“It is a general principle of corporate law . . . that a parent corporation . . . is not liable for the acts of its subsidiaries.”
How later courts described this case
- “It is a general principle of corporate law . . . that a parent corporation . . . is not liable for the acts of its subsidiaries.”
Written by the judges who cited it.
The opinion
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF KANSAS
JOSEPH LEE JONES,
Plaintiff,
vs. Case No. 20-3072-SAC
GOOGLE LLC, INC.,
Defendant.
O R D E R
This case is before the court upon defendant’s motion to
dismiss pursuant to Fed.R.Civ.P. 12(b)(6) (Doc. No. 7) and other
motions filed by plaintiff. Plaintiff is proceeding pro se. This
case was originally filed in state district court and removed to
this court by defendant.
I. The complaint and proposed amended complaint.
Plaintiff’s original complaint alleges that a web address –
www.google.com/+JoeJones21176 - is no longer accessible and
therefore materials plaintiff has stored at the address cannot be
viewed and that plaintiff has lost access to “various Google
services.” Doc. No. 1-1, p. 2. Plaintiff alleges that the web
address was lost around June 2019 when Google Plus was shut down.
Id. at p. 5. He contends that he “responded to solicitations for
services sold in the State of Kansas via the internet” and that
now he is unable to benefit from the transactions in violation of
the Kansas Consumer Protection Act (KCPA) , K.S.A. 50-626 & 627.
Id. He further asserts that “Google is a business, a supplier of
services it advertises for free, but responding and utilizing
amounts to a consumer transaction.” Id. He complains that an
educational and teaching platform has been made unavailable and
that this marginalizes him because he has no place to direct people
to see his works. Id.
Proposed amendments to the state court petition, which are
part of plaintiff’s motion to amend filed in state court the day
before this case was removed, include the following contentions:
- that despite defendant’s representations the web
address was not permanently accessible for posts and as
a repository of works;
- that defendant misrepresented its status as an
artificial intelligence research company;
- that defendant misrepresented Google Plus as original
or new;
- that defendant misrepresented the uses of Google Plus;
- that the receipt of the Google Plus web address “was
contingent upon plaintiff Joseph Jones Amazon eKindle
book volumes;” and
- defendant made representations with reason to know
that the web address would not have use after 2019;
- defendant represented to plaintiff that Google Plus
had been substantiated to have the benefit of a community
of users with the same interests (i.e., transhumanism,
futurism, etc.) and the defendant made such
representation to plaintiff with reason to know that
Google Plus could no longer connect other transhumanists
and futurists with the same interests.
Doc. No. 16, pp. 4-11.
II. Pro se standards
Pro se pleadings are entitled to a liberal construction. Hall
v. Bellmon, 935 F.2d 1106, 1110 (10th Cir. 1991). A pro se
litigant, however, is not relieved from following the same rules
of procedure as any other litigant. See Green v. Dorrell, 969 F.2d
915, 917 (10th Cir. 1992). A district court should not have to
guess at what claim a pro se litigant is making (Wells v. Brown,
891 F.2d 591, 594 (6th Cir. 1989)), nor “assume the role of advocate
for the pro se litigant.” Hall, 935 F.2d at 1110.
III. Rule 12(b)(6) standards
Plaintiff’s complaint must allege sufficient facts to state
a legal claim which is plausible on its face. Ashcroft v. Iqbal,
556 U.S. 662, 678 (2009). Facial plausibility requires “factual
content that allows the court to draw the reasonable inference
that defendant is liable for the misconduct alleged.” Id. A
complaint will not “suffice if it tenders ‘naked assertion[s]’
devoid of ‘further factual enhancement.’” Id. (quoting Bell Atl.
Corp. v. Twombly, 550 U.S. 544, 570 (2007)).
The plausibility standard is not akin to a “probability
requirement,” but it asks for more than a sheer
possibility that a defendant has acted unlawfully.
Where a complaint pleads facts that are “merely
consistent with” a defendant’s liability, it “stops
short of the line between possibility and plausibility
of ‘entitlement to relief.’”
Id. (quoting Twombly, 550 U.S. at 557). A plausibility analysis
is a context-specific task depending on a host of considerations,
including judicial experience, common sense and the strength of
competing explanations for the defendant's conduct. See id. at
679; Twombly, 550 U.S. at 567.
Here, plaintiff is making claims under the KCPA, K.S.A. 50-
626 & 627. The KCPA concerns “consumer transactions” which are
defined as “a sale, lease, assignment or other disposition for
value of property or services.” K.S.A. 50-624(c). Claims of false
representations or unconscionable acts violating the KCPA must be
stated with particularity. Jamieson v. Vatterott Educational
Center, Inc., 473 F.Supp.2d 1153, 1156-58 (D.Kan. 2007);
Nieberding v. Barrette Outdoor Living, Inc., 2012 WL 6024972 *2
(D.Kan. 12/4/2012)(applying requirement to allegations of
unconscionable acts under KCPA).
“[T]o survive a motion to dismiss, a complaint asserting
deceptive practices under the KCPA ‘must set forth the time, place,
and contents of the false representation, the identity of the party
making the false statements and the consequences thereof.’”
Cavolovic v. J.C.Penney Corp., Inc., 2018 WL 2926433 *2 (D.Kan.
6/7/2018)(quoting Weckhorst v. Kansas State Univ., 241 F.Supp.3d
1154, 1176 (D.Kan. 2017)); Jamieson, 473 F.Supp.2d at 1156. In
determining whether an act or practice is unconscionable under the
KCPA, a court may consider a large number of factors such as:
whether the supplier took advantage of the inability of the
consumer to protect his interests; whether the price grossly
exceeded the price available to similar consumers; whether the
consumer was unable to materially benefit from the subject of the
transaction; whether there was a reasonable probability of payment
in full by the consumer; whether the transaction was excessively
one-sided in favor of the supplier; whether the supplier made a
misleading statement of opinion relied upon by the consumer; and
whether the supplier excluded, modified or limited applicable
warranties. K.S.A. 50-627(b); see also State ex rel. Stovall v.
DVM Enterprises, Inc., 62 P.3d 653, 658 (Kan. 2003)(discussing
other factors).
IV. The allegations in the complaint and motion to amend fail to
state a claim.
The court concludes that plaintiff’s complaint, even if
supplemented with the allegations in the motion to amend, fails to
plausibly allege KCPA violations with the particularity required
by law. Plaintiff does not allege facts describing a consumer
transaction as defined in the statute. Further, plaintiff does
not allege the time, place and the particular contents of false
representations, or the identity of the person making the false
representation, or the consequences of a specific false
representation. Plaintiff generally alleges he has lost access to
a certain community of people with common interests and that people
have lost access to his works, but he does not plausibly describe
how this has caused him a material loss.
Plaintiff’s allegations also fail to set forth a
comprehensible and plausible claim for relief upon some grounds
other than the KCPA. The court notes that Fed.R.Civ.P. 9(b)
requires that a claim of fraud be stated with particularity.
V. Other motions
A. Motion for default judgment
Plaintiff has filed a motion for default judgment. Doc. No.
5. This motion shall be denied. The record shows that defendant
timely removed this action from state court and timely filed a
motion presenting defenses allowed under the federal rules after
removal. See Fed.R.Civ.P. 81(c)(2)(C). Therefore, defendant has
presented a defense and is not in default. Furthermore, default
judgments are disfavored by courts, particularly when any delay
has not caused plaintiff prejudice. See In re Rains, 946 F.2d
731, 732-33 (10th Cir. 1991).
B. Motion for appointment of counsel
Plaintiff has filed a motion for appointment of counsel. Doc.
No. 14. Upon review of the nature and merits of plaintiff’s claims
and the other factors listed in Rucks v. Boergermann, 57 F.3d 978,
979 (10th Cir. 1995), the court shall deny the motion for
appointment of counsel.
C. Motion for amicus brief
Plaintiff has asked the court to order an amicus brief from
the Attorney General of Kansas. Doc. No. 27. This motion shall
be denied because the complaint fails to state a claim and because
plaintiff does not cite authority which supports such an order.
D. Motion to correct caption
Plaintiff has filed a motion to name “XXVI Holdings, Inc.”
and “ALPHABET” as a defendant. Doc. No. 11. This motion is
apparently in reaction defendant’s disclosure of corporate
interests which shows that defendant is a wholly owned subsidiary
of XXVI Holdings Inc. and that XXVI Holdings Inc. is a wholly owned
subsidiary of Alphabet Inc. Doc. No. 4. The court shall deny the
motion because plaintiff does not provide grounds to show that
either XXVI Holdings Inc. or Alphabet Inc. is responsible for the
alleged wrongful acts listed in the complaint. See U.S. v.
Bestfoods, 524 U.S. 51, 61 (1998)(“It is a general principle of
corporate law . . . that a parent corporation . . . is not liable
for the acts of its subsidiaries.”).
E. Motions for joinder
Plaintiff has sought to join this case with Case No. 18-4032-
SAC. Doc. Nos. 31 and 39. But, Case No. 18-4032 is closed and
the court has refused to reopen it upon plaintiff’s motion to alter
or amend judgment. Also, this case shall be closed with this
order. Under these circumstances, the motions for joinder should
be denied.
F. Motion for discovery
Plaintiff has filed a motion to proceed to discovery. Doc.
No. 15. This motion shall be denied because the court shall grant
defendant’s motion to dismiss.
G. Motions for temporary restraining order and declaratory
judgment
Because plaintiff has not stated a plausible claim for relief
and has not demonstrated a reasonable or substantial probability
of success on the merits, his motions for a temporary restraining
order and declaratory judgment (Doc. Nos. 12 and 26) shall be
denied.
H. Motion for change of venue
Plaintiff’s motion for change of venue (Doc. No. 28) shall be
considered moot.
I. Motion to compel
In Doc. No. 18, docketed as a motion to compel, plaintiff
asks that defendant answer the allegations in the motion to amend
the petition filed in state court. The court has considered those
allegations in ruling upon the motion to dismiss and finds that it
would be futile to grant the motion to amend. Therefore, the
motion to compel shall be denied.
J. Motion for enhanced penalties
Plaintiff has filed what is titled a motion for enhanced
penalties. Doc. No. 34. The pleading appears to make arguments
against defendant’s motion to dismiss. The court has considered
these arguments as well plaintiff’s contentions in the various
responses, notices, and affidavits he has filed. See Doc. Nos.
16, 17, 19, 20, 21, 22, 23, 30, 32, and 35. The court is convinced
that plaintiff has failed to state a plausible claim for relief
and for this reason the motion for enhanced penalties shall be
denied.
K. Motion for summary judgment
Plaintiff has filed a motion for summary judgment. Doc. No.
36. The motion shall be denied because the court has determined
that plaintiff’s complaint fails to state a claim. Also, the
motion fails to follow the procedures for summary judgment motions
set forth in Fed.R.Civ.P. 56(c) and D.Kan.R. 56.1(a).
L. Motion for reconsideration supplement
Plaintiff has filed a motion for reconsideration “supplement”
which has this case number and Case No. 18-4032 listed on it. It
appears that the motion relates to the order denying plaintiff’s
motion to alter or amend judgment in Case No. 18-4032. The court
has reviewed the motion and finds that it does not warrant relief
in this case.
M. Motion in support of undisputed facts (Case No. 18-4032)
The court notes that plaintiff filed a motion docketed in
Case No. 18-4032 which also has this case number written on it.
The motion suggests that plaintiff’s cases may have merit because
opposing counsel has not opposed appointment of counsel. The
motion asks for appointment of counsel and denial of defendant’s
motion to dismiss in Case No. 18-4032. For the reasons explained
earlier in this order and in Doc. No. 20 of Case No. 18-4032, the
relief requested in this motion is denied.
N. Request for restrictions on filing
Defendant has asked that the court place restrictions against
plaintiff filing in state and federal court. Plaintiff is treated
as a “three-strikes” litigant in federal court, so he is already
under some restrictions. See Jones v. Douglas County Jail, 2020
WL 1492703 (D.Kan. 3/27/2020). The court is reluctant to place
limits upon state court filings. The state court is capable of
deciding if filing restrictions are appropriate there. Therefore,
at this time the court shall deny the request for filing
restrictions, although future filing restrictions in this case and
Case No. 18-4032 will not be ruled out.
VI. Conclusion
For the above-stated reasons, the motion to dismiss (Doc. No.
7) is granted and this action shall be dismissed with prejudice.
Consistent with this order, the motions at Doc. Nos. 5, 11, 12,
14, 15, 18, 26, 27, 29, 31, 34, 36, 39 and 40 are denied.
Defendant’s request for filing restrictions is also denied without
prejudice.
IT IS SO ORDERED.
Dated this 14th day of April 2020, at Topeka, Kansas.
s/Sam A. Crow_____________
U.S. District Senior Judge