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Naperville Smart Meter Awareness v. City of Naperville

Citations: 114 F. Supp. 3d 606; 2015 U.S. Dist. LEXIS 87640; 2015 WL 4111322Docket: 11 C 9299

Court: District Court, N.D. Illinois; July 7, 2015; Federal District Court

Narrative Opinion Summary

In this case, a not-for-profit organization, Naperville Smart Meter Awareness (NSMA), filed a lawsuit against a city regarding the installation of smart meters in residential homes, citing violations under 42 U.S.C. § 1983 for unreasonable search (Fourth Amendment) and equal protection (Fourteenth Amendment), along with privacy rights under the Illinois Constitution. The city began replacing analog meters with smart meters as part of its Smart Grid Initiative. NSMA challenged the data collection capabilities of these meters, arguing they infringe on privacy by revealing detailed usage patterns. The court previously dismissed parts of NSMA's complaints but allowed amendments. NSMA's Third Amended Complaint sought to address earlier deficiencies, particularly regarding the alleged Fourth Amendment violations. However, the court found NSMA's claims speculative, lacking evidence the city used data in a manner constituting an unreasonable search. The court emphasized no privacy expectation in aggregate usage data provided to third parties and determined consent was implied by using city utilities. Consequently, the court denied the motion for leave to amend Counts I and II with prejudice, citing repeated failures to rectify deficiencies, but granted the motion regarding the unopposed equal protection claim (Count III).

Legal Issues Addressed

Amendment of Complaints under Federal Rules of Civil Procedure

Application: The court highlighted that leave to amend should be granted freely unless there are reasons such as futility, and NSMA's repeated amendments failed to rectify deficiencies, leading to denial with prejudice.

Reasoning: This marks NSMA's fourth attempt to establish claims under the Fourth Amendment (Count I) and the Illinois Constitution (Count II).

Consent by Using City-Provided Services

Application: The court found that using city-provided utilities implies consent to data collection practices, thus negating NSMA's claims of non-consent to smart meter installations.

Reasoning: NSMA's assertion that its members did not consent to two-way communication through smart meters is rebutted by the principle that usage of city-provided services implies consent.

Expectation of Privacy in Utility Data

Application: The court reaffirmed there is no reasonable expectation of privacy in aggregate electricity usage data voluntarily provided to third parties.

Reasoning: The Court emphasized that there is no reasonable expectation of privacy in information voluntarily provided to third parties, reaffirming precedent that residential electricity usage records do not warrant privacy protection.

Privacy under Illinois Constitution

Application: NSMA's claim under the Illinois Constitution was treated as an enhancement of its Fourth Amendment claim but failed due to lack of new factual allegations.

Reasoning: The addition of the Illinois Constitution claim serves to enhance the Fourth Amendment claim rather than introduce a new cause of action.

Unreasonable Search under Fourth Amendment

Application: The court evaluated whether smart meters constitute an unreasonable search, concluding that NSMA failed to show the City utilized data in a manner constituting an unreasonable search.

Reasoning: NSMA's concerns regarding the potential use of disaggregation algorithms do not suffice to establish a plausible Fourth Amendment claim, as the mere possibility of such usage remains speculative.