Weinberg v. Advanced Data Processing, Inc.

147 F. Supp. 3d 1359, 2015 U.S. Dist. LEXIS 165077, 2015 WL 8098555
CourtDistrict Court, S.D. Florida
DecidedNovember 17, 2015
DocketCase No. 15-CIV-61598-BLOOM/Valle
StatusPublished
Cited by14 cases

This text of 147 F. Supp. 3d 1359 (Weinberg v. Advanced Data Processing, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weinberg v. Advanced Data Processing, Inc., 147 F. Supp. 3d 1359, 2015 U.S. Dist. LEXIS 165077, 2015 WL 8098555 (S.D. Fla. 2015).

Opinion

ORDER

BETH BLOOM, UNITED STATES DISTRICT JUDGE

THIS CAUSE is before the Court upon Defendant’s Motion to Dismiss, (“Motion”), ECF No. [13], Plaintiffs Complaint, ECF [1362]*1362No. [1] (“Complaint”). The Court has carefully reviewed the Motion, all supporting and opposing submissions, the record, and applicable law. For the reasons set forth below, the Motion is granted in part and denied in part.

I. Introduction

Plaintiff Yehonatan Weinberg (“Plaintiff’) commenced this class action lawsuit on August 4, 2015, against Defendants Advanced Data Processing, Inc. (“ADP”) and Intermedix Corp. (“Intermedix,” together with ADP, “Defendants”),1 for failure to safeguard the sensitive personal information of Plaintiff and other emergency medical service patients (the “Class”), including their names, dates of birth, Social Security numbers, dates of medical services, health insurance information, and other protected health information (collectively, “Sensitive Information”), pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), 42 U.S.C. §§ 1301, et seq., and its implementing rules.

At some point in 2012, Plaintiff was taken by ambulance to a hospital for emergency medical treatment. Compl. ¶36. In order to use the ambulance, Plaintiff was required to provide the ambulance service with his Sensitive Information. Id. ¶ 37. “Unbeknownst to Plaintiff,” the ambulance services he used, Philadelphia Fire Department Emergency Medical Services (“EMS”), engaged Defendants to handle its billing and payment-related processing services. Id. ¶38. As a result, Defendants received Plaintiffs Sensitive Information. Id. Between June 1 and October 2, 2012, “an Intermedix employee systematically accessed and viewed the Sensitive Information of hundreds (if not thousands) of emergency medical service patients [the Class] who used ambulances ([for] which Intermedix provided, among other things, billing and payment processing [ ]). This Sensitive Information was then provided to third parties who used it to file fraudulent tax returns with the Internal Revenue Service.” Id. ¶¶ 4, 21.

The records accessed and viewed by the Intermedix employee included Plaintiffs Sensitive Information. Id. ¶39. Plaintiffs Sensitive Information was “thereafter disclosed to or sold to a group of individuals who subsequently used that information to steal his identity and file a fraudulent tax return using, his name and Social Security number.” Id. ¶ 40. Plaintiff alleges that “after learning that his identity was stolen, Plaintiff Weinberg spent (and continues to spend) a substantial amount of time and resources fixing the identity theft that he experienced.” Id. ¶ 41. Plaintiff further claims that these instances of identity theft, both for him and for the Class, were caused directly by Inter-medix’s failure to protect his Sensitive Information. Id. ¶¶ 6, 44-46.

Intermedix’s alleged security failures include, but are not limited to, the following:

Failing to ensure the confidentiality and integrity of electronic protected health information created, received, maintained, and transmitted in violation of 45 C.F.R. § 164.306(a)(1);
Failing to implement technical policies and procedures for electronic information systems that maintain electronically protected health information to allow ac--eess only to those persons or software programs that have been granted access rights in violation of 45 C.F.R. § 164.312(a)(1);
Failing to implement policies and procedures to prevent, detect, contain, and correct security violations in violation of 45 C.F.R. § 164.308(a)(1);
Failing to identify and respond to suspected or known security incidents, and [1363]*1363failing to mitigate, to the extent practicable, harmful effects of security incidents that are known to the covered entity in violation of 45 C.F.R. § 164.308(a)(6)(ii);
Failing to protect against any reasonably anticipated threats or hazards to the security or integrity of electronic protected health information in violation of 45 C.F.R. § 164.306(a)(2);
Failing to protect against reasonably anticipated uses or disclosures of electronic protected health information that are not permitted under the privacy rules regarding individually identifiable health information in violation of 45 C.F.R. § 164.306(a)(3);
Failing to ensure compliance with the HIPAA security standard rules by their workforce in violation of 45 C.F.R. § 164.306(a)(4);
Impermissibly and improperly using and disclosing protected health information that is and remains accessible to unauthorized persons in violation of 45 C.F.R. §§ 164.502, et seq.; and
Failing to effectively train all members of their workforce on the policies and procedures with respect to protected health information as necessary and appropriate for the members of their workforce to carry out their functions and to maintain security of protected health information in violation of 45 C.F.R. [§ ] 164.308(a)(5). . ■ .

Id. ¶¶ 30-31. The Complaint also alleges that Defendants failed to comply with industry standards relating to data security.2 Id. ¶¶ 32-34.

The Complaint states three counts — one for negligence, a second for breach of fiduciary duty, and a third for unjust enrichment. As to the negligence claim, Plaintiff asserts that Defendants “had a duty to exercise reasonable care in safeguarding and protecting” Sensitive- Information, id. ¶ 55, as well as “a duty to employ procedures to detect and prevent the improper access and misuse of the Plaintiffs and the Class’s Sensitive Information,” id. ¶ 56. Plaintiff alleges that Defendants unlawfully breached these duties. Id. ¶¶ 56-57. “But for [Defendants’] breach of its duties, Plaintiffs and the Class’s Sensitive Information would not have been compromised. Plaintiffs and the Class’s Sensitive Information was stolen and accessed as the proximate result of Intermedix failing to exercise reasonable care in safeguarding such information by adopting, implementing, and maintaining appropriate security measures.” Id. ¶59.

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Bluebook (online)
147 F. Supp. 3d 1359, 2015 U.S. Dist. LEXIS 165077, 2015 WL 8098555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weinberg-v-advanced-data-processing-inc-flsd-2015.