Lead Opinion
Mаtthew Carlsen, individually and purportedly on behalf of others similarly situated, brought claims against GameStop, Inc. and Sunrise Publications, Inc. (collectively, “GameStop”) for breach of contract, unjust enrichment, money had and received, and violation of Minnesota’s Con
I.
Matthew Carlsen is a user of print and online materials published by GameStop, including Game Informer Magazine. Game Informer Magazine offers news, reviews, and commentary about the video-game industry. Registered subscribers can access digital versions of the magazine through a website, www.gameinformer.com, where they also can manage their subscriptions and access enhanced content and message boards. Carlsen paid a one-year subscrip-, tion fee of $14.99 for access to the magazine and enhanced content. The terms of service for the online subscription include Game Informer’s privacy policy. The policy, in turn, includes a provision stating that, with certain еxceptions, “Game Informer does not share personal information with anyone.” According to Carlsen, a user must agree to the terms of service and, thus, the privacy policy, in order to purchase subscription access.
In his complaint, Carlsen alleged that GameStop shared his personally identifiable information (“PII”) with Facebook in violation of the privacy policy. He alleged that GameStop shared this information through the Game Informer website, which includes features that аllow Game Informer users to log in to the website using their Facebook accounts and to use Facebook’s “Like,” “Share,” and “Comment” functions through the Game Informer site. Game Informer provides these features by adding a Facebook Software Development Kit (“SDK”) to the source code on the Game Informer website. Carlsen alleged that this SDK transmitted a user’s unique Facebook ID and Game Informer browsing history to Facebook if the user previously had opted to stay logged in to Facebоok.
Carlsen further alleged that GameStop breached a term of the privacy policy by disclosing his Facebook ID and browsing information. He also claimed that this disclosure constituted a material misrepresentation about Game Informer subscriptions because he believed his PII would not be disclosed and because part of his subscription fee paid for the protection of that PII. He alleged that, had he known about the disclosures, he either would not have paid for the subscriрtion or would have refrained from accessing the online content for which he paid. '
Based on these allegations, Carlsen’s amended complaint sought class certification and asserted four claims: (1) breach of contract; (2) unjust enrichment; (3) money had and received; and (4) violation of Minnesota’s CFA, Minn. Stat. §§325F.68, et seq. GameStop filed a motion to dismiss for lack of subject matter jurisdiction and for failure to state a claim. The district court granted the motion to dismiss for lack of subject-matter jurisdiction, finding that Carlsen lacked standing for failure to allege an injury in fact with respect to his overpayment and would-not-have-shopped
■II.
A.
“The existence of subject-matter jurisdiction is a question of law that this court reviews de novo.” ABF Freight Sys., Inc. v. Int’l Bhd. of Teamsters,
Here, the district court discussed both standards but did not state which approach it followed. Toward the end of its opinion, however, the court stated that it was “accepting as true all of Plaintiffs allegations and construing all reasonable inferences in Plaintiffs favor” — i.e., that it was following the Rule 12(b)(6) standard used for a facial attack. We thus examine the Rule 12(b)(1) motion as a facial attаck on jurisdiction, affording Carlsen’s complaint Rule 12(b)(6) protection by “accepting as true all facts alleged in the complaint.” See Trooien v. Mansour,
We begin by addressing the sufficiency of the complaint with respect to Carlsen’s standing. “Federal jurisdiction is limited by Article III of the Constitution to cases or controversies; if a plaintiff lacks standing to sue, the district court has no subject-matter jurisdiction.” ABF,
The district court addressed the standing issue by evaluating Carlsen’s theories of damages. The court first discussed whether Carlsen’s alleged monetary damages based on a theory of “overpayment” constituted a cognizable injury in fact. Under this theory, Carlsen alleged that he would not have paid as much as he did for his Game Informer subscription had he known GameStop would violate the terms
As we previously have cautioned, “[i]t is crucial ... not to conflate Article Ill’s requirement of injury in fact with a plaintiffs potential causes of action, for the concepts are not coextensive.” ABF,
Here, Carlsen has prоvided sufficient facts alleging that he is party to a binding contract — the terms of service, which include the Game Informer privacy policy — with GameStop, and GameStop does not dispute this contractual relationship. Carlsen also has alleged that GameS-top has violated that policy by “systematically disclosing] Game Informer’s users’ PII ... to third party Facebook and/or allowing] Facebook to directly collect that information itself.” This allegation of breach is both concretе and particularized, as the breach allegedly already has occurred, and any consequences of the breach have occurred specifically to Carl-sen as a result of the actions of GameS-top’s alleged systematic disclosure via the Facebook SDK. Additionally, Carlsen alleged that he has suffered damages as a result of GameStop’s breach in the form of devaluation of his Game Informer subscription in an amount equal to the difference between the vаlue of the subscription that he paid for and the value of the subscription that he received, ie., a subscription with compromised privacy protection. Accordingly, Carlsen has alleged an “actual” injury. See id. at 961; cf. Ben Oehrleins & Sons & Daughter, Inc. v. Hennepin Cty.,
Next, Carlsen “must show that [his] injury is ‘fairly traceable to the challenged action of the defendant, and not the
We likewise conclude that Carlsen has standing to bring his other claims. Carlsen’s allegation that he did not receive the data protection set forth in GameStop’s policies suffices to support standing to assert claims related to GameStop’s unjust retention of his payment. As to the claim brought under the Minnesota CFA, the Minnesota Supreme Court has held that “the plain and unambiguous language of the [Minnesota CFA] allows ‘any person’ to bring a private action for redress of violations of the misrepresentation in sales statutes,” whether or not the plaintiffs purchased the defendant’s goods. Grp. Health Plan, Inc. v. Philip Morris Inc.,
B.
Our analysis does not end with our conclusion regarding Carlsen’s standing. “[W]e may affirm a judgment on any ground supported by the record, whether or not that ground was urged below or passed on by the District Court.” United States v. Sager,
To survive a motion to dismiss for failure to state a claim, “a сomplaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Cox, 685 F,3d at 668 (quoting Ashcroft v. Iqbal,
In order to plead breach of contract under Minnesota law, “the plaintiff must show (1) formation of a contract, (2) performance by plaintiff of any conditions precedent to his right to demand performance by the defendant, and (3) breach of the contract by defendant.” Park Nicollet Clinic v. Hamann,
Carlsen alleges that, in order to use the Game Informer website and access paid subscription benefits, he had to agree to the Game Informer terms of service, which included the privacy policy. Even assuming that Carlsen’s payment in conjunction with agreeing to the terms of service fulfills the first two breach-of-contract elements, the facts as alleged fail as a matter of law to establish GameStop’s breaсh. “A breach of contract is a failure, without legal excuse, to perform any promise that forms the whole or part of the contract.” Lyon Fin. Servs., Inc. v. Ill. Paper & Copier Co.,
Here, Carlsen argues that GameStop promised not to disclose PII and that this
PII included his Facebook ID and browser history. We conclude, however, that the privacy policy unambiguously does not include those pieces of information аmong the protected PII. The privacy policy refers to PII and notes that it:
may include: your name, home address and zip code, telephone number, e-mail address and (for those purchasing products online) credit card or checking account information including billing and shipping addresses and zip codes.
Although the phrase “may include” appears to create a non-exclusive list, the definition of personal information occurs as párt of a section entitled, “What Information dоes Game Informer Collect.” This provision specifies that “Game Informer may collect information about .you, but only if you voluntarily provide it to Game Informer.” The provision goes on to say, “We may ask you to submit personal and/or demographic information in connection with any one of’ a finite list of features or services. Accordingly, in order to constitute “personal information,” the information must have been specifically solicited by Game Informer (“We may ask you to submit”) and voluntarily рrovided by the user.
We consider these terms unambiguous. The PII set forth in the privacy policy does not encompass a user’s Facebook ID and browsing history for two reasons: (1) not only do a user’s Facebook ID and browsing history fail to appear on the list of what PII might include, but (2) those data are neither specifically solicited by Game Informer nor voluntarily submitted in response to such solicitation. Additionally, as GameStop notes, the policy contains no specific promise to prevent'Fаcebook’s social-media plug-in from transferring a Facebook user’s Facebook ID and browsing activity to Facebook. The policy also states that it “does not extend to Websites
Carlsen’s Minnesota' CFA claim fails for similar reasons. To state a CFA claim, “the plaintiff need only plead that the defendant engaged in conduct prohibited by the statutes and that the plaintiff was damaged thereby.” Grp. Health,
Wе next proceed to Carlsen’s equitable claims. Unjust enrichment requires “(1) a benefit conferred; (2) the defendant’s appreciation and knowing acceptance of the benefit; and (3) the defendant’s acceptance and retention of the benefit under such circumstances that it would be inequitable for him to retain it without paying for it.” Dahl v. R.J. Reynolds Tobacco Co.,
III.
For the reasons set forth above, we affirm.
Notes
. The Honorable Donovan W. Frank, United States District Judge for the District of Minnesоta.
. Although we have discretion to remand for the district court to rule on the Rule 12(b)(6) motion in the first instance, we are not bound to remand, and we decline to do so here. Cf. ABF,
Concurrence Opinion
concurring and dissenting.
I concur in the Court’s affirmance of the district court’s dismissal of Carlsen’s
Defendant Game Stop asserts among other things, two specific defenses — a lack of subject matter jurisdiction under subsection 12(b)(1) of the Federal Rules of Civil Procedure, and failure to state a claim upon which relief can be granted pursuant to subsection 12(b)(6) of the Rule.
Upon review of the record, the district court correctly concludes that “[pjlaintiff has failеd to allege an injury in .fact and as a result has not established standing under Article III of the Constitution. Plaintiffs complaint is therefore dismissed pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure for lack of subject matter jurisdiction.” The district court further acknowledges in a related footnote 5 that in light of its analysis regarding Article III standing, it did not examine the 12(b)(6) issue.
Then, somewhat inexplicably, the district court ruled that amendment (of the pleadings) would be futile and dismissed “the claims with prejudice.” This, of course, was error because without subject matter jurisdiction, the district court had no judicial power to do more than simply dismiss the case.
“[Wjhen a federal court concludes that it lacks subject-matter jurisdiction, the court must dismiss the complaint in its entirety.” Arbaugh v. Y & H Corp.,
“ ‘[Jjurisdiction is power to declare the law,’ and ‘[wjithout jurisdiction the court cannot proсeed at all in any cause.’ ” Ruhrgas AG v. Marathon Oil Co.,
[T]he rule, springing from the nature and limits of the judicial power of thé United States, is inflexible and without exception which requires this court, of its own motion, to deny its own jurisdiction, and, in the exercise of its' appellate power, that of all other courts of the United States, in all cases where such jurisdiction does not affirmatively appear in the record on which, in the exercise of that power, it is called to act.
Mansfield, C. & L. M. Ry. Co. v. Swan,
The Court determines that the district court erred in holding that Carlsen fails to adequately plead an “injury in fact” sufficient to produce the case or controversy necessary to establish subject matter jurisdiction over his claims in the federal court. It is, however, the Court that errs. Carlsen has, indeed, failed to assert the necessary justiciable controversy required. Spokeo, Inc. v. Robins, — U.S. -,
I agree with the Court that our analyses bottom upon, a “facial attack” on the matter of subject matter jurisdiction. Osborn v. United States,
Twombly states that “naked assertion[s]” devoid of factual enhancement will not establish justiciable damages supportive of a litigatable case.
With these standards in mind, we turn to the Court’s recitations concerning the pleadings in Carlsen’s claim. The parties concede that they entered into a contractual relationship. But, to establish the required “injury in fact” the plaintiff must factually allege invasion of a legally pro-tectable interest that is concrete, particularized, actual, imminent, and neither conjectural nor hypothetical. Lujan v. Defenders of Wildlife,
Accordingly, I cannot join the Court’s reversal of the district court ruling on the matter of subject matter jurisdiction, but otherwise concur in the result reached by the Court.
