DocketNumber: Civil Action No. 17–1047 (ESH)
Judges: Huvelle
Filed Date: 1/4/2018
Status: Precedential
Modified Date: 10/18/2024
Democracy Partners, LLC, Strategic Consulting Group, NA, Inc., and Robert *112Creamer ("plaintiffs") bring this action against Project Veritas Action Fund, Project Veritas, James O'Keefe ("PV defendants"), and Allison Maass, alleging that defendants violated federal and state wiretap statutes and committed multiple common law torts in their execution of an undercover sting operation directed at plaintiffs. Before the Court are two motions to dismiss jointly filed by the PV defendants: a motion to dismiss the complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6) and a motion to dismiss pursuant to the D.C. Anti-SLAPP Act. (See PV Defs.' 12(b)(6) Mot., ECF No. 14; PV Defs.' Anti-SLAPP Act Mot., ECF No. 15.) For the reasons stated herein, the motions will be denied.
BACKGROUND
I. FACTUAL BACKGROUND
Democracy Partners, LLC, is "a company including a number of other consultants and vendors to progressive organizations and Democratic campaigns and committees, who market their services collectively through the company." (Compl. ¶ 19.) Strategic Consulting Group, NA, Inc. ("Strategic") is a member of Democracy Partners. (Id. ¶ 3.) It "provides campaign-related services to progressive organizations and Democratic campaigns and committees." (Id. ¶ 18.) Robert Creamer is the sole owner of Strategic. (Id. ¶ 1.) "Democracy Partners' private offices ... are not accessible to the general public, have 24-hour security, and are only accessible if one signs into the building at the lobby security desk, if one is provided entrance by [p]laintiffs' receptionist, and/or if one has an electronic pass card[, which] ... is required to access the elevators to the office outside of regular business hours[,] and a key[, which] is required to enter the office when no one is present." (Id. ¶ 34.)
Project Veritas ("PV") and Project Veritas Action Fund ("PVAF") are both nonstock, nonprofit corporations founded by James O'Keefe. (Id. ¶¶ 6, 12.) PVAF is an "arm" of PV, and O'Keefe is the President of both corporations. (Id. ) Allison Maass and Daniel Sandini were, at the relevant times, employees of, or contractors to, PV and PVAF. (Id. ¶¶ 7-8.) Through the actions described below, they infiltrated Democracy Partners' offices, stole confidential documents and secretly recorded hours of conversation.
On or about June 24, 2016, Sandini, using the false name of Charles Roth and representing himself as a potential donor to a nonprofit organization that Creamer had worked for, was introduced to Creamer and the two men had a meeting. (Id. ¶ 22.) A few weeks later, on or about July 15, 2016, Sandini "told Creamer that he had a niece who wanted to volunteer to do some kind of political work for Democratic candidates or organizations while she was *113on a brief hiatus from college." (Id. ¶ 24.) Sandini told Creamer that his niece's name was "Angela Brandt." (Id. ) In reality, no such person existed; rather, Angela Brandt was a false name used by Maass. (Id. ¶ 27.) Unaware of her real identity, Creamer connected Maass "with a progressive organization working in Cleveland, Ohio during the 2016 Republican National Convention," believing that Maass had performed volunteer work for that organization during the convention. (Id. ¶ 25.)
In late August 2016, Sandini called Creamer and told him that his niece would like to gain more experience, leading Creamer to interview Maass "for an internship with Creamer and Strategic in the Democracy Partners office." (Id. ¶ 26.) During the interview, Maass provided Creamer fictitious background information and falsely "told Creamer that her interest in obtaining an internship was to gain work experience in political and advocacy work." (Id. ) Based on this false information, Creamer told her that she might qualify for an internship at Democracy Partners. (Id. ¶ 28.) A few days later, in early September, Maass "called Creamer and said she would like to intern at Democracy Partners and could work three days per week." (Id. ¶¶ 28-29.)
On September 21, 2016, Maass started her internship at Democracy Partners. (Id. ¶ 30.) She was given an electronic pass card, which allowed her access to the entire office at all times, "including areas that contained file cabinets and computers with confidential information," and an account and password allowing her to use a company computer. (Id. ¶ 31.) She also met with Creamer, who gave her an overview of the work Democracy Partners/Strategic was performing, and he explained "how it interacted with clients and other information that was pertinent for an intern to know in order to perform her tasks." (Id. ¶ 32.) The "information Creamer disclosed to Maass included confidential and sensitive business information including the identity of clients, client information and programmatic details, and the identity of partners." (Id. ) He "explicitly told Maass that based on the confidential and sensitive nature of the mission and programming of [Democracy Partners/Strategic], the information, and any additional information she was given over the course of her internship, was confidential and not to be shared with anyone other than persons with whom she had specifically been instructed to share that information." (Id. ) Finally, she was asked to provide a resume, so the following day she provided a fabricated resume for "Angela Brant" that omitted her current employment with Project Veritas and her past work for other conservative news outlets and provided instead "an entirely false and fabricated work history and education." (Id. ¶ 43.) Maass' tasks as an intern included "coordinating and joining meetings with clients about highly sensitive and confidential political programs; putting together news clips; and researching and drafting client updates." (Id. ¶ 36.) She was "included among the recipients of highly confidential emails and in confidential discussions in in-person meetings and on conference calls," "sent confidential documents," and "brought to confidential client meetings." (Id. ¶ 39.) "These calls, emails and documents all contained confidential business information which Creamer told her was confidential and not to be shared with anyone with whom she had not been instructed to share it." (Id. ) According to the complaint, "[t]he procedures for pulling news clips and the client update memos were proprietary to Democracy Partners and its clients." (Id. ¶ 36.)
In early June 2016 Strategic had entered into a subcontract with a contractor for the Democratic National Committee *114("DNC"). (Id. ¶ 20.) Strategic's contract was "to assist the DNC in arranging events in opposition to the candidacy of Donald Trump for President, including events to take place before and/or after Trump campaign events in various cities," which were "sometimes referred to as 'bracketing' events." (Id. ) The "bracketing program" was "[o]ne of the most important projects that Maass was involved with." (Id. ¶ 37.) As part of this program, Maass "coordinated press events in areas being visited by then-candidates Donald Trump and Mike Pence." (Id. ) "Prior to the public announcement of each event, information relating to the timing, location, nature of and the program to take place during each such event, was maintained in strict confidence by the DNC, other groups directly involved in the event, and their respective consultants." (Id. ¶¶ 36-37.) "Maintaining that information in confidence was essential in order for each such event to be successful; otherwise the Republican Party and the Republican presidential campaign could adjust their own plans to anticipate or deflect the 'bracketing' event." (Id. ¶ 37.) "Maass participated in planning calls for these 'bracketing' events, sitting in on meetings, and drafting emails and reports that contained information about upcoming events and after-event reporting." (Id. ¶ 38.)
During her internship, unbeknownst to plaintiffs, Maass carried concealed video and audio recording devices. (Id. ¶ 30.) She secretly recorded her discussion with Creamer on her first day of work, along with "other confidential internal conversations with Creamer and other Democracy Partners members, as well as confidential conversations they had with [Strategic] and Democracy Partner clients in-person and via conference call." (Id. ¶ 33.) She provided these unauthorized audio and video recordings to PV and PVAF. (Id. ¶¶ 35.) Without permission, she also provided them with a number of confidential documents and emails. (Id. ¶¶ 40, 60-61.)
Had Creamer known Sandini's and Maass' true identities, their connections to PV, PVAF and O'Keefe, and Maass' intentions, he never would have hired her as an intern, given her confidential documents, included her in meetings and on emails, brought her to meetings, or given her open access to the office and its computers and files. (Id. ¶¶ 42, 44.)
On October 14, 2016, Creamer went to lunch with Mike Carlson, whom Sandini had falsely claimed was his financial advisor. (Id. ¶ 45.) Just as they were finishing, Creamer was accosted by a reporter, Raffi Williams, and a film crew from Circa Media, a subsidiary of Sinclair Broadcasting, who asked him to respond to two secretly recorded video clips of Creamer.
Later that day, Williams called Creamer and told him that O'Keefe had provided his network with hundreds of hours of raw videotape and that Sinclair Media had agreed to syndicate four nightly news pieces based on the videos, which would begin the following week. (Id. ¶ 47.) He also asked Creamer if he would agree to an on-camera interview to respond to the videos. (Id. ) That same evening, Creamer and his attorney met with Williams and viewed approximately three hours of videotape, much of it footage secretly recorded by Maass during her internship. (Id. ¶ 58.) On Monday, October 17th, 2016, Creamer and his attorney met with Sinclair Media's management and attorney, reviewed additional *115footage, and discussed legal and factual issues relating to the videos. (Id. ¶ 51.) "During that meeting, Sinclair Media's attorneys said that they would postpone the first installment of their four-part series as they reviewed the legal and factual issues surrounding their recording and release." (Id. ¶ 52.) Ultimately, Sinclair Media did not run any stories on the videos. (Id. )
On October 17, 18, 24 and 26th, however, PVAF released a series of videos to PV's YouTube channel that contained footage from Maass' recordings of Creamer, Democracy Partners, and its clients. (Id. ¶¶ 35, 50, 54, 56, 57.) Each was "heavily edited and contained commentary by O'Keefe that drew false conclusions."
II. PROCEDURAL HISTORY
On June 1, 2017, plaintiffs filed suit against the PV defendants, Maass, and Sandini, alleging that various actions during the course of their undercover operation violated federal and District of Columbia law. The complaint includes claims for: (1) breach of fiduciary duty against Maass (see Compl. ¶¶ 69-77); (2) trespass against Maass (id. ¶¶ 94-101); (3) violation of
Plaintiffs timely served the PV defendants, but failed to serve Maass or Sandini within the 90 days provided for by Federal Rule of Civil Procedure 4(m). (See Minute Order, Nov. 14, 2017.) As a result, they voluntarily dismissed their claims against Sandini (see Notice of Voluntary Dismissal of Action Against Defendant Daniel Sandini, Nov. 21, 2017, ECF No. 21), and the Court granted their motion to extend the time to serve Maass. (See Minute Order, Nov. 27, 2017.) Plaintiffs served Maass on *116January 3, 2018. (See Return of Service, Jan. 3, 2018, ECF No. 23.)
In the meantime, on July 28, 2017, the PV defendants filed the two pending motions to dismiss. (See PV Defs.' 12(b)(6) Mot.; PV Defs.' Anti-SLAPP Mot.; Mem. in Support of Mots. to Dismiss by the PV Defs., ECF No. 16 ("Mem.")). Plaintiffs filed a combined opposition to both motions (see Pls.' Mem. in Opp'n of Mots. to Dismiss by the PV Defs., ECF No. 19 ("Opp'n")), and the PV defendants filed a combined reply (see Reply in Support of Mots. to Dismiss by PV Defs., ECF No. 20 ("Reply")). Both motions are now ripe.
ANALYSIS
The Court will first address the Rule 12(b)(6) motion to dismiss for failure to state a claim and then turn to the motion to dismiss under the D.C. Anti-SLAPP Act.
I. MOTION TO DISMISS PURSUANT TO FED. R. CIV. P 12(b)(6)
The PV defendants contend that each count of the complaint should be dismissed pursuant to Rule 12(b)(6) for failure to state a claim.
A. LEGAL STANDARD
Under Federal Rule of Civil Procedure 12(b)(6), a district court must dismiss a complaint if it fails to state a claim upon which relief can be granted. "To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' " Ashcroft v. Iqbal ,
B. LIABILITY ARGUMENTS
As to the claims for liability, the PV defendants argue that there is at least one problem with the "legal theory of liability" for each claim in the complaint
1. Fraudulent Misrepresentation
The elements of a claim for fraudulent misrepresentation under District of Columbia law are that: "(1) the defendant made a false representation; (2) in reference to a material fact; (3) with knowledge *117of its falsity; (4) with the intent to deceive the plaintiff; (5) the plaintiff acted in reasonable reliance on that representation; (6) which consequently resulted in provable damages." C & E Servs. v. Ashland ,
The complaint alleges that Maass made false representations during her interview with Creamer and on her resume "regarding her name, intent in securing and maintaining the internship, purpose in seeking the internship, her education, and work history"; that she made these misrepresentations knowing they were false and with an intent to deceive plaintiffs; and that the misrepresentations were material facts upon which plaintiffs relied in offering Maass an internship and giving her access to confidential information; that "as a result of Maass' fraudulent misrepresentation[s]" plaintiffs suffered actual damages, "including lost contracts, the diminishment of the economic value of confidential and proprietary information, loss of future contracts and damage to reputation" (Compl. ¶¶ 111-12); and that the PV defendants are liable for Maass' misrepresentations because they "induced Maass" and "conspired" with her to make the fraudulent misrepresentations. (Id. ¶¶ 103-110.)
The PV defendants challenge only the adequacy of the complaint's allegations as to the sixth element, arguing that the complaint "fails to adequately allege the proximate cause of the supposed damages." (Mem. at 34.) According to them, even though the complaint alleges that plaintiffs have suffered injury and actual damages "as a result of Maass' fraudulent misrepresentation[s]" (Compl. ¶¶ 111-12), "the facts alleged in the Complaint demonstrate that the proximate cause of the Plaintiffs' supposed $1 million in damages was the publication of Project Veritas Action's report, not any alleged misrepresentation of Maass." (Mem. at 34.)
The most obvious problem with the PV defendants' argument is that they are asking the Court to accept as true their interpretation of the facts alleged in the complaint and to reject plaintiffs' contrary allegations. But that is precisely the opposite of what a court must do in ruling on a motion to dismiss. In addition, it is well-established that under District of Columbia law that "[p]roximate cause is generally a factual issue to be resolved by the jury ...." Majeska v. District of Columbia ,
*118As plaintiffs acknowledge, "[i]n the District of Columbia, a 'defendant's challenged conduct is the proximate cause of a plaintiff's injury only if the injury is the natural and probable consequence of the negligence or wrongful act and ought to [have been] foreseen in light of the circumstances.' " (Opp'n at 24 (quoting C & E Servs. ,
2. Trespass
In the District of Columbia, the elements of a claim for trespass are "(i) an unauthorized entry (ii) onto the plaintiff's property (iii) that interferes with the plaintiff's possessory interest." Council on American-Islamic Relations Action Network, Inc. ("CAIR") v. Gaubatz ,
The complaint alleges that Maass is liable for trespass because "Democracy Partners' office is not open to the public and may be accessed by third parties only upon invitation and authorization"; "Maass only gained access to the Democracy Partners office through the use of pretense, subterfuge, misrepresentation and/or concealment," and she "exceeded the consent she fraudulently induced from Plaintiffs by recording conversations in the Democracy Partners office without permission"; and her "intrusion invaded and disrupted Democracy Partners' possession and control over its own property." (Compl. ¶¶ 95, 97-98, 100.) The PV defendants argue that this claim should be dismissed because the complaint fails to adequate allege (1) "unauthorized entry"; (2) "interference with plaintiff's possessory interest"; and (3) proximately caused damages.
a. Unauthorized Entry
The PV defendants argue that the complaint fails to adequate allege an unauthorized entry because Maass "had consent to be physically present in the office," and "consent to enter land, even if procured through a misrepresentation, bars a later trespass claim." (Mem. at 29.) To support their argument, defendants rely entirely on case law from other jurisdictions, indicating in a footnote that "[b]ased upon the undersigned counsel's research, neither the D.C. Court of Appeals nor the D.C. Circuit has ruled on this question of trespass law."
Although the PV defendants are correct that there is no controlling precedent, the Court agrees with Judge Kollar-Kotelly's decision in CAIR 2011 , which concluded that under District of Columbia law, "consent 'given upon fraudulent misrepresentations' will not always defeat a claim for trespass." CAIR 2011 ,
In CAIR 2011 , the court denied a motion to dismiss a claim of trespass brought against an intern who obtained his job-and thus his consent to enter defendants' offices-through fraud and subterfuge. See CAIR 2011 ,
In the alternative, even if Maass' misrepresentation does not vitiate plaintiffs' consent to her entry, the complaint also alleges that Maass exceeded the scope of any consent by secretly recording conversations in Democracy Partners' office to turn over to the PV defendants. That allegation is also sufficient to state a claim for trespass. See Planned Parenthood ,
As plaintiffs' "consent" to Maass' entry does not vitiate the allegation of unauthorized entry, the Court will not dismiss the trespass claim on that basis.
b. Interference with Possessory Interest
The PV defendants next argue that that the complaint fails to adequately allege "interference with the plaintiff's possessory interest," because Maass "did not disrupt the Plaintiffs' "exclusive possession" of the property or damage the physical property in any way." (Mem. at 29.) To support this argument, the PV defendants primarily rely on a case from the Seventh Circuit in which the court found that there was no claim of trespass where "the entry *120was not invasive in the sense of infringing the kind of interest of the plaintiffs that the law of trespass protects; it was not an interference with the ownership or possession of land." (Id. (citing Desnick v. Am. Broadcasting Cos. ,
c. Proximate Cause
The PV defendants' final argument is that the complaint fails to allege facts to support any actual damages proximately caused by Maass' alleged trespass. However, even if that were true, it would not be a reason to dismiss the trespass claim, because a claim of trespass can proceed even if there are no actual damages. See CAIR 2011 ,
As none of the PV defendants' challenges to the trespass claim has merit, it will not be dismissed.
3. Breach of Fiduciary Duty
"To make a legally cognizable claim of breach of fiduciary duty under District of Columbia law, a plaintiff 'must allege facts sufficient to show (1) the existence of a fiduciary relationship; (2) a breach of the duties associated with the fiduciary relationship; and (3) injuries that were proximately caused by the breach of the fiduciary duties.' " Millennium Square Residential Ass'n v. 2200 M Street LLC ,
The complaint alleges that Maass is liable for breach of fiduciary duty because she owed fiduciary duties to Democracy Partners, including the duty of confidentiality and the duty of loyalty, based on her status as an intern with access to confidential information, which she acquired by seeking and obtaining the trust of Democracy Partners and Creamer; she breached those duties by secretly recording meetings and conversations, by removing documents or copies of documents from the premises, by providing these recordings and documents to PV and PVAF, and by publishing these recordings and documents; and that her actions caused plaintiffs injury in the form of "lost contracts, the diminishment of the economic value of confidential and proprietary information, loss of future contracts and damage to their reputations." (Compl. ¶¶ 70-73, 76.)
The PV defendants argue that the breach of fiduciary duty claim against Maass should be dismissed because the complaint fails to adequately allege that *121Maass "has any fiduciary duty in the first place." (Mem. at 20.) Starting from the premise that "interns are routinely understood to be entry level students seeking experience in 'real world' office settings," who "are transitory, perform low-level tasks, and are not usually entrusted with 'mission critical' or confidential operational information," they contend, pointing to "nationwide" cases and "commonsense," that an "unpaid intern, not subject to any contractual agreement, confidentiality contract, or non-disclosure provision" simply cannot owe an employer a fiduciary duty, in particular an employee who "took no steps to secure the privacy of its operations." (Id. at 21.)
There are two significant problems with the PV defendants' argument.
First, defendants ignore the material allegations in the complaint. While there may be plenty of interns who fit the generic description defendants put forth, the complaint alleges a much different relationship between Maass and Democracy Partners. As plaintiffs point out, the complaint alleges that Maass "meticulously crafted a false identity" in order "to establish a close relationship of trust and confidence with Democracy Partners," with the result that she
had complete access to Democracy Partners' secure non-public building and access to its highly confidential business information, including confidential documents and emails, the identity of clients and partners, the undisclosed location and timing of Democratic bracketing events-information maintained in strict confidence, and information discussed during private in-person client meetings and conference calls, along with the private access code for these calls.
(Opp'n at 21 (citing Compl. ¶¶ 22-27, 31-32, 37, 39, 40, 41, 43).) In addition, the complaint alleges multiple steps that Democracy Partners took to secure the privacy of its operations. (See Compl. ¶ 31 (computers are accessible only with account and password); id. ¶ 31 (office space containing file cabinets and computers with confidential information accessible only with electronic pass card); id. ¶ 34 (Democracy Partners has "private offices that are not accessible to the general public, have 24-hour security, and are only accessible if one signs into the building at the lobby security desk, if one is provided entrance by Plaintiffs' receptionist, and/or if one has an electronic pass card. The electronic pass card is required to access the elevators to the office outside of regular business hours and a key is required to enter the office when no one is present.").) At this stage of the proceedings, the factual allegations in the complaint must be taken as true; therefore, the contrary factual assertions in the PV defendants' memorandum cannot be credited.
Second, the PV defendants' rely on "nationwide" cases that strictly limit when a fiduciary relationship can exist, but the District of Columbia courts have "deliberately left the definition of a 'fiduciary relationship' open-ended, allowing the concept to fit a wide array of factual circumstances." CAIR 2011 ,
Applying District of Columbia law to the facts as alleged in this complaint, it must be concluded that the complaint adequately alleges the existence of a fiduciary relationship between Maass and Democracy Partners. As the court in CAIR 2011 held, "[t]o the extent [defendants] intend to suggest that a fiduciary relationship can never exist between an intern and the entity engaging the intern, [District of Columbia law] forecloses such an expansive argument."
Accordingly, the Court will not dismiss the breach of fiduciary duty claim for failure to adequately allege the existence of a fiduciary relationship between Maass and Democracy Partners.
4. Wiretap Claims
Under both the Federal Wiretap Act and the D.C. Wiretap Act, a person may be liable if he or she
(a) intentionally intercepts, endeavors to intercept, or procures any other person to intercept or endeavor to intercept, any wire, oral, or electronic communication;
...
(c) intentionally discloses, or endeavors to disclose, to any other person the contents of any wire, oral, or electronic communication, knowing or having reason to know that the information was obtained through the interception of a wire, oral, or electronic communication in violation of this subsection; [or]
(d) intentionally uses, or endeavors to use, the contents of any wire, oral, or electronic communication, knowing or having reason to know that the information was obtained through the interception of a wire, oral, or electronic communication in violation of this subsection; ...
*123
The complaint alleges that Maass "willfully intercepted the oral communications of Plaintiffs and their employees by using an electronic device concealed on her person to make video and audio recordings of conversations and meetings involving Plaintiffs and their employees and clients pertaining to Plaintiffs' confidential affairs and activities"; that the PV defendants "procured ... Maass to intercept the oral communications" and "are responsible for Maass' actions ... because those actions were undertaken within the scope of Maass' employment by PV and PVAF and at the direction of and supervision of O'Keefe, PV and PVAF"; and that the PV defendants "intentionally used and publicly disclosed the contents of the recordings taken by Maass and knew that the recordings were made through the interception of oral communications." (Compl. ¶¶ 79, 81, 83 (Federal Wiretap Claim);
The PV defendants do not challenge the adequacy of the above allegations, but they argue that both wiretap claims should be dismissed because there is a "one-party consent" exception to liability in both statutes that protects Maass' recordings. In the Federal Wiretap Act, that exception provides:
It shall not be unlawful under this chapter for a person not acting under color of law to intercept a wire, oral, or electronic communication where such person is a party to the communication or where one of the parties to the communication has given prior consent to such interception unless such communication is intercepted for the purpose of committing any criminal or tortious act in violation of the Constitution or laws of the United States or of any State.
To plausibly allege a criminal or tortious purpose requires " 'either (1) that the primary motivation, or (2) that a determinative factor in the actor's motivation in intercepting the conversation was to commit' a criminal or tortious act." CAIR v. Gaubatz ,
the purpose was not to commit trespass (after all, Maas was already allowed in the Plaintiffs' offices before the recordings were made). The purpose was not to make a fraudulent misrepresentation (after all, Maas already had a cover story in place when the recordings were made). The purpose was not to breach any fiduciary duty (the Plaintiffs never *124had Maas sign any confidentiality or non-disclosure agreements).
(Mem. at 26.) They further assert that:
the immediate purpose at the time the videos were made was to expose potential violations of federal campaign finance law (in the form of potential illegal campaign coordination) and the "bracketing" of Trump campaign events. In other words, the purpose at the time the recordings were made was to publish constitutionally-protected speech in the form of news reporting.
(Id. at 25.)
The Court agrees with the PV defendants that the plaintiffs have not plausibly alleged that the "purpose" of the recordings was to commit trespass or make a fraudulent misrepresentation because both of those alleged torts took place before any recordings were made. See Planned Parenthood ,
As plaintiffs have plausibly alleged at least one tortious purpose that occurred after the interception, the one-party consent defense does not provide a basis for dismissing the wiretap claims.
5. Civil Conspiracy
Under District of Columbia law,
The elements of civil conspiracy are: (1) an agreement between two or more persons; (2) to participate in an unlawful act, or in a lawful act in an unlawful manner; and (3) an injury caused by an unlawful overt act performed by one of the parties to the agreement (4) pursuant to, and in furtherance of, the common scheme.
Griva v. Davison ,
The complaint alleges that the PV defendants and Maass are liable for civil conspiracy because they "combined and conspired" to commit the underlying torts of "trespass, fraudulent misrepresentation, unlawful wiretap, and to breach fiduciary duties." (Compl. ¶¶ 114-115.) The PV defendants' only argument for dismissing the civil conspiracy claim is that "once the [underlying tort] claims are dismissed, the civil conspiracy claim must be dismissed." (Mem. at 38.)
It is undisputed that if all of the underlying tort claims were dismissed, the civil conspiracy claim would also have to be dismissed. However, the Court has rejected the PV defendants' "liability" arguments and, as explained infra , their "damages"
*125arguments are also unconvincing. Accordingly, the PV defendants' argument for dismissing the civil conspiracy claim fails.
C. DAMAGES ARGUMENTS
The PV defendants seek dismissal of virtually all of plaintiffs' claims for damages. They argue that there are across-the-board "problems" with plaintiffs' claims for reputation damages, lost contract damages, and damages for the "diminishment of the economic value of confidential and proprietary information." (Mem. at 10-19.) In addition, they argue that "diminishment of the economic value of confidential and proprietary information" or "diminution of economic value of office" are not cognizable damages for trespass. (Id. at 32-33.)
1. Reputation Damages
The PV defendants argue that plaintiffs' claims for reputation damages should be dismissed because the Supreme Court's ruling in Hustler v. Falwell ,
Taking plaintiffs at their word that they are not seeking damages based on the publication of the videos (see Opp'n at 10 ("Plaintiffs are not seeking reputational or any other damages for any act of expression or publication.")), the Court agrees that Hustler does not bar their claim for reputation damages. As Judge William H. Orrick, recently explained in a case involving a similar set of allegations:
Whether First Amendment scrutiny applies ... does not turn on the label of the cause of action but on whether the "challenged conduct" is to some form of expression and relatedly whether the damages sought stemmed from that form of expression.... [T]he First Amendment does not impose heightened standards on plaintiffs' tort claims as long as plaintiffs do not seek reputational damages ... stemming from the publication conduct of defendants .
Planned Parenthood ,
2. Lost Contract Damages
The PV defendants argue that plaintiffs' claims for lost contract damages should be dismissed because lost contract damages are not recoverable without pleading a tortious interference with contract claim. (See Mem. at 16 ("all claims for 'lost contract' damages must be dismissed unless a proper tortious interference claim can be supported").) In the alternative, they argue that even if plaintiffs had adequately pled a claim for tortious interference, the claim would be barred by the First Amendment because the cause of the lost contracts was defendants' publication of the secretly-recorded videos. Neither argument is persuasive. First, the PV defendants' contention that plaintiffs were required to plead a tortious interference with contract claim lacks any legal support. Second, as previously discussed, plaintiffs have represented that they are not seeking any damages based on the publication of the videos, but rather are seeking damages for non-publication conduct. Where the underlying conduct is not expressive, and the damages sought are "non-reputational," there is no First Amendment issue. See Steele v. Isikoff ,
3. Diminishment of the Economic Value of Confidential and Proprietary Information
The PV defendants argue that plaintiffs' claim for damages for the "diminishment of the economic value of confidential and proprietary information" should be dismissed either (1) because "[t]he Complaint offers no details on this theory. No specific pieces of confidential or proprietary information are identified as having been damaged, nor is a specific dollar value of damages assigned to each piece of information"; or (2) "[p]laintiffs appear to be seeking compensation for damage to intangible property without pleading the appropriate claims under D.C. law." (Mem. at 19.) Defendants, again, fail to cite any legal authority to support their arguments. In addition, the lack of detail in the complaint is not a basis for dismissing a claim for damages at this early stage of the litigation as plaintiffs are under no obligation to plead damages with particularity. See, e.g. , Alemayehu v. Abere ,
4. Diminution of the Economic Value of Office
As to the trespass claim, the PV defendants argue that the claim for damages for the "diminution of economic value of office" should be dismissed either because (1) it is effectively a claim for damage to the economic reputation of plaintiffs' office or to the prospect of future business contacts, which is not a trespass damages claim but rather a restatement of plaintiffs' claim for reputation damages; or (2) if it is something else, plaintiffs fail to explain what such damages are and why they are recoverable for trespass. The argument suffers from the same problems *127that have plagued defendants' other damages arguments: no citation to legal authority and no obligation to plead damages with particularity. In addition, as previously noted, there is no need to allege actual damages to state a claim for trespass. Given these considerations, whether the damages plaintiffs seek are recoverable for trespass can be more adequately addressed later in the litigation process. Accordingly, the Court will not dismiss plaintiffs' claim for damages for the "diminution of the economic value of office."
II. MOTION TO DISMISS UNDER D.C. ANTI-SLAPP ACT
The PV defendants have also moved to dismiss the complaint under the District of Columbia Anti-Strategic Lawsuits Against Public Participation (Anti-SLAPP) Act of 2010,
In a recent decision, this Court concluded that Abbas v. Foreign Policy Grp., LLC ,
The D.C. Circuit's decision in Abbas was based on its application of the Supreme Court's decision in Shady Grove Orthopedic Assocs. v. Allstate Ins. Co. ,
CONCLUSION
Accordingly, and for the reasons stated above, the PV defendants' motions to dismiss are denied. A separate Order (ECF No. 24) accompanies this Memorandum Opinion.
As the Court is ruling on a motion to dismiss, the facts set forth herein are taken from the allegations of the complaint.
PVAF "has become notorious for attempted undercover 'sting' operations aimed at progressive organizations and Democratic Party campaigns and committees." (Compl. ¶ 12.) Their tactics and other actions have led to multiple civil lawsuits and a criminal judgment against O'Keefe for entry by false pretenses in violation of
The complaint does not describe the content of these two video clips.
The first video falsely "charge[d] that Plaintiffs were involved in a conspiracy to incite violence at rallies for then-candidate Donald Trump, and falsely implied that the ongoing work in planning and implementing the bracketing events was part of that conspiracy." (Compl. ¶ 53.) The second video suggested "falsely, that Plaintiffs Creamer and Democracy Partners were involved in a scheme with others to enable masses of non-citizens to vote illegally and otherwise to commit voter fraud." (Compl. ¶ 55) Finally, the third and fourth videos "falsely implied that Secretary Clinton was personally involved in unethical and/or illegal activity; that activities carried out in connection with the bracketing events had been unlawfully coordinated with the Clinton Campaign; and that a group for which Creamer worked had unlawfully accepted a foreign contribution." (Compl. ¶ 57.)
The Court has jurisdiction over the Federal Wiretap Act claim pursuant to its federal question jurisdiction, see
Even though the claims for trespass and breach of fiduciary duty are brought only against Maass, the PV defendants seek their dismissal because their viability is relevant to the civil conspiracy claim against them. (See Mem. at 20 n.5, 37.)
In arguing that the complaint fails to adequately allege that Maass' fraudulent misrepresentations were the proximate cause of any damages, the PV defendants primarily rely on the district court's decision in Food Lion, Inc. v. Capital Cities/ABC, Inc. ,
The Fourth Circuit's decision in Food Lion, Inc. v. Capital Cities/ABC, Inc. , is not to the contrary. In that case, the court held that the plaintiffs' tort claims were subjected to First Amendment standards because the record at trial established that they were seeking "publication damages," i.e. reputational damages stemming from the publication conduct of defendants.
Pursuant to
Except as provided in subsections (b) and (c) or as expressly provided otherwise by Federal statute, in any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.
In Shady Grove , the Supreme Court held that a New York law prohibiting class actions in suits seeking penalties or statutory minimum damages conflicted with Federal Rule of Civil Procedure 23 and could not be applied in a federal court.