White v. Social Security Administration
111 F. Supp. 3d 1041
N.D. Cal.2015Background
- Plaintiffs Lisa White and J.W. filed a December 23, 2014 FTCA-based complaint alleging identity theft and related harms after Lisa’s April 2013 SSA visit to obtain a new SSN for J.W.; Lisa alleges SSA employee Ryan Luis copied documents and recorded SSNs.
- Within a week of the April 5, 2013 visit, unauthorized financial and credentialed transactions were initiated in Plaintiffs’ names, including mortgage and school district notices and a fraudulent Social Security Disability Status added to White’s SSN.
- Plaintiffs reported the identity theft to police and engaged law enforcement; an FBI/IG investigation followed, with Doss indicating Luis had aliases and potential criminal background.
- Plaintiffs amended their complaint to assert ten claims, including negligent retention, negligent supervision, negligent hiring, conversion, fraud, invasion of privacy, negligence, negligent infliction of emotional distress, intentional infliction of emotional distress, and respondeat superior.
- Defendants moved to dismiss on April 1, 2015, and the court granted the motion to dismiss and judicial notice, allowing an amended complaint while dismissing most claims; NIED was dismissed with prejudice; leave to amend granted with a deadline of July 8, 2015.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FTCA defendant substitution | Luis is liable; ultra vires exception applies | United States must be substituted as defendant; SSA and Luis improper | SSA and Luis dismissed; United States stays as proper defendant |
| Discretionary function exception | Claims involve negligent retention/supervision/hiring | Discretionary function bars these claims | Claims barred by discretionary function exception; dismissed |
| Fraud claim under FTCA | Fraud persists against Luis individually | FTCA §2680(h) bars misrepresentation claims | Fraud claim dismissed |
| Conversion claim sufficiency | Personal identifying information constitutes property | No factual basis linking Defendant to misappropriation | Conversion claim dismissed for lack of causally linked facts |
| Other tort claims (privacy, negligence, NIED, IIED) | Defs侵侵侵犯隐私、疏忽等造成损害 | Claims not adequately pleaded; no outré conduct or causation | Invasion of privacy, general negligence, NIED, and IIED dismissed |
Key Cases Cited
- Valadez-Lopez v. Chertoff, 656 F.3d 851 (9th Cir. 2011) (FTCA governs claims; United States substitution)
- Jerves v. United States, 966 F.2d 517 (9th Cir. 1992) (FTCA scope and substitution)
- Allen v. Veterans Admin., 749 F.2d 1386 (9th Cir. 1984) (agency not a proper defendant; United States substituted)
- Gutierrez de Martinez v. Lamagno, 515 U.S. 417 (1985) (scope-of-employment certification governs substitution)
- Osborn v. Haley, 549 U.S. 225 (2007) (precludes limited review of scope determination; when challenged, United States remains defendant unless beyond scope)
- Nurse v. United States, 226 F.3d 996 (9th Cir. 2000) (discretionary function exception covers negligent hiring/supervision)
- Berkovitz v. United States, 486 U.S. 528 (1988) (discretionary function analysis framework)
- Doe v. Holy See, 557 F.3d 1066 (9th Cir. 2009) (application to agency personnel actions under discretionary function)
- Xue Lu v. Powell, 621 F.3d 944 (9th Cir. 2010) (discretionary function applies to negligent retention claims)
- Sprewell v. Golden State Warriors, 266 F.3d 979 (9th Cir. 2001) (pleading plausibility standard under Iqbal)
- Iqbal v. Ashcroft, 556 U.S. 662 (2009) (pleading standard for plausibility)