Ortiz v. Perkins & Co

CourtDistrict Court, N.D. California
DecidedNovember 2, 2022
Docket4:22-cv-03506
StatusUnknown

This text of Ortiz v. Perkins & Co (Ortiz v. Perkins & Co) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ortiz v. Perkins & Co, (N.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 ALICE ORTIZ, Case No. 22-cv-03506-KAW

8 Plaintiff, ORDER GRANTING MOTION TO 9 v. DISMISS

10 PERKINS & CO, et al., Re: Dkt. No. 15 11 Defendants.

12 13 On June 14, 2022, Plaintiff Alice Ortiz filed the instant case against Defendant Perkins & 14 Co., alleging that Defendant failed to properly secure and safeguard Plaintiff’s information -- 15 including her full name, financial account information, and social security number -- on its 16 information network. (Compl. ¶ 1, Dkt. No. 1.) Pending before the Court is Defendant’s motion 17 to dismiss. (Def.’s Mot. to Dismiss, Dkt. No. 15.) 18 Having considered the parties’ filings, the relevant legal authorities, and the arguments 19 made at the October 6, 2022 hearing, the Court GRANTS Defendant’s motion to dismiss. 20 I. BACKGROUND 21 Defendant is an accounting firm who uses a vendor, Netgain, to store data in the cloud. 22 (Compl. ¶ 33; Def.’s Mot. to Dismiss, Exh. A (“Notice”).1 Around May 26, 2022, Defendant sent 23 1 Exhibit A is the Notice that Defendant sent to affected individuals, which is available on the 24 California Attorney General’s Office. Although the complaint does not attach the Notice to the complaint, the “incorporation by reference” doctrine “permits [a court] to take into account 25 documents whose contents are alleged in a complaint and whose authenticity no party questions, but which are not physically attached to the plaintiff’s pleading.” Knievel v. ESPN, 393 F.3d 26 1068, 1076 (9th Cir. 2005); see also United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003) (“Even if a document is not attached to a complaint, it may be incorporated by reference if the 27 plaintiff refers extensively to the document or the document forms the basis of the plaintiff’s 1 a Notice to Plaintiff, stating that between November 8, 2020 and December 3, 2020, an attacker 2 had accessed Netgain’s servers storing Defendant’s files, some of which were copied and stolen. 3 (Compl. ¶ 33; Notice at 1.) The attacker also encrypted files and demanded a ransom in exchange 4 for returning copies of the stolen files and an access key to the encrypted files. (Notice at 1.) 5 After Netgain paid the ransom, the attacker returned the stolen files and provided a decryption 6 key. (Compl. ¶ 33; Notice at 1.) The Notice noted that Defendant’s computer systems were not 7 impacted by the attack. (Notice at 1.) Defendant offered complimentary credit monitoring and 8 identity restoration, and also encouraged recipients to “remain vigilant against incidents of 9 payment card fraud or misuse, to review your account statements, and to monitor your credit 10 reports for suspicious activity.” (Notice at 2-3.) As a result of the data breach, Plaintiff alleges 11 that she spent and will continue to spend time dealing with the breach, including verifying the 12 legitimacy of the breach, exploring credit monitoring and identity theft insurance options, 13 monitoring her accounts, and seeking legal counsel. (Compl. ¶ 17.) Plaintiff further alleges that 14 she suffered lost time, annoyance, and anxiety as a result of cyber-criminals accessing her 15 information. (Compl. ¶ 19.) 16 On June 14, 2022, Plaintiff filed the operative complaint, alleging claims for: (1) 17 negligence, (2) breach of implied contract, (3) breach of the implied covenant of good faith and 18 fair dealing, and (4) unjust enrichment. On August 11, 2022, Defendant filed the instant motion to 19 dismiss. On August 25, 2022, Plaintiff filed her opposition. (Pl.’s Opp’n, Dkt. No. 18.) On 20 September 1, 2022, Defendant filed its reply. (Def.’s Reply, Dkt. No. 21.) 21 II. LEGAL STANDARD 22 A. Motion to Dismiss under Rule 12(b)(1) 23 A defendant may move to dismiss an action for lack of subject matter jurisdiction pursuant 24 to Federal Rule of Civil Procedure 12(b)(1). A Rule 12(b)(1) motion tests whether a complaint 25 alleges grounds for federal subject matter jurisdiction. A motion to dismiss for lack of subject 26 matter jurisdiction will be granted if the complaint on its face fails to allege facts sufficient to 27 establish subject matter jurisdiction. See Savage v. Glendale Union High Sch., 343 F.3d 1036, 1 face of the pleadings, but may review any evidence, such as affidavits and testimony, to resolve 2 factual disputes concerning the existence of jurisdiction." McCarthy v. United States, 850 F.2d 3 558, 560 (9th Cir. 1988). Once a party has moved to dismiss for lack of subject matter jurisdiction 4 under Rule 12(b)(1), the opposing party bears the burden of establishing the court’s jurisdiction. 5 See Chandler v. State Farm Mut. Auto. Ins. Co., 598 F.3d 1115, 1122 (9th Cir. 2010). 6 B. Motion to Dismiss under Rule 12(b)(6) 7 Under Federal Rule of Civil Procedure 12(b)(6), a party may file a motion to dismiss based 8 on the failure to state a claim upon which relief may be granted. A motion to dismiss under Rule 9 12(b)(6) tests the legal sufficiency of the claims asserted in the complaint. Navarro v. Block, 250 10 F.3d 729, 732 (9th Cir. 2001). 11 In considering such a motion, a court must "accept as true all of the factual allegations 12 contained in the complaint," Erickson v. Pardus, 551 U.S. 89, 94 (2007) (per curiam) (citation 13 omitted), and may dismiss the case or a claim "only where there is no cognizable legal theory" or 14 there is an absence of "sufficient factual matter to state a facially plausible claim to relief." 15 Shroyer v. New Cingular Wireless Servs., Inc., 622 F.3d 1035, 1041 (9th Cir. 2010) (citing 16 Ashcroft v. Iqbal, 556 U.S. 662, 677-78 (2009); Navarro, 250 F.3d at 732) (internal quotation 17 marks omitted). 18 A claim is plausible on its face when a plaintiff "pleads factual content that allows the 19 court to draw the reasonable inference that the defendant is liable for the misconduct alleged." 20 Iqbal, 556 U.S. at 678 (citation omitted). In other words, the facts alleged must demonstrate 21 "more than labels and conclusions, and a formulaic recitation of the elements of a cause of action 22 will not do." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). 23 "Threadbare recitals of the elements of a cause of action" and "conclusory statements" are 24 inadequate. Iqbal, 556 U.S. at 678; see also Epstein v. Wash. Energy Co., 83 F.3d 1136, 1140 (9th 25 Cir. 1996) ("[C]onclusory allegations of law and unwarranted inferences are insufficient to defeat 26 a motion to dismiss for failure to state a claim."). "The plausibility standard is not akin to a 27 probability requirement, but it asks for more than a sheer possibility that a defendant has acted 1 liability, it stops short of the line between possibility and plausibility of entitlement to relief." 2 Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 557) (internal citations omitted).

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Ortiz v. Perkins & Co, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortiz-v-perkins-co-cand-2022.