Peterson v. Aaron's, Inc.
1:14-cv-01919
N.D. Ga.Oct 3, 2017Background
- Plaintiffs Michael Peterson and Matthew Lyons allege Aspen Way (an Aaron’s franchisee) installed and activated PC Rental Agent’s “Detective Mode” on a leased laptop, capturing screenshots, keystrokes, and webcam images without consent. Lyons was the lessee; Peterson was not on the lease.
- Detective Mode was installed on Lyons’ laptop on October 21, 2010 and used through February 7, 2011; Aaron’s contends it learned of franchisees’ use of Detective Mode only later.
- Plaintiffs asserted claims including intrusion upon seclusion, aiding and abetting, unjust enrichment, and GCSPA violations; unjust enrichment and GCSPA claims were dismissed and class certification denied.
- Aspen Way moved for summary judgment on intrusion upon seclusion; Aaron’s moved for summary judgment on aiding and abetting.
- Court applied Georgia choice-of-law rules and determined Oklahoma law governs Lyons’ privacy claim (Lyons was in Oklahoma when Detective Mode was active).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing (injury-in-fact) | Lyons suffered concrete injury from nonconsensual privacy intrusion; Peterson lacked interest in the leased laptop. | Defendants argued mere statutory/procedural violations or fear of future harm are insufficient. | Lyons has standing (privacy invasion is concrete); Peterson lacks standing. |
| Choice of law | Apply law where injury occurred. | N/A | Oklahoma law applies to Lyons’ intrusion claim. |
| Intrusion upon seclusion (Aspen Way) | Detective Mode captured private data; lessee retained reasonable expectation of privacy; keystrokes/screenshots unreasonable and highly offensive. | Aspen Way argued leased status, business use, and default undermined expectation of privacy; repossession rights justified some access. | Denied summary judgment as to Lyons: genuine issues remain on expectation of privacy and offensiveness; capture of keystrokes/screenshots could be highly offensive. Granted as to Peterson (no injury). |
| Aiding and abetting (Aaron’s) | Aaron’s knew Detective Mode was intrusive and knew some franchisees used it; its failure to stop franchisees supports inference it knew Aspen Way’s conduct. | Aaron’s lacked actual knowledge that Aspen Way activated Detective Mode; knowledge of other franchisees or PCRA’s capabilities is insufficient. | Aaron’s entitled to summary judgment—no evidence of actual knowledge of Aspen Way’s tortious conduct. |
Key Cases Cited
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (U.S. 2016) (clarifies that statutory or procedural violations require a concrete injury to confer standing)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (standing requires concrete, particularized, actual or imminent injury)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (summary judgment burden-shifting framework)
- Reilly v. Ceridian Corp., 664 F.3d 38 (3d Cir. 2011) (data-breach fear of future identity theft may be insufficient for injury)
- People v. Sotelo, 336 P.3d 188 (Colo. 2014) (distinguishes expectation of privacy in containers/packages from expectation in vehicle; discussed analogies about privacy in items despite custodial/possession issues)
