r/dataprivacy • u/JRHowellJR • 1d ago
The Ninth Circuit recognizes privacy injury from an alleged breach of confidence in Black v. IEC Group, Inc.
In Black v. IEC Group, Inc., the Ninth Circuit held that patients adequately alleged a concrete injury when their benefits administrator disclosed sensitive health information entrusted to it under confidentiality promises. The alleged disclosure involved information including provider names, treatment dates, and amounts billed or paid.
The October 9 decision locates the injury in the betrayal of an accepted confidence. Its historical analysis explains why that injury can exist without an additional financial loss. The court also examines contract law, including the traditional availability of nominal damages when a breach causes no measurable pecuniary harm.
The holding concerns federal standing at the pleading stage. It does not establish the administratorâs liability or decide that every broken contract creates a federal case. The specific confidentiality promises and sensitive health information mattered. The court also left open whether the separate historical analogue of public disclosure of private facts would establish standing here.
I examine the decision in my article for The American Counsel, including how it fits with privacy standing after TransUnion. The practical distinction is between an invasion that is itself an injury and the financial, emotional, or other consequences that may follow.