California Supreme Court: Law Enforcement Officials May Search Cellular Phones Incident To Arrest

On Monday, the California Supreme Court ruled that the Fourth Amendment to the United States Constitution did not prohibit a deputy sheriff from conducting a warrantless, post-arrest search of the text messages of an arrestee. Specifically, the Court affirmed the decision of the Court of Appeal that the cell phone was “immediately associated with [defendant’s] person at the time of his arrest” and was therefore “properly subjected to a delayed warrantless search.” 

In People v. Diaz, filed on January 3, the Court considered whether the trial court properly denied Diaz’s motion to suppress evidence gathered during a search of his cell phone, which occurred approximately 90 minutes after he was arrested for being a coconspirator in the sale of drugs. Diaz denied knowledge of the sales. A deputy sheriff accessed Diaz’s cell phone, which had been seized from Diaz’s person, and found a coded text message that, based on the deputy’s training and experience, indicated Diaz knew of the transaction.

The California Supreme Court’s ruling hinged on its finding that the cell phone “was an item [of personal property] on [defendant’s] person at the time of his arrest and during the administrative processing at the police station.” People v. Diaz, S1666000, slip op. Majority Op. at 8 (Cal. Jan. 1, 2011). As such, the case was controlled by the United States Supreme Court’s holdings in United States v. Edwards, 415 U.S. 800, 802-803 (1974) and United States v. Robinson, 414 U.S. 218, 224 (1973), in which the High Court affirmed seizures of paint chips from clothing and a cigarette package containing heroin from a coat pocket (respectively).

Moreover, the Diaz Court held that neither whether an item is typically carried on the person, nor the capacity of an item to store personal information, affects the Fourth Amendment analysis:

The relevant high court decisions do not support the view that whether police must get a warrant before searching an item they have properly seized from an arrestee’s person incident to a lawful custodial arrest depends on the item’s character, including its capacity for storing personal information . . . . Nothing in these decisions even hints that whether a warrant is necessary for a search of an item properly seized from an arrestee’s person incident to a lawful custodial arrest depends in any way on the character of the seized item.

Diaz, slip op. Majority Op. at 9-10.

Justice Werdegar dissented on the grounds that the U.S. Supreme Court’s decisions should not have controlled because their facts were too far removed from the context of personal data devices:

The United States Supreme Court’s holdings on clothing and small spatial containers were not made with mobile phones, smartphones and handheld computers — none of which existed at the time — in mind. Electronic devices “contain” information in a manner very different from the way the crumpled cigarette package in Robinson contained capsules of heroin [citation to Robinson]. Electronic devices, indeed, are not even “containers” within the meaning of the high court’s search decisions. As the Ohio Supreme Court, rejecting application of the container cases to a mobile phone, noted, “[o]bjects falling under the banner of ‘closed container’ have traditionally been physical objects capable of holding other physical objects. Indeed, the United States Supreme Court has stated that in this situation, ‘container’ means ‘any object capable of holding another object.’” (State v. Smith (Ohio 2009) 920 N.E.2d 949, 954, quoting New York v. Belton, [453 U.S. 454, 461 n.4 (1981)].)

Diaz, slip op. Dissenting Op. at 9-10. 

On October 4, 2010, the U.S. Supreme Court denied certiorari in State v. Smith, the Ohio case Justice Werdegar discussed in her dissent.  However, given that there is now a split between the supreme courts of California and Ohio, the United States Supreme Court might be more inclined to weigh in.

No Question about Quon: U.S. Supreme Court Unanimous in Overturning Ninth Circuit

On June 17, 2010, in a decision authored by Justice Anthony Kennedy, the U.S. Supreme Court unanimously overturned a decision by the U.S. Court of Appeals for the Ninth Circuit in a case involving an employee’s assertion that a government employer had violated the Fourth Amendment by unreasonably obtaining and reviewing personal text messages sent and received on employer-issued pagers.  Click here to read our Client Alert about this important decision.

In case you were wondering, we previously reported on the Ninth Circuit's decision, and denial of rehearing en banc, in Quon v. Arch Wireless here and here.

District Court Rules TCPA Applies to Text Messages Even Though Recipient Not Charged to Receive the Message

The U.S. District Court for the Northern District of Illinois recently ruled that a plaintiff may maintain a suit for receiving an unsolicited Short Message Service (“SMS”) text message under the Telephone Consumer Protection Act (TCPA) of 1991, even though the plaintiff was not actually charged for receiving the message. In Abbas v. Selling Source, LLC, No. 09-CV-3413 (N.D. Ill. Dec. 14, 2009), Judge Joan B. Gottschall noted that in enacting the TCPA, “Congress was just as concerned with consumers’ privacy rights and the nuisances of telemarketing” as it was with cost-shifting of communications addressed by the TCPA. Judge Gottschall continued to state that “[a]utomated calls invade privacy and pose nuisances regardless of whether the called party is charged for the call, and so congressional intent is furthered by the TCPA’s application to both charged and uncharged calls.”

In the putative class action lawsuit, the plaintiff alleged that Selling Source sent him and others like him SMS text messages in violation of the TCPA. In pertinent part, the TCPA prohibits a person from making a call, other than a call made for emergency purposes or with the prior express consent of the recipient using any automatic telephone dialing system or an artificial or prerecorded voice. Selling Source moved to dismiss the complaint for the failure to state a claim upon which relief can be granted, alleging, amongst other things, that the TCPA does not apply to SMS text messages because SMS text messages are not a “call” within the meaning of the statute and that the plaintiff failed to demonstrate that he was charged for the text message he allegedly received.

The trial court noted that the meaning of “call” as used in the TCPA was ambiguous, but concluded that the meaning of “call” includes text messages. In reaching its conclusion, the court relied in part on the Ninth Circuit’s decision in Satterfield v. Simon & Schuster, Inc., 569 F.3d 946, 954 (9th Cir. 2009), which noted that “text messaging is a form of communication used primarily between telephones,” and in part on the FCC’s own interpretation of the TCPA such that it applies to text messages. The court also held that a person does not need to be charged to receive the text message to maintain a suit under the TCPA. The court rejected Selling Source’s argument that the TCPA could not apply to text messages because the statute was enacted before the advent of text messaging. Although the trial court dismissed the complaint because of the plaintiff’s failure to meet the federal pleading requirements, the court granted the plaintiff leave to amend to correct the pleading deficiencies.

Rehearing En Banc Denied in Quon . . . With Dissent

On Tuesday, the Ninth Circuit denied rehearing en banc in Quon v. Arch Wireless, previously discussed here.  The dissent (1)  disagrees with the panel's conclusion that the SWAT team members had a reasonable expectation of privacy in the text messages on the grounds that the decision undermines the standard established by the Supreme Court in O’Connor v. Ortega, 480 U.S. 709 (1987); and (2)  finds that the method used by the panel to determine whether the search was reasonable conflicts with Supreme Court precedent holding that the Fourth Amendment does not require the government to use the “least intrusive means” when conducting a “special needs” search.  The dissent can be found here.  Judge Wardlaw's concurrence in the denial of rehearing en banc can be found here.  We will keep you posted on this one.

One Reputable Retailer Takes a $7M Hit On Text Messages

On September 10, 2008, Timberland Company, an outdoor clothing and shoe merchant, along with co-defendant ad agencies GSI Commerce Inc. (“GSI”) and AirIt2Me Inc. (“AirIt2Me”), settled charges brought under the Telephone Consumer Protection Act (“TCPA”) arising from unsolicited text messages advertising Timberland’s holiday sale.  Pursuant to the settlement, Timberland must employ best practices in future marketing, and must pay $7 million into a fund for distribution to the class.  Prior to any future mobile marketing campaign, GSI agreed to circulate to its marketing personnel a copy of the Mobile Marketing Association’s Consumer Best Practices guidelines, and to establish meaningful training and compliance checks in connection with those guidelines. Additionally, the defendants must pay class counsel a maximum amount of $1,750,000.  The settlement has been agreed to by all parties, but is still subject to final approval by the court.
 

The event underlying the action was a mobile marketing campaign.  The plaintiffs alleged that Timberland contracted with AirIt2Me and GSI for the promotion of a holiday sale in 2005.  As a part of the promotion, Timberland, by and through these agents, allegedly sent thousands of unsolicited SMS text messages to potential customers' cell phones.  Two recipients of the text message initiated a class action alleging violation of the TCPA, which prohibits unsolicited voice and text calls to cell phones, using an auto-dialing system, unless the recipient has given prior consent.  The statute also prohibits companies from initiating telephone solicitations to individuals on the national Do-Not-Call list, unless the individual has given prior express consent or has an established business relationship with the company.


Any company engaging in a mobile marketing campaign should utilize a strategy that meets its business objectives, but also takes the appropriate steps to protect itself from potential liability under the applicable laws.  In the case of text messages, a company must obtain an “opt-in” to send messages to a mobile device.  This settlement illustrates the high pay-outs that can result from legal actions.  Violations of the TCPA can result in statutory damages of $500 per violation (i.e., for each individual text message).


When undertaking these types of campaigns, companies must comply with both the TCPA and the Controlling the Assault of Non-Solicited Pornography and Marketing Act (“CAN-SPAM”), as well as the various state laws that apply to mobile promotional messaging.  All of these laws require companies to obtain express consent from individuals before sending promotional messages to their wireless devices.  In addition to these statutes, both the Mobile Marketing Association and the Wireless Association have best practice guidelines to provide companies with guidance in crafting marketing policies.  Companies should review their mobile marketing policies to ensure they are compliant, and should distribute these policies to all applicable employees and agents.  In addition, when utilizing any third-party agent to facilitate mobile marketing campaigns, a company should require that the agent is complying fully with the applicable laws and regulations.  Any contracts with third-parties should include warranties and indemnification as to these requirements.