BancFirst v. Dixie Restaurants Inc
5:11-cv-00174
W.D. Okla.Jan 4, 2012Background
- BancFirst, an Oklahoma bank, sues Dixie Restaurants for alleged debit-card security breaches (Feb 18, 2011).
- Dixie moved to dismiss; BancFirst amended (Apr 25, 2011); Dixie renewed dismissal motion.
- Court dismissed the First Amended Complaint on Aug 29, 2011 for lack of duty.
- BancFirst filed a Second Amended Complaint (Sept 6, 2011) reasserting negligence theories.
- Court grants Dixie’s motion to dismiss the Second Amended Complaint with prejudice; no duty found.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether BancFirst pleads a duty owed by Dixie | BancFirst asserts Dixie had a duty due to PCI standards. | Dixie argues no duty arises absent a special relationship. | Duty not pleaded; dismissed. |
| Whether a special relationship exists that creates duty | BancFirst alleges a direct/BancFirst–Dixie relationship through PCI roles. | No special relationship shown; obligations are general. | No special relationship established. |
| Whether PCI standards create a duty to BancFirst | PCI standards impose security duties on merchants. | PCI standards are general obligations, not a duty to BancFirst. | Not sufficient to establish duty. |
| Whether the action is barred by the economic loss doctrine | Recovery for economic damages due to security breach. | Economic loss doctrine may bar such claims. | Court expresses no opinion on this alternative argument. |
Key Cases Cited
- J.S. v. Harris, 227 P.3d 1089 (Okla. Civ. App. 2009) (duty analysis and special relationships guidance)
- Sutton v. Utah State Sch. for Deaf & Blind, 173 F.3d 1226 (10th Cir. 1999) (pleading standards and notice requirements)
- Ashcroft v. Iqbal, 129 S. Ct. 1937 (2009) (plausibility standard for pleading facts)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (pleading standard requiring plausible claims)
- Alvarado v. KOB-TV, L.L.C., 493 F.3d 1210 (10th Cir. 2007) (use of documents referenced in complaint)
- Wofford v. Easter State Hospital, 795 P.2d 516 (Okla. 1990) (limits on finding a special relationship)
- Consolidated Grain & Barge Co. v. Structural Sys., Inc., 212 P.3d 1168 (Okla. 2009) (duty analysis in negligence under Oklahoma law)