Raven Fox v. Dakkota Integrated Systems ( 2020 )


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  •                                 In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________________
    No. 20-2782
    RAVEN FOX,
    Plaintiff-Appellee,
    v.
    DAKKOTA INTEGRATED SYSTEMS, LLC,
    Defendant-Appellant.
    ____________________
    Appeal from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    No. 19 C 2872 — Charles P. Kocoras, Judge.
    ____________________
    ARGUED OCTOBER 29, 2020 — DECIDED NOVEMBER 17, 2020
    ____________________
    Before SYKES, Chief Judge, and WOOD and BRENNAN,
    Circuit Judges.
    SYKES, Chief Judge. As its name suggests, the Illinois Bio-
    metric Information Privacy Act (“BIPA” or “the Act”) pro-
    tects a person’s privacy interests in his biometric identifiers,
    including fingerprints, retina and iris scans, hand scans, and
    facial geometry. See 740 ILL. COMP. STAT. 14/1 et seq. (2008).
    Section 15 of the Act comprehensively regulates the collec-
    tion, use, retention, disclosure, and dissemination of bio-
    2                                                   No. 20-2782
    metric identifiers.
    Id. § 14/15. Section
    20 provides a right of
    action for persons aggrieved by a violation of the statute.
    Id. § 14/20. This
    appeal requires us to decide a question of Article III
    standing for a claimed violation of section 15(a), which
    requires a private entity in possession of biometric data to
    develop, publicly disclose, and implement a retention
    schedule and guidelines for destroying the data when the
    initial purpose for collection ends.
    Id. § 14/15(a). In
    Bryant v.
    Compass Group USA, Inc., we addressed standing to sue for
    two BIPA claims: (1) a violation of section 15(b), the Act’s
    informed-consent provision; and (2) a violation of one part
    of section 15(a)—namely, the duty to publicly disclose a
    data-retention policy. 
    958 F.3d 617
    , 619 (7th Cir. 2020). We
    held that the plaintiff had standing to pursue the sec-
    tion 15(b) claim, but our view of the section 15(a) claim was
    different.
    Id. at
    626. 
    The plaintiff had not alleged any con-
    crete and particularized harm from the defendant’s failure to
    publicly disclose a data-retention policy, so we held that she
    lacked standing on that claim.
    Id. The latter holding
    was
    quite limited. We cautioned that our analysis was confined
    to the narrow violation the plaintiff alleged; we did not
    address standing requirements for claims under other parts
    of section 15(a).
    This appeal raises the question reserved in Bryant. Raven
    Fox filed a proposed class action in state court alleging that
    Dakkota Integrated Systems, her former employer, collected,
    used, retained, and disclosed her handprint for its timekeep-
    ing system. She raised several claims under BIPA, but the
    one that concerns us here accuses Dakkota of violating
    section 15(a).
    No. 20-2782                                                 3
    Dakkota removed the case to federal court under the
    Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1453, and
    moved to dismiss the claims as preempted by federal labor
    law. The district judge read Bryant to foreclose Article III
    standing for section 15(a) claimants, so he remanded that
    claim to state court and dismissed the others.
    The remand order was a mistake. Unlike in Bryant, Fox’s
    section 15(a) claim does not allege a mere procedural failure
    to publicly disclose a data-retention policy. Rather, Fox
    alleges a concrete and particularized invasion of her privacy
    interest in her biometric data stemming from Dakkota’s
    violation of the full panoply of its section 15(a) duties—the
    duties to develop, publicly disclose, and comply with data
    retention and destruction policies—resulting in the wrongful
    retention of her biometric data after her employment ended,
    beyond the time authorized by law. These allegations suffice
    to plead an injury in fact for purposes of Article III. The
    invasion of a legally protected privacy right, though intangi-
    ble, is personal and real, not general and abstract. Because
    the section 15(a) claim was properly in federal court, we
    reverse the remand order and return the case to the district
    court for consideration of the preemption question.
    I. Background
    We recount the facts as alleged in the class-action com-
    plaint, accepting them as true for present purposes. From
    2012 to 2019, Raven Fox worked for Dakkota Integrated
    Systems, an automotive supplier with several locations in
    the Midwest. Throughout her employment Fox was a “Team
    Lead” at Dakkota’s Chicago plant. Dakkota required em-
    ployees, including Fox, to clock in and out of work by scan-
    ning their hands on a biometric timekeeping device.
    4                                                  No. 20-2782
    Dakkota used third-party software to capture employees’
    biometric data, which were then stored in a timekeeping
    database administered by a third party. Though not specifi-
    cally alleged in the complaint, it’s undisputed that Fox was
    represented by a union during her employment.
    To understand Fox’s claims, an overview of the Illinois
    biometrics statute is helpful. The General Assembly enacted
    BIPA in 2008 in response to the growing use of biometrics
    “in the business and security screening sectors,” especially in
    Chicago and other locations in Illinois that were then emerg-
    ing “as pilot testing sites for new applications of biometric-
    facilitated financial transactions.” 740 ILL. COMP. STAT.
    14/5(a), (b). The legislative findings include a section regard-
    ing the immutability of biometric identifiers and the associ-
    ated heightened risk of identity theft:
    Biometrics are unlike other unique identifiers
    that are used to access finances or other sensi-
    tive information. For example, social security
    numbers, when compromised, can be changed.
    Biometrics, however, are biologically unique to
    the individual; therefore, once compromised,
    the individual has no recourse, is at heightened
    risk for identity theft, and is likely to withdraw
    from biometric-facilitated transactions.
    Id. § 14/5(c). The
    legislative findings also acknowledge that
    “[t]he full ramifications of biometric technology are not fully
    known.”
    Id. § 14/5(f). Accordingly,
    the General Assembly
    found that “[t]he public welfare, security, and safety will be
    served by regulating the collection, use, safeguarding,
    handling, storage, retention, and destruction of biometric
    identifiers and information.”
    Id. § 14/5(g). No.
    20-2782                                                   5
    To that end, section 15(b) of the Act prohibits private en-
    tities from collecting, capturing, or otherwise obtaining a
    person’s biometric identifiers or information without the
    person’s informed written consent.
    Id. § 14/15(b). The
    informed-consent regime bars the collection of biometric
    identifiers or information unless the collector first informs
    the person “in writing of the specific purpose and length of
    term for which [data are] being collected, stored, and used”
    and “receives a written release” from the person or his
    legally authorized representative. Section 15(d) prohibits the
    disclosure, redisclosure, or dissemination of stored biometric
    identifiers or information without the consent of the person
    or his legally authorized representative.
    Id. § 14/15(d). Most
    relevant here, the Act also imposes obligations re-
    garding the retention and destruction of biometric identifiers
    and information. Section 15(a) of the Act provides:
    A private entity in possession of biometric
    identifiers or information must develop a writ-
    ten policy, made available to the public, estab-
    lishing a retention schedule and guidelines for
    permanently destroying biometric identifiers
    and biometric information when the initial
    purpose for collecting or obtaining such identi-
    fiers or information has been satisfied or with-
    in 3 years of the individual’s last interaction
    with the private entity, whichever occurs first.
    Additionally, a private entity in possession of biometric
    identifiers or information “must comply” with a data-
    retention schedule and destruction guidelines “[a]bsent a
    valid warrant or subpoena” to the contrary.
    Id. § 14/15(a). 6
                                                      No. 20-2782
    The term “biometric identifier” is defined as “a retina or
    iris scan, fingerprint, voiceprint, or scan of hand or face
    geometry.”
    Id. § 14/10. Finally,
    the Act provides a cause of
    action for persons aggrieved by a violation and permits the
    court to award injunctive relief, actual or statutory damages,
    and attorney’s fees.
    Id. § 14/20. With
    the legal background in place, we return to the
    complaint. Fox alleges that Dakkota did not obtain her
    informed written consent before collecting her biometric
    identifiers as required by the Act and unlawfully disclosed
    or disseminated her biometric data to unnamed third parties
    without her consent—including to a third-party administra-
    tor that hosted the employees’ biometric data in its data
    center. She further alleges that Dakkota failed to develop,
    publicly disclose, and implement a data-retention schedule
    and guidelines for the permanent destruction of its employ-
    ees’ biometric identifiers. Finally, she alleges that Dakkota
    failed to permanently destroy her biometric data when she
    left the company and still has not done so.
    Fox filed her suit in state court as a proposed class action.
    Count I alleges a violation of section 15(a) premised on
    Dakkota’s failure to develop, publicly disclose, and comply
    with a retention schedule and destruction guidelines for the
    biometric data it collects from its employees. Counts II and
    III allege violations of sections 15(b) and (d) premised on
    Dakkota’s failure to obtain informed consent before collect-
    ing biometric data and its failure to obtain consent to dis-
    close or disseminate the data to third parties.
    Dakkota removed the suit to federal court under CAFA
    and moved to dismiss all three claims as preempted by the
    Labor Management Relations Act, 29 U.S.C. §§ 141–197
    No. 20-2782                                                                7
    (“LMRA”). Because Fox was represented by a union when
    she worked for Dakkota, the preemption argument relied on
    our recent decision in Miller v. Southwest Airlines Co., which
    held that similar BIPA claims by unionized airline employees
    were preempted by the federal Railway Labor Act. 
    926 F.3d 898
    , 902–03 (7th Cir. 2019).
    The judge agreed in part and dismissed Counts II and III,
    the section 15(b) and (d) claims, as preempted by the LMRA.
    But he remanded the section 15(a) claim to state court sua
    sponte, construing our decision in Bryant to mean that a
    violation of that section of the statute is insufficient to sup-
    port standing to sue in federal court. Dakkota sought recon-
    sideration of the remand order on Count I, but the judge
    denied the motion. Dakkota petitioned this court for permis-
    sion to appeal, as CAFA permits. We granted that request.
    II. Discussion
    An order remanding a case to state court normally can-
    not be appealed. 28 U.S.C. § 1447(d). But in cases removed
    under CAFA, we may accept an appeal from an order
    granting or denying a motion to remand.
    Id. § 1453(c)(1). 1
    1 The district court’s jurisdiction rested on diversity of citizenship.
    28 U.S.C. § 1332. CAFA’s minimal-diversity requirement is satisfied
    because Fox is a citizen of Illinois and Dakkota’s members are citizens of
    Michigan and Canada; the amount-in-controversy requirement is
    satisfied because the class seeks over $5 million in damages.
    Id. § 1332(d). Federal-question
    jurisdiction provides additional support for removal.
    Under the complete-preemption doctrine, “a plaintiff’s state cause of
    action [can be recast] as a federal claim for relief making [its] removal [by
    the defendant] proper on the basis of federal question jurisdiction.”
    Vaden v. Discover Bank, 
    556 U.S. 49
    , 61 (2009) (alterations in original)
    (quotation marks omitted).
    8                                                    No. 20-2782
    The judge’s remand decision flows from his conclusion that
    Bryant defeats Article III standing for violations of BIPA’s
    section 15(a). We review that decision de novo. See, e.g., Cook
    County v. Wolf, 
    962 F.3d 208
    , 218 (7th Cir. 2020).
    A. Article III Standing
    The federal judiciary is empowered to decide “Cases”
    and “Controversies,” U.S. CONST. art. III, § 2, a limitation that
    confines federal courts to hearing only those disputes that
    are sufficiently concrete and presented in a form historically
    recognized as appropriate for judicial resolution,
    DaimlerChrysler Corp. v. Cuno, 
    547 U.S. 332
    , 341 (2006). To
    invoke the adjudicative power of a federal court, the plaintiff
    must plead (and later establish) standing to sue, a require-
    ment “rooted in the traditional understanding of a case or
    controversy.” Spokeo, Inc. v. Robins, 
    136 S. Ct. 1540
    , 1547
    (2016). Where, as here, a case is removed from state court,
    the roles are reversed and the burden flips: In this procedur-
    al posture, the defendant, as the proponent of federal jurisdic-
    tion, must establish the plaintiff’s Article III standing. 
    Bryant, 958 F.3d at 620
    .
    The elements of standing are familiar. “The plaintiff must
    have (1) suffered an injury in fact, (2) that is fairly traceable
    to the challenged conduct of the defendant, and (3) that is
    likely to be redressed by a favorable judicial decision.”
    
    Spokeo, 136 S. Ct. at 1547
    . The injury-in-fact requirement is
    usually the main event in litigation over standing, and it’s
    the only element at issue here. The test for injury in fact asks
    whether the plaintiff has “suffered ‘an invasion of a legally
    protected interest’ that is ‘concrete and particularized’ and
    ‘actual or imminent, not conjectural or hypothetical.’”
    Id. at
    No. 20-2782                                                    9
    1548 (quoting Lujan v. Defenders of Wildlife, 
    504 U.S. 555
    , 560
    (1992)).
    A “particularized” injury is one that “affect[s] the plain-
    tiff in a personal and individual way.” 
    Lujan, 504 U.S. at 560
    n.1. A generalized grievance shared by all members of the
    public will not suffice. 
    DaimlerChrysler, 547 U.S. at 342
    –44. To
    qualify as “concrete,” an injury must be “real, … not ab-
    stract.” 
    Spokeo, 136 S. Ct. at 1548
    (quotation marks omitted).
    “[T]hat is, it must actually exist.”
    Id. Concrete injuries can
    be either tangible or intangible.
    Id. at
    1549. Tangible injuries are easy to recognize; monetary
    losses and physical harms to persons or property are com-
    mon examples.
    Id. Intangible injuries can
    be conceptually
    more difficult. And claims of an intangible injury from a
    statutory violation are more difficult still. Congress or a state
    legislature may identify and elevate historically non-
    cognizable intangible harms to the status of cognizable
    injuries, but it does not follow that the injury-in-fact re-
    quirement is satisfied whenever a statute confers a right or
    imposes a duty and creates a cause of action for a violation.
    Id. As the Supreme
    Court made crystal clear in Spokeo,
    “Article III standing requires a concrete injury even in the
    context of a statutory violation.”
    Id. To determine whether
    an intangible harm satisfies the
    injury-in-fact requirement in a statutory case, both the
    legislature’s judgment and historical judicial practice “play
    important roles.”
    Id. Legislative judgment is
    “instructive and
    important” to discerning concrete cognizable injuries, but it’s
    not conclusive.
    Id. Because standing is
    a constitutional
    requirement, a legislature “cannot erase Article III’s standing
    requirements by statutorily granting the right to sue to a
    10                                                No. 20-2782
    plaintiff who would not otherwise have standing.”
    Id. at
    1548 (quotation marks omitted). By way of example, Spokeo
    explained that if a plaintiff pleads a statutory claim but
    alleges only a “bare procedural violation, divorced from any
    concrete harm,” he will not have satisfied the injury-in-fact
    requirement.
    Id. at
    1549.
    B. Article III Standing and BIPA
    Three recent BIPA cases hold the keys to the standing
    question. We’ve already mentioned Bryant and Miller. The
    third case is Patel v. Facebook, Inc., 
    932 F.3d 1264
    (9th Cir.
    2019), a Ninth Circuit decision in a BIPA case originating in
    the Northern District of California. We’ll discuss the cases in
    chronological order, starting with Miller.
    Miller involved two class actions by unionized airline
    employees who were required to clock in and out of work by
    scanning their 
    fingerprints. 926 F.3d at 901
    . The employees
    alleged that the airlines violated sections 15(a) and (b) of
    BIPA by failing to obtain informed consent before collecting
    and using their fingerprints in the biometric timekeeping
    systems, and by failing to maintain and publish data-
    retention protocols. The suits were filed in state court, but
    the airlines removed them to federal court and moved to
    dismiss, arguing that the claims were preempted by the
    Railway Labor Act, 45 U.S.C. §§ 151–188, which despite its
    name also applies to air carriers. 
    Miller, 926 F.3d at 901
    –02.
    Turning first to the question of standing, we concluded
    that the suits alleged an injury that was sufficiently concrete
    to confer Article III standing because the collection and use
    of biometrics for timekeeping is a subject of collective bar-
    gaining between unions and management:
    No. 20-2782                                                 11
    [T]he stakes in both suits include whether the
    air carriers can use fingerprint identification. If
    the unions have not consented, or if the carriers
    have not provided unions with required in-
    formation, a court or adjustment board may
    order a change in how workers clock in and
    out. The prospect of a material change in workers’
    terms and conditions of employment gives these
    suits a concrete dimension that Spokeo … lacked.
    Either the discontinuation of the practice, or
    the need for the air carriers to agree to higher
    wages to induce unions to consent, presents
    more than a bare procedural dispute.
    Id. at
    902 (emphasis added).
    Moving on to the preemption question, we held that the
    BIPA claims belonged before an adjustment board pursuant
    to the Railway Labor Act, which governs “topics for bargain-
    ing between unions and management” such as how workers
    clock in and out.
    Id. at
    903. Because Illinois “cannot bypass
    the mechanisms of the Railway Labor Act and authorize
    direct negotiation or litigation between workers and man-
    agement,” we held that the BIPA claims were preempted.
    Id. Next in line
    is Patel. The plaintiffs there sued Facebook
    for BIPA violations stemming from its “Tag Suggestions”
    feature, which uses facial-recognition technology to identify
    whether a user’s Facebook friends are depicted in an up-
    loaded photo. 
    Patel, 932 F.3d at 1268
    . Several Illinois Face-
    book users filed a class action alleging violations of
    sections 15(a) and (b) based on Facebook’s failure to main-
    tain and publicly disclose a data-retention schedule and
    data-destruction guidelines, and its failure to obtain written
    12                                                No. 20-2782
    informed consent before collecting and using biometrics.
    Id. at
    1274.
    The Ninth Circuit held that the Facebook users’ injury
    was sufficiently concrete and particularized to support
    Article III standing.
    Id. The court reasoned
    that the Illinois
    statute protects individual privacy interests in biometric
    identifiers—that is, a person’s “right not to be subject to the
    collection and use of [his] biometric data.”
    Id. Looking to historical
    judicial practice, the court analogized the privacy
    injury from a BIPA violation to the privacy injury that has
    long been recognized as actionable at common law in a tort
    claim for invasion of privacy.
    Id. at
    1272 (citing the
    RESTATEMENT (SECOND) OF TORTS § 652A (AM. L. INST. 1977)).
    The Facebook users “necessarily” suffered a concrete and
    particularized injury when Facebook did not obtain their
    informed consent before collecting their biometric data and
    failed to maintain data retention and destruction protocols to
    keep their biometric data private.
    Id. at
    1274. The court
    concluded that because BIPA protects concrete privacy
    interests and the alleged violations of the statute “actually
    harm[ed] or pose a material risk of harm to those privacy
    interests,” the plaintiffs had alleged an injury in fact suffi-
    cient to confer Article III standing.
    Id. at
    1275.
    Finally, in Bryant we returned to the question of
    Article III standing for claims raised under sections 15(a) and
    (b). Christine Bryant sued Compass Group USA, Inc., the
    owner and operator of “Smart Market” vending machines
    located in her workplace cafeteria. 
    Bryant, 958 F.3d at 619
    –20.
    The vending machines did not accept cash. Instead, custom-
    ers established a user account by scanning their fingerprints
    and setting up a payment link; they could then make pur-
    No. 20-2782                                                  13
    chases using a fingerprint scanner on the machines. Bryant
    voluntarily set up an account and regularly made purchases
    from the vending machines. She filed a proposed class action
    in state court accusing Compass Group of two BIPA viola-
    tions: it “never made publicly available” a data-retention
    schedule and data-destruction guidelines, violating sec-
    tion 15(a), and it never obtained her informed consent in
    writing, violating section 15(b).
    Id. at
    619.
    Compass Group removed the case to federal court, and
    like in Miller, Article III standing was contested. We distilled
    Miller’s core holding to this: “[The] union airline workers
    had standing to bring claims of violations of sections 15(a)
    and (b) of BIPA in federal court” because “they faced the
    ‘prospect of a material change in [their] terms and conditions
    of employment,’ if the employer, in light of [BIPA], had to
    bargain with the employee union to obtain employees’
    consent or change how the employees clocked in.”
    Id. at
    622
    (quoting 
    Miller, 926 F.3d at 902
    ). But Miller did not resolve
    Bryant’s case because she was not a unionized employee and
    had not sued her employer; she was a vending-machine
    customer and had sued the vendor. Accordingly, we treated
    the standing issue as “a question of first impression.”
    Id. at
    623.
    Like the Ninth Circuit in Patel, we reasoned that BIPA
    protects individual privacy interests in biometric data, and a
    violation of some of its provisions was akin to a tortious
    invasion of privacy.
    Id. In her section
    15(b) claim, “Bryant
    was asserting a violation of her own rights—her finger-
    prints, her private information,” which “was an invasion of
    her private domain, much like an act of trespass would be.”
    Id. at
    624. Compass Group’s failure to comply with the
    14                                                 No. 20-2782
    informed-consent requirements of section 15(b) deprived
    Bryant of her right to make informed choices about the use
    of and control over her inherently sensitive biometric data.
    Id. at
    626. 
    That deprivation, we concluded, caused “a con-
    crete injury-in-fact that is particularized to Bryant” and
    therefore satisfied the requirements for Article III standing.
    Id. We reached a
    different conclusion on the section 15(a)
    claim. Bryant alleged that Compass Group did not make
    data-retention and data-destruction policies publicly availa-
    ble.
    Id. That violation, we
    held, was insufficiently particular-
    ized to support Bryant’s standing. We explained that “the
    duty to disclose [data-retention policies] under section 15(a)
    is owed to the public generally, not to particular persons
    whose biometric information the entity collects.”
    Id. And because Bryant
    “allege[d] no particularized harm that
    resulted from Compass [Group’s] violation of section 15(a),”
    we concluded that she lacked Article III standing to pursue
    that claim in federal court.
    Id. Following a petition
    for rehearing in Bryant, we amended
    the opinion to clarify the limits of the section 15(a) holding.
    Bryant’s claim was extremely narrow, alleging only a viola-
    tion of the section 15(a) duty to publicly disclose data reten-
    tion and destruction protocols. We emphasized that “[o]ur
    analysis is thus limited to the theory she invoked” and did
    not address other provisions in section 15(a).
    Id. That clarification is
    important here. Fox’s section 15(a)
    claim is much broader than Bryant’s. She does not allege a
    mere failure to publicly disclose a data-retention policy. She
    accuses Dakkota of violating the full range of its section 15(a)
    duties by failing to develop, publicly disclose, and comply
    No. 20-2782                                                   15
    with a data-retention schedule and guidelines for the perma-
    nent destruction of biometric data when the initial purpose
    for collection ends. That violation, she alleges, resulted in the
    unlawful retention of her handprint after she left the compa-
    ny and the unlawful sharing of her biometric data with the
    third-party database administrator.
    An unlawful retention of biometric data inflicts a privacy
    injury in the same sense that an unlawful collection does.
    Just as section 15(b) expressly conditions lawful collection of
    biometric data on informed consent, section 15(a) expressly
    conditions lawful retention of biometric data on the continua-
    tion of the initial purpose for which the data was collected.
    The BIPA requirement to implement data retention and
    destruction protocols protects a person’s biometric privacy
    just as concretely as the statute’s informed-consent regime. It
    follows that an unlawful retention of a person’s biometric
    data is as concrete and particularized an injury as an unlaw-
    ful collection of a person’s biometric data. If the latter quali-
    fies as an invasion of a “private domain, much like an act of
    trespass would be,” 
    Bryant, 958 F.3d at 624
    , then so does the
    former.
    Our decision in Gubala v. Time Warner Cable, Inc., 
    846 F.3d 909
    (7th Cir. 2017), is not to the contrary. That case involved
    a claim against a cable-television provider for violation of a
    data-keeping provision in the Cable Communications Policy
    Act, 47 U.S.C. § 551(e).
    Id. at
    910. The plaintiff was a former
    Time Warner Cable customer who alleged that the company
    failed to destroy the personal identifying information in his
    account file after he terminated his subscription, as the
    statute requires. We held that the plaintiff lacked standing
    because he did not allege that Time Warner had lost, leaked,
    16                                                        No. 20-2782
    given away, disseminated, or otherwise misused his identi-
    fying information in any way that harmed him, or that the
    statutory violation created a materially appreciable risk of
    any such harm to him.
    Id. at
    910–11.
    This case differs from Gubala for two reasons. First, keep-
    ing a former cable customer’s account information on file—
    his address, date of birth, telephone number, credit card and
    social security numbers—is not analogous to a tortious
    invasion of his right to privacy. It may be a procedural
    violation of the federal statute regulating cable companies,
    but absent a plausible allegation of harm or “a material risk
    of harm” from the violation, 
    Spokeo, 136 S. Ct. at 1550
    , there’s
    no concrete injury and therefore no Article III standing,
    
    Gubala, 846 F.3d at 911
    (citing Spokeo and explaining that
    “Gubala’s problem is that while he might well be able to
    prove a violation of section 551, he has not alleged any
    plausible (even if attenuated) risk of harm to himself from
    such a violation—any risk substantial enough to be deemed
    ‘concrete’”).
    In contrast, this case is about biometric identifiers, which
    are meaningfully different because they are immutable, and
    once compromised, are compromised forever—as the legis-
    lative findings in BIPA reflect. 2 That legislative judgment,
    though not conclusive, is “instructive and important.”
    
    Spokeo, 136 S. Ct. at 1549
    . A similar understanding of the
    2 In Gubala the plaintiff’s date of birth was among the information the
    cable provider neglected to remove from his account. A date of birth is
    obviously unchangeable but is far less identifying than a retinal or iris
    scan, facial geometry, fingerprints, or handprints.
    No. 20-2782                                                 17
    inherent sensitivity of biometric data led to our conclusion in
    Bryant that a violation of BIPA’s provisions regulating the
    “collection, storage, and use” of biometrics “is closely analo-
    gous to historical claims for invasion of 
    privacy.” 958 F.3d at 623
    . The Ninth Circuit said essentially the same thing in
    
    Patel. 932 F.3d at 1272
    –74.
    We see another distinction between this case and Gubala.
    Fox alleges that Dakkota’s unlawful retention of her bio-
    metric data includes an unlawful sharing of her data with a
    third-party database administrator with unknown security
    practices. There was no similar allegation of unlawful data
    sharing in Gubala.
    Fox also has Article III standing on Count I under a
    straightforward application of Miller. Recall that the Miller
    plaintiffs were unionized airline employees who accused
    their employers of violating sections 15(a) and (b). We held
    that the plaintiffs, as union members, had standing to pur-
    sue their claims in federal court because the collection, use,
    and retention of biometric data are topics for collective
    bargaining and could be used to win offsetting concessions
    on wages or other topics. 
    Miller, 926 F.3d at 902
    . That was a
    concrete injury and was “independently sufficient” to
    establish standing, so we had no need to address whether
    the risk of misuse of the employees’ stored biometrics “itself
    suffices for standing.”
    Id. at
    903.
    Fox’s circumstances are indistinguishable. Because Fox
    was represented by a union and that union had the prospect
    of making material improvements in the way BIPA was
    implemented, Miller’s reasoning applies with equal force
    here. We add that as Bryant illustrates, people whose claims
    do not arise directly from an employment relationship might
    18                                                  No. 20-2782
    also have a prospect of material improvements, depending
    on the circumstances. We can safely save that situation for
    another day when we have a case with those facts.
    For these two separate and independent reasons, Fox has
    standing to litigate her section 15(a) claim in federal court, so
    the judge’s remand order must be reversed. There remains
    the question whether section 15(a) is preempted by the
    LMRA. See
    id. at 904–06.
    The judge did not address this
    issue, and the parties did not brief it here. Although the
    answer appears to flow directly from Miller, we prefer to
    remand to the district court to address the issue in the first
    instance.
    REVERSED AND REMANDED
    

Document Info

Docket Number: 20-2782

Judges: Sykes

Filed Date: 11/17/2020

Precedential Status: Precedential

Modified Date: 11/18/2020