Sallie Holly v. Alta Newport Hospital, Inc.

District Court, C.D. California·Decided April 10, 2020·No. 2:19-cv-07496·Unknown

Opinion

O

United States District Court Central District of California SALLIE HOLLY, Case No. 2:19-cv-07496-ODW (MRWx)

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART DEFENDANTS’ MOTION TO DISMISS AND ALTA NEWPORT HOSPITAL, INC. MOTION TO STRIKE [13] CENTER, et al., Defendants. This matter comes before the Court on Defendants Alta Newport Hospital, Inc. dba Foothill Regional Medical Center (“Hospital”), Alta Hospital Systems, LLC (“AHS”), and Prospect Medical Holdings, Inc.’s (“Prospect”) motion to dismiss Plaintiff Sallie Holly’s First Amended Complaint and strike class allegations (“Motion”). (Mot. to Dismiss and Strike (“Mot.”), ECF No. 13.)1 For the reasons that follow, the Court GRANTS in part and DENIES in part Defendants’ Motion.2

1 The Motion to Dismiss and Strike was also brought on behalf of Defendants Aracelli Lonergan and Hoyt Sze. (See Mot.) Holly has voluntarily dismissed her claims against Lonergan and Sze (ECF No. 14), so Defendants’ arguments as to Lonergan and Sze are moot. 2 After carefully considering the papers filed in connection with the Motion, the Court deemed the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. On October 18, 2019, Plaintiff Sallie Holly filed her First Amended Complaint (“FAC”). (FAC, ECF No. 12.) Holly’s claims against Defendants stem from allegations that a Hospital3 employee inadvertently posted photographs of Holly’s personal medical information on the employee’s public Facebook account. (FAC ¶¶ 23–24, 62–115.) Holly received medical care at Hospital in March 2017 and, as part of that process, she provided her medical and personal information to Hospital. (FAC ¶ 23.) In September 2017, AHS sent Holly a letter informing her that Hospital discovered an inappropriate disclosure of Holly’s protected health information. (FAC ¶ 24.) AHS explained that, on August 24, 2017, a new employee was training on a software program, viewing medical records on a computer. (FAC ¶ 24.) The employee took six photographs of those medical records on her personal cellular telephone, some of which were Holly’s medical records. (FAC ¶ 24.) The employee then accidentally posted the photographs on her public Facebook account. (FAC ¶ 24.) The next day, a physician notified Hospital’s management about the photographs being posted. (FAC ¶ 24.) The information in the posted medical records included Holly’s name, date of birth, account number, and other diagnostic and treatment information. (FAC ¶ 24.) After receiving the letter, both Holly and her counsel contacted Defendants to seek remediation but received no response. (FAC ¶¶ 25–32.) Based on these allegations, Holly asserts eight causes of action against Defendants: (1) public disclosure of private facts (invasion of privacy); (2) negligent disclosure; (3) negligent training; (4) breach of contract; (5) breach of fiduciary

3 Although Holly names two hospitals in the FAC—Alta Newport Hospital, Inc. dba Foothill Regional Medical Center and Alta Newport Hospital, Inc.—she provides similar descriptions for each. (See FAC ¶¶ 1, 10, 14.) Additionally, Holly’s allegations imply the existence of only one hospital involved in the alleged incident. (See FAC ¶¶ 23–24). Further, Defendants’ Motion, which is brought on behalf of all Defendants, refers to only one hospital and Holly’s opposition does not argue that two hospitals are at issue. (See Mot. 10; Opp’n to Mot. (“Opp’n”), ECF No. 15.) As a result, the Court presumes the action involves only one hospital defendant. obligation; (6) violation of California Civil Code section 56.10(a) (disclosure of medical information by providers); (7) violation of 42 U.S.C. § 1320d-2 (wrongful disclosure of individually identifiable health information); and (8) negligent infliction of emotional distress. (FAC ¶¶ 62–115.) Holly brings her claims on behalf of a class of similarly situated persons defined as: All persons who have been patients of Defendants . . . whose personal data has been published without their permission on the Internet during the Data Breach that occurred from at least August 24, 2017 to September 5, 2017 including all persons who were sent the September 5, 2017 letter informing them of the Data Breach. (FAC ¶ 54.) A. Motion to Dismiss Dismissal under Rule 12(b)(6) “can be based on the lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable legal theory.” Balistreri v. Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir. 1990). “To survive a motion to dismiss . . . under Rule 12(b)(6), a complaint generally must satisfy only the minimal notice pleading requirements of Rule 8(a)(2)”—a short and plain statement of the claim. Porter v. Jones, 319 F.3d 483, 494 (9th Cir. 2003); see also Fed. R. Civ. P. 8(a)(2). The “[f]actual allegations must be enough to raise a right to relief above the speculative level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). The “complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal quotation marks omitted). “A pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action will not do.’” Id. (citing Twombly, 550 U.S. at 555). Whether a complaint satisfies the plausibility standard is “a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. at 679. A court is generally limited to the pleadings and must construe “[a]ll factual allegations set forth in the complaint . . . as true and . . . in the light most favorable to [the plaintiff].” Lee v. City of Los Angeles, 250 F.3d 668, 688 (9th Cir. 2001). But a court need not blindly accept conclusory allegations, unwarranted deductions of fact, and unreasonable inferences. Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001). B. Motion to Strike Under Rule 12(f), the court may strike “any insufficient defense or any redundant, immaterial, impertinent or scandalous matter.” Fed. R. Civ. Proc. 12(f). “[T]he function of a 12(f) motion to strike is to avoid the expenditure of time and money that must arise from litigating spurious issues by dispensing with those issues prior to trial.” Sidney-Vinstein v. A.H. Robins Co., 697 F.2d 880, 885 (9th Cir. 1983). Rule 12(f) motions are generally disfavored “because of the limited importance of pleading in federal practice, and because they are often used as a delaying tactic.” Neilson v. Union Bank of Cal., N.A., 290 F. Supp. 2d 1101, 1152 (C.D. Cal. 2003); see also Sapiro v. Encompass Ins., 221 F.R.D. 513, 518 (N.D. Cal. 2004) (“Courts have long disfavored Rule 12(f) motions, granting them only when necessary to discourage parties from making completely tendentious or spurious allegations.”). “In ruling on a motion to strike under Rule 12(f), the court must view the pleading in the light most favorable to the nonmoving party.” Cholakyan v. Mercedes-Benz USA, LLC, 796 F. Supp. 2d 1220, 1245 (C.D. Cal. 2011). “[B]efore granting such a motion, the court must be satisfied that there are no questions of fact, that the c

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Sallie Holly v. Alta Newport Hospital, Inc., (C.D. Cal. 2020).

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