Taylor et al v. Acxiom Corporation et al

Filing 70

RESPONSE to 62 Notice (Other), Notice (Other), Notice (Other) Plaintiffs' Statement of Violations of the Drivers' Privacy Protection Act and Supplement to Consolidated Motion to Dismiss on Common Issues by Zebec Data Systems, Inc.. (Moos, Marvin)

Taylor et al v. Acxiom Corporation et al

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Case 2:07-cv-00001

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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION SHARON TAYLOR, ET AL. VERSUS ACXIOM CORPORATION, ET AL. AND SHARON TAYLOR, ET AL. VERSUS ACS STATE & LOCAL SOLUTIONS, INC., ET AL. AND SHARON TAYLOR, ET AL. VERSUS TEXAS FARM BUREAU MUTUAL INSURANCE COMPANY, ET AL. AND SHARON TAYLOR, ET AL. VERSUS SAFEWAY, INC., ET AL. AND SHARON TAYLOR, ET AL. VERSUS BIOMETRIC ACCESS COMPANY, ET AL. AND SHARON TAYLOR, ET AL. VERSUS FREEMAN PUBLISHING COMPANY ZEBEC DATA SYSTEMS, INC.'S RESPONSE TO PLAINTIFFS' STATEMENT OF VIOLATIONS OF THE DRIVERS' PRIVACY PROTECTION ACT AND SUPPLEMENT TO CONSOLIDATED MOTION TO DISMISS ON COMMON ISSUES CIVIL ACTION NO. 2:07cv00410 JUDGE DONALD E. WALTER CIVIL ACTION NO. 2:07cv00018 JUDGE DONALD E. WALTER CIVIL ACTION NO. 2:07cv00017 JUDGE DONALD E. WALTER CIVIL ACTION NO. 2:07cv00014 JUDGE DONALD E. WALTER CIVIL ACTION NO. 2:07cv00013 JUDGE DONALD E. WALTER CIVIL ACTION NO. 2:07cv00001 JUDGE DONALD E. WALTER

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Case 2:07-cv-00001

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Pursuant to the Court's March 4, 2008 Order, (Doc. No. 193), Zebec Data Systems, Inc. ("Zebec") files its Supplemental Response to Plaintiffs' Statement of Violations of the Drivers' Privacy Protection Act (the "Statement"), and specifically re-urges its Motion to Dismiss.1 In the March 4 Order, the Court permitted Plaintiffs to file the Statement, and ordered Plaintiffs to "stat[e] specifically the basis for their claims against each individual defendant stating the alleged obtainment, disclosure or use of that plaintiff's information from the Texas state motor vehicle records for a purpose not permitted under the DPPA." (March 4 Order at p. 2). Plaintiffs failed to identify a single impermissible purpose. Plaintiffs' Statement with regard to Zebec does not allege any facts beyond the conclusory assertions in their First Amended Complaint, (Doc. No. 3), or those taken from Zebec's agreement with the Texas DPS. The agreement is referred to in and central to the complaint, and properly considered on a Rule 12(b)(6) motion. (See Doc. No. 95, Exhibit "A1"). While Plaintiffs allege in the Statement that certain named Plaintiffs are aware of a business relationship with Zebec but others are not, this contention does not materially depart from the allegation in the complaint that Zebec "may have a permissible use under the DPPA for obtaining `personal information' for some of the people in the database." (Compl. ¶ 70). Plaintiffs now postulate the erroneous legal theory that Zebec must have had an immediate use for each piece of information obtained. (See Statement at p. 80-82). Plaintiffs continue their strained interpretation of the DPPA and argue that entities such as Zebec may only purchase driver information from the DPS on a case-by-case basis, and may not purchase the information in bulk because this constitutes a "continuing use." (Id.) Nothing in the DPPA or case law in this Circuit construing the statute supports this construction. Plaintiffs are, quite
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Zebec's Motion to Dismiss was filed on May 1, 2007. (Doc. No. 95). Plaintiffs responded to Zebec's motion on May 16, 2007. (Doc. No. 107). Zebec filed its reply in support of its motion on June 8, 2007. (Doc. No. 115). Zebec's motion is fully briefed and ripe for the Court's consideration.

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simply, wrong. Moreover, Plaintiffs do not challenge the permissible purposes Zebec certified to the Texas DPS for obtaining motor vehicle information as set forth in its interrogatory response. Because the allegations contained in the Statement do not alter Zebec's pending Motion to Dismiss, Zebec hereby re-urges its motion in addition to joining in the Consolidated Motion to Dismiss on Common Issues and Response to Plaintiffs' Statement of Violations ("Consolidated Motion") filed on behalf of certain Defendants on this date. In summary, and in an abundance of caution, the bases for dismissal in Zebec's motion are as follows: · The Court should dismiss pursuant to Rule 12(b)(1) because no Plaintiff alleges an actual injury; therefore, Plaintiffs lack standing. In short, Plaintiffs' conclusory allegations do not allege an injury in fact, a causal connection between allegedly obtaining their personal information and their hypothetical "injuries," and redressability. The Court should dismiss pursuant to Rule 12(b)(6) because Plaintiffs failed to allege plausible DPPA claims for the following reasons: · The DPPA authorizes the purchase of bulk data--whether for use by the purchaser or for resale--and does not prohibit the non-use of personal information obtained for a permissible purpose under section 2721. 18 U.S.C. § 2721(b). Accordingly, Plaintiffs failed to state a plausible improper obtainment claim. Plaintiffs failed to allege a plausible improper use claim pertaining to any named Plaintiff's personal information, particularly because the DPPA authorizes resale. 18 U.S.C. § 2721(c). The DPPA's legislative history verifies that legitimate businesses can obtain motor vehicle data for permissible purposes. This includes an authorized recipient who may resell or redisclose information for permitted purposes. 18 U.S.C. § 2721(c). Therefore, Plaintiffs' "continuing use" allegation is meritless. Texas law also authorizes the purchase of bulk data. Nothing in the Texas statutes requires the immediate use of personal information. Again, Plaintiffs' "continuing use" allegation is meritless. Plaintiffs cannot contest Zebec's certification and its contract with the DPS. Congress left enforcement to the government.

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CONCLUSION For the above reasons, the reasons set forth in Zebec Data Systems, Inc.'s Motion to Dismiss and Reply, and the reasons in the Consolidated Motion to Dismiss, the Court should dismiss Plaintiffs' claims against it with prejudice and award Zebec Data Systems, Inc. such other and further relief to which it is entitled, including costs. Respectfully submitted,

/s/ Marvin C. Moos MARVIN C. MOOS State Bar No.: 14413900 1301 McKinney, Suite 2700 Houston, Texas 77010-3079 TELEPHONE: [phone] FACSIMILE: 713/333-4600 ATTORNEY-IN-CHARGE FOR DEFENDANT, ZEBEC DATA SYSTEMS, INC. OF COUNSEL: EBANKS, SMITH & CARLSON, L.L.P. 1301 McKinney, Suite 2700 Houston, Texas 77010-3079 TELEPHONE: [phone] FACSIMILE: 713/333-4600

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CERTIFICATE OF SERVICE I hereby certify that on the April 18, 2008, I electronically filed the foregoing with the Clerk of the Court using the CM/ECF system which will send notification to the following: Elizabeth E. Baker Philip John BAKER BOTTS L.L.P. One Shell Plaza 910 Louisiana Suite 3000 Houston, TX 77002 Jason R. Searcy Amy Bates Ames Joshua P. Searcy JASON R. SEARCY & ASSOCIATES, P.C. P.O. Box 3929 Longview, TX 75606 Thomas Mathew Corea Jeremy Reade Wilson The Corea Firm, PLLC 325 N St Paul St Suite 4150 Dallas, TX 75201 James Mark Mann The Mann Firm 300 W. Main Henderson, TX 75652 COUNSEL FOR PLAINTIFFS Alan Neil Greenspan Luke Ellis Jackson Walker 901 Main St., Suite 6000 Dallas, TX 75202-3797 James M. Walls CARLTON FIELDS, PA P.O. Box 3239 Tampa, FL 33601-3239 COUNSEL FOR CERTEGY CHECK SERVICES, INC. d/b/a Equifax Payment Services, Inc. and FINANCIAL, INC. Robert M Strasnick Andrews & Updegraph 70 Washington St., Suite 212 Salem, MA 01970 COUNSEL FOR JON LATORELLA

Neal W. Hardin Attorney at Law 1150 Lakeway Drive Chad M. Pinson Suite 101 BAKER BOTTS L.L.P. Austin, TX 78734 2001 Ross Avenue COUNSEL FOR Dallas, TX 75201-2980 COUNSEL FOR AMERICAN REALTIME-ID, LP DRIVING RECORDS, INC. D/B/A FIRST ADVANTAGE ADR, A/K/A AGENCY RECORDS, INC. Brent Samuel Lee Craig Alan Haynes Thompson & Knight LLP 1700 Pacific Ave., Suite 3300 Dallas, TX 75201 COUNSEL FOR LML PAYMENT SYSTEMS CORP. John E. Collins SBN: 04613000 Burleson, Pate & Gibson 2414 N. Akard, Ste. 700 Dallas, Texas 75201 COUNSEL FOR URAPI Brian C. Jobe Wimer & Jobe 13455 Noel Rd., Suite 1000 Dallas, TX 75251 Michael G. Wimer Wimer & Jobe 349 Haywood Rd. Asheville, NC 28806 COUNSEL FOR ALLIED RESIDENT/EMPLOYEE SCREENING SERVICE

Michael L. Bernoudy, Jr. The Benoudy Law Firm 2660 E. End Blvd. S., Suite 110 Marshall, TX 75672 COUNSEL FOR COE INFORMATION PUBLISHERS, INC. Brett Lee Myers David Goodman & Madole 5420 LBJ Freeway Suite 1200 Dallas, TX 75240 COUNSEL FOR ATM CONNECTION, INC.

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Jeffrey R. Elkin PORTER & HEDGES 1000 Main Street, 36th Floor Houston, TX 77002 COUNSEL FOR PROPERTYINFO CORPORATION Robert Langdon Ramey Ramey & Chandler 750 Bering Dr. Suite 600 Houston, TX 77057 COUNSEL PRO SE FOR SOURCE DATA, INC. Kyle W Johnson David Goodman & Madole 5420 LBJ Freeway Suite 1200 Dallas, TX 75240 COUNSEL FOR TML INFORMATION SERVICES, INC.

Tristan Belew Ellis T. Belew Ellis P. O. Box 802 Marshall, TX 75671-0802 COUNSEL FOR MARSHALL SYSTEMS TECHNOLOGY, INC. Jennifer Haltom Doan Joshua R. Thane Haltom & Doan Crown Executive Center Suite 1 A 6500 Summerhill Road Texarkana, TX 75503 Randall K. Miller Michelle Killick Arnold & Porter LLP 1600 Tysons Boulevard Suite 900 McLean, VA 22102-4865 COUNSEL FOR BIOMETIC ACCESS COMPANY and MIDWEST DATA CENTER, INC. Walter J. Cicack Karl E. Neudorfer SEYFARTH SHAW LLP 700 Louisiana Street Suite 3700 Houston, TX 77002 Michael Charles Smith The Roth Law Firm 115 N. Wellington Suite 200 P.O. Box 876 Marshall, TX 75671-0876 COUNSEL FOR U.S. INTERACTIVE, INC.

James Patrick Kelley Ireland Carroll & Kelley 6101 S Broadway, Suite 500 Tyler, TX 75703 COUNSEL FOR ACXIOM RISK MITIGATION, INC. S. Calvin Capshaw Elizabeth L. DeRieux CAPSHAW DERIEUX, LLP Energy Centre P.O. Box 3999 Longview, TX 75606-3999 David G. Russell Jodi E. Zysek PARKER, HUDSON, RAINER & DOBBS, LLP 1500 Marquis Two Tower 285 Peachtree Center Ave. NE Atlanta, GA 30303 COUNSEL FOR TELECHECK SERVICES, INC.

Robin Leaf Harrison CAMPBELL HARRISON & DAGLEY, L.L.P. 4000 Two Houston, Center 909 Fannin Houston, TX 77010 COUNSEL FOR ADP SCREENING AND SELECTION SERVICES, INC. A/K/A AVERT, INC. John E. Collins Burleson, Pate & Gibson 2414 N, Akard, Ste. 700 Dallas, Texas 75201 COUNSEL FOR URAPI

Douglas E. Koger 14090 Southwest Freeway Suite 300 Sugar Land, TX 77478 COUNSEL FOR EMAGINENET TECHNOLOGIES, INC. Stephen Douglas Henninger Martin, Disiere, Jefferson & Wisdom 900 Jackson Street, Suite 710 Dallas, TX 75202 COUNSEL FOR FEDCHEX. LLC.

/s/ Marvin C. Moos MARVIN C. MOOS

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