85 F.4th 570
9th Cir.2023Background
- Ford vehicles include infotainment systems that automatically download and indefinitely store connected phones’ call logs and text messages; deletions on the phone do not remove the stored vehicle copies and owners cannot delete them.
- Plaintiff Jones connected his phone to a Ford vehicle and allegedly had private text communications with plaintiff McKee that were thereby recorded and stored on the vehicle’s on-board memory.
- Plaintiffs do not allege Ford actually accessed the stored communications; they allege third-party tools (e.g., Berla) can extract the stored data and such tools are available to select law enforcement and private investigators.
- Plaintiffs sued in Washington state court under the Washington Privacy Act (WPA); Ford removed under CAFA and moved to dismiss under Rule 12(b)(6).
- The district court dismissed for failure to plead an injury to the plaintiff’s business, person, or reputation as required by Wash. Rev. Code § 9.73.060, and alternatively held manufacturing liability did not extend to Ford; plaintiffs appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III standing / remand | Ford’s motion alleged plaintiffs failed to plead a WPA statutory injury, which plaintiffs say rebuts federal jurisdiction and warrants remand | Article III injury-in-fact is separate from a statute-specific merits requirement; CAFA removal removes the presumption against federal jurisdiction | Plaintiffs had Article III standing based on alleged privacy violation; district court properly retained jurisdiction and remand denied |
| WPA statutory injury requirement | A statutory violation of the WPA (unauthorized recording) itself is an invasion of privacy and thus satisfies the statute’s injury element | The WPA requires an injury to one’s business, person, or reputation beyond a bare statutory violation or invasion of privacy | An invasion of privacy alone is insufficient; plaintiffs must plead injury to business, person, or reputation; plaintiffs failed to do so |
| Whether manufacturing/sale constitutes WPA liability | Manufacturing/selling vehicles with the system violates the WPA | WPA liability should not extend to manufacturers as a matter of law | Court did not reach this issue because the statutory-injury ruling was dispositive; alternative manufacturing holding need not be addressed |
Key Cases Cited
- Lujan v. Defs. of Wildlife, 504 U.S. 555 (standing requires injury-in-fact)
- Dart Cherokee Basin Operating Co. v. Owens, 574 U.S. 81 (CAFA removal not subject to state-court-removal presumption)
- Maya v. Centex Corp., 658 F.3d 1060 (Article III standing distinct from merits/statutory pleading requirements)
- Salmon Spawning & Recovery All. v. Gutierrez, 545 F.3d 1220 (statutory standing failure is a Rule 12(b)(6) merits failure when Article III injury is present)
- In re Facebook, Inc. Internet Tracking Litig., 956 F.3d 589 (privacy statute violations can supply concrete injury for Article III standing)
- Eichenberger v. ESPN, Inc., 876 F.3d 979 (privacy violations actionable at common law)
