GEORGIA DEPARTMENT OF LABOR v. MCCONNELL (And Vice Versa)

305 Ga. 812
CourtSupreme Court of Georgia
DecidedMay 20, 2019
DocketS18G1316, S18G1317
StatusPublished

This text of 305 Ga. 812 (GEORGIA DEPARTMENT OF LABOR v. MCCONNELL (And Vice Versa)) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GEORGIA DEPARTMENT OF LABOR v. MCCONNELL (And Vice Versa), 305 Ga. 812 (Ga. 2019).

Opinion

305 Ga. 812 FINAL COPY

S18G1316, S18G1317. DEPARTMENT OF LABOR v. McCONNELL et al.; and vice versa.

BOGGS, Justice.

We granted certiorari in these cases to determine, first,

whether the Court of Appeals erred in holding that the State has

waived sovereign immunity under the Georgia Tort Claims Act

(“GTCA”), OCGA § 50-21-20 et seq., for Thomas McConnell’s tort

action and, second, whether the Court of Appeals erred in holding

that McConnell’s complaint failed to state a claim.1 After review, we

agree with the Court of Appeals and affirm.

1 OCGA § 50-21-23 (a) says:

The state waives its sovereign immunity for the torts of state officers and employees while acting within the scope of their official duties or employment and shall be liable for such torts in the same manner as a private individual or entity would be liable under like circumstances; provided, however, that the state’s sovereign immunity is waived subject to all exceptions and limitations set forth in this article. The state shall have no liability for losses resulting from conduct on the part of state officers or employees which was not within the scope of their official duties or employment. 1. The underlying facts are essentially undisputed. In

September 2012, the Georgia Department of Labor (the

“Department”) created a spreadsheet containing the name, social

security number, home telephone number, e-mail address, and age

of 4,757 individuals over the age of 55 in Cherokee, Cobb, and Fulton

counties who had applied for unemployment benefits or other

services administered by the Department, including McConnell.

Almost a year later, a Department employee inadvertently sent an

e-mail with the spreadsheet attached to approximately 1,000

recipients without the permission of the individuals whose

information was included in the spreadsheet.

On January 17, 2014, McConnell filed a complaint, which he

later amended on March 12, 2014, against the Department on behalf

of himself and a proposed class of all individuals whose information

was contained in the spreadsheet, alleging negligence, breach of

fiduciary duty, and invasion of privacy by public disclosure of private

facts. The complaint alleged that, as a result of the Department’s

negligent disclosure of McConnell’s and the other proposed class

members’ personal information, they were required to place freezes and alerts with credit reporting agencies, close or modify financial

accounts, and closely review and monitor their credit reports and

accounts for unauthorized activity. The complaint further alleged

that McConnell and others whose information had been disclosed

incurred out-of-pocket costs related to credit monitoring and identity

protection services and suffered adverse impacts to their credit

scores related to the closure of credit accounts. In addition, the

complaint alleged that the affected individuals experienced, and

would continue to experience, fear, upset, anxiety, and injury to

peace and happiness, as the disclosure of their personal identifying

information provided the material necessary to facilitate identity

theft and unauthorized charges on their credit and bank accounts.

The complaint did not allege that any identity theft or resulting

unauthorized charges actually had occurred. Nor did the complaint

allege that the personal identifying information had been disclosed

by or for criminal conduct.

The Department filed a motion to dismiss, which the trial court

granted, ruling that sovereign immunity barred the lawsuit because

the GTCA did not waive the State’s immunity for the type of “loss” that McConnell alleged. OCGA § 50-21-22 (3).2 The trial court also

held that each count of the complaint failed to state a claim upon

which relief could be granted. See OCGA § 9-11-12 (b) (6).

McConnell appealed, and the Court of Appeals affirmed,

pretermitting a decision on sovereign immunity and addressing only

the trial court’s ruling that each count of the complaint failed to

state a claim. See McConnell v. Dept. of Labor, 337 Ga. App. 457

(787 SE2d 794) (2016). We granted McConnell’s petition for

certiorari to decide whether the Court of Appeals erred in

considering the merits of McConnell’s claims without deciding first

whether sovereign immunity barred the lawsuit. We held that the

Court of Appeals did err in this regard, and we vacated the Court of

Appeals’ judgment and remanded the case with direction to make

the threshold determination. See McConnell v. Dept. of Labor, 302

Ga. 18, 19 (805 SE2d 79) (2017).

2 OCGA § 50-21-22 (3) defines “loss” as: “personal injury; disease; death;

damage to tangible property, including lost wages and economic loss to the person who suffered the injury, disease, or death; pain and suffering; mental anguish; and any other element of actual damages recoverable in actions for negligence.” On remand, the Court of Appeals first held that the trial court

erred in concluding that sovereign immunity barred McConnell’s

claims. See McConnell v. Dept. of Labor, 345 Ga. App. 669, 670-675

(1) (814 SE2d 790) (2018) (physical precedent only). On the merits,

the Court of Appeals again held that the trial court properly

dismissed the complaint for failure to state a claim. See id. at 675-

683 (2)-(4) (full concurrence as to Division 2). Both the Department

and McConnell filed petitions for certiorari, which we granted. After

review, we conclude that the Court of Appeals was correct, and we

affirm its holdings.

2. The Department argues that the definition of “loss” set forth

in OCGA § 50-21-22 (3) limits the waiver of sovereign immunity in

OCGA § 50-21-23 (a) to claims where a plaintiff also has suffered a

personal “injury, disease, or death,” which the complaint did not

allege. We disagree.

The complaint alleged that a Department employee, acting

within the scope of his employment, committed the torts of

negligence, breach of fiduciary duty, and invasion of privacy against

McConnell and the other proposed class members. And OCGA § 50-21-23 (a) says that “[t]he state waives its sovereign immunity

for the torts of state . . . employees while acting within the scope of

their . . . employment,” subject to the exceptions and limitations set

forth in the rest of the GTCA. Thus, absent some express “exception[

] [or] limitation[ ] set forth in [the GTCA],” the State waived its

sovereign immunity from McConnell’s lawsuit. See OCGA § 50-21-

23 (a).

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305 Ga. 812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-department-of-labor-v-mcconnell-and-vice-versa-ga-2019.