Ortiz v. Aurora Health Care, Inc. (In re Ortiz), No. 10-3465 (7th Cir. Dec. 30, 2011)

The Seventh Circuit Court of Appeals dismissed the debtors’ appeal of the bankruptcy court’s dismissal of the debtors’ state law counterclaims because the bankruptcy court lacked authority to enter a final judgment on the debtors’ counterclaims, and without a final judgment, there was no basis for appellate jurisdiction.

Aurora Health Care, Inc. filed, in various bankruptcy cases, proofs of claims that disclosed the debtors’ medical treatment information. Two groups of debtors filed separate class action lawsuits against Aurora, alleging that because the proofs of claims were public, Aurora was in violation of a Wisconsin statute that prohibits disclosure of health care records without the individual’s consent. The bankruptcy court dismissed the debtors’ complaints for failure to state a cause of action and the Seventh Circuit granted the debtors’ motion for direct appeal.

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