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Moeller v. American Media, Inc.

Citations: 235 F. Supp. 3d 868; 2017 U.S. Dist. LEXIS 11895; 2017 WL 416430Docket: Case No. 16-cv-11367

Court: District Court, E.D. Michigan; January 26, 2017; Federal District Court

Narrative Opinion Summary

The court considered a motion to dismiss by defendants, American Media, Inc. and Odyssey Magazine Publishing Group, Inc., in response to claims by plaintiffs, Michigan citizens and magazine subscribers, alleging unlawful disclosure of personal-reading information in violation of the Michigan Personal Privacy Protection Act (PPPA). This disclosure, claimed to have diminished subscription value, was argued to unjustly enrich the defendants. The plaintiffs filed their suit prior to the 2016 PPPA amendment, which limits liability and requires proof of actual damages. The defendants challenged the plaintiffs' standing, asserting no injury-in-fact, and argued the retroactive application of the amended statute barred the claims. However, the court found the plaintiffs established standing by showing a concrete injury, and the 2016 amendment did not apply retroactively due to lack of explicit legislative intent. Furthermore, the court held that the PPPA does not preempt common-law unjust enrichment claims, as it lacks an exclusive remedy provision. Ultimately, the court denied the defendants' motion to dismiss, allowing the plaintiffs' claims to proceed.

Legal Issues Addressed

Preemption of Common-Law Claims by Statute

Application: The court held that the PPPA does not preempt common-law unjust enrichment claims, as the statute does not provide an exclusive remedy.

Reasoning: Moreover, the PPPA does not explicitly preclude common-law remedies, and Michigan courts have held that legislative intent to preempt common law must be clear.

Retroactivity of Statutory Amendments

Application: The court determined that the 2016 amendment to the PPPA does not apply retroactively due to the absence of explicit legislative intent for such application.

Reasoning: The amendment to the Personal Property Protection Act (PPPA) does not include such language, contrasting with other statutes that explicitly state retroactivity.

Standing under Article III

Application: The court found that plaintiffs had standing by showing a concrete injury due to the violation of privacy rights, meeting the injury-in-fact requirement.

Reasoning: Plaintiffs allege violations of their privacy rights due to the disclosure of personal-reading information to third parties, claiming that their subscriptions lack privacy protections, making them less valuable.

Unjust Enrichment Claims

Application: The court found that plaintiffs sufficiently alleged unjust enrichment, as the unlawful disclosure diminished the value of their subscriptions and benefited the defendants.

Reasoning: Plaintiffs have adequately alleged that the unlawful disclosure of their personal information diminished the value of their subscriptions, and that defendants profited from selling this information.

Violation of Michigan Personal Privacy Protection Act (PPPA)

Application: The court addressed the alleged unlawful disclosure of plaintiffs' personal-reading information, asserting that such disclosure without consent violates the PPPA.

Reasoning: The plaintiffs allege that the defendants unlawfully disclosed their personal-reading information to third parties, specifically data-mining companies and through database cooperatives with other publishers, without consent or notice.