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McDowell v. Cgi Group, Inc.

Citation: Not availableDocket: Civil Action No. 2015-1157

Court: District Court, District of Columbia; June 1, 2017; Federal District Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves a class action lawsuit filed by a plaintiff against CGI Federal, Inc. and unnamed defendants for failing to protect personal data, resulting in identity theft. The plaintiff alleged violations under the District of Columbia's Consumer Protection Procedures Act (CPPA), negligence, breach of contract, breach of bailment, and unjust enrichment. CGI filed a Motion to Dismiss, which the court granted for all claims except breach of contract. The court found the plaintiff did not qualify as a 'consumer' under the CPPA as the services in question were business, not consumer services. The negligence claim was dismissed because there was no special relationship to support recovery for economic losses. However, the breach of contract claim was preserved, as the plaintiff sufficiently alleged she was an intended third-party beneficiary of the contract between CGI and the State Department. The bailment claim failed due to lack of requisite agreement or communication, and the unjust enrichment claim was dismissed for lack of conferred benefit on CGI. The court's decision hinged on the applicability of legal principles such as consumer status, economic loss doctrine, and third-party beneficiary rights.

Legal Issues Addressed

Bailment Relationship Requirements

Application: The bailment claim was dismissed because the plaintiff did not establish an agreement or communication that would create a bailment relationship with CGI.

Reasoning: McDowell has not alleged sufficient facts to demonstrate a bailment relationship, as there were no communications or compensation exchanged between her and CGI.

Breach of Contract and Third-Party Beneficiary

Application: The breach of contract claim was not dismissed as the plaintiff sufficiently alleged she was an intended third-party beneficiary of the contract between CGI and the State Department.

Reasoning: McDowell's Amended Complaint sufficiently claims she is an intended beneficiary of the contract between CGI and the State Department, thus her breach of contract claim will not be dismissed.

Consumer Protection Procedures Act (CPPA) Applicability

Application: The court found that the plaintiff did not qualify as a 'consumer' under the CPPA because the services provided by CGI were business services, not consumer services.

Reasoning: The CPPA does not apply to transactions between businesses or those not involving end consumers.

Negligence and Economic Loss Doctrine

Application: The court dismissed the negligence claim as the plaintiff failed to establish a special relationship necessary for recovery of purely economic losses.

Reasoning: The court emphasized that foreseeability alone does not create a special relationship in negligence cases involving economic losses.

Unjust Enrichment under D.C. Law

Application: The court dismissed the unjust enrichment claim as the plaintiff did not confer a benefit upon CGI, and therefore CGI's retention of benefits was not unjust.

Reasoning: McDowell's Amended Complaint fails to allege facts suggesting she conferred any benefit on CGI.