North Cypress Medical Center Operating Co. v. Fedex Corp.

892 F. Supp. 2d 861, 2012 U.S. Dist. LEXIS 138813, 2012 WL 4344611
CourtDistrict Court, S.D. Texas
DecidedSeptember 14, 2012
DocketCivil Action No. H-11-3735
StatusPublished
Cited by7 cases

This text of 892 F. Supp. 2d 861 (North Cypress Medical Center Operating Co. v. Fedex Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Cypress Medical Center Operating Co. v. Fedex Corp., 892 F. Supp. 2d 861, 2012 U.S. Dist. LEXIS 138813, 2012 WL 4344611 (S.D. Tex. 2012).

Opinion

ORDER

DAVID HITTNER, District Judge.

Pending before the Court is the Motion for Summary Judgment on Behalf of Fedex Corporation and for Partial Summary Judgment on Behalf of Federal Express Corporation. Having considered the motion, submissions, and applicable law, the Court determines that the motion should be granted in part and denied in part.

/. BACKGROUND

This case arises from the shipment of three boxes of medical documentation shipped from Houston to Dallas. On December 7, 2011, Plaintiffs North Cypress Medical Center Operating Company, Ltd. and North Cypress Medical Center Operating Company GP, LLC (collectively, “North Cypress”), through their legal counsel, shipped three boxes of confidential patient documentation that contained HIPAA-protected documents1 and personal patient information from Houston, Texas to Dallas, Texas via ground transportation. North Cypress chose Federal Express Corporation (“Federal Express”) as its carrier, and a pre-printed airbill was completed by counsel for North Cypress.2 No value was declared for the shipment. In the process of delivery, one of the boxes was dropped, allowing some of the documents to scatter and become lost. The driver of the delivery truck, a Federal Express employee, resealed the box, without the missing documents, and delivered the damaged box along with the two undamaged boxes. North Cypress claims that Federal Express failed to notify anyone of the damage done to the box or the missing documents; instead, Federal Express attempted to conceal the incident and denied “that anything untoward had happened to the boxes and claimed that all of them had been delivered ‘intact’ to the addressee’s Dallas offices.”3 According to North Cypress, it was not until much later — after Dallas citizens had found and returned several of the missing documents to North Cypress — that Federal Express admitted that a box had been damaged. As a result of the lost documents, North Cypress claims it was required to conduct an extensive and expensive investigation pursuant to federal regulations and statutory requirements.4

[864]*864On October 19, 2011, North Cypress sued Federal Express, alleging state law causes of action for negligence, gross negligence, reckless misconduct, breach of contract, and fraud.5 North Cypress also seeks punitive damages and attorneys’ fees.6 North Cypress asserts that it is not suing for the value of the lost documents themselves, but rather for the expenses incurred as a proximate result of the dissemination of confidential patient information.

II. STANDARD OF REVIEW

Summary judgment is proper when “there is no genuine issue as to any material fact and the movant is entitled to a judgment as a matter of law.” Fed. R.CrvP. 56(a). The court must view the evidence in a light most favorable to the nonmovant. Coleman v. Hous. Indep. Sch. Dist., 113 F.3d 528, 533 (5th Cir.1997). Initially, the movant bears the burden of presenting the basis for the motion and the elements of the causes of action upon which the nonmovant will be unable to establish a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The burden then shifts to the nonmovant to come forward with specific facts showing there is a genuine issue for trial. See Fed.R.Civ.P. 56(c); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). “A dispute about a material fact is ‘genuine’ if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Bodenheimer v. PPG Indus., Inc., 5 F.3d 955, 956 (5th Cir.1993) (citation omitted).

But the nonmoving party’s bare allegations, standing alone, are insufficient to create a material issue of fact and defeat a motion for summary judgment. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Moreover, conclusory allegations unsupported by specific facts will not prevent an award of summary judgment; the plaintiff cannot rest on his allegations to get to a jury without any significant probative evidence tending to support the complaint. Nat’l Ass’n of Gov’t Emps. v. City Pub. Serv. Bd. of San Antonio, 40 F.3d 698, 713 (5th Cir.1994). If a reasonable jury could not return a verdict for the nonmoving party, then summary judgment is appropriate. Liberty Lobby, Inc., 477 U.S. at 248, 106 S.Ct. 2505. The nonmovant’s bur[865]*865den cannot be satisfied by conclusory allegations, unsubstantiated assertions, or “only a scintilla of evidence.” Turner v. Baylor Richardson Med. Ctr., 476 F.3d 337, 343 (5th Cir.2007) (quoting Little v. Liquid, Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994)). Furthermore, it is not the function of the court to search the record on the nonmovant’s behalf for evidence which may raise a fact issue. Topalian v. Ehrman, 954 F.2d 1125, 1137 n. 30 (5th Cir.1992).

III. LAW & ANALYSIS

Defendants, in effect, make two motions for summary judgment: First, Defendants move to dismiss any claims, if they exist, against FedEx. Second, Defendants seek partial summary judgment on North Cypress’s claims against Federal Express. North Cypress does not present argument to oppose the summary judgment as to FedEx, but does oppose the partial summary judgment filed by Federal Express. The Court will address each motion in turn.

A. FedEx Corporation’s Motion for Summary Judgment

FedEx moves for summary judgment, claiming that it is not a proper party to the lawsuit. FedEx contends that, although it is the parent company of Federal Express, it is a separately incorporated entity and North Cypress has failed to establish any viable cause of action directly against FedEx. Defendants claim that “the inclusion of FedEx Corporation as a party defendant is an error resulting from a lack of understanding of the corporate structure of the ‘FedEx’ affiliated companies rather than a serious belief that FedEx Corporation has any liability in this matter.”7 North Cypress has not responded to the request for dismissal of claims against FedEx.8 Pursuant to Local Rule 7.4, failure to respond is taken as a representation of no opposition. S.D. Tex. Local R. 7.4.

1. Liability of a Parent Corporation

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892 F. Supp. 2d 861, 2012 U.S. Dist. LEXIS 138813, 2012 WL 4344611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-cypress-medical-center-operating-co-v-fedex-corp-txsd-2012.