MEMORANDUM OPINION
Plaintiffs, four transportation security officers employed by the Transportation Security Administration (“TSA”) and the unions that represent them, bring this action against defendants TSA, Kip Hawley in his capacity as Administrator of the TSA, the Department of Homeland Security (“DHS”), and Michael Chertoff in his capacity as Secretary of the DHS. Plaintiffs allege that defendants violated the Aviation and Transportation Security Act (“ATSA”), 49 U.S.C. §§ 44901 and 44935, and the Privacy Act, 5 U.S.C. § 552a, by failing to establish appropriate safeguards to insure the security and confidentiality of personnel records.
Before the court is defendants’ motion to dismiss [# 3]. Upon consideration of the motion, defendants’ opposition thereto, and the record of this case, the court concludes that the defendants’ motion should be granted in part and denied in part.
I. BACKGROUND
On May 3, 2007, TSA discovered that a hard drive was “missing from a controlled area at the TSA Headquarters Office of Human Capital.” Compl. ¶¶ 28-29. The hard drive contained personnel data for approximately 100,000 individuals employed by TSA between January 2002 and August 2005, including names, social security numbers, birth dates, payroll information, financial allotments, and bank account and routing information. Compl. ¶¶ 28, 29, 31. On May 4, 2007, Administrator Kip Hawley issued a broadcast email to all TSA employees providing notice of the incident and stating that TSA would provide employees with free credit monitoring for one year free of charge.
Id.;
Defs.’
II. ANALYSIS
On May 8, 2007, four TSA security officers (“individual plaintiffs”) and their unions (“union plaintiffs”) filed this class action complaint, 2 alleging that defendants violated ATSA and the Privacy Act by failing to ensure the security of the missing hard drive. In their motion to dismiss, defendants argue (1) ATSA does not provide a private right of action; (2) the union plaintiffs lack standing to bring their Privacy Act claim under both the act and the requirements of associational standing; (3) the individual plaintiffs lack standing because they do not allege a cognizable injury; (4) plaintiffs’ Privacy Act claim is unripe; and (5) plaintiffs’ allegations are insufficient to state a Privacy Act claim. To these arguments the court now turns.
I. Plaintiffs’ ATSA Claim
In response to the events of September II, 2001, Congress enacted the Aviation and Transportation Security Act, Pub.L. No. 107-71, 115 Stat. 597 (2001), which created TSA and a federal workforce to screen passengers and cargo at commercial airports. 49 U.S.C. § 114. Among other things, ATSA requires the Administrator to “enforce security related regulations and requirements” and “oversee the implementation, and ensure the adequacy, of security measures at airports.” §§ 114(f)(7), (11). Plaintiffs claim defendants violated ATSA by “failing] to maintain personnel data from loss consistent with security-related regulations” and by “failing] to ensure the adequacy of security measures at airports resulting in the loss of personnel data.” Compl. ¶¶ 45-46.
Defendants move to dismiss plaintiffs’ ATSA claim, arguing that the statute does not provide a private cause of action, either express or implied. Plaintiffs admit that ATSA contains no express grant of a private cause of action, but contend that the court should find the act contains an implied cause of action because it “was enacted specifically to create a secure workforce of TSA screeners such as the Plaintiffs” and “protecting screeners’ personnel data is vital to the protection of a secure workforce and security at the airports.” Pis.’ Opp’n to Defs.’ Mot. Dismiss (“Opp’n”) at 4. Plaintiffs further argue that “[tjhere can be no doubt that the Plaintiffs ... are within the zone of interests created by the ATSA” because “the main purpose of the ATSA was to create this federal, security screening workforce.” Id. The court agrees with defendants and finds that ATSA does not provide plaintiffs with a cause of action.
“[Pjrivate rights of action to enforce federal law must be created by Congress.”
Alexander v. Sandoval,
(1) [Wjhether the plaintiff is one of the class for whose benefit the statute was enacted;
(2) whether some indication exists of legislative intent, explicit or implicit, either to create or to deny a private remedy; (3) whether implying a private right of action is consistent with the underlying purposes of the legislative scheme; and (4) whether the cause of action is one traditionally relegated to state law, such that it would be inappropriate for the court to infer a cause of action based solely on federal law.
Tax Analysts v. IRS,
As to the first factor, the court finds that Congress did not enact ATSA for the special benefit of TSA employees, 3 but rather for purposes of national security:
Recognizing that “the terrorist hijacking and crashes of passenger aircraft on September 11, 2001, which converted civil aircraft into guided bombs for strikes against the United States, required a fundamental change in the way [the government] approaches the task of ensuring the safety and security of the civil air transportation system,” Congress enacted [ATSA] to improve security in the nation’s transportation system. H.R. Conf. Rep. No. 107-296, at 53 (2001), reprinted in 2001 U.S.C.C.A.N. 589, 590. In order to achieve this goal, Congress created the Transportation Security Administration within the Department of Transportation and charged it with assuring “security in all modes of transportation.” 49 U.S.C. § 114(d) (Supp. III 2003).
Coalition of Airline Pilots Ass’n v. FAA,
Turning to the second factor — whether some indication exists of legislative intent, explicit or implicit, either to create or to deny a private remedy — the court finds none. The text of § 114 creates the Transportation Security Administration and outlines the responsibilities of the Under Secretary of Transportation for Security. The specific sections plaintiffs allege defendants failed to implement are sub-parts of § 114(f),
5
which is titled “[a]ddi-tional duties and powers” and provides that “[i]n addition to carrying out the functions specified in subsections (d) and (e), the Under Secretary shall ...” perform specific additional duties. 49 U.S.C. § 114(f). The Supreme Court has held that statutes like this, which focus on the person regulated rather than the individuals protected, create “no implication of an intent to confer rights on a particular class of persons.”
Alexander,
Additionally, § 114 contains no “rights-creating language,”
Alexander,
The Privacy Act of 1974, 5 U.S.C. § 552a, regulates the collection, maintenance, use, and dissemination of an individual’s personal information by federal government agencies. See 5 U.S.C. § 552a. Plaintiffs claim that defendants violated § 552a(e)(10), which requires that
Each agency that maintains a system of records shall ... establish appropriate administrative, technical, and physical safeguards to insure the security and confidentiality of records and to protect against any anticipated threats or hazards to their security or integrity which could result in substantial harm, embarrassment, inconvenience, or unfairness to any individual on whom information is maintained ...
§ 552a(e)(10). See Compl. ¶ 48; Opp’n at 17 (citing § 552a(e)(10)). Plaintiffs bring their claim under 5 U.S.C. § 552a(g)(1)(D), which provides that whenever an agency “fails to comply with any other provision of this section, or any rule promulgated thereunder, in such a way as to have an adverse effect on an individual ... the individual may bring a civil action against the agency, and the district courts of the United States shall have jurisdiction .... ” § 552a(g)(1)(D).
Defendants move to dismiss plaintiffs’ claim on several grounds. First, they argue, the union plaintiffs lack standing to bring a claim under the Privacy Act and do not meet the requirements of associational standing, while the individual plaintiffs lack standing because their allegations of harm are speculative and dependent upon third parties’ criminal actions. Mot. Dismiss at 11-15. Second, defendants argue the court should dismiss plaintiffs’ Privacy Act claim as unripe. Id. at 16-18. Third, defendants contend plaintiffs have failed to state a claim. Id. at 18-24. To these arguments the court now turns.
1. Standing
A. Union Plaintiffs lack standing to bring a Privacy Act claim.
Plaintiffs do not dispute that only individuals have standing to bring Privacy Act claims.
8
Opp’n at 13. Instead they
To meet the requirements of associational standing, the union plaintiffs “must demonstrate that at least one member would have standing under Article III to sue in his or her own right, that the interests it seeks to protect are germane to its purposes, and that neither the claim asserted nor the relief requested requires that an individual member participate in the lawsuit.”
Natural Res. Def. Council v. EPA,
B. The Individual Plaintiffs have standing to bring their Privacy Act claim.
Defendants argue that the individual plaintiffs should be dismissed for lack of standing for failing to demonstrate an injury-in-fact. Mot. Dismiss at 13. 11 According to defendants, plaintiffs’ concerns about future harm are speculative and dependent upon the criminal actions of third parties. Mot. Dismiss at 13-15. The court disagrees.
Plaintiffs allege that because TSA violated § 552a(e)(10) by failing to establish safeguards to secure the missing hard drive, they have suffered an injury in the form of “embarrassment, inconvenience, mental distress, concern for identity theft, concern for damage to credit report, concern for damage to financial suitability requirements in employment, and future substantial financial harm, [and] mental distress due to the possibility of security
2. Plaintiffs’ Privacy Act claim is ripe.
Defendants contend that plaintiffs’ claim is not ripe for adjudication because neither plaintiffs nor defendants can account for the hard drive’s location and there is no evidence of unauthorized use of plaintiffs’ information. Defendants’ ripeness argument suffers from the same infirmity as its standing argument: future unauthorized use is not the basis of plaintiffs’ claim. Plaintiffs are asking the court to determine whether defendants violated § 552a(e)(10) by failing to establish appropriate safeguards to insure the security of the hard drive, which, plaintiffs allege, resulted in the hard drive’s loss and plaintiffs’ injury.
“To determine whether a controversy is ripe, we must consider both the ‘fitness of the issues for judicial decision and the hardship to the parties of withholding court consideration.’ ”
Exxon Mobil Corp. v. Federal Energy Regulatory Comm’n,
3. Plaintiffs have stated a Privacy Act claim.
Defendants argue plaintiffs have failed to state a claim by failing to allege facts from which this court could infer (a) defendants acted intentionally or willfully; (b) plaintiffs were adversely affected; and (c) plaintiffs sustained actual damages. Id. at 18-24. The court considers each of these alleged deficiencies.
A. Intentional and Willful
“An agency acts in an intentional or willful manner ‘either by committing the act without grounds for believing it to be lawful, or by flagrantly disregarding others’ rights under the Act.’ ”
Deters v. United States Parole Comm’n,
Defendants contend that the factual allegations in plaintiffs’ complaint provide no basis for an inference of intentional or willful conduct. Plaintiffs’ complaint acknowledges that TSA notified employees
To survive a motion to dismiss, the complaint’s “[fjactual allegations must be enough to raise a right to relief above the speculative level ... on the assumption that all the allegations in the complaint are true (even if doubtful in fact).”
Bell Atlantic Corp. v. Twombly, 550
U.S. -,
B. Adverse Effect
Defendants claim plaintiffs fail to allege sufficient facts to allow the court to infer plaintiffs have suffered an adverse affect. Plaintiffs allege they “experienced adverse effects due to Defendants’ failure to safeguard the Personnel Data and/or disclosure, including but not limited to, embarrassment, inconvenience, mental distress, concern for identity theft, concern for damage to credit report, concern for damage to financial suitability requirements in employment, and future substantial financial harm.” Compl. ¶ 41. In addition, plaintiffs “who are members of the traveling public experienced adverse effects due to Defendants’ disclosure, including but not limited to, mental distress due to the possibility of security breach at airports.” Compl. ¶ 42. As a result, plaintiffs claim they “must take affirmative steps to recover peace of mind, emotional stability, and personal security, including but not limited to, frequently obtaining and reviewing credit reports, bank statements, and other similar information.” Compl. ¶ 43.
Defendants fault plaintiffs for not “describing] a single occasion on which they
C. Actual Damages
Finally, defendants assert that plaintiffs have failed to state a claim because they have not sufficiently plead actual damages. In
Doe v. Chao,
Defendants argue that the court should interpret “actual damages” narrowly, as is required in construing a waiver of sovereign immunity, to mean only out of pocket expenses, not emotional damages. Plaintiffs claim is therefore insufficient, defendants contend, as “[ejven the most favorable reading of Plaintiffs’ Complaint makes plain that they are not seeking recovery for any alleged out-of-pocket expenses.” Mot. Dismiss 23-24. Indeed, plaintiffs concede that they “have not pled current, actual, financial loss.” Opp’n at 12. Nevertheless, the court finds that plaintiffs have adequately alleged actual damages at this stage.
See Montemayor v. Federal Bureau of Prisons,
4. Injunctive and Declaratory Relief are not Remedies for Plaintiffs’ claim.
In addition to actual damages, plaintiffs’ prayer for relief seeks ten other remedies, including six types of injunctive relief (Compl. Demand ¶¶ 5-9, 12), three types of declaratory judgment (Compl. Demand ¶¶ 2-4), and a demand for
in camera
review of defendants’ security procedures (Compl. Demand ¶ 1).
13
Defendants cor
The Privacy Act’s civil remedies provision authorizes two specific forms of injunctive relief: (1) for § 552a(g)(1)(A) claims, “the court may order the agency to amend the individual’s record in accordance with his request or in such other way as the court may direct;” § 552a(g)(2)(A), and (2) for § 552a(g)(1)(B) claims, “the court may enjoin the agency from withholding the records and order the production to the complainant of any agency records improperly withheld from him,” § 552a(g)(3)(A). Plaintiffs do not bring their claim under either of these sections, but rather under § 552a(g)(1)(D).
14
As the D.C. Circuit has held “only monetary damages, not declaratory or injunctive relief, are available to § 552a(g)(1)(D) plaintiffs.”
Sussman v. U.S. Marshals Serv.,
For the foregoing reasons, defendants’ motion to dismiss is granted in part and denied in part. An appropriate order accompanies this memorandum opinion.
Notes
. Although plaintiffs’ complaint quotes only part of TSA’s May 4, 2007, email to employees, Compl. ¶ 31, the court refers to the complete email, which defendants attached to their motion. Mot. Dismiss, Exh. 1 (Decl. of Holmes). Because the complaint quotes the email in part, the court may consider the email's full text.
See Baker v. Henderson,
. Plaintiffs bring this action on behalf of a purported class of "all persons who have been adversely affected by Defendants’ Privacy Act violations.” Compl. ¶ 17.
. Indeed, plaintiffs do not contend that they are of the class for whose benefit the statute was enacted. Instead they argue that because ATSA was enacted to create a secure workforce of airport security screeners and protecting the screeners’ personnel data is vital to protecting the workforce and the airport, "implying a private right of action to enforce a security regime is consistent with the underlying purposes of enacting the ATSA, specifically, to secure the traveling public by creating a federalized security workforce.” Opp'n at 4. The Supreme Court has squarely rejected this type of argument for implying a private cause of action, holding that without statutory intent "to create not just a private right but a private remedy .... a cause of action does not exist and courts may not create one, no matter how desirable that might be as a policy matter, or
how compatible with the statute." Alexander,
Plaintiffs’ alternative argument that plaintiffs are “within the zone of interests created by the ATSA,” Opp’n at 4, is equally unavailing. The Supreme Court has explained that the "zone of interest” test is used principally to determine standing to bring APA claims and is not a universal test for standing.
Clarke v. Sec. Indus. Ass’n,
. Presented with this same question about a statute that regulated the taxi industry, the D.C. Circuit found that the D.C. Council intended the regulation not only to foster a healthy taxi industry and to justly compensate taxi companies, but also to foster competition and create a centralized system of regulation for the general public's benefit.
Dial A Car, Inc.,
. In their complaint, plaintiffs quote from § 114(f)(7) and § 114(0(11), Compl. ¶25, while their opposition states that "Plaintiffs challenge the Defendants’ failure to implement ATSA, 49 USC § 114(0(7) and § 114(f)(9).” The discrepancy is irrelevant to the court's analysis.
. In the absence of congressional intent to provide a private remedy under the first two factors, analysis under the final two factors is unnecessary.
Anderson,
. Other district courts presented with the issue have also declined to find an implied private right of action in ATSA.
Ivyport Logistical Serv., Inc. v. Caribbean Airport Facilities, Inc.,
. Indeed, any attempts to argue otherwise would fail, as the Privacy Act’s text permits no other interpretation. The subsection entitled ''Civil Remedies” provides that "[w]hen-ever any agency” violates the act in ways specified in § 552a(g)(1)(A)-(D),
“the individual
may bring a civil action against the agency, and the district courts of the United States shall have jurisdiction in the matters under the provisions of this subsection.” § 552a(g)(1) (emphasis added). The act defines “individual” as “a citizen of the United States or an alien lawfully admitted for permanent residence.” § 552a(a)(2);
see Committee in Solidarity with the People of El Salvador v. Sessions,
. As discussed in section II.4, declaratory and injunctive relief are not available for plaintiffs’ Privacy Act claim.
. Plaintiffs' concede that "the unique facts of individual members may have to be considered for a portion of the relief requested, such as financial loss....” Opp’n at 15.
."To have Article III standing, a plaintiff must demonstrate an 'actual or immediate' 'injury-in-fact' that is 'fairly traceable' to the challenged conduct and 'likely' to be 'redressed by a favorable decision.’ ”
Tozzi v. U.S. Dep’t of Health and Human Servs.,
. Although defendants argue that plaintiffs "have not alleged any injuries as a result of Defendants’ actions that are real and immediate,” in this circuit, "emotional trauma alone is sufficient to qualify as an 'adverse effect' under Section 552a(g)(1)(D) of the [Privacy] Act.”
Krieger v. Dep’t of Justice,
. Although plaintiffs acknowledge that " ‘actual damages’ must be proven in order for a court to award monetary relief,” Opp'n at 12, Plaintiffs’ opposition appears to indicate that they seek only equitable and declaratory relief, and it is unclear to the court whether
.Section 552a(g)(4) governs relief for claims under (g)(1)(D);
In any suit brought under the provisions of subsection (g)(1)(C) or (D) of this section in which the court determines that the agency acted in a manner which was intentional or willful, the United States shall be liable to the individual in an amount equal to the sum of—
(A) actual damages sustained by the individual as a result of the refusal or failure, but in no case shall a person entitled to recovery receive less than the sum of $1,000; and
(B) the costs of the action together with reasonable attorney fees as determined by the court.
5 U.S.C. § 552a(g)(4).
.
See Doe v. Chao,
. Plaintiffs contend that in
Doe v. Chao,
the Supreme Court "left open the question of whether equitable relief is available” by stating that "[t]he Privacy Act says nothing about standards of proof governing equitable relief that may be open to victims of adverse determinations or effects....” Opp’n at 12, 19 (quoting
Doe v. Chao,
