Dittman v. University of Pittsburgh Medical Center

649 Pa. 496 (Pa. 2018)

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Dittman v. University of Pittsburgh Medical Center

Pennsylvania Supreme Court
649 Pa. 496 (Pa. 2018)

Facts

The University of Pittsburgh Medical Center (UPMC) (defendant) was subject to a data breach in which its employees’ personal information was stolen from its computer systems. Barbara Dittman and other UPMC employees (the employees) (plaintiffs) sued UPMC, alleging, among other things, that UPMC was liable for negligence. They argued that (1) UPMC had a duty to reasonably protect the personal information it required employees to provide, (2) UPMC breached that duty by failing to adopt adequate security measures, and (3) UPMC’s breach was the actual and proximate cause of harm because the stolen information was used to file fraudulent tax returns and created an imminent risk of other identity theft. UPMC moved to dismiss the negligence claim on two bases: it argued (1) that it did not have a legal duty to safeguard the employees’ personal information and (2) that the economic-loss doctrine precluded recovery because the employees had suffered only economic harm, without any accompanying physical harm or property damage. The trial court agreed, dismissing the negligence claim. The state appellate court affirmed, and the employees appealed.

Rule of Law

Issue

Holding and Reasoning (Baer, J.)

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