Dismissed Lawsuit Against Chelan-Douglas Health District Revived By Appellate Court

A lawsuit against the Chelan-Douglas Health District that was dismissed in Chelan County Superior Court last year has been revived by the Washington Court of Appeals.

The suit was filed in June, 2022 by Chelan County resident Sarah Nunley and Douglas County resident Michelle Slater following a data breach at the Health District that compromised the personal information of at least 109,000 people in 2021.

Both Nunley and Slater contend that, following the breach, they received a large number of spam phone calls and emails, and Nunley further claimed her personal data was used to file for an unauthorized business license and that her social security number appeared on the dark web.

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In February, 2023, Judge Kristin Ferrera cited a lack of evidence that the plaintiffs had been harmed by the data breach in her dismissal of the case. However, on Thursday, the appellate court overturned Ferrera's ruling, saying the Health District had a responsibility to protect the personal information of those in its data banks, and that Nunley and Slater have a right to prove they suffered damages at trial.

The three-judge panel's Acting Chief Judge Tracy Staab wrote it was the court's opinion that the Health District had knowledge its clients information was vulnerable as early as 2020, and that it also was aware that cybercriminals were attempting to compromise its systems.

Staab further wrote that the Health District failed to increase its security measures even after it was warned by the FBI about an impending cyberattack in May, 2021.

"We hold that the Health District owed the Plaintiffs a duty to use reasonable care in the collection and storing of their (personal information), and this duty includes taking reasonable steps to prevent unauthorized access and disclosure of the information," wrote Staab.

The higher court's reversal remands the case back to Chelan County Superior Court, and the Health District still has the right to make an appeal to the Washington Supreme Court.