Wittmeyer v. Heartland Alliance for Human Needs & Human Rights

CourtDistrict Court, N.D. Illinois
DecidedJanuary 17, 2024
Docket1:23-cv-01108
StatusUnknown

This text of Wittmeyer v. Heartland Alliance for Human Needs & Human Rights (Wittmeyer v. Heartland Alliance for Human Needs & Human Rights) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wittmeyer v. Heartland Alliance for Human Needs & Human Rights, (N.D. Ill. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

TRACY WITTMEYER and AUDREY APPIAKORANG, Plaintiffs No. 23 CV 1108

v. Judge Jeremy C. Daniel

HEARTLAND ALLIANCE FOR HUMAN NEEDS & RIGHTS, et al., Defendants

MEMORANDUM OPINION AND ORDER Plaintiffs Tracy Wittmeyer and Audrey Appiakorang, on behalf of themselves and all others similarly situated, bring suit against Heartland Alliance for Human Needs & Rights and its four sister entities (collectively, “Heartland”),1 alleging various claims that stem from a 2022 data breach. (R. 27, hereinafter “FAC”). Heartland moves to dismiss the plaintiffs’ first amended complaint (“FAC”) under Federal Rule of Civil Procedure 12(b)(6). (R. 29.) For the reasons discussed below, Heartland’s motion is granted in part and denied in part. BACKGROUND Heartland is a non-profit, anti-poverty organization that provides healthcare and other services to more than 500,000 individuals annually throughout the Midwest. (FAC ¶¶ 3, 24-28, 32.) As a condition of receiving its services, Heartland

1 The plaintiffs identify Heartland Alliance for Human Needs & Human Rights, Heartland Alliance Health, Heartland Alliance International, LLC, Heartland Housing, Inc., and Heartland Human Care Services as defendants to this action. (FAC ¶¶ 24-28.) collects personally identifiable information (“PII”) from its clients, including names, Social Security numbers, dates of birth, driver’s license numbers, and financial account numbers. (Id. ¶ 33.) For those receiving health-related services, Heartland

maintains records of individuals’ personal health information (“PHI”), including medical diagnoses, medication, dental scans, and patient notes. (Id. ¶¶ 33, 41-42.) In January 2022, Heartland experienced a “disruption to its digital environment” during which unauthorized users obtained access to PII and PHI of Heartlands’ clients, employees, and independent contractors. (Id. ¶¶ 6, 41-42.) Plaintiffs Tracy Wittmeyer and Audrey Appiakorang were both clients of Heartland at the time of the data breach and each received notice in December 2022 that their

PII and PHI was compromised. (Id. ¶¶ 40, 42, 96.) They claim that the data breach was caused by Heartland’s failure to properly secure and safeguard PII and PHI. (Id. ¶¶ 44, 49, 62-63.) Following the data breach, Appiakorang noticed unauthorized activity on her credit report, specifically that someone had obtained car insurance in her name. (Id. ¶ 101.) The plaintiffs allege other damages as a result of the breach, including

increased risk of fraud and identity theft, expenditure of time and effort in mitigating harms associated with the breach, loss of value in their PII and PHI, and emotional harms like anxiety and stress. (Id. ¶¶ 97-100, 104-109.) These injuries, according to the plaintiffs, were further compounded by Heartland’s failure to provide prompt notice that their data had been compromised. (Id. ¶¶ 42, 64, 110.) Wittmeyer and Appiakorang now bring suit against Heartland on behalf of themselves and two putative classes—a nationwide class defined as “[a]ll individuals in the United States who were impacted by the Data Breach, including all who were

sent a notice of the Data Breach,” and an Illinois subclass defined as “[a]ll residents of Illinois who were impacted by the Data Breach, including all who were sent a notice of the Data Breach.” (Id. at ¶¶ 116-17.) The FAC asserts claims for negligence (Count I), negligence per se (Count II), breach of contract (Count III), breach of implied contract (Count IV), and violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), 815 ILCS 505/1, et seq. (Count V). (Id. at 31-45.) The plaintiffs also seek a declaratory judgment in their favor and prospective injunctive

relief (Count VI). (Id. at 45-48.) Heartland moves to dismiss the FAC in its entirety under Rule 12(b)(6). (R. 29.) LEGAL STANDARD A motion to dismiss tests the sufficiency of a claim, not the merits of a case. Gociman v. Loyola Univ. of Chi., 41 F.4th 873, 885 (7th Cir. 2022). To survive a motion to dismiss under Rule 12(b)(6), a claim “must provide enough factual information to state a claim to relief that is plausible on its face and raise a right to relief above the

speculative level.” Haywood v. Massage Envy Franchising, LLC, 887 F.3d 329, 333 (7th Cir. 2018) (quoting Camasta v. Jos. A. Bank Clothiers, Inc., 761 F.3d 732, 736 (7th Cir. 2014)). In deciding a Rule 12(b)(6) motion, the Court accepts as true all well- pleaded factual allegations and draws all reasonable inferences in the plaintiff’s favor. Lax v. Mayorkas, 20 F.4th 1178, 1181 (7th Cir. 2021). Dismissal is proper where “the allegations in a complaint, however true, could not raise a claim of entitlement to relief.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 558 (2007). ANALYSIS I. NEGLIGENCE AND NEGLIGENCE PER SE CLAIMS

Heartland first argues that the FAC fails to state claims for negligence (Count I) and negligence per se (Count II) because the plaintiffs cannot plausibly show that Heartland owed them a duty to safeguard their personal information, nor have they alleged actionable damages as a result of the data breach. (R. 30 at 3-4.) A. Negligence The Court begins with the plaintiffs’ negligence claim. To state a claim for negligence in Illinois, a plaintiff must allege facts showing that (1) the defendant

owed a duty of care to the plaintiff, (2) that the defendant breached that duty, and (3) that the breach was the proximate cause of the plaintiff's injuries. Flores v. Aon Corp., – N.E.3d –, 2023 IL App (1st) 230140, ¶ 23 (citing Cowper v. Nyberg, 28 N.E.3d 768, 772 (Ill. 2015)). The first element—duty of care—may be derived from statute or common law. Zissu v. IHS Prop. Ill., L.P., 157 F. Supp. 3d 797, 800 (N.D. Ill. 2016) (citing Barnett v. Zion Park Dist., 665 N.E.2d 808, 812 (Ill. 1996)). Whether a duty exists is a question of law that may be resolved on a motion to dismiss. Id.

“Though duty is a basic concept in tort law, the Illinois Supreme Court has not directly spoken to this question in the context of data breaches.” Cmty. Bank of Treton v. Schnuck Mkts. Inc., 887 F.3d 803, 816 (7th Cir. 2018). In Cooney v. Chicago Public Schools, the Illinois Appellate Court rejected the theory that either the Health and Insurance Portability and Accountability Act (“HIPAA”) or the Illinois Personal Information Protection Act (“PIPA”) imposed any duty to safeguard personal information. 943 N.E.2d 23, 28 (Ill. App. Ct. 2010). Instead, the Illinois Appellate Court explained that the only duty owed, pursuant to PIPA, is the duty to provide

notice of a security breach. Id. The Cooney court further declined to recognize a common law duty to safeguard personal information, explaining “we do not believe that the creation of a new legal duty beyond legislative requirements already in place” (i.e., notice) “is part of our role on appellate review.” Id. at 29. In Community Bank of Trenton v.

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