Johnson v. ADT, LLC
Johnson v. ADT, LLC
Opinion of the Court
WILLIAM T. MOORE, JR. UNITED STATES DISTRICT COURT
Before the Court are Defendants ADT, LLC's and The ADT Corporation's Motion to Dismiss (Doc. 16) and Defendant Safe Streets USA, LLC's Motion to Dismiss (Doc. 17). For the following reasons, Defendants ADT LLC's and The ADT Corporation's Motion to Dismiss (Doc. 16) is GRANTED. Defendant Safe Streets USA, LLC's motion (Doc. 17) is DISMISSED AS MOOT.
BACKGROUND
This case arises from the circumstances surrounding the death of Jearlene Johnson.
On December 10, 2017, the alarm was activated at Decedent Johnson's home between 1 a.m. and 2 a.m. (Id. at ¶ 14.) Despite the alarm, Defendants failed to notify Ms. Archie. (Id. ) The next morning, Ms. Archie went to check on Decedent Johnson and found that Decedent Johnson had succumbed overnight to hypothermia. (Id. at ¶¶ 16-17.)
On December 10, 2018, Decedent's brother, Allen Johnson, initiated this action on the behalf of all of Decedent Johnson's beneficiaries and Decedent Johnson's estate. (Doc. 1.) In his initial complaint, *1373Plaintiff brought suit against Defendants ADT and John Does 1-10 for negligence, gross negligence, negligent training and supervision, breach of contract, fraudulent misrepresentation, and wrongful death. (Id. ) As relief, Plaintiff sought "to recover pre-death pain and suffering, funeral and burial expenses, medical expenses, and any and all other available estate claims and expenses, resulting from the death of Jearlene Johnson." (Id. at 14.) Additionally, Plaintiff requested punitive damages. (Id. )
On review, this Court identified deficiencies with respect to the jurisdictional allegations in Plaintiff's initial complaint and directed Plaintiff to file an amended complaint addressing those deficiencies. (Doc. 4.) On December 27, 2018, Plaintiff complied with this Court's directive and filed an amended complaint reasserting his previous allegations against Defendants ADT and John Does 1-10. (Doc. 7.) In the amended complaint, Plaintiff also added Defendants The ADT Corporation and Safe Streets USA, LLC as defendants in this action. (Id. )
Defendants have now filed two motions to dismiss. (Doc. 16; Doc 17.) In their nearly identical motions, Defendants contend that Plaintiff has failed to establish any possible basis for recovery and that the entirety of Plaintiff's complaint must be dismissed. Defendants allege that Plaintiff's claims fail because (1) the contract signed by Decedent Johnson bars this lawsuit, or, alternatively, limits Plaintiff's potential recovery; (2) Plaintiff's lawsuit is untimely; (3) Plaintiff's claims based on Defendants' negligence arise solely out of the contract between Decedent Johnson and Defendant ADT; and (4) Plaintiff's fraudulent misrepresentation claim is inefficiently pled and substantively insufficient.
ANALYSIS
I. STANDARD OF REVIEW
Federal Rule of Civil Procedure 8(a) (2) requires a complaint to contain "a short and plain statement of the claim showing that the pleader is entitled to relief." "[T]he pleading standard Rule 8 announces does not require 'detailed factual allegations,' but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation." Ashcroft v. Iqbal,
"To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' "
When the Court considers a motion to dismiss, it accepts the well-pleaded facts in the complaint as true. Sinaltrainal,
II. DEFENDANTS THE APT CORPORATION AND SAFE STREETS USA, LLC
In his briefing, Plaintiff has agreed to voluntarily dismiss Defendants The ADT Corporation and Safe Streets USA, LLC from this action without prejudice. (Doc. 22 at 1 n.1.) Pursuant to Federal Rule of Civil Procedure 41(a) (1) (A) (i), parties are permitted to dismiss a defendant from an action if the dismissal is requested "before the opposing party serves either an answer or a motion for summary judgment." See also Klay v. United Healthgroup, Inc.,
III. DEFENDANT ADT'S MOTION TO DISMISS
Although Plaintiff has agreed to dismiss Defendants Safe Streets LLC and The ADT Corporation from this action, Plaintiff maintains his claims with respect to Defendant ADT. Accordingly, the Court will now consider the merits of Defendant ADT's Motion to Dismiss. (Doc. 16.)
A. Timeliness of this Action
As an initial matter, Defendant ADT argues that Plaintiff's lawsuit must be dismissed because it is untimely. Defendant contends that Plaintiff filed this lawsuit one day after the one-year limitations period agreed to by the parties in the contract between Defendant ADT and Decedent Johnson. In response, Plaintiff disagrees and asserts that this lawsuit, filed on the one-year anniversary of Decedent Johnson's death, was properly filed on the last day of the filing period.
From this Court's assessment of the contract
Defendant attempts to complicate the plain reading of the contract provision by arguing that the contract terms provide that the calculation of the one-year filing period actually began on the date of the incident and that any resulting lawsuit should have, therefore, been filed by December 9, 2018. Further, Defendant asserts that Georgia state courts enforce filing limitations contained in contracts and that no federal rule or statute would impact the calculation of the filing period agreed to in the contract. As a result, Defendant contends that the Court must enforce the contract terms in this case, which, in Defendant's view, dictate that the filing period for this action began on the day of the incident and expired before Plaintiff filed this action.
While Defendant is correct that the filing-limitations period agreed to in the contract should be enforced in this case, the Court disagrees with Defendant's interpretation of the language in the contract. Contrary to Defendant's argument, the contract does not plainly state that the day of the incident in question counts in the calculation of the limitations period or that the lawsuit must be filed less than a year of the date of the incident. Instead, the contract plainly provides that Plaintiff must file this lawsuit v/ithin "one year after the date of loss." (Doc. 16, Attach. 1 at ¶ 5(F).) Using common sense to interpret the plain meaning of the contract terms, Plaintiff had one year, or 365 days, from the date of Decedent Johnson's death to file this lawsuit. By filing the lawsuit on the anniversary of the Decedent's death, this action is plainly timely.
B. Exculpatory Clause
Despite this Court's conclusion that Plaintiff's complaint is timely, Defendant contends that Plaintiff's complaint must also be dismissed because Plaintiff's suit is barred by the contract at issue in this case. Defendant contends that Decedent Johnson expressly waived the ability to file suit against Defendant ADT in the initial contract that she signed to obtain home security services. Because Decedent Johnson knowingly waived any opportunity to bring suit against Defendant ADT, Defendant asserts that this action must be dismissed. Alternatively, Defendant contends that Decedent Johnson agreed to limit any potential recovery from any lawsuit to $ 500. In response, Plaintiff asserts that the contract *1376terms are unenforceable and should not bar this action.
In Georgia, courts are instructed to "respect[ ] the parties' sacrosanct freedom of contract." Monitronics Intern., Inc. v. Veasley,
In this case, the contract Decedent Johnson signed with Defendant ADT contains several provisions designed to limit Defendant ADT's liability. These provisions all appear in section 5 of the contract, entitled "LIMITATION OF LIABILITY. " (Doc. 16, Attach. 1 at ¶ 5 (emphasis in original).) The first two subparagraphs in section 5 read as follows:
A. INSURANCE; WAIVER OF SUBROGATION. I AGREE THAT [ADT] IS NOT AN INSURER AND THAT [ADT] IS NOT PROVIDING ME WITH INSURANCE OF ANY TYPE. THE AMOUNTS I PAY [ADT] ARE NOT INSURANCE PREMIUMS AND ARE NOT RELATED TO ... ANY RISK OF LOSS AT MY PREMISES. INSTEAD, THE AMOUNTS [ADT] CHARGES ME ARE BASED SOLELY UPON THE VALUE OF THE EQUIPMENT AND SERVICES [ADT] PROVIDES AND UPON THE LIMITED LIABILITY [ADT] ASSUMES UNDER THIS CONTRACT. IF I WANT INSURANCE TO PROTECT AGAINST ANY RISK OF LOSS AT MY PREMISES, I WILL PURCHASE IT. IN THE EVENT OF ANY LOSS, DAMAGE, OR INJURY, I WILL LOOK EXCLUSIVELY TO MY INSURER AND NOT TO [ADT] TO COMPENSATE ME OR ANYONE ELSE. I RELEASE AND WAIVE FOR MYSELF AND MY INSURER ALL SUBROGATION AND OTHER RIGHTS TO RECOVER AGAINST [ADT] ARISING AS A RESULT OF THE PAYMENT OF ANY CLAIM FOR LOSS, DAMAGE OR INJURY.
B. NO GUARANTEE; NO LIABILITY. [ADT]'S EQUIPMENT AND SERVICES DO NOT CAUSE AND CANNOT ELIMINATE OCCURENCES OF THE EVENTS THEY ARE INTENDED TO DETECT OR AVERT ... [ADT] DOES NOT UNDERTAKE ANY RISK THAT I... MAY BE SUBJECT TO INJURY OR LOSS IF SUCH AN EVENT OCCURS. THE ALLOCATION OF SUCH RISK REMAINS WITH ME, AND NOT WITH [ADT]. I RELEASE, WAIVE, DISCHARGE AND PROMISE NOT TO SUE OR BRING ANY CLAIM OF ANY
*1377TYPE AGAINST [ADT] FOR LOSS, DAMAGE, INJURY, RELATING TO THE EQUIPMENT OR SERVICES PROVIDED BY [ADT].
(Id. at ¶¶ 5(A), 5(B) (emphasis in original).) In addition to the above provisions, Decedent Johnson also agreed to expressly waive any potential tort claim against Defendant ADT. (Id. at ¶ 5(H) ("I AGREE THAT ANY DUTIES OWED TO ME BY [ADT] ARE SET FORTH IN THIS CONTRACT AND I EXPRESSLY WAIVE ANY CLAIMS OR DEFENSES BASED ON TORTIOUS CONDUCT INCLUDING WILLFUL OR INTENTIONAL TORTS. ") (emphasis in original).) Further, Decedent Johnson agreed not to hold Defendant ADT liable for any consequential or incidental damages arising out of ADT's service. (Id. at ¶ 5(C) ("UNDER NO CIRCUMSTANCES WILL I ATTEMPT TO HOLD [ADT] LIABLE FOR ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES, INCLUDING WITHOUT LIMITATION, DAMAGES FOR PERSONAL INJURY ....") (emphasis in original).) In the event that ADT was found liable for any loss or damage, the contract provided that Defendant ADT's liability "SHALL BE LIMITED TO A SUM EQUAL TO 10% OF THE ANNUAL SERVICE CHARGE OR $ 500, WHICHEVER IS GREATER. " (Id. (emphasis in original).)
In his briefing, Plaintiff does not dispute that the contract does contain the above provisions which are designed to limit Defendant ADT's liability in the event of some loss or injury. Nor, does Plaintiff attempt to argue that the contract is invalid. Instead, Plaintiff argues that these limitation-of-liability provisions are unenforceable because they are not displayed prominently in the contract agreement. In support of his argument Plaintiff relies on Monitronics,
In Monitronics, the Georgia Court of Appeals considered the prominence and enforceability of a limitation-of-liability provision contained in a home security contract.
Similarly, in Parkside, the Georgia Court of Appeals found that an exculpatory clause releasing the defendant from all potential liability was not prominently displayed and, therefore, unenforceable.
In this Court's view, the provisions contained in the contract at issue in this case are materially different from those contained in Monitronics and Parkside. Unlike in Monitronics and Parkside where the specific provision limited the defendant's liability was not set off in its own labeled paragraph, the provisions in Decedent Johnson's contract with Defendant ADT are clearly labeled in their own subparagraphs. (See Doc. 16, Attach. 1. at ¶ 5 (listing subparagraph 5(A) as "INSURANCE; WAIVER OF SUBROGATION ," 5(B) as "NO GUARANTEE; NO LIABILITY ," 5(C) as "EXCLUSIVE REMEDY " and 5(H) as "WAIVER OF TORT CLAIMS ") (emphasis in original).) Moreover, the font of the subparagraphs at issue in this case are bolded and capitalized. Although many of provisions in section 5 are capitalized and bolded, most of the other 27 sections of the contract are not. In addition, the contract calls attention to the importance of section 5 above the signature line in the contract. (See Doc. 16, Attach. 1 at 2 ("Before signing this Contract, I have read, understand and agree to each and every term of this Contract, including but not limited to Paragraphs 5 (LIMITATION OF LIABILITY) ....")(emphasis in original).)
In this Court's view, the terms which limit Defendant ADT's liability are sufficiently prominent in the contract signed by Decedent Johnson. See also 2010-1 SFG Venture LLC v. Lee Bank & Tr. Co.,
C. Gross Negligence Claim
Although this Court has found that Plaintiff's suit is barred by the contract in this case, the Court pauses to address Plaintiff's gross negligence claim. As mentioned earlier, exculpatory clauses "are not void as against public policy unless they purport to relieve liability for acts of gross negligence or willful or wanton conduct." Holmes,
It is well settled that "[t]ort relief is available in a breach of contract setting only in a narrow range of circumstances." In re Colony Square Co.,
*1379Allstate Ins. Co. v. ADT, LLC,
In this case, Plaintiff complains that Defendant acted with gross negligence by failing to contact either Ms. Archie or the proper authorities when the alarm was triggered at Decedent Johnson's residence. The alleged duty to contact Ms. Archie or the proper authorities, however, arises directly from the contract signed by Decedent Johnson. The entire purpose of the contractual agreement was to ensure that others were notified in the event that the alarm was triggered at Decedent's residence. Accordingly, Defendant's alleged failure to comply with the terms of the contract constitutes a breach of contract action, not a tort action.
Additionally, Plaintiff has failed to allege that Defendant ADT owed or violated any other duty than those expressly provided for in the contract. Plaintiff attempts to argue that Defendant's failure to notify Ms. Archie or the appropriate authorities can constitute both a breach of contract action and a tort action. In support of his argument, Plaintiff cites a concurring opinion in Monitronics,
In a specially concurring opinion, however, Judge Doyle disagreed with the panel opinion's reasoning.
Despite the concurrence in Monitronics, this Court remains unpersuaded that Plaintiff has properly established that Defendant ADT owed Decedent Johnson any *1380duty that did not arise under the contractual agreement for home security services. As an initial matter, Plaintiff's argument is based on a non-binding, specially concurring opinion. Plaintiff has not offered any binding legal authority to support his position. In light of the lack of support for Plaintiff's argument, this Court is inclined to follow the guidance laid out by the panel decision in Monitronics and other courts that have also found that extra-contractual duties do not simply arise independent of home security contracts because the defendant is providing a home security service. See, e.g., Allstate Ins. Co. v. ADT, LLC,
As a final attempt to save his claims, Plaintiff argues that this Court should deny Defendant's motion and permit discovery in order to allow Plaintiff the opportunity to fully develop his claim that Defendant ADT owed Decedent Johnson a duty independent of the contract. Plaintiff contends that evidence may come to light as to the whether there were any communications between Defendant ADT and Decedent Johnson on the night of her death that would constitute a voluntary undertaking or give rise to an extra-contractual duty. Although it is impossible to know at this stage whether Defendant did have any communications with Decedent Johnson on the night of her death, this Court will not allow Plaintiff's claims to remain simply to allow Plaintiff to pursue discovery in the hopes that evidence supporting an extra-contractual duty may arise. Plaintiff has failed to establish any evidence of an extra-contractual duty in his complaint and, therefore, any claim based on Defendant's gross negligence must be dismissed.
D. Fraudulent Misrepresentation Claim
On a final note, the Court will address Plaintiff's claim that "Defendant[ ] committed fraudulent misrepresentation when Defendant[ ] failed to contact Ms. Archie on December 10, 2017, ... despite assurances that Ms. Archie would be contacted when the alarm was triggered." (Doc. 7 at ¶ 39.) This Court has already found that this claim is barred by the exculpatory language in the contract signed by Decedent Johnson. Even if the contract in this case did not bar Plaintiff's fraudulent misrepresentation claim, however, Plaintiff's claim would still fail because it is insufficiently pled.
Pursuant to Federal Rule of Civil Procedure Rule 9(b), "[i]n alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake." To satisfy the requirements of Rule 9(b), "[p]laintiffs must allege (1) the precise statements, documents, or misrepresentations made; (2) the time, place, and person responsible for the statement; (3) the content and manner in which these statements misled the [p]laintiffs; and (4) what the defendants gained by the alleged fraud." Brooks v. Blue Cross & Blue Shield of Fla., Inc.,
In this case, Plaintiff appears to concede that his fraudulent misrepresentation claim is insufficiently pled. (See Doc. 22 at 13.) In his briefing, Plaintiff does not offer any argument that his fraudulent misrepresentation claim is properly pled or should be considered by this Court on the merits. (Id. ) Instead, Plaintiff requests that the Court allow him the opportunity to amend his complaint to address the deficiencies within his allegations. (Id. )
Generally, when a claim is insufficiently pled "a party must be given at least one opportunity to amend before the district court dismisses the complaint." Corsello v. Lincare, Inc.,
In this case, allowing Plaintiff to amend his complaint would be futile. In Georgia, "actionable fraud cannot be predicated on a promise contained in a contract because the promise is to perform some act in the future, and 'normally, fraud cannot be predicated on statements which are in the nature of promises as to future events.' " BTL COM Ltd., Co. v. Vachon,
In this case, Plaintiff's allegation of fraudulent misrepresentation is clearly based on a promise to perform some act in the future-a promise to call Ms. Archie in the event of the alarm being triggered at Decedent Johnson's home. Accordingly, Plaintiff's fraudulent misrepresentation claim fails unless Plaintiff is able to demonstrate that Defendant ADT made the promise with no intention of ever fulfilling the contractual obligation. In the complaint, Plaintiff provides a naked allegation that Defendant ADT had no intention of contacting Ms. Archie in the event that the Decedent's alarm was triggered. (Doc 7 at ¶ 40.) Other allegations in Plaintiff's own complaint, however, plainly contradict Plaintiff's assertion. According to Plaintiff's own allegations, Defendant ADT intended to fulfill its contractual obligations and actually did so when Defendant ADT contacted Ms. Archie on several prior occasions when the alarm was triggered at Decedent's home. (Id. at ¶ 13.) Upon review, the Court is unable to reconcile the inconsistencies between Plaintiff's claim that Defendant ADT never intended to comply with its promise to contact Ms. Archie and the facts detailed in the complaint. In this Court's view, these inconsistencies demonstrate that even if Plaintiff *1382was given an opportunity to amend his complaint, Plaintiff would still be unable to establish a viable claim for fraudulent misrepresentation.
Moreover, Plaintiff has failed to convince this Court otherwise. Plaintiff has not provided any argument as to why he should be provided with an opportunity to amend his complaint. In his briefing, Plaintiff has made no reference to how his claim can be pled with more particularity or how his claim would survive if given the opportunity to amend. Due to Plaintiff's lack of argument and this own Court's assessment of the complaint, this Court finds that allowing Plaintiff to amend the complaint in this case would be futile. Accordingly, Plaintiff's claim for fraudulent misrepresentation is dismissed and Plaintiff will not be given an opportunity to amend his complaint.
E. Remaining Counts
In his complaint, Plaintiff also details various other "counts." These include: Count III for vicarious liability, Count VII for punitive damages, Count VIII for pre-death injury and pain and suffering, and Count XI for wrongful death. (Doc. 7.) Although listed as individual claims, none of these counts constitute an independent cause of action. Instead, these counts are dependent on Plaintiff's other allegations. Because Plaintiff has failed to properly allege any independent claim for relief, Plaintiff's remaining counts also fail.
CONCLUSION
For the foregoing reasons, Defendant Safe Streets, LLC's Motion to Dismiss (Doc. 17) is DISMISSED AS MOOT and Defendant ADT's Motion to Dismiss (Doc. 16) is GRANTED. Defendants Safe Streets, LLC, The ADT Corporation, and ADT LLC are DISMISSED from this action.
SO ORDERED this 2ND day of May 2019.
For the purposes of this order, the Court will accept all factual allegations in the amended complaint as true and construe all allegations in the light most favorable to Plaintiff. Timson v. Sampson,
This Court may consider the terms of the contract signed by Decedent Johnson without converting Defendant's motion to dismiss into a motion for summary judgment because the contract is central to the allegations in Plaintiff's complaint and Plaintiff has not challenged the authenticity of the contract. See Horsley v. Feldt,
In this Court's view, Defendant's argument borders on the nonsensical. Defendant's argument suggests that the unambiguous one-year filing provision somehow actually means that Plaintiff was required to file this lawsuit less than a year after the date of the incident. Defendant has not provided any authority to support its distorted reading of the contract. In the future, defense counsel is advised not to waste this Court's time on meritless arguments.
This analysis applies equally to Plaintiff's claims based on Defendant ADT's alleged negligence and negligent training and supervision of its staff. These claims were not specifically discussed in this analysis, however, because the Court concluded that the terms of the home security contract barred these claims. If the Court had concluded that the terms of the contract did not bar these claims, the Court would have still dismissed these claims due to Plaintiff's failure to establish any duty that Defendant ADT owed Decedent Johnson independent of the contract. Accordingly, all of Plaintiff's claims based on negligence, if not already barred by the contract terms, would have been dismissed.
In the amended complaint, Plaintiff also raises claims against John Does 1-10. (Doc. 7.) This Court is unable to dismiss the entirety of Plaintiff's complaint at this time due to these remaining defendants.
Reference
- Full Case Name
- Allen JOHNSON, as brother and surviving heir of Jearlene Johnson, and on behalf of all wrongful death beneficiaries of Jearlene Johnson and Allen Johnson, as of the Estate of Jearlene Johnson v. ADT, LLC, doing business as ADT Security Services, Inc. John Does 1-10 The ADT Corporation and Safe Streets USA, LLC
- Status
- Published