Standifer v. Best Buy Stores, L.P.

• Decision Date: 30 January 2019
• Docket Number: 7:16-cv-01176-LSC
• Parties: Sharon STANDIFER, Individually and d/b/a Superior Office Solutions, Plaintiff, v. BEST BUY STORES, L.P., Defendant.
• Court: U.S. District Court — Northern District of Alabama

364 F.Supp.3d 1286

Sharon STANDIFER, Individually and d/b/a Superior Office Solutions, Plaintiff,

v.BEST BUY STORES, L.P., Defendant.

7:16-cv-01176-LSC

United States District Court, N.D. Alabama, Western Division.

Signed January 30, 2019

D. Blake Williams, Robert F. Prince, Prince, Glover & Hayes, P.C., Tuscaloosa, AL, for Plaintiff.

David L. Woodard, Poyner & Spruill LLP, Raleigh, NC, C. Steven Ball, Robert David Windsor, Carr Allison PC, Birmingham, AL, for Defendant.

MEMORANDUM OF OPINION

L. Scott Coogler, United States District JudgeBefore the Court is Plaintiff Sharon Standifer's ("Standifer") motion for partial summary judgment (doc. 37) and Defendant Best Buy Stores, L.P.'s ("Best Buy") motion for summary judgment (doc. 39). The motions have been fully briefed and are ripe for review. For the reasons stated below, Standifer's motion for partial summary judgment (doc. 37) is due to be GRANTED in PART and DENIED in PART and Best Buy's motion for summary judgment (doc. 39) is also due to be GRANTED in PART and DENIED in PART.

I. BACKGROUND ¹

Standifer is the sole owner and proprietor of Superior Office Solutions ("SOS"), an accounting and business consulting company. To conduct business, Standifer would sometimes use her husband's computer. On August 14, 2015, Standifer's husband was using his computer when he opened a file and a blue screen appeared. The next day, Standifer took the computer to a Best Buy location in Tuscaloosa, Alabama to be repaired. Although Standifer had previously purchased accessories, such as cables, videos, and TVs, from Best Buy, she had never before used its Geek Squad's computer services. Her knowledge of Best Buy's computer sales and services came exclusively from general advertisements.

While at Best Buy, Standifer decided to replace her husband's computer with a new Lenovo computer instead of having the original computer repaired. She purchased the computer for $557.24 and requested that Best Buy transfer all of the data from the original computer to the Lenovo. This data included information about several of her clients. As part of the transaction, Standifer entered into a Data Services Agreement with Best Buy, which provided that Best Buy would set up Standifer's new computer, install software on the computer, and complete the requested data transfer. The Data Services Agreement included several waivers and disclaimers, which stated that Geek Squad would not be liable for any indirect, incidental, or consequential damages. Best Buy then retained possession of Standifer's original computer from August 15, 2015 to August 24, 2015. At no point did Standifer ask or Best Buy explain how the data from the original computer would be securely transferred to the Lenovo computer.

On August 20, 2015, Best Buy sent Standifer an email stating that her computer had reached the "Ultimate Fix-It Stage" and that a Geek Squad Agent was actively repairing her device. (See Doc. 49-4.) After being informed by Best Buy employees that the data transfer between her original computer and the Lenovo had not yet occurred, Standifer cancelled the data transfer, picked up her old computer, and received a full refund. Standifer then purchased a new computer from Tuscom, the business where Standifer had purchased her original computer, and Tuscom transferred the data from the original computer to the new one.

On November 24, 2015, Phil Simpson ("Simpson"), a captain with the Tuscaloosa Police Department, notified Standifer that data stored on her original computer had been found on his father's iMac. Both Simpson and his father had viewed certain files belonging to Standifer. Simpson's father had purchased the iMac from Best Buy's Tuscaloosa location in October 2015. According to a Forensic Investigation Report, the data from Standifer's computer was copied to the Simpson computer on August 23, 2015, while both computers were in Best Buy's possession. Many of the files were then moved to another folder, labeled "geekSQUAD BACKUP," on October 21, 2015, which is the day that Simpson's father picked up the computer from Best Buy. However, it remains unclear how Standifer's information ended up on the Simpson computer. Although Standifer's expert was able to determine when the data transfer occurred, his report does not include evidence as to who transferred the data. Moreover, Best Buy has no records that Standifer's computer was ever hooked up for data services.²

The data found on the Simpson computer included files containing sensitive information about Standifer and her clients. Among these files were Standifer's personal tax returns, the tax returns of some of her clients, and documents regarding Standifer's sister's medical history. Standifer admits that aside from a log-in password she had not independently password protected most of these documents. The day after Simpson contacted Standifer, he went with her to Best Buy to inform the store about Standifer's data appearing on his father's computer. Best Buy responded by creating an Incident Management Report, which discussed the allegedly unauthorized transfer. The Incident Management Report refers to the unauthorized transfer as a "data transfer error," and contains a statement from a Best Buy executive that "[i]t would certainly appear we had a hand in this issue." (See Doc. 49-5 at BB_33.) On December 3, 2015, Standifer sent a letter to her clients notifying them that their information may have been transferred to the Simpson computer.

The parties largely dispute how the data transfer has affected Standifer both professionally and personally. Standifer has not lost clients, received bad reviews, or seen a reduction in her business's revenue due to the data breach. However, Standifer has testified that she has worked many unbilled hours to protect her client's information by setting up new logins and changing passwords. She also claims to have taken on new clients for fear that her old clients would leave her. Standifer's client, Mark English, has expressed concerns that some suspicious activity on his credit report may have been related to the data transfer. Standifer wrote to three different credit agencies on English's behalf. Standifer also testified that due to her tax returns appearing on the Simpson computer she filled out an affidavit with the IRS and the State of Alabama. Standifer has indicated that this incident has caused her to suffer from anxiety.

II. STANDARD

Summary judgment is appropriate "if the movant shows that there is no genuine dispute as to any material fact³ and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A dispute is genuine if "the record taken as a whole could lead a rational trier of fact to find for the nonmoving party." Id. A genuine dispute as to a material fact exists "if the nonmoving party has produced evidence such that a reasonable factfinder could return a verdict in its favor." Greenberg v. BellSouth Telecomms., Inc. , 498 F.3d 1258, 1263 (11th Cir. 2007) (quoting Waddell v. Valley Forge Dental Assocs. , 276 F.3d 1275, 1279 (11th Cir. 2001) ). The trial judge should not weigh the evidence, but determine whether there are any genuine issues of fact that should be resolved at trial. Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 249, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

In considering a motion for summary judgment, trial courts must give deference to the non-moving party by "view[ing] the materials presented and all factual inferences in the light most favorable to the nonmoving party." Animal Legal Def. Fund v. U.S. Dep't of Agric. , 789 F.3d 1206, 1213–14 (11th Cir. 2015) (citing Adickes v. S.H. Kress & Co. , 398 U.S. 144, 157, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970) ). However, "unsubstantiated assertions alone are not enough to withstand a motion for summary judgment." Rollins v. TechSouth, Inc. , 833 F.2d 1525, 1529 (11th Cir. 1987). Conclusory allegations and "mere scintilla of evidence in support of the nonmoving party will not suffice to overcome a motion for summary judgment." Melton v. Abston , 841 F.3d 1207, 1220 (11th Cir. 2016) (per curiam) (quoting Young v. City of Palm Bay, Fla. , 358 F.3d 859, 860 (11th Cir. 2004) ). In making a motion for summary judgment, "the moving party has the burden of either negating an essential element of the nonmoving party's case or showing that there is no evidence to prove a fact necessary to the nonmoving party's case." McGee v. Sentinel Offender Servs., LLC , 719 F.3d 1236, 1242 (11th Cir. 2013). Although the trial courts must use caution when granting motions for summary judgment, "[s]ummary judgment procedure is properly regarded not as a disfavored procedural shortcut, but rather as an integral part of the Federal Rules as a whole." Celotex Corp. v. Catrett , 477 U.S. 317, 327, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

III. DISCUSSION

Standifer brings claims for breach of contract, breach of fiduciary duty, conversion, fraud, fraudulent suppression, wantonness, and negligence against Best Buy. Best Buy asserts that summary judgment is due to be granted on each of Standifer's claims both for substantive reasons and because Standifer has failed to prove her damages. Standifer argues that she is entitled to summary judgment on Best Buy's contributory negligence defense. Each of these arguments will be addressed in turn.

A. Breach of Contract

In order to be successful on her breach of contract claim, Standifer must demonstrate (1) a valid contract binding the parties; (2) her own performance under the contract; (3) Best Buy's nonperformance under the contract; and (4) resulting damages. See Barrett v. Radjabi-Mougadam , 39 So.3d 95, 98 (Ala. 2009). A valid contract requires "an offer and an acceptance, consideration, and mutual assent to terms essential to the formation of a contract." Ex parte Grant , 711 So.2d 464, 465 (Ala. 1997) (quoting Strength v. Ala. Dep't of Fin., Div. of Risk Mgmt. , 622 So.2d 1283, 1289 (Ala. 1993) ).

Standifer...