 2003) .................................................................................................................. 14
`
`G.S. Rasmussen & Associates, Inc. v. Kalitta Flying Serv., Inc.,
`958 F.2d 896 (9th Cir. 1992) .......................................................................................... 15, 16, 18, 21, 22
`
`Good Sports of New York, Inc. v. Llorente,
`280 A.D.2d 261 (N.Y. App. Div. 1st Dept. 2001) ......................................................................... 17, 20
`
`Hagerman Irr. Co. v. McMurry,
`16 N.M. 172 (1911) .................................................................................................................................. 21
`
`In re iPhone Application Litigation,
`844 F. Supp. 2d 1040 (N.D. Cal. 2012) ................................................................................................. 18
`
`Kremen v. Cohen,
`337 F.3d 1024 (9th Cir. 2003) ................................................................................................................. 15
`
`Leoni v. Delany,
`83 Cal. App. 2d 303 (Cal. App. 1st Dist. 1948) .................................................................................... 27
`
`Leuter v. State of California,
`94 Cal. App. 4th 1285 (Cal. App. 3d Dist. 2002) ................................................................................. 23
`
`Levi Strauss & Co. v. Aetna Cas. & Sur. Co.,
`184 Cal. App. 3d 1479 (Cal. App. 1st Dist. 1986) ............................................................................... 26
`
`Lujan v. Defender of Wildlife,
`504 U.S. 555 (1992) .................................................................................................................................. 12
`
`In re Martinez,
`610 B.R. 290 (Bankr. N.D. Cal. 2019) ................................................................................................... 24
`
`McKell v. Washington Mut., Inc.,
`142 Cal. App. 4th 1457 (Cal. App. 2d Dist. 2006) ............................................................................... 27
`
`Monster Energy Co. v. Vital Pharm., Inc.,
`EDCV181882JGBSHKX, 2019 WL 2619666 (C.D. Cal. May 20, 2019) .................................. 19, 20
`
`Narragansett Elec. Co. v. Carbone,
`898 A.2d 87 (R.I. 2006) ..................................................................................................................... 14, 20
`
`Opperman v. Path, Inc.,
`87 F. Supp. 3d 1018 (N.D. Cal. 2014) ................................................................................................... 13
`
`Payne v. Elliot,
`54 Cal. 339 (Cal. 1880) ....................................................................................................................... 13, 15
`
`People v. Davis,
`3 Cal. App. 5th 708 (Cal. App. 3d Dist. 2016) ..................................................................................... 20
`4
`
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`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
`
`
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 5 of 28
`
`
`
`People v. Kwok,
`63 Cal. App. 4th 1236 (Cal. App. 1st Dist. 1998) ................................................................................ 18
`
`Sandquist v. Lebo Auto., Inc.,
`376 P.3d 506 (Cal. 2016) .......................................................................................................................... 27
`
`In re Sec. 1031 Exch. Litig.,
`716 F. Supp. 2d 415 (D.S.C. 2010) ........................................................................................................ 20
`
`Seid Pak Sing v. Barker,
`240 P. 765 (Cal. 1925) .............................................................................................................................. 25
`
`Shein v. Canon U.S.A., Inc.,
`CV 08-07323 CAS EX, 2009 WL 1774287 (C.D. Cal. June 22, 2009) ............................................. 21
`
`Smith v. Intuit Inc.,
`5:12-CV-00222 EJD, 2012 WL 3945485 (N.D. Cal. Sept. 10, 2012) ................................................ 14
`
`Spokeo, Inc. v. Robins,
`136 S. Ct. 1540 (2016) .............................................................................................................................. 12
`
`Strawberry Water Co. v. Paulsen,
`220 Ariz. 401 (Ariz. App. 1st Div. 2008) .............................................................................................. 21
`
`Supply Pro Sorbents, LLC v. RingCentral, Inc.,
`2017 WL 4685705 (N.D. Cal. July 17, 2017) ........................................................................................ 22
`
`Terrace Water Co. v. San Antonio Light & Power Co.,
`82 P. 562 (Cal. App. 2d Dist. 1905) ....................................................................................................... 14
`
`Voris v. Lampert,
`446 P.3d 284 (Cal. 2019) .............................................................................................................. 14, 15, 20
`
`Wade v. Sw. Bank,
`211 Cal. App. 2d 392 (Cal. App. 2d Dist. 1962) .................................................................................. 24
`
`Welco Electronics, Inc. v. Mora,
`223 Cal.App.4th 202 (Cal. App. 2d Dist. 2014) ....................................................................... 15, 19, 21
`
`Worldwide Travel, Inc. v. Travelmate US, Inc.,
`14-CV-00155-BAS DHB, 2015 WL 1013704 (S.D. Cal. Mar. 9, 2015) ............................................ 27
`
`In re Yahoo Mail Litigation,
`7 F. Supp. 3d 1016 (N.D. Cal. 2014) ..................................................................................................... 26
`
`Yunker v. Pandora Media, Inc.,
`11-CV-03113 JSW, 2013 WL 1282980 (N.D. Cal. Mar. 26, 2013) .................................................... 13
`
`Zaslow v. Kroenert,
`176 P.2d 1 (Cal. 1946) .............................................................................................................................. 21
`5
`
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`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
`
`
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 6 of 28
`
`
`
`Statutes
`
`Cal. Civ. Code § 654 ........................................................................................................................................ 14
`
`Cal. Civ. Code § 1641 ..................................................................................................................................... 25
`
`Cal. Civ. Code § 1654 ..................................................................................................................................... 27
`
`Cal. Civ. Code § 3336 ............................................................................................................................... 22, 23
`
`Cal. Civ. Code § 3337 ............................................................................................................................... 23, 24
`
`Cal. Pub. Util. Code § 216(a) ......................................................................................................................... 17
`
`Other Authorities
`
`California Rule of Court 8.1115(a) ................................................................................................................ 14
`
`Restatement (First) of Torts .......................................................................................................................... 12
`
`
`
`
`
`6
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 7 of 28
`
`
`
`STATEMENT OF THE ISSUES TO BE DECIDED
`1. To establish Article III standing, Plaintiffs must articulate an injury-in-fact by showing that
`they have a legally protected interest that defendants invaded. California law protects Plaintiffs’
`
`rights to bytes of cellular data that they purchased. Plaintiffs allege that Google invaded that
`
`interest by consuming those bytes without Plaintiffs’ consent. Do Plaintiffs have standing to
`
`redress this injury?
`2. To state a claim for Conversion under California law, Plaintiffs must allege (1) a personal
`property right; (2) defendants’ taking of that property without permission; and (3) damages
`
`equal to the market value of the property. Plaintiffs allege that Google consumed bytes of
`
`cellular data that Plaintiffs purchased without ever obtaining Plaintiffs’ consent. Have
`
`Plaintiffs stated a claim for Conversion?
`3. Under equitable principles of Quantum Meruit, Defendants must compensate Plaintiffs for
`the value of benefits that the Defendants unjustly receive at Plaintiffs’ expense. Plaintiffs allege
`
`that Google used Plaintiffs’ cellular data to collect the valuable personal information that feeds
`
`its surveillance and advertising empire. Have Plaintiffs stated a claim for Quantum Meruit?
`
`INTRODUCTION
`
`Google, one of the richest companies in the world, is asking this Court for a license to steal
`
`bytes of cellular data from users of its Android operating system (“OS”) rather than pay for the
`
`bytes itself. From the moment a user sets up a mobile device running Google’s Android OS,
`
`Google’s servers begin to transfer information to and from that device. As one would expect, a
`
`user’s active engagement with the device and native Google applications—e.g., browsing the internet
`
`on Chrome or watching a video on YouTube—triggers active information transfers necessary to
`
`deliver the content and functionality the user requests. Google’s various terms and conditions
`
`disclose that much. What Google does not disclose, however, is that a persistent stream of
`
`information transfers between Google’s servers and devices continues around the clock, even if a
`
`user closes Google’s applications, sets the device aside, and never so much as looks at it.
`
`///
`
`7
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 8 of 28
`
`
`
`The frequency of these background, passive information transfers is startling, both in
`
`absolute terms and by comparison to devices running Apple’s rival iOS. Many of these passive
`
`transfers shuttle to and from Google the raw material that feeds its trillion-dollar surveillance and
`
`advertising empire. But it is not the content of these passive transfers that Plaintiffs complain of in
`
`this case. Rather, it is the fact that without disclosure or consent, the transfers slowly but surely
`
`devour bytes of cellular data that device users have purchased from their wireless carriers.
`
`“Cellular data” refers to digital information, measured in “bytes,” transmitted over wireless
`
`cellular networks. Wireless carriers sell the right to transmit cellular data to their customers and
`
`generally charge customers a fee either for a maximum quantity of bytes each month or for a prepaid
`
`number of bytes. Google’s Android code keeps the cellular data meter running, and, like a digital
`
`pickpocket, nicks valuable bytes for Google’s benefit from the devices of unsuspecting targets when
`
`their eyes are focused elsewhere. As a consequence, a material percentage of the money users pay for
`
`cellular bytes becomes an undisclosed and unauthorized subsidy to one of the world’s wealthiest
`
`companies.
`
`In its first argument for dismissal, Google erroneously claims that these allegations do not
`
`articulate an injury-in-fact sufficient to establish Article III standing. According to Google, its
`
`unauthorized taking of the Plaintiffs’ bytes is immune from challenge in this Court unless Plaintiffs
`
`allege some additional, consequential harm—e.g., throttled speeds or overage charges—beyond the
`
`taking itself. Google asks the Court to dismiss Plaintiffs’ complaint for lack of standing without
`
`reaching Plaintiffs’ claims under California common law. But California conversion law creates a
`
`“legally protected interest,” the invasion of which by Google is an injury-in-fact. Consistent with
`
`Supreme Court precedent, the Ninth Circuit just last year rejected a duplicate of the argument
`
`Google makes here and confirmed that well-recognized common-law claims for conversion and
`
`unjust enrichment establish concrete injuries under Article III. In re Facebook, Inc. Internet Tracking
`
`Litigation, 956 F.3d 589, 600–01 (9th Cir. 2020).
`
`Next, Google misconstrues Plaintiffs’ allegations and California law to claim that bytes of
`
`cellular data are not property capable of conversion. But in so doing, Google conflates the contracts
`
`8
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 9 of 28
`
`
`
`through which Plaintiffs acquired bytes of cellular data with cellular data itself. Plaintiffs’ contracts
`
`with carriers grant them a possessory interest in cellular data that exists independent of the
`
`contracts. Cellular data has all the traditional hallmarks of property: it is capable of precise definition,
`
`measurement, and attribution to a specific user, down to the byte; and it is capable of exclusive
`
`possession and control, including the right to include or exclude others, such as by turning a device
`
`into a mobile “hotspot” that shares a person’s purchased cellular data with others whom the user
`
`authorizes.
`
`Contrary to Google’s assertion, the fact that wireless carriers make pools of cellular data
`
`available to many of their customers, and that specific bytes are allocated to specific customers only
`
`upon request, does not strip those bytes of their status as property. Such on-demand delivery
`
`arrangements are commonplace. For example, a utility may generate electricity for a local grid, which
`
`is available for use by many customers. When a specific customer requests electricity by turning on
`
`an appliance, it is delivered and charged to the customer’s account. Despite this commercial
`
`arrangement, California law clearly recognizes electricity as personal property.
`
`Google further confuses matters by characterizing Plaintiffs’ interest in the cellular data they
`
`purchased as “intangible.” But unlike intangible property interests that are fictions created by
`
`operation of law, cellular data exists in the physical world, much like electricity and radio waves. It is
`
`intangible only in the sense that it is imperceptible to the human senses, which is ultimately beside
`
`the point because California law has long recognized that even truly intangible property interests are
`
`equally capable of conversion. As “a company built in the cloud,”1 Google knows better than
`
`anyone that information, digital storage space, and other forms of intangible property can be worth
`
`trillions.
`
`Google is also wrong to claim that it did not sufficiently interfere with Plaintiffs’ property to
`
`cause damage under California law. Plaintiffs have alleged not just substantial but complete
`
`interference with their property interest in the converted cellular data. When Google consumed
`
`
`1 Cortazar Decl., Ex. 2 (Alphabet, Inc., Form 10-K at 7, https://abc.xyz/investor/static/pdf/
`20210203_alphabet_10K.pdf?cache=b44182d (last visited March 1, 2021)).
`
`9
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 10 of 28
`
`
`
`Plaintiffs’ cellular data bytes for unauthorized passive transfers, it exhausted those bytes, and
`
`Plaintiffs could never use them again. This seizure and exhaustion of Plaintiffs’ purchased property
`
`establishes damage under California law. Google says that this is insufficient, arguing instead that
`
`Plaintiffs need to suffer damage through overage fees or throttling. But these are additional or
`
`consequential damages that flow from the direct damage of being deprived of valuable property.
`
`California law does not require victims of conversion to plead consequential damage to recover the
`
`market value of their property, which by statute is the presumed measure of damages.
`
`An unstated premise permeating Google’s arguments is that the marketing or billing scheme
`
`through which a person acquires a possessory interest in property dictates whether an unauthorized
`
`taking of that property is compensable. According to Google, if a person enters into a requirements
`
`contract that grants them the right to as much property as they need in a given time-frame at a fixed
`
`cost (i.e., an “unlimited” data plan), then anyone can take that person’s property without
`
`consequence, because they can simply get more.
`
`That is not and cannot be the law, because it would create a license to steal. By Google’s
`
`logic, someone could pirate a subscription to Google’s cloud storage drive without paying for it,
`
`because doing so would not cost Google anything out of pocket, and Google would in no way be
`
`precluded from selling its additional storage space of nearly limitless capacity to paying customers.
`
`Were Google required to establish some additional, consequential damage in order to get
`
`compensation from this hypothetical thief, it would almost certainly reject its current reading of the
`
`law.
`
`THE PLEADED FACTS
`
`
`
`Plaintiffs are users of mobiles device that run Google’s Android OS. Plaintiffs entered into
`
`contracts with wireless carriers whereby, in exchange for monthly payments, Plaintiffs were granted
`
`the right to send and receive digitized information over the carriers’ cellular networks by consuming
`
`bytes of cellular data. Compl. ¶ 6. One Plaintiff paid a monthly amount for the right to consume up
`
`to a fixed number of bytes per month, while the others paid more for the right to consume as many
`
`bytes per month as they required—i.e., a so-called “unlimited” data plan. Id. ¶¶ 8–11. The complaint
`
`10
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 11 of 28
`
`
`
`refers to these bundles of bytes that Plaintiffs paid for each month as their “data allowances.” Id.
`
`¶ 24.
`
`
`
`By entering into these contracts, Plaintiffs gained the right to include others in and exclude
`
`others from the use and enjoyment of their purchased bytes of data. Id. ¶ 27. Plaintiffs could share
`
`their cellular data with family and friends by letting them borrow their devices, or they could turn
`
`their devices into mobile hotspots and share their cellular data with specific persons while excluding
`
`all others—e.g., by requiring the use of a unique password. Id. ¶¶ 27–28.
`
`
`
`When Plaintiffs and other users interact with their Android devices and Google’s native
`
`applications, those interactions cause information to be transferred between the devices and
`
`Google’s servers in order to deliver the content and functionality that users request. Id. ¶ 29–30.
`
`When users are not connected to Wi-Fi, these transfers consume cellular data allocated to users by
`
`their wireless carriers in exchange for their monthly payments. These active transfers that consume
`
`bytes of cellular data through the users’ contemporaneous engagement with devices and
`
`applications—i.e., at the users’ request—are not at issue in this lawsuit. Id.
`
`
`
`But Google programmed its Android OS to force users’ devices to exchange information
`
`with Google’s servers even when the devices are idle and users are not engaging at all with Google’s
`
`applications. Id. ¶ 31. These background passive transfers occur without users’ consent, and they
`
`consume significant amounts of the cellular data users purchase from wireless carriers. Id. ¶¶ 31–44.
`
`Google programmed the passive transfers largely for its own benefit to power its advertising and
`
`surveillance products. Id. ¶¶ 7, 34, 38–39.
`
`
`
`Technical research has revealed that such passive transfers occur with startling frequency.
`
`One expert found they happen 900 times every day (38 times per hour) and consume roughly 350
`
`MB per month. Id. ¶¶ 35, 41. Google’s programming of the Android OS to persistently eat up
`
`cellular data through passive transfers stands in stark contrast to Apple’s rival iOS for the iPhone,
`
`which manages to function perfectly well while transferring “a small fraction of information to
`
`Apple’s servers, compared to the information transferred to Google from the Android device.” Id. ¶
`
`40. Google integrates the user and device information it receives through passive transfers to fortify
`
`11
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`
`
`
`
`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
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 12 of 28
`
`
`
`and extend its surveillance and advertising businesses, meaning that much of the cellular data
`
`consumed as a result inures to Google’s substantial benefit. Id. ¶¶ 1, 41–43.
`
`
`
`Beyond failing to disclose these passive transfers to users, Google has also denied them any
`
`meaningful option to prevent the transfers from draining their cellular data. Id. ¶¶ 45–53. Since the
`
`transfers primarily benefit Google, there is no reason for Google to deny users the choice to either
`
`prevent the transfers entirely, or at least delay them until devices are connected to Wi-Fi networks.
`
`Id. ¶ 3. In fact, many of the passive transfers are LOG files that are not time-sensitive. Id. ¶ 34.
`
`ARGUMENT
`
`Many of Google’s arguments in its motion to dismiss rest on one underlying premise: Even
`
`if Google took the cellular data that Plaintiffs paid for without their consent, Plaintiffs are powerless
`
`to do anything about it because they were not hurt badly enough by Google. That premise not only
`
`makes a mockery of fundamental property rights under California law, but it also fails to recognize
`
`the nature of injury-in-fact under Article III of the Constitution.
`
`I.
`
`PLAINTIFFS HAVE STANDING IF THEY ADEQUATELY PLEAD THE INVASION OF A LEGAL
`INTEREST PROTECTED BY CALIFORNIA COMMON LAW
`Google’s invasion of Plaintiffs’ property interest and its unjust enrichment at their expense
`
`establish standing under Article III. The definition of injury-in-fact in the Supreme Court’s standing
`
`jurisprudence parallels the common-law definition of injury. That is no coincidence. In articulating
`
`the injury-in-fact requirement for standing, the Supreme Court borrowed directly from background
`
`principles of the common law. Compare Lujan v. Defender of Wildlife, 504 U.S. 555, 560 (1992) (defining
`
`injury-in-fact as “an invasion of a legally protected interest”), with Restatement (First) of Torts § 7
`
`(1934) (defining injury as “the invasion of any legally protected interest”).
`
`The common law also informs and shapes the requirement that an invasion be “concrete.”
`
`In Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016), the Supreme Court explained that “‘concrete’ is not
`
`… synonymous with ‘tangible’” because “the law has long permitted recovery by certain tort victims
`
`even if their harms may be difficult to prove or measure.” Id. at 1549 (citing Restatement (First) of
`
`Torts). Instead, concreteness is “grounded in historical practice” and “consider[s] whether an alleged
`
`intangible harm has a close relationship to a harm that has traditionally been regarded as providing a
`
`12
`
`PLAINTIFFS’ OPPOSITION TO MOTION TO DISMISS; Case No. 5:20-cv-07956-VKD
`
`
`
`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
`
`
`
`

`

`Case 5:20-cv-07956-VKD Document 39 Filed 03/01/21 Page 13 of 28
`
`
`
`basis for a lawsuit in English or American courts.” Id. Historical practice confirms that Plaintiffs’
`
`claims for conversion of personal property and quantum meruit have firm bases in at least 140 years
`
`of California common law. E.g., Payne v. Elliot, 54 Cal. 339 (Cal. 1880). In short, if Plaintiffs
`
`adequately plead their claims under California common law, then they adequately plead Article III
`
`injury-in-fact.
`
`Just last year, the Ninth Circuit confirmed this principle of law in In re Facebook, Inc. Internet
`
`Tracking Litigation, 956 F.3d 589 (9th Cir. 2020). There, the plaintiffs sued Facebook for using plug-
`
`ins to track users’ browser histories. Facebook made virtually the same “concreteness” argument as
`
`Google does here. Much like Google’s claim that Plaintiffs must plead that they planned to resell
`
`their data or that they suffered separate, additional harms like overage fees or throttling (Mot. at 7–
`
`8), Facebook argued that plaintiffs must “demonstrate that they either planned to sell their data, or
`
`that their data was made less valuable through Facebook’s use.” 956 F.3d at 599.
`
`The Ninth Circuit rejected Facebook’s argument. It explained that “state law can create
`
`interests that support standing in federal courts,” and that a plaintiff’s legal “right to disgorgement of
`
`profits resulting from unjust enrichment” sufficed for standing. Id. a

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket