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Peterson v. Aaron's, Inc.
1:14-cv-01919
N.D. Ga.
Oct 3, 2017
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Background

  • 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)
Read the full case

Case Details

Case Name: Peterson v. Aaron's, Inc.
Court Name: District Court, N.D. Georgia
Date Published: Oct 3, 2017
Docket Number: 1:14-cv-01919
Court Abbreviation: N.D. Ga.