Fanean v. RITE AID CORP. OF DELAWARE, INC.

984 A.2d 812, 2009 WL 4842461
Superior Court of Delaware·Decided December 9, 2009·No. C.A. 08C-07-151 JOH·Published·Cited by 43 cases

Opinion

OPINION

HERLIHY, Judge.

Defendant Rite Aid Corporation of Delaware has moved to dismiss plaintiff Michele Fanean’s third amended complaint. Her complaint, and its myriad causes of action, arises from alleged communications to various people by one of Rite Aid’s employees about Fanean’s medical condition and medication for its treatment. These disclosures, Fanean asserts, caused her emotional distress and physical injury. The Court finds several of her causes of actions should be dismissed but that others survive at this procedural stage.

Factual Background

Plaintiff, Michele Fanean has been a customer of defendant, Rite Aid Corporation of Delaware at its pharmacy located at 2713 Philadelphia Pike in Claymont since at least 2001. She was receiving treatment for a chronic, communicable disease in the form of prescription medication supplied by Rite Aid in either late April or early May 2008.

During that time, Alexis Chessen, 23, was employed by Rite Aid as a pharmacy clerk. During the course of her employment with Rite Aid, 1 Chessen provided sensitive information detailing Fane-an’s prescription and medical history to third parties without justification, including Fanean’s daughter and her fíancé’s son. The information disclosed eventually made its way back to Fanean’s fiancé and allegedly caused Fanean humiliation and embarrassment. As a result of the disclosure, Fanean allegedly sought treatment from a medical doctor as well as a psychiatrist.

Procedural History

Fanean’s first complaint was founded solely on an allegation of negligence per se in that Rite Aid, through Chessen, had violated the Health Insurance Portability and Accountability Act (“HIPAA”). 2 Rite Aid sought removal to the United States District Court of Fanean’s action. The District Court remanded her actions to this Court. Rite Aid moved to dismiss the first complaint, but Fanean was given leave to file a second amended complaint (“SAC”). That complaint was also premised on a negligence per se claim arising under HIPAA. Rite Aid once again moved to dismiss the SAC prior to answering it. It argued that the claim based on the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) deprived this Court of jurisdiction and, alternatively, could not stand as a private cause of action. It alleged that under Rules 12(b)(1) and 12(b)(6) 3 the complaint must be dismissed.

On July 13, 2009 the Court heard argument in the motion to dismiss the SAC and *816 held that a common law claim of negligence per se could not be predicated upon a violation of HIPAA and dismissed those claims. 4 The Court, however, allowed Fa-nean to fíle a third amended complaint to cure procedural defects in the SAC.

Plaintiff filed her third amended complaint (“TAC”) on July 27, 2009. In that she alleges eleven causes of action:

1. Negligence per se based on a violation of HIPAA (Count II 5 ).
2. Intentional infliction of emotional distress (“IIED”) (Count III).
3. Negligent Infliction of emotional distress (“NIED”) (Count IV).
4. Invasion of privacy in violation of “Restatement II[sic] of Torts § 652” (Count V).
5. Breach of contract between Fanean and Rite Aid (Count VI(a)).
6. Negligence (Count VI(b)).
7. Negligence per se based on a breach of confidentiality in violation of the American Pharmaceutical Association’s standards (Count VII(a)).
8. Breach of Confidentiality (Count VII(b)).
9. Breach of contract between APA and Rite Aid in which Fanean was a third party beneficiary (Count VIII(a)).
10. Negligent hiring (Count VHI(b)).
11. Negligent retention (Count VII(c)). 6

Rite Aid has once again moved to dismiss the TAC for reasons similar to its motion to dismiss the SAC.

Standard of Review

A motion to dismiss for failure to state a claim upon which relief can be granted made pursuant to Superior Court Civil Rule 12(b)(6) will not be granted if the plaintiff may recover under any conceivable set of circumstances susceptible of proof under the complaint. 7 All reasonable inferences will be drawn in the light most favorable to the plaintiff, 8 but the Court will only accept reasonable inferences and allegations 9 deriving from well-pled allegations. 10

Parties’ Contentions

Rite Aid seeks to dismiss all counts of the TAC. Taking the counts in the order presented in the complaint, Rite Aid moves to dismiss Count II — negligence per se based on HIPAA standards — on the law of the case doctrine. Rite Aid argues that this Court has already decided this issue and is bound by that previous decision.

Rite Aid argues that both emotional distress claims (Counts III and IV) must be dismissed based on this Court’s decision in Doe v. Green. 11 Green, Rite Aid represents, imposes a presence requirement in order to recover for IIED or NIED.

Rite Aid relies on Hyatt v. EDC Drug Stores, Inc. d/b/a Eckerd Drugs and Mandy Davis 12 which, it argues, stands for the *817 proposition that if a pharmacy has lawful access to a patient’s medical history then there can be no invasion of privacy as a matter of law. 13 Rite Aid further relies on Hyatt for the proposition that no breach of contract (Count VI(a)) action can be sustained by reference to internal company policies.

Addressing other causes of action, Rite Aid argues that no negligence per se claim based on alleged violations of the American Pharmaceutical Association standards state a cause of action because “a review of the document relied upon and incorporated by reference notes that said document relates to pharmacists who are defined as health professionals assisting individuals in making the best use of medications. The Defendant is a corporate entity and not a pharmacist.” 14

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Fanean v. RITE AID CORP. OF DELAWARE, INC., 984 A.2d 812, 2009 WL 4842461 (Del. Ct. App. 2009).

984 A.2d 812 (Fanean v. RITE AID CORP. OF DELAWARE, INC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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