J. B. v. G6 Hospitality, LLC
4:19-cv-07848
| N.D. Cal. | Aug 20, 2020

Background

  • Plaintiff J.B., a former minor sex-trafficking victim, alleges she was advertised on Craigslist and repeatedly trafficked and violently assaulted at various motels in Oakland/Alameda County between 2007–2011, including approximately 14 assaults at Economy Inn.
  • Defendants include Craigslist and multiple motels (including Economy Inn operated by Kantilal and Rajeshkumar Khatri); several motel defendants were later dismissed by stipulation.
  • Claims: federal TVPRA beneficiary-liability under 18 U.S.C. § 1595; California CTVPA (Cal. Civ. Code § 52.5); negligence (against motels and Kairos); negligence per se; and civil conspiracy.
  • Plaintiff alleges Craigslist published third-party ads (erotic/adult services), required an age-attestation but did not verify posters, and knew its site facilitated commercial sex trafficking; she alleges motels profited from room rentals to buyers and should have known trafficking occurred.
  • Motions: Craigslist and Economy Inn moved to dismiss. Court ruled Craigslist immune under CDA §230 for state-law claims (those claims dismissed without leave); Craigslist’s TVPRA claim dismissed with leave to amend. Economy Inn’s TVPRA, CTVPA, and civil-conspiracy claims dismissed with leave to amend; negligence per se dismissed without leave.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether CDA §230 bars J.B.’s state-law claims against Craigslist J.B.: FOSTA/FOSTA‑SESTA meant Congress intended to allow state civil claims for sex‑trafficking; Craigslist’s site materially facilitated ads for minors Craigslist: §230 immunity shields interactive services from being treated as publisher/speaker of third‑party content; FOSTA’s carve‑outs do not include state civil causes Court: §230 applies; Craigslist meets three‑prong test; FOSTA’s §230(e)(5) carve‑out does not exempt state civil claims — state claims dismissed without leave to amend
Whether J.B. plausibly alleged a TVPRA (§1595) claim against Craigslist (participation, knowledge, benefit) J.B.: Craigslist knew its erotic/adult sections were used to find victims, had notice from media, suits, public pressure, and made posting rules that aided traffickers Craigslist: J.B. fails to plead that Craigslist participated in a trafficking venture, had (actual or constructive) knowledge of the specific venture, or knowingly benefited from it Court: TVPRA claim not plausibly pled as Craigslist’s participation in the specific venture is not shown — TVPRA claim dismissed with leave to amend
Whether J.B. plausibly alleged a TVPRA/CTVPA claim against Economy Inn J.B.: Economy Inn rented rooms to buyers, had repeated incidents and observable signs (bruising, foot traffic, used condoms), so should have known trafficking occurred Economy Inn: Allegations are speculative; do not show motel had constructive knowledge that conduct amounted to trafficking or that motel intended to facilitate trafficking Court: TVPRA and CTVPA claims inadequately pled as to Economy Inn; both dismissed with leave to amend (CTVPA requires intent)
Viability of negligence per se and civil conspiracy claims against Economy Inn J.B.: Motel benefited financially from room rentals that facilitated trafficking; conspiracy alleged among buyers, motels, traffickers Economy Inn: Negligence per se is not a standalone cause; conspiracy requires specific intent and agreement which are not pled Court: Negligence per se dismissed without leave to amend; civil conspiracy dismissed with leave to amend for failure to plead intent/agreement

Key Cases Cited

  • Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (pleading standard: plausibility)
  • Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (applying plausibility standard to factual allegations)
  • Barnes v. Yahoo!, Inc., 570 F.3d 1096 (9th Cir. 2009) (§230 three‑prong test for interactive services)
  • Fair Hous. Council of San Fernando Valley v. Roommates.Com, LLC, 521 F.3d 1157 (9th Cir. 2008) (distinguishing passive hosting from material contribution)
  • Dyroff v. Ultimate Software Grp., Inc., 934 F.3d 1093 (9th Cir. 2019) (summarizing §230 immunity framework)
  • Woodhull Freedom Found. v. United States, 948 F.3d 363 (D.C. Cir. 2020) (discussing FOSTA’s narrowing of §230 re: sex‑trafficking law)
  • Ricchio v. McLean, 853 F.3d 553 (1st Cir. 2017) (participation in venture analysis where business relationship supported inference)
  • M.A. v. Wyndham Hotels & Resorts, Inc., 425 F. Supp. 3d 959 (S.D. Ohio 2019) (examples of facts sufficient to infer hotel’s constructive knowledge of trafficking)
  • Chicago Lawyers’ Comm. for Civil Rights Under Law, Inc. v. Craigslist, Inc., 519 F.3d 666 (7th Cir. 2008) (Craigslist as forum, limits of content‑provider liability)
  • Dart v. Craigslist, Inc., 665 F. Supp. 2d 961 (N.D. Ill. 2009) (Craigslist’s posting rules do not alone make it a content provider)
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