Downing v. Globe Direct LLC
Downing v. Globe Direct LLC
Opinion of the Court
MEMORANDUM
I. Introduction
Matthew K. Downing (“Plaintiff’) filed suit against Globe Direct LLC (“Defendant”), alleging a violation of federal driver privacy-protection laws.
II. Background
On August 12, 2009, the Massachusetts Registry of Motor Vehicles (“RMV”) entered into a contract with Defendant.
One person who received Defendant’s mailing was Plaintiff, who is the owner of a 1998 Toyota.
The Drivers Privacy Protection Act (“DPPA”), Plaintiff claims, prohibits the use of personal information, 'including the names and addresses of motor vehicle owners, for any purpose other than the specific “permitted uses” set forth in §§ 2721(b)(1) — (14) of the DPPA.
Plaintiff, however, has never given the RMV his consent for the use of his DPPAprotected personal information.
The contract between Defendant and Massachusetts provided that the contract would terminate if there was a “finding of any violation” of the DPPA or “any other federal or Massachusetts state law ... concerning the protection and privacy of personal information.”
On September 18, 2009, Plaintiff sued Defendant, but not Massachusetts.
On October 8, 2010, Defendant filed a Motion for Judgment on the Pleadings [# 34], arguing, among other things, that Massachusetts was a necessary party to this case. On November 12, 2010, Plaintiff opposed Defendant’s Motion through his own Cross-Motion for Judgment on the Pleadings [# 37].
III. Discussion
A party may move for judgment on the pleadings after the pleadings are closed but early enough not to delay trial.
A. Defendant’s Motion for Judgment on the Pleadings
Defendant contends that Massachusetts is a necessary and indispensable party to this action, without whom Plaintiffs action must be dismissed.
1. Legal Standard for Rule 19 Dismissal
Federal Rule of Civil Procedure Rule 19 establishes a two-part analysis to determine whether a court should dismiss an action for failure to join a party.
Second, if a litigant is “necessary” under Rule 19(a) — “required to be joined if feasible” — but cannot be joined,
(1) the extent to which a judgment rendered in the person’s absence might prejudice that person or the existing parties;
(2) the extent to which any prejudice can be lessened or avoided by:
(A) protective provisions in the judgment;
(B) shaping the relief; or
(C) other measures;
(3) whether a judgment rendered in the person’s absence will be adequate; and
(4) whether the plaintiff would have an adequate remedy if the action were dismissed for non-joinder.31
As a general, well-settled proposition, courts have repeated that a “ ‘party to a contract which is the subject of the litigation is a necessary party.’ ”
2. Massachusetts is a Necessary Party and Cannot Be Joined
Massachusetts is a necessary party under Rule 19(a). Massachusetts’s ability to protect its interest would be impaired “as a practical matter” under Rule 19(a)(B)(i).
Second, this litigation would automatically terminate Massachusetts’s contract.
Joinder of Massachusetts is not feasible here because the Commonwealth enjoys sovereign immunity. The Eleventh Amendment prevents private individuals from suing non-consenting states in federal court.
3. Massachusetts is an Indispensable Party
The four Rule 19(b) factors together reveal that Massachusetts is an indispensable party.
The first factor — the extent to which a judgment rendered in the person’s absence might prejudice that person or the existing parties — weighs heavily in favor of dismissal. The first factor of prejudice, “insofar as it focuses on the absent party, largely duplicates the consideration that made a party necessary under Rule 19(a): a protectible interest that will be impaired or impeded by the party’s absence.”
The second factor—the extent to which any prejudice can be lessened or avoided by, protective provisions in the judgment, shaping the relief, or other measures—also weighs in favor of dismissal. There is no way to shape the relief sought by Plaintiff that would mitigate the prejudice to Massachusetts (and Defendant). Plaintiff seeks a declaration that Defendant’s performance of its contract with Massachusetts violated the DPPA along with a permanent injunction enjoining Defendant from performing the contract.
The third factor—whether a judgment rendered in the person’s absence will be adequate—mildly supports the same conclusion that Massachusetts is indispensable to this suit. This factor includes “the interest of the courts and the public in complete, consistent, and efficient settlement of controversies.”
The fourth factor—whether the plaintiff would have an adequate remedy if the action were dismissed for non-joinder—slightly weighs in favor of dismissal, or at worst, is inconclusive. Certainly, Plaintiff is correct that if the case is dismissed for failure to join Massachusetts, he cannot proceed in court. But Plaintiffs lack of all means of redress under “this factor is outweighed by the ‘paramount importance’ to be accorded to the [Commonwealth’s] immunity from suit.”
The factors considered all together weigh in favor of dismissal. The first factors weighs heavily in favor of dismissal, and the second and third factors also weigh in favor of dismissal because they
B. Plaintiffs Cross-Motion for Judgment on the Pleadings
Because of this court’s ruling regarding ■the indispensability of Massachusetts to this suit, this court abstains from deciding the merits of Plaintiffs Cross-Motion beyond its arguments concerning Rule 19. Plaintiffs Motion is therefore DENIED IN PART.
IV. Conclusion
For the foregoing reasons, Defendant’s Motion for Judgment on the Pleadings [# 34] is ALLOWED IN PART, and Plaintiffs Cross-Motion for Judgment on the Pleadings [# 37] is DENIED IN PART.
AN ORDER HAS ISSUED.
. Pis.' Am. Compl. ¶ 22-25[# 3],
. Because the issues analyzed here arise in the context of a motion for judgment on the pleadings, this court construes the facts in the light most favorable to Plaintiffs. See infra note 22 and accompanying text. Such a motion “implicates the pleadings as a whole," Curran v. Cousins, 509 F.3d 36, 43-44 (1st Cir. 2007) (internal citation omitted), and this court “may supplement the facts contained in the pleadings by considering documents fairly incorporated therein and facts susceptible to judicial notice,” id. at 44 (internal citation and quotation marks omitted).
. Ans. Class Action Compl., Ex. C[# 6] (attaching “Additional Negotiated Terms and Conditions and Attachment to the Standard Contract Between the Commonwealth Registry of Motor Vehicles and Globe Direct For the Registration Renewal Printing and Mailing Program”) [hereinafter Ans.]. The RMV had previously issued a Request for Response ("RFR”) seeking proposals for contracts to mail re-registration forms on its behalf. Ans. ¶ 3[# 3]; id., Ex. A[# 3]. The RFR required that the renewal notices sent by the selected vendor contain advertising inserts because the program was to be “funded by the solicitation and sale of commercial advertising by the contractor for insertion into the registry's renewal notice mailing.” Ans., Ex. A, 6[# 3], Massachusetts retained the right to approve all elements of any advertising, including the
. Class Action Compl. ¶ 3[# 1] [hereinafter Compl.]; Ans. ¶¶ 3, 18[#3],
. Ans., Ex. C, at 16[#3] ("All prospecting advertising shall be reviewed and approved by the Commonwealth before the Contractor may enter into an agreement for advertising with the advertiser.”).
. Compl. ¶ 3[# 1]; Ans. ¶ 3[# 3].
. Compl. ¶ 10[# 1],
. Compl. ¶ 10[# 1],
. Compl. ¶ 13[# 1],
. Class Action Comp. ¶ 3[# 1],
. Compl. ¶ 11[# 1],
. Compl. ¶ 12[# 1],
. Ans., Ex. C ¶ 16[# 3],
. See Compl. [# 1],
. Compl. ¶ 19 — 21 [# 1],
. Comp. ¶ 19 — 21 [# 1],
. Compl. ¶ 14[# 1],
. Fed.R.Civ.P. 12(c).
. See, e.g., Remexcel Managerial Consultants, Inc. v. Arlequin, 583 F.3d 45, 49 & n. 3 (1st Cir. 2009) (internal citations omitted).
. Perez-Acevedo v. Rivero-Cubano, 520 F.3d 26, 29 (1st Cir. 2008) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)); see also Citibank Global Mkts., Inc. v. Santana, 573 F.3d 17, 23 (1st Cir. 2009) (internal citations omitted); Andrew Robinson Int’l, Inc. v. Hartford Fire Ins. Co., 547 F.3d 48, 51 (1st Cir. 2008) (explaining that a motion to dismiss will be granted “unless the facts, evaluated in that plaintiff-friendly manner, contain enough meat to support a reasonable expectation that an actionable claim may exist” (internal citations omitted)).
. Perez-Acevedo, 520 F.3d at 29 (internal citations and quotation marks omitted).
. Mem. Supp. GlobeDirect’s Mot. J. Pleadings, 15-20[# 35],
. Mem. Supp. Pl.’s Cross-Mot. J. Pleadings & Opp'n Def.'s Mot. J. Pleadings, 22-24[# 39] [hereinafter Pl.’s Cross-Mot.].
. Jimenez v. Rodriguez-Pagan, 597 F.3d 18, 25 (1st Cir. 2010) (internal citations omitted).
. Jimenez, 597 F.3d at 25 (explaining that the term “necessary" is a vestige of a superseded version of Rule 19 and a term of art, signifying “desirability rather than actual necessity [because parties] are not truly necessary in the vernacular sense of the word ‘unless and until they satisfy the terms of Rule 19(b)'” (quoting Confederated Tribes of Chehalis Indian Reservation v. Lujan, 928 F.2d 1496, 1501 n. 1 (9th Cir. 1991) (O'Scannlain, J., concurring in part and dissenting in part))).
. Fed.R.Civ.P. 19(a)(1)(A).
. Id. 19(a)(1)(B).
. Fed.R.Civ.P. 19(b).
. Jimenez, 597 F.3d at 25 ("The critical question in the Rule 19(b) context is whether in equity and good conscience the action may proceed in [the necessary partyj's absence.” (alteration in original) (internal citations and quotation marks omitted)); Fed.R.Civ.P. 19(b).
. Fed.R.Civ.P. 19(b).
. Blacksmith Invs., LLC v. Cives Steel Co., Inc., 228 F.R.D. 66, 74 (D.Mass. 2005) (quoting Sever v. Glickman, 298 F.Supp.2d 267 (D.Conn. 2004)); see also Leonard v. Humacao Glass & Aluminum Contractors Inc., No. 03-2250(DRD), 2006 WL 656426, at *8, 2006 U.S. Dist. LEXIS 13680, at *23 (D.P.R. 2006) ("[Gjenerally, when a breach of contract is asserted, all parties to the contract are necessary parties.” (citing Acton Co., Inc. of Mass, v. Bachman Foods, Inc., 668 F.2d 76, 78-79 (1st Cir. 1982))); Daynard v. Ness, Motley, Loadholt, Richardson & Poole, P.A., 184 F.Supp.2d 55, 78 (D.Mass. 2001) (collecting cases and noting certain rules of thumb, including that "an action to set aside a contract requires the joinder of all parties to the contract.” (quoting 4 Moore's Federal Practice § 19.06[1] (3d ed. 2001))); EEOC v. Peabody W. Coal Co., 610 F.3d 1070, 1082 (9th Cir. 2010) ("[Njo procedural principle is more deeply imbedded in the common law than that, in an action to set aside a lease or a contract, all parties who may be affected by the determination of the action are indispensable.” (internal citations and quotation marks omitted)).
. Rivera Siaca v. DCC Operating, Inc. (In re Olympic Mills Corp.), 333 B.R. 540, 552 (1st Cir. 2005) (explaining that many courts have concluded that joint obligors, persons who owe a duty of performance, are not indispensable (internal citations omitted)).
. Picciotto v. Const’l Cas. Co., 512 F.3d 9, 16 (1st Cir. 2008) (quoting Acton, 668 F.2d at 78).
. Fed.R.Civ.P. 19(a)(l)(B)(i).
. See, e.g., Ans., Ex. C ¶ 7[# 3] (listing responsibilities of Defendant); Ans., Ex. C, 15[# 3] (including attachment to contract providing further requirements of Defendant).
. See, e.g., Arcidi v. Nat’l Ass'n of Gov’t Emps., Inc., 447 Mass. 616, 619-620, 856 N.E.2d 167 (2006) (explaining that a contract that violates state law is unenforceable (internal citations omitted)).
. See supra note 14 and accompanying text.
. Defendant instead argues that Massachusetts is not necessary because it is protected by an adverse decision by the contract providing for automatic termination if it is judged to violate any federal or Massachusetts privacy-protection laws. But this argument is unconvincing for a few reasons. First, this provision is irrelevant to Massachusetts’s position if this court were to judge whether the contract substantively violates privacy-protection laws. That is, even without the clause, the contract would still be nullified. See supra note 37 and accompanying text. Second, Defendant points to no case law indicating that this termination clause makes Massachusetts no longer a necessary party.
. Am. Greyhound Racing, Inc. v. Hull, 305 F.3d 1015, 1025 (9th Cir. 2002) ("Before this litigation, the tribes had a right to renewal if a Governor was willing to leave the compacts in effect; after the litigation, termination was the only option.”). Moreover, insofar as a judgment rendered in Massachusetts’s absence would impair its "sovereign capacity to negotiate contracts,” this would also undermine the Commonwealth's ability govern "effectively and efficiently.” Dawavendewa v. Salt River Project Agric. Improvement & Power Hist., 276 F.3d 1150, 1155 (9th Cir. 2002) (internal citations omitted).
. Bd. of Trs. of the Univ. of Ala. v. Garrett, 531 U.S. 356, 363, 121 S.Ct. 955, 148 L.Ed.2d 866 (2001); see U.S. Const. Amend. XI ("The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another States, or by Citizens or Subjects of any Foreign State.”).
. See PRASA v. M & E, 506 U.S. 139, 146-47, 113 S.Ct. 684, 121 L.Ed.2d 605 (1993); Alabama v. Pugh, 438 U.S. 781, 782, 98 S.Ct. 3057, 57 L.Ed.2d 1114 (1978) (per curium).
. See Azubuko v. Boston Mun. Court, No. 09-10152-DPW, 2010 WL 2802039, at *1-2, 2010 U.S. Dist. LEXIS 69113, at *4-5 (D.Mass. July 12, 2010).
. Garrett, 531 U.S. at 363, 121 S.Ct. 955 (quoting Kimel v. Fla. Bd. of Regents, 528 U.S. 62, 73, 120 S.Ct. 631, 145 L.Ed.2d 522 (2000)).
. 18 U.S.C. § 2724.
. 18 U.S.C. § 2725(2).
. Travis v. Reno, 163 F.3d 1000, 1006 (7th Cir. 1998). There is, moreover, no indication that Massachusetts has consented to suit or waived its sovereign immunity in any fashion. See Arecibo Cmty. Health Care, Inc. v. Puerto Rico, 270 F.3d 17, 24 (1st Cir. 2001) (explaining three ways that a state may waive its Eleventh Amendment immunity).
. Hull, 305 F.3d at 1024 (internal citations omitted); accord Picciotto, 512 F.3d at 18 (noting and not disapproving of a district court's first factor analysis as a reiteration of its Rule 19(a)(2)(f) analysis).
. See supra notes 38-39 and accompanying text.
. Yashenko v. Harrah’s NC Casino Co., 446 F.3d 541, 553 (4th Cir. 2006).
. See Provident Tradesmens Bank & Trust Co. v. Patterson, 390 U.S. 102, 110, 88 S.Ct. 733, 19 L.Ed.2d 936 (1968).
. CompL, 8—9[# 1],
. See Laker Airways, Inc. v. British Airways, PLC, 182 F.3d 843, 849 (11th Cir. 1999) (finding prejudice to an absent party because the plaintiff could not prevail without demonstrating that the absent party failed to follow the law).
. Picciotto, 512 F.3d at 18 (quoting Provident Tradesmens, 390 U.S. at 111, 88 S.Ct. 733).
. See supra note 51 and accompanying text.
. Z & B Enters. v. Tastee-Freez Int’l, Inc., 162 Fed.Appx. 16, 21 (1st Cir. 2006).
. Seneca Nation of Indians v. New York, 383 F.3d 45, 48 (2d Cir. 2004) (internal citation and quotation marks omitted); see Hull, 305 F.3d at 1025 ("With regard to the fourth factor, however, we have regularly held that the tribal interest in immunity overcomes the lack of an alternative remedy or forum for the plaintiffs.” (Internal citations omitted)).
. See 18 U.S.C. § 2723(b). Therefore, insofar as the DPPA may be enforced by other means, Plaintiff's primary argument that this court's ruling would "decimate the DPPA” is incorrect. See Pl.'s Cross-Mot., 23[# 39].
. Fluent v. Salamanca Indian Lease Auth., 928 F.2d 542, 548 (2d Cir. 1991) (quoting Enterprise Mgmt. Consultants, Inc. v. United States ex rel. Hodel, 883 F.2d 890 894 (10th Cir. 1989)) (collecting other sources).
Reference
- Full Case Name
- Matthew K. DOWNING v. GLOBE DIRECT LLC
- Cited By
- 12 cases
- Status
- Published