Aleuta v. Community Clinic of Maui, Inc.

CourtDistrict Court, D. Hawaii
DecidedJuly 7, 2025
Docket1:24-cv-00431
StatusUnknown

This text of Aleuta v. Community Clinic of Maui, Inc. (Aleuta v. Community Clinic of Maui, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aleuta v. Community Clinic of Maui, Inc., (D. Haw. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAI‘I

IN RE COMMUNITY CLINIC OF MAUI Civil No. 24-00431 MWJS-WRP DATA BREACH LITIGATION (Applies to Removed Consolidated Cases: 25-cv-00030; 25-cv-00031; 25-cv-00032; 25-cv-00033)

ORDER GRANTING NON-PARTY THE

UNITED STATES’S MOTION TO

REMAND

INTRODUCTION In May 2024, the Community Clinic of Maui, Inc., doing business as Malama I Ke Ola Health Center, experienced a cyberattack. Thousands of patients’ personal data were stolen. A number of lawsuits arose from the incident, several of which were filed in state court. Although those cases raised only state law claims, Malama notified the United States that it believed it was entitled to immunity and to removal to federal court based on its receipt of federal funding under the Federally Supported Health Centers Assistance Act (FSHCAA). The United States generally agreed that Malama was deemed a federal employee for the relevant time period. But it disclaimed that Malama was deemed an employee specifically with respect to the cybersecurity incident at hand. Malama nonetheless removed the cases to this court. Before the court is a motion, filed by the United States, to remand these cases to state court on the basis that Malama is not authorized to remove these cases to federal court under the FSHCAA, see 42 U.S.C. § 233(l)(2), or under the general federal officer removal statute, see 28 U.S.C. § 1442. For the reasons explained below, the court agrees

on both points. The United States’s motion is therefore GRANTED, and the removed cases are REMANDED to state court. BACKGROUND

A. The Federally Supported Health Centers Assistance Act Malama is a federally funded community health center. ECF No. 1, at PageID.2.1 Under the Public Health Service Act, the federal government may extend “grants for the

costs of the operation of public and nonprofit private health centers that provide health services to medically underserved populations.” 42 U.S.C. § 254b(e)(1)(A). An amendment to that Act, the FSHCAA, minimizes costs for these health centers in another way: Under the FSHCAA, federally funded health centers and their employees

can be “deemed” federal employees of the U.S. Public Health Service (PHS) “for the purposes of malpractice liability.” Blumberger v. Tilley, 115 F.4th 1113, 1117 (9th Cir. 2024) (citing 42 U.S.C. § 233(g)). If approved for FSHCAA protections, the health

centers and their employees benefit from the same immunity as true PHS employees. Friedenberg v. Lane County, 68 F.4th 1113, 1126-28 (9th Cir. 2023) (citing 42 U.S.C. § 233(g)(1)(A)). That is, the general principle that the United States “may not be sued

1 Except where otherwise specified, all docket citations in this order refer to the docket in No. 25-cv-00030, Fred Curimao v. Community Clinic of Maui, Inc. without its consent” and the United States’s limited consent to suit under the Federal Tort Claims Act (FTCA) both apply to the health centers enjoying FSHCAA immunity.

Id. at 1124 (quoting United States v. Mitchell, 463 U.S. 206, 212 (1983)). The practical consequence is that FTCA actions against the United States become the exclusive remedy for medical malpractice suits that would otherwise be brought against the

health centers or their employees for “actions taken within the scope of their employment.” Blumberger, 115 F.4th at 1117 (citing 42 U.S.C. § 233(a), (g)(1)(A)). This immunity prevents the “health centers from having to use their federal funds to

purchase costly medical malpractice insurance, which is one of the most significant expenses for health centers.” Friedenberg, 68 F.4th at 1124-25 (cleaned up). To be eligible for these federal protections, health centers must annually apply to the U.S. Department of Health and Human Services (HHS). See 42 U.S.C. § 233(g)(1)(A),

(D). Health centers approved by the Secretary of HHS are deemed “employees” of PHS for that limited purpose. Id. § 233(g)(1)(A). The Secretary’s determination is “final and binding upon the Secretary and the Attorney General.” Id. § 233(g)(1)(F). The

Secretary’s “deeming decision, however, does not automatically immunize a covered entity or employee from” any particular suit. Blumberger, 115 F.4th at 1118. Instead, to be eligible for FTCA immunity, the suit must be for “damage for personal injury, including death, resulting from the performance of medical, surgical, dental, or related

functions, including the conduct of clinical studies or investigation.” 42 U.S.C. § 233(a). And the “‘act or omission giving rise to the claim’ must also have occurred while the defendant was ‘acting within the scope of [their] office or employment.’” Blumberger,

115 F.4th at 1118 (brackets omitted) (quoting 42 U.S.C. § 233(a)). When a medical malpractice suit is filed against a federally supported health center or its employee, courts must therefore determine whether the defendant was “acting within the scope

of” their employment with PHS such that an FTCA claim against the United States itself is the exclusive remedy. Id. (quoting 42 U.S.C. § 233(a)). To assist courts with this determination, federal law directs the U.S. Attorney

General to appear in cases brought against federally supported health centers or their personnel and to certify whether the “entity, officer, governing board member, employee, or contractor of the entity is deemed to be an employee of the Public Health Service” for the purposes of the FSHCAA “with respect to the actions or omissions that

are the subject of such civil action or proceeding.” 42 U.S.C. § 233(l)(1). This appearance must be made within fifteen days of receiving notice of an action against a deemed employee. Id. If the Attorney General answers in the affirmative, the employee

is presumed to be acting within the scope of their employment, Blumberger, 115 F.4th at 1131, and the Attorney General “shall” remove the case to federal court, 42 U.S.C. § 233(c). The federal court may then, upon a motion to remand, hold a hearing as to whether the deemed employee was indeed acting within the scope of their employment

at the time of the malpractice. Blumberger, 115 F.4th at 1119; 42 U.S.C. § 233(c). The statute contemplates that the Attorney General might fail to appear within the prescribed fifteen days. Blumberger, 115 F.4th at 1119. If the Attorney General fails

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