Whittum v. University Medical Center of Southern Nevada

District Court, D. Nevada·Decided April 17, 2023·No. 2:21-cv-01777·Unknown

Opinion

* * * LEISA WHITTUM, et al., Case No. 2:21-cv-01777-MMD-EJY

Plaintiffs, ORDER v. UNIVERSITY MEDICAL CENTER

Defendant.

Plaintiffs Leisa Whittum, Nicole Kilburn, and Sara Sanguinetti (“Plaintiffs”)1 sued Defendant University Medical Center of Southern Nevada (“UMC”) for injuries stemming from a data breach of UMC’s systems in June 2021. (ECF Nos. 15 at 3, 59.) Before the Court are Plaintiffs’ renewed motion to remand (ECF No. 61)2 under the local controversy and interest of justice exceptions of the Class Action Fairness Act (“CAFA”), and motion to compel (ECF No. 62).3 Plaintiffs filed the renewed motion after completion of limited jurisdictional discovery for class citizenship. As further explained below, the Court finds

1Sara Sanguinetti was added as a Plaintiff after consolidation. (ECF No. 59.)

2In the last order, the Court granted class citizenship discovery because pertinent facts bearing on jurisdiction were disputed and additional citizenship discovery was necessary to determine whether the CAFA exceptions applied. (ECF No. 52 at 9-10.) The Court also granted the parties leave to file renewed motions within 30 days of the conclusion of jurisdictional discovery. (Id. at 10.) Plaintiffs subsequently filed their renewed motion to remand with exhibits. (ECF Nos. 61, 63, 64 (Sealed).) 3The parties filed responses and replies to the pending motions. (ECF Nos. 67, 70, 71.) that remand is proper under both CAFA exceptions and will grant the renewed motion to remand and deny the motion to compel.4 The Court rejects UMC’s arguments as to class size and standing because Plaintiffs are relying on UMC’s own data to formulate their proposed class, and Plaintiffs suffered concrete, separate injuries from the risk of future harm that are sufficient for standing. The Court next grants remand under CAFA’s local controversy exception because Plaintiffs have demonstrated that greater than two-thirds of proposed class members are Nevada citizens. Alternatively, the Court finds that discretionary remand is appropriate because more than one-third of proposed class members are Nevada citizens, and the interests of justice warrant remand. Finally, the Court denies Plaintiffs’ request for attorney’s fees and costs because Plaintiffs have not met the stringent standard for attorney’s fees and have failed to comply with local rules. A. Objections to Class Size & Standing As a preliminary matter, UMC argues that remand is improper because Plaintiffs’ proposed class size, based on the number of notices UMC sent and the addresses in these notices, is “artificially inflate[d].” (ECF No. 67 at 7.) Specifically, UMC contends that class size based on UMC notices is unreliable because (1) UMC was overinclusive and provided notice to “dramatically more people than could have been impacted” by the breach, and (2) some class members do not have standing because they are not data breach victims, and their information was not accessed during the breach. (Id. at 4-9.) The Court disagrees and finds that potential breach victims have standing, and the proposed class size is appropriate for citizenship determinations.5 See Brinkley v.

4The Court adopts the background section from its previous order and will not repeat the information here. (ECF No. 52 at 2.) However, the Court notes that since the issuance of the last order, the parties have completed jurisdictional discovery for class citizenship, and the Court has granted consolidation of this case and another case, 2:21- cv-01779-JAD-EJY pertaining to UMC’s data breach. (ECF No. 59.)

5In their reply, Plaintiffs argue that the Court should “set aside UMC’s belated attempt to argue aspects of Article III jurisdiction” because UMC did not file a renewed Monterey Fin. Servs., Inc., 873 F.3d 1118, 1121 (9th Cir. 2017) (explaining that to determine class citizenship, the court must first determine the size of the class as a whole) (citation omitted). The Court is unpersuaded by UMC’s first argument. Plaintiffs’ proposed class size is based on the total number of notices that UMC sent to victims or potential victims of the breach, which is approximately 1.3 million. (ECF No. 61 at 8-9, 13.) To the extent this figure is overinclusive, that defect is a result of UMC’s choices that it purposefully and strategically made. (See ECF No. 67 at 9 (UMC explaining that “in the interest of providing notice and opportunity to mitigate for any individuals that could have been impacted, UMC proceeded with a strategy to purposefully provide notice and identity theft protection to dramatically more people than could have been impacted”).) The Court finds it unreasonable and unfair for UMC to now challenge class size when the class size was based on data that UMC itself provided to Plaintiffs. Moreover, UMC offers no additional information or clarification about the breakdown of the actual number of people UMC should have informed about the breach. The Court therefore rejects UMC’s first argument as to class size. The Court is likewise unpersuaded by UMC’s second argument that the class size is “inflated” because it includes individuals who were potentially impacted by the breach but have suffered no injury because their information was not misused.6 (Id. at 4-7.) “To have Article III standing to sue in federal court, plaintiffs must demonstrate, among other things, that they suffered a concrete harm. No concrete harm, no standing.” TransUnion

motion to dismiss after jurisdictional discovery. (ECF No. 70 at 4.) The Court disagrees and will consider UMC’s arguments because federal courts “are required sua sponte to examine jurisdictional issues such as standing.” See Bernhardt v. Cnty. of L.A., 279 F.3d 862, 868 (9th Cir. 2002) (citations omitted).

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