Horsley v. Kaiser Foundation Hospitals, Inc.

District Court, N.D. California·Decided August 26, 2024·No. 3:23-cv-05628·Unknown

Opinion

BRENDA HORSLEY, et al., Case No. 23-cv-05628-AMO

Plaintiffs, ORDER GRANTING STATE v. DEFENDANTS’ MOTION TO DISMISS, GRANTING KAISER INC., et al., DISMISS, AND DENYING PLAINTIFFS’ MOTION FOR LEAVE Defendants. TO AMEND Re: Dkt. Nos. 36, 37, 45 This case arises from Defendants’ COVID-19 vaccine mandates for healthcare workers. Before this Court are two motions to dismiss and Plaintiffs’ motion for leave to file a third amended complaint. The Plaintiffs, former healthcare workers at Kaiser Foundation Hospitals (“Kaiser”), contend that Defendants violated their constitutional and international treaty rights, violated their federal statutory rights, committed various state torts, and breached a contract by requiring Plaintiffs to receive an investigational vaccine or lose their jobs. The matter is fully briefed and suitable for decision without oral argument. See Civil L.R. 7-1(b). Having read the parties’ papers and carefully considered their arguments and the relevant legal authority, the Court hereby GRANTS the motions to dismiss and DENIES the motion for leave to amend for the following reasons. I. BACKGROUND1 Plaintiffs are former employees of Kaiser who were terminated after refusing to receive a 1 The court accepts factual allegations in the complaint as true, Health Freedom Def. Fund, Inc. v. Carvalho, 104 F.4th 715, 722 (9th Cir. 2024), and “construe[s] the pleadings in the light most COVID-19 vaccine. Second Amended Complaint (ECF 33) (“SAC”) ¶¶ 18, 329. On January 31, 2020, the Secretary of Health and Human Services declared a public health emergency related to COVID-19. SAC ¶¶ 1-2. On December 11, 2020, the U.S. Food and Drug Administration (FDA) issued an Emergency Use Authorization for the distribution of “investigational” COVID-19 vaccines. SAC ¶¶ 75-77. On August 5, 2021, the California Department of Public Health issued a public health order requiring that “all workers who provide services or work in [healthcare facilities] . . . have their first dose of a one-dose regimen or their second dose of a two-dose regimen [of the COVID- 19 vaccine] by September 30, 2021.” SAC ¶ 218; id., Ex D (ECF 33-4) (“Health Order”) at 2. The Health Order specified that workers may be exempt from the vaccination requirements of the Health Order “only upon providing the operator of the facility a declination form, signed by the individual stating either of the following: (1) the worker is declining vaccination based on Religious Beliefs, or (2) the worker is excused from receiving any COVID-19 vaccine due to Qualifying Medical Reasons.” Health Order at 3. The Health Order “mandated the use of investigational new drugs by healthcare workers.” SAC ¶ 6. On August 27, 2021, the Kaiser Defendants implemented a policy requiring all employees to be fully vaccinated against COVID-19 by September 30, 2021, or to submit proof of a qualifying medical or religious exemption. SAC ¶¶ 308-09. The policy stated that employees who were not fully vaccinated or who did not have an approved exemption would be terminated by December 1, 2021. SAC ¶ 309. Plaintiffs refused to be vaccinated and Kaiser terminated them as a result. SAC ¶¶ 171, 329. Plaintiffs do not assert that they sought an exemption, that Kaiser administered a COVID-19 vaccine to any of the Plaintiffs, or that Kaiser required its employees to get a COVID-19 vaccine from Kaiser. Plaintiffs allege nine causes of action in the Second Amended Complaint: (1) Section 1983 – subjected to investigational drug use; (2) Section 1983 – deprivation of Equal Protection; (3) Section 1983 – deprivation of Constitutional Due Process; (4) Section 1983 – deprivation of rights under the Spending Clause; (5) Section 1983 – Unconstitutional Conditions Doctrine; infliction of emotional distress; and (9) implied private right of action under 21 U.S.C. § 360bbb- 3. Defendants Gavin Newsom, Governor of California, and Tomás Aragón, Director of the California Department of Public Health (collectively, “State Defendants”) move to dismiss each cause of action alleged against them. ECF 36. Defendants Greg Adams, Andrew Bindman, and Kaiser Foundation Hospitals (collectively, “Kaiser Defendants”) also move to dismiss each cause of action. ECF 37. The Court addresses each motion in turn. Under Rule 12(b)(6) of the Federal Rules of Civil Procedure, a complaint may be dismissed for failure to state a claim for which relief may be granted. Fed. R. Civ. P. 12(b)(6). Rule 12(b)(6) requires dismissal when a complaint lacks either a “cognizable legal theory” or “sufficient facts alleged” under such a theory. Godecke v. Kinetic Concepts, Inc., 937 F.3d 1201, 1208 (9th Cir. 2019) (citation omitted). Whether a complaint contains sufficient factual allegations depends on whether it pleads enough facts to “state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. at 678. When evaluating a motion to dismiss, the court accepts plaintiffs’ factual allegations in the complaint as true, Health Freedom Def. Fund, Inc. v. Carvalho, 104 F.4th 715, 722 (9th Cir. 2024), and “construe[s] the pleadings in the light most favorable to the nonmoving party.” Manzarek, 519 F.3d at 1031. However, “allegations in a complaint . . . may not simply recite the elements of a cause of action [and] must contain sufficient allegations of underlying facts to give fair notice and to enable the opposing party to defend itself effectively.” Levitt v. Yelp! Inc., 765 F.3d 1123, 1135 (9th Cir. 2014) (citations omitted). The State Defendants move to dismiss the SAC, arguing that (1) Plaintiffs lack Article III standing; (2) Plaintiffs’ official capacity claims against State Defendants are barred by sovereign immunity; (3) Plaintiffs’ individual capacity claims against State Defendants fail to allege any immunity from federal claims alleged against them in their individual capacities; and (5) Plaintiffs fail to state a claim under Rule 12(b)(6). ECF 36 (“State Mot.”). The Court addresses standing first as it is a threshold question. Sabra v. Maricopa Cnty. Cmty. Coll. Dist., 44 F.4th 867, 879 (9th Cir. 2022) (citation omitted). A. Article III Standing2 State Defendants move to dismiss the claims against them for lack of Article III standing. State Mot. at 18-19. The Court evaluates challenges to Article III standing under Rule 12(b)(1), which governs motions to dismiss for lack of subject matter jurisdiction. Maya, 658 F.3d at 1067. Article III standing requires that a “plaintiff must have (1) suffered an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a favorable judicial decision.” Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016). These three elements are referred to, respectively, as: injury in fact, causation, and redressability. See Planned Parenthood of Greater Was. & N. Idaho v. U.S. Dep’t of Health & Human Servs., 946 F.3d 1100, 1108 (9th Cir. 2020). State Defendants challenge causation, arguing that Plaintiffs’ termination from Kaiser for their refusal to receive the COVID-19 vaccine is not “fairly traceable” to any action by the State Defendants. State Mot. at 18. Causation requires that the injury is “fairly . . . trace[able] to the challenged action of the defendant, and

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Horsley v. Kaiser Foundation Hospitals, Inc., (N.D. Cal. 2024).

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