Mosby v. Ingalls Memorial Hospital

2022 IL App (1st) 200822
Appellate Court of Illinois·Decided February 25, 2022·No. 1-20-0822·Published·Cited by 3 cases

Opinion

2022 IL App (1st) 200822

SIXTH DIVISION

Filing Date February 25, 2022

Nos. 1-20-0822 and 1-21-0895, cons.

IN THE

APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

LUCILLE MOSBY, Individually, and on Behalf of All ) Appeal from the Others Similarly Situated, ) Circuit Court of ) Cook County.

Plaintiff-Appellee, )

) No. 18 CH 05031

v. )

THE INGALLS MEMORIAL HOSPITAL, UCM ) The Honorable COMMUNITY HEALTH & HOSPITAL DIVISION, ) Pamela McLean Meyerson, INC., and BECTON, DICKINSON AND COMPANY, ) Judge, Presiding.

)

Defendants-Appellants).

YANA MAZYA, Individually, and on Behalf of All ) Appeal from the Others Similarly Situated, ) Circuit Court of ) Cook County.

Plaintiff-Appellee, )

) No. 18 CH 71601

v. )

NORTHWESTERN LAKE FOREST HOSPITAL, ) The Honorable NORTHWESTERN MEMORIAL HEALTHCARE, ) Alison C. Conlon, OMNICELL, INC., and BECTON, DICKINSON AND ) Judge, Presiding. COMPANY, )

Defendants

(Northwestern Lake Forest Hospital and Northwestern Memorial Healthcare, Defendants-Appellants).

JUSTICE ODEN JOHNSON delivered the judgment of the court, with opinion.

Justices Harris and Mikva concurred in the judgment and opinion.

OPINION

¶1 Plaintiff Lucille Mosby filed a class-action suit individually and on behalf of others similarly situated against defendants Ingalls Memorial Hospital and UCM Community Health & Hospital Division, Inc. (collectively Ingalls), and Becton, Dickinson and Company (BD) (collectively group defendants one). Similarly, plaintiff Yana Mazya filed a class-action suit individually and on behalf of others similarly situated against Northwestern Lake Forest Hospital and Northwestern Memorial Healthcare (collectively group defendants two). During the course of the litigation, group defendants one filed an interlocutory appeal pursuant to Illinois Supreme Court Rule 308 (eff. Oct. 1, 2019) to have this court answer this certified question:

“Whether the exclusion in Section 10 of BIPA for “information collected, used, or stored for health care treatment, payment, or operations under the federal Health Insurance Portability and Accountability Act of 1996” applies to biometric information of health care workers (as opposed to patients) collected, used or stored for health care treatment, payment or operations under HIPAA?”

¶2 Subsequently, group defendants two also filed an interlocutory appeal pursuant to Rule 308 concerning the same issue:

“Does finger-scan information collected by a health care provider from its employees fall within the Biometric Information Privacy Act’s exclusion for ‘information collected, used, or stored for health care treatment, payment or operations under the federal Health Insurance Portability and Accountability Act of 1996,’ 740 ILCS 14/10, when the

employee’s finger-scan information is used for purposes related to ‘healthcare,’

‘treatment,’ ‘payment,’ and/or ‘operations’ as those terms are defined by the HIPAA statute and regulations?”

Both group defendants’ petitions for leave to appeal were permitted, as discussed in detail below. However, at this time, the only question submitted for this court’s review is the question submitted by group defendants two, and we answer the question in the negative.

¶3 I. BACKGROUND

¶4 A. Mosby

¶5 On April 18, 2018, Mosby filed a class-action complaint against Ingalls and BD seeking redress for each defendant’s violations pursuant to section 15(a)-(d) of the Biometric Information Privacy Act (Act) (740 ILCS 14/15(a)-(d) (West 2018)). Mosby worked as a registered pediatrics nurse at Ingalls Memorial Hospital. As a condition of Mosby’s employment, she was required to scan her fingerprint to authenticate her identity and gain access to a medication dispensing system. Mosby alleged that defendants’ behavior exposed employees like herself to serious irreversible privacy risks. Mosby alleged that defendants violated the Act by (1) not informing her in writing of the specific purpose and the length of time for which her fingerprints were being collected, stored, and used; (2) failing to provide a publicly available retention schedule and guidelines for permanently destroying Mosby’s fingerprints; (3) failing to obtain a written release from Mosby to collect, store, disseminate, or otherwise use her fingerprint; and (4) failing to obtain consent before disclosing Mosby’s fingerprints to third-party vendors that host the data.

¶6 On May 14, 2019, plaintiff filed an amended class-action complaint that was substantially similar to the original.

¶7 On June 5, 2019, defendants filed a motion to dismiss pursuant to section 2-619.1 (735 ILCS 5/2-619.1 (West 2018)) of the Code of Civil Procedure (Code) or to strike the amended complaint. The motion argued that the complaint should be dismissed pursuant to section 2- 619(a)(9) (id. § 2-619(a)(9)) because (1) the biometric data that was collected, used, and/or stored restricted access to protected health information and medication and (2) the data was used for healthcare treatment and operations pursuant to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) (45 C.F.R. § 164.501 (2018)) and was thereby specifically excluded from the scope of the Act. Defendants argued that, pursuant to section 2- 615 (735 ILCS 5/2-615 (West 2018)), Mosby failed to allege any well-pleaded facts regarding any disclosures of her fingerprints.

¶8 On January 13, 2020, the circuit court ruled that the exception was limited as to the information protected under HIPAA. To hold otherwise, the court noted, would result in a broad exception for all employees involved in operations that impact patients protected by HIPAA. The circuit court opined that, if the legislature intended to exempt employees entirely, they would have expressly done so. The court denied defendants’ motion to dismiss based on this issue. The circuit court dismissed BD from the complaint in its entirety, without prejudice, and found that Mosby failed to state a claim as to how defendants disseminated her biometric information. With authorization of the circuit court, Mosby amended her pleadings on February 24, 2020, which realleged all of the claims contained in the previously dismissed claim.

¶9 On March 16, 2020, defendants filed a joint motion to certify a question for interlocutory appeal under Illinois Supreme Court Rule 308 (eff. Oct. 1, 2019) and stay proceedings. Defendants argued that the question of whether employee information was also exempt under

the Act was a question of first impression and has never been heard before this court. Defendants argued that the question was one of statutory construction and there existed a substantial ground for a difference of opinion, which made it appropriate to bring under Rule 308. Defendants maintained that raising the question would be beneficial in a variety of ways, such as: (1) it would advance the outcome of the case with prejudice if the Act was interpreted in their favor, (2) judicial economy would be served, and (3) the need for a uniform construction and application of the law would be served. Defendants also requested a stay in the circuit court proceedings because the determination could lead to a dismissal and Mosby would not be prejudiced.

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