- Court Dismisses Third-Party Complaint against Credit Card Processor in Class Action FACTA Truncation Case
- November 8, 2010 | Author: Erik Grohmann
- Law Firm: Strasburger & Price, LLP - Frisco Office
Shurland v. Bacci Café, et al., 2010 U.S. Dist. LEXIS 101090 (N.D. Ill. Sept. 24, 2010)
Facts: Plaintiff, on behalf of a class, brought suit against Bacci Café because it had issued a credit card receipt to Plaintiff without truncating his credit card number or omitting the card’s expiration date in violation of FACTA. Bacci filed a third-party complaint against National Translink Corporation (“Translink”), alleging that any FACTA violation was the result of Translink’s failure to meet its obligations under terms of a merchant processing agreement in which Translink agreed to provide Bacci with credit card processing services. Bacci claimed that Translink was under a contractual obligation to provide a credit card processing terminal to Bacci that was FACTA compliant. Bacci also alleged that Translink breached an implied warranty of merchantability and an implied warranty of fitness for a particular purpose. Pursuant to Fed R. Civ. P. 12(c),Translink moved for a judgment on Bacci’s pleadings, which the Court granted.
- FACTA. Section 1681c(g)(3)(A) of FACTA required truncation of all electronically-printed receipts no later than December 5, 2006.
- Breach of Contract. Bacci alleged that Translink breached its contract by not providing Bacci with a credit card processing terminal that was FACTA compliant. To that end, Bacci relied upon several provisions of the agreement, including language requiring that the “performance of all services called for in this agreement shall be consistent with industry standards.” However, the services covered by the agreement made no mention of FACTA, and the Court held that plain and unambiguous language of the agreement nowhere suggested that the “services” to be furnished included assurance that Bacci’s receipts would be FACTA compliant.