State Farm removed the case from Clark County Superior Court to federal court. Sundstrom alleged she received 70 text messages between July 15 and October 27, 2025, from Ocean Reef Media LLC and its affiliates. The messages promoted insurance services for Progressive and State Farm.
Sundstrom argued the insurers were liable under an apparent authority theory because their logos appeared on the telemarketers’ websites and because the spam ceased after she sent Do Not Call letters to the carriers.
The court rejected the apparent authority claim, noting that logos on a third-party site do not constitute a manifestation by the principal that creates a reasonable belief of authority.
The court wrote that "Plaintiff cannot show apparent authority by allegations that the alleged agent, the Ocean Reef Defendants, 'claimed authority or purported to exercise it,'" citing Ninth Circuit precedent.
The judge also dismissed Sundstrom’s claims under the Washington Commercial Electronic Mail Act and Consumer Protection Act, finding she failed to assert facts showing the insurers "substantially assisted" in the transmission of the messages.
The court granted leave to amend, ordering any new complaint filed by June 5, 2026.