Skov v. Lakeview Health Systems, LLC

District Court, M.D. Florida·Decided July 9, 2025·No. 3:24-cv-00732·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA JACKSONVILLE DIVISION

BROCK SKOV, individually and on behalf of all similarly situated persons,

Plaintiff,

v. Case No. 3:24-cv-732-MMH-LLL

LAKEVIEW HEALTH SYSTEMS, LLC,

Defendant.

KEVIN WALKER, individually and on behalf of all similarly situated persons,

v. Case No. 3:24-cv-826-MMH-MCR

Defendant. JEFFREY W. HURLEY, individually and on behalf of all similarly situated persons,

v. Case No. 3:24-cv-961-MMH-MCR

ORDER THIS CAUSE is before the Court sua sponte. On May 8, 2025, the Court entered an Order to Show Cause in which the Court ordered the parties to show cause why these actions should not be remanded to state court for lack of standing. See Order (Doc. 74; Order to Show Cause). All parties have responded. See Lakeview Health Systems, LLC’s Response to the Order to Show Cause (Doc. 80; Defendant’s Response), filed May 23, 2025; Plaintiffs’ Joint Memorandum Addressing this Court’s Subject Matter Jurisdiction (Doc. 81; Plaintiffs’ Response), filed June 6, 2025. Accordingly, this matter is ripe for review. The Court assumes the parties are familiar with the procedural history of this case and does not repeat that history here except as necessary to resolve the issue identified in the Order to Show Cause. See Order to Show Cause at 2–4 (outlining the procedural history of this case). Notably, in a removal case like this one, “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.” 28 U.S.C.

§ 1447(c); see also 28 U.S.C. § 1453(c)(1) (“Section 1447 shall apply to any removal of a [class action] case under this section” unless an exception applies). In the Order to Show Cause, which the Court issued pursuant to its unflagging obligation to inquire into its subject matter jurisdiction, the Court summarized

recent developments in Eleventh Circuit authority addressing standing in data-breach actions like this one. See Order to Show Cause at 6–7 (citing Green-Cooper v. Brinker Int’l, Inc., 73 F.4th 883, 889 (11th Cir. 2023); Tsao v. Captiva MVP Rest. Partners, LLC, 986 F.3d 1332, 1343 (11th Cir. 2021); In re

Equifax Inc. Customer Data Sec. Breach Litig., 999 F.3d 1247, 1261–64 (11th Cir. 2021)); see also TransUnion LLC v. Ramirez, 594 U.S. 413, 431 (2021). The Court also noted that “[i]n a removal case, the removing party initially bears the burden of demonstrating that federal jurisdiction exists.” See Order to Show

Cause at 5 (citing Kirkland v. Midland Mortg. Co., 243 F.3d 1277, 1281 n.5 (11th Cir. 2001); DaimlerChrysler Corp. v. Cuno, 547 U.S. 332, 342 n.3 (2006)). Recognizing that Defendant may not wish to argue that Plaintiffs suffered the kind of concrete injury necessary to establish standing, the Court determined

that “Plaintiffs are entitled to shoulder the burden and argue that standing is proper.” See Order to Show Cause at 6 n.4 (citing DaimlerChrysler, 547 U.S. at 342 n.3). Upon review of the parties’ Responses, no party has made any attempt to meet the burden of establishing Plaintiffs’ standing. Nor has any party

contended that the Court made any error of law or fact in the Order to Show Cause, in which the Court expressed skepticism as to whether any Plaintiff alleged that they suffered a concrete injury in fact. See Order to Show Cause at 7 n.5 (“[A]s far as the Court can tell, no named Plaintiff has alleged that their

information was actually exposed [in the alleged data breach], that their information is available on the dark web or anywhere else, that they were a victim of actual identity theft, that they suffered any financial harm as a result of the data breach, or that there exists a risk of actual identity theft in the future

that is high enough to satisfy the concreteness requirement.”). For its part, Defendant contends the burden to establish standing is Plaintiffs’ and that Plaintiffs have failed to meet that burden. See Defendant’s Response at 4 (“[E]ach Plaintiff bears the burden of establishing their standing at the time of

filing their [Consolidated Class Action Complaint (Doc. 28)] and throughout this litigation. … [Defendant] does not believe or argue Plaintiffs have established a legally cognizable injury that is fairly traceable to an act of the Defendant … .”).1 Plaintiffs, meanwhile, maintain that it is Defendant’s burden

1 Defendant also discusses various other matters unrelated to standing and the issues raised in the Order to Show Cause, such as whether removal was proper, jurisdiction under the Class Action Fairness Act, and its motion to dismiss. See Defendant’s Response at 5–6. to establish Plaintiffs’ standing because Defendant removed these actions from state court to federal court. See Plaintiffs’ Response at 2 (“[T]he burden of

proving standing lies solely with Defendant.”). Moreover, Plaintiffs “accede to remand to state court … .” Id. Because it appears that no Plaintiff has standing to pursue the relief he seeks and no party has shown cause why these actions should not be remanded to state court for lack of subject matter jurisdiction, the

Court concludes that these cases are due to be remanded. In the discussion that follows, the Court explains why deconsolidating the actions and remanding each action to the state court from which it was removed is the proper procedure for remand.2 As the Court explained in the Order to

Show Cause: This case is a consolidated class action originating as three actions removed from state court. See Case No. 3:24-cv-732-MMH-LLL (Consolidated Action or Skov Action); Case No. 3:24-cv-826-MMH-MCR (Walker Action); Case No. 3:24-cv-961-MMH-MCR (Hurley Action); Notice of Removal (Doc. 1; Skov Removal Notice), filed July 23, 2024 (removing the Skov Action to this Court); Notice of Removal (Walker Action Doc. 1; Walker Removal Notice), filed July 18, 2024 (removing the Walker Action to the United States District Court for the Southern District of Florida); Notice of Removal (Hurley Action Doc. 1; Hurley Removal Notice), filed September 17, 2024 (removing the Hurley Action to this Court)[.]

2 The Court uses the term “deconsolidate” instead of “sever” to avoid confusion with the unrelated severability provision of Rule 21, which permits the Court to “sever any claim against a party.” See Fed. R. Civ. P. 21. Order to Show Cause at 2.3 After the Walker Action was removed to the United States District Court for the Southern District of Florida (the Southern

District), that court transferred the action here for consolidation with the Skov and Hurley actions pursuant to 28 U.S.C. § 1404(a). See Order Granting Joint Stipulation to Transfer Venue (Walker Action Doc. 9; Walker Transfer Order), entered August 12, 2024. The Court consolidated each of these cases under Rule

42(a), Federal Rules of Civil Procedure (Rule(s)), designating the Skov Action as the lead case because it was removed first. See Order (Doc. 21; Order Consolidating Skov and Walker Actions), entered September 10, 2024; Order (Doc. 24; Order Consolidating Skov and Hurley Actions), entered September 25,

2024.

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