Byrd v. Aaron's Inc.
| Citation | 784 F.3d 154 |
| Decision Date | 16 April 2015 |
| Docket Number | No. 14–3050.,14–3050. |
| Parties | Crystal BYRD; Brian Byrd, Individually, and on Behalf of all Similarly Situated Persons, Appellants v. AARON'S INC; Aspen Way Enterprises Inc, d/b/a Aaron's Sales and Leasing, A Franchisee of Aaron's Inc.; DesignerWare LLC; AH & H Leasing LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; AMG Enterprises Group LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Arona Corporation d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Bear Rental Purchase LTD, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Boxer Enterprise Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Circle City Rentals, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; CMH Leasing Partners, LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Cram Leasing, Inc., d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; DC Sales and Lease Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Dirigo Leasing Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; DPR Alaska LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; DPR Colorado LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; DW3 LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; DWC Ventures LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Fairway Leasing LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Five Star Financials LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; FT Got Three LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; GNS & Associates INC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Great American Rent to Own Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Green River Corp, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Hanson Holding Co., d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Honey Harbor Investments LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Howard Rents LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; HPH Investments LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; J & L Beach Enterprises Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; J.R. Rents, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; J.M. Darden and Co, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Jenfour LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Jenkins Rental LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; KFJ Enterprises LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Lifestyle Furniture Leasing, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; LTL Investments LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Madison Capital Investments INC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; MKW Investments INC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; No Three Putts Enterprises LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; NW Freedom Corp, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Pomona Lane Partners LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; R & Double K LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Rebco Investments LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Rex Neal Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Royal Rents Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Royal Rocket Retail LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Shining Star, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Showcase Home Furnishings Inc, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Sultan Financial Corp, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Tanglewood Management LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; TDS Foods INC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; TUR INC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; Watershed Development Corp, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; WGC LLC, d/b/a Aaron's Sales and Leasing, a Franchisee of Aaron's, Inc.; John Does (1–45) Aaron's Franchisees. |
| Court | United States Courts of Appeals. United States Court of Appeals (3rd Circuit) |
Leonard A. Davis, Esq., Andrea S. Hirsch, Esq., Herman Gerel, Atlanta, GA, R. Daniel Fleck, Esq., Mel C. Orchard, Esq., G. Bryan Ulmer, III, Esq., The Spence Law Firm, Jackson, WY, Matthew C. Gaughan, Esq., Arnold Levin, Esq., Frederick S. Longer, Esq. [Argued], Levin, Fishbein, Sedran & Berman, Philadelphia, PA, Michelle A. Parfitt, Esq., Christopher V. Tisi, Esq., Ashcraft & Gerel, Washington, DC, John H. Robinson, Esq., Jamieson & Robinson, Casper, WY, for Appellants.
Kristine M. Brown, Esq. [Argued], William H. Jordan, Esq., Thomas C. Pryor, Esq., Jason D. Rosenberg, Esq., Alston & Bird, Atlanta, GA, Neal R. Devlin, Esq., Richard A. Lanzillo, Esq., Knox, McLaughlin, Gornall & Sennett, Erie, PA, Steven E. Bizar, Esq., Landon Y. Jones, Esq., Buchanan Ingersoll & Rooney, Philadelphia, PA, Timothy N. Lillwitz, Esq., Todd A. Strother, Esq., Bradshaw Fowler Proctor & Fairgrave, Des Moines, IA, Michael E. Begley, Esq., Michele L. Braukmann, Esq., Ross W. McLinden, Esq., Moulton Bellingham, Billings, MT, James A. McGovern, Esq., Anthony J. Williott, Esq. [Argued], Marshall, Dennehey, Warner, Coleman & Goggin, Brian M. Mancos, Esq., Burns White, Mark R. Lane, Esq., Donald J. McCormick, Esq., Dell, Moser, Lane & Loughney, Pittsburgh, PA, for Appellees.
Steven E. Bizar, Esq. and Landon Y. Jones, Esq., Buchanan Ingersoll & Rooney, Philadelphia, PA, Mark R. Lane, Esq. and Donald J. McCormick, Esq., Dell, Moser, Lane & Loughney, Pittsburgh, PA, Timothy N. Lillwitz, Esq. and Todd A. Strother, Esq., Bradshaw Fowler Proctor & Fairgrave, Des Moines, IA, Brian M. Mancos, Esq., Burns White, Pittsburgh, PA, for Non-Participating Defendants.
Before: RENDELL, SMITH, and KRAUSE, Circuit Judges.
Plaintiffs Crystal and Brian Byrd bring this interlocutory appeal under Rule 23(f) of the Federal Rules of Civil Procedure. The Byrds brought a putative class action against Aaron's, Inc. and its franchisee store Aspen Way Enterprises, Inc. (collectively “Defendants”), who they allege violated the Electronic Communications Privacy Act of 1986 (“ECPA”), 18 U.S.C. § 2511. Concluding that the Byrds' proposed classes were not ascertainable, the District Court denied their motion for class certification. Because the District Court erred in applying our ascertainability precedent, we will reverse and remand.
Aaron's operates company-owned stores and also oversees independently-owned franchise stores that sell and lease residential and office furniture, consumer electronics, home appliances, and accessories. On July 30, 2010, Crystal Byrd entered into a lease agreement to rent a laptop computer from Aspen Way, an Aaron's franchisee. Although Ms. Byrd asserts that she made full payments according to that agreement, on December 22, 2010, an agent of Aspen Way came to the Byrds' home to repossess the laptop on the grounds that the lease payments had not been made. The agent allegedly presented a screenshot of a poker website Mr. Byrd had visited as well as a picture taken of him by the laptop's camera as he played. The Byrds were troubled and surprised by what they considered a significant and unauthorized invasion of their privacy.
Aspen Way obtained the picture and screenshot through spyware—a type of computer software—designed by DesignerWare, LLC and named “PC Rental Agent.” This spyware had an optional function called “Detective Mode,” which could collect screenshots, keystrokes, and webcam images from the computer and its users. Between November 16, 2010 and December 20, 2010, the Byrds alleged that this spyware secretly accessed their laptop 347 times on eleven different days.1 In total, “the computers of 895 customers across the country ... [had] surveillance conducted through the Detective Mode function of PC Rental Agent.” Byrd v. Aaron's, Inc., No. CIV.A. 11101E, 2014 WL 1316055, at *2 (W.D.Pa. Mar. 31, 2014).
The Byrds' operative class-action complaint asserts claims against Aaron's, Aspen Way, more than 50 other independent Aaron's franchisees, and DesignerWare, LLC.2 The complaint alleges violations of and conspiracy to violate the ECPA, common law invasion of privacy, and aiding and abetting. On Defendants' motion to dismiss, the District Court dismissed the claims against all Aaron's franchisees other than Aspen Way for lack of standing and also all claims for common law invasion of privacy, conspiracy, and aiding and abetting. Thus, the Byrds' remaining claims, and those of the class, are against Aaron's and Aspen Way for direct liability under the ECPA.
In the meantime, the Byrds moved to certify the class under Federal Rules of Civil Procedure 23(b)(2) and 23(b)(3), in which the Byrds provided two proposed classes and one alternative proposed class.3 In briefing the motion, the Byrds proposed the following alternative class definitions:
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