Shepherd v. Costco Wholesale Corp.
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The Supreme Court held that a plaintiff does not have to allege bad faith or rebut the good faith presumption in his complaint asserting a claim of negligent disclosure of medical information in order to withstand a motion to dismiss based on the immunity provided by Ariz. Rev. Stat. 12-2296.
Plaintiff sued Costco, alleging several claims of action based on Costco's public disclosure of an embarrassing medication that Plaintiff twice rejected. Costco filed a motion to dismiss, asserting that Ariz. Rev. Stat. 12-2296 provided immunity and that Plaintiff's claims were preempted by Health Insurance Portability and Accountability Act (HIPAA). The trial court granted the motion. The Supreme Court reversed, holding (1) Plaintiff was not required to anticipate in his complaint Costco's affirmative defense of qualified immunity under section 12-2296 or to rebut the good faith presumption; and (2) Plaintiff permissibly referenced HIPAA to inform the standard of care for his negligence claim.
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