Maglio v. Advocate Health and Hospitals Corporation

2015 IL App (2d) 140782, 40 N.E.3d 746
CourtAppellate Court of Illinois
DecidedAugust 6, 2015
Docket2-14-0782, 2-14-0998 cons.
StatusUnpublished
Cited by15 cases

This text of 2015 IL App (2d) 140782 (Maglio v. Advocate Health and Hospitals Corporation) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maglio v. Advocate Health and Hospitals Corporation, 2015 IL App (2d) 140782, 40 N.E.3d 746 (Ill. Ct. App. 2015).

Opinion

2015 IL App (2d) 140782 Nos. 2-14-0782 & 2-14-0998 cons. Opinion filed August 6, 2015 ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT ______________________________________________________________________________

MATIAS MAGLIO, Individually and as ) Appeal from the Circuit Court Father and Next Friend of Macailee Maglio, ) of Kane County. a Minor, and on Behalf of All Others Similarly ) Situated, and ALEXANDER GIL, Individually ) and on Behalf of All Others Similarly Situated, ) ) Plaintiffs-Appellants, ) ) v. ) No. 13-L-358 ) ADVOCATE HEALTH AND HOSPITALS ) CORPORATION, Individually and d/b/a ) Advocate Medical Group, ) Honorable ) James R. Murphy, Defendants-Appellees. ) Judge, Presiding. ______________________________________________________________________________

VERONICA VIDES, Individually and as ) Appeal from the Circuit Court Mother and Next Friend of I.X.A. and ) of Lake County. B.K.A., Minors, PETER SINK, PAULA ) WISNIOWICZ, GREGG WISNIOWICZ, ) SHARI SLAVIN, ARTHUR COHEN, ) DAVID COHEN, JENNIFER COHEN, ) MARIANNA COHEN, AUDREY ) FRIEDLAND, JULIE MARDER, ERIC ) MARDER, AMY FRIEDLAND, LORI ) FRIEDLAND, SCOTT FRIEDLAND, ) MICHAEL FRIEDLAND, RENEE ROUSE, ) ROBIN FIELDS, MITCHEL A. FIELDS, ) Individually and on Behalf of All others ) Similarly Situated, ) ) Plaintiffs-Appellants, ) ) 2015 IL App (2d) 140782

v. ) No. 13-CH-2701 ) ADVOCATE HEALTH AND HOSPITALS ) CORPORATION, d/b/a Advocate Medical ) Group, ) Honorable ) Mitchell L. Hoffman, Defendant-Appellee. ) Judge, Presiding. ______________________________________________________________________________

JUSTICE JORGENSEN delivered the judgment of the court, with opinion. Presiding Justice Schostok and Justice Birkett concurred in the judgment and opinion.

OPINION

¶1 In these consolidated cases, plaintiffs filed putative class actions against defendant,

Advocate Health and Hospitals Corporation, individually and d/b/a Advocate Medical Group

(Advocate), raising claims of negligence, violations of the Personal Information Protection Act

(Protection Act) (815 ILCS 530/1 et seq. (West 2014)), the Consumer Fraud and Deceptive

Business Practices Act (Fraud Act) (815 ILCS 505/1 et seq. (West 2014)), and invasion of

privacy, after four computers containing patient information were stolen from Advocate’s

offices. Plaintiffs did not allege that their personal information was used in any unauthorized

manner as a result of the burglary, but they claimed that they face an increased risk of identity

theft and/or identity fraud. In each case Advocate moved to dismiss under section 2-619.1 of the

Code of Civil Procedure (Code) (735 ILCS 5/2-619.1 (West 2014)) and the trial court dismissed

plaintiffs’ complaint, with prejudice, pursuant to: (1) section 2-619(a)(9) of the Code, finding

that the disclosure of confidential information did not constitute an injury-in-fact sufficient to

confer standing to pursue an action against Advocate; and, alternatively, (2) section 2-615 of the

Code, finding that the complaint failed to state a claim upon which relief could be granted.

Plaintiffs appeal. We affirm.

¶2 I. BACKGROUND

-2- 2015 IL App (2d) 140782

¶3 Advocate is a network of affiliated doctors and hospitals that treat patients throughout the

state. On July 15, 2013, burglars stole from Advocate’s administrative building in Park Ridge

four password-protected computers that contained certain information relating to about 4 million

patients. Advocate subsequently notified the patients about the incident, set up a call center to

answer their questions, and offered them one year of free credit-monitoring services, including

identity theft resolution assistance and identity theft insurance.

¶4 On September 25, 2013, several plaintiffs sued Advocate in the circuit court of Lake

County (appeal No. 2-14-0998). On October 24, 2013, several plaintiffs sued Advocate in the

circuit court of Kane County (appeal No. 2-14-0782). Both actions were brought as putative

class actions.

¶5 The complaints asserted substantially similar allegations. Plaintiffs, who were patients or

former patients of Advocate, alleged that the personal information contained in the four stolen

computers, which have not been located, included their names, addresses, dates of birth, social

security numbers, health insurance data, Medicare and Medicaid data, medical diagnoses,

diagnosis codes, and medical record numbers. Advocate learned of the burglary on July 15,

2013, and notified plaintiffs on August 23, 2013. Plaintiffs alleged that the theft was caused by

Advocate’s failure to meet its obligation to abide by the best practices and industry standards

concerning the security of personal information and the computers associated therewith. They

also alleged that Advocate failed to timely notify them of the data breach and that Advocate’s

computers were not secure or encrypted. Thus, they further alleged, Advocate facilitated and

allowed for the unlawful disclosure of patients’ private and confidential health information.

(Plaintiffs did not allege that anyone had improperly accessed or used the information that was

-3- 2015 IL App (2d) 140782

on the stolen computers or that they have suffered identity theft and/or identity fraud as a result

of the burglary.)

¶6 Specifically, in their negligence counts, plaintiffs alleged that Advocate had a duty,

pursuant to federal and state law, including the Protection Act and the Fraud Act, to securely

maintain and to not disclose or disseminate, without patient authorization, the personal

information at issue. They alleged that Advocate breached this duty when it used unsecured,

unencrypted computers to store such information and thus permitted the unlawful and

unauthorized disclosure of the information. Plaintiffs asserted that, as a result of Advocate’s

breach, they suffered personal and pecuniary damages.

¶7 In their Protection Act counts, plaintiffs alleged that Advocate was a “data collector”

(815 ILCS 530/5 (West 2014) (defined as an “entity that, for any purpose, handles, collects,

disseminates, or otherwise deals with nonpublic personal information”)) and did not timely

notify them of the breach (815 ILCS 530/10(a) (West 2014) (notice to be given “in the most

expedient time possible and without unreasonable delay, consistent with any measures necessary

to determine the scope of the breach and restore the reasonable integrity, security, and

confidentiality of the data system”)). Plaintiffs sought an injunction to require Advocate to

comply with the statute.

¶8 In their counts pursuant to the Fraud Act, plaintiffs alleged that Advocate committed

unfair trade practices by failing to maintain reasonable procedures to protect against

unauthorized access to plaintiffs’ personal information, that Advocate violated public policy

because class members had no choice but to submit their information, that Advocate intended

that members rely on its unfair practices, and that the practices were willful, wanton, continuing,

-4- 2015 IL App (2d) 140782

and widespread.

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2015 IL App (2d) 140782, 40 N.E.3d 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maglio-v-advocate-health-and-hospitals-corporation-illappct-2015.