- Court Grants Defendant Summary Judgment, Finds that Information Reported by Furnisher Technically Accurate
- September 15, 2010 | Author: Marc Kirkland
- Law Firm: Strasburger & Price, LLP - Frisco Office
Elsady v. Rapid Global Bus. Solutions Inc., 2010 U.S. Dist. LEXIS 69052 (E.D. Mich. July 12, 2010)
Facts: Plaintiff alleged that Rapid Global Business Solutions Incorporated (“RGBSI”), his former employer, erroneously reported to a prospective employer that Plaintiff had been terminated for performance reasons in violation of the FCRA. Plaintiff’s claims relate to his offer of employment from SAIC, Inc. (“SAIC”) which was contingent upon an employment screening. SAIC retained CARCO Group, Inc. (“CARCO”) to conduct the background screening. RGBSI was contacted by CARCO on November 17, 2008, and erroneously reported that Plaintiff had been terminated for performance reasons. When that information was relayed to SAIC, it withdrew its offer of employment because it determined that Plaintiff had falsified his employment records. On November 19, 2008, after learning that SAIC had received inaccurate information, Plaintiff contacted RGBSI and demanded that they retract and correct the information provided to CARCO. On November 20, 2008, RGSBI sent two updated letters to SAIC stating that Plaintiff was not discharged due to poor work performance. RGSBI also contacted CARCO to inform it of the inaccurate reporting. On December 4, 2008, after Plaintiff reviewed RGSBI’s letter he emailed RGBSI and asked that it change the language of its letter to language Plaintiff found more acceptable. On December 15, 2008, Plaintiff disputed the information with CARCO who forwarded the dispute to RGBSI. At that time, the information had already by corrected by both CARCO and RGBSI. RGBSI moved for summary judgment claiming in part that the information it reported to CARCO was technically accurate and that by the time it received the dispute from CARCO it had already been updated. The Court agreed and granted the motion.
- Technical Accuracy. RGBSI argued that it was entitled to summary judgment because, after receiving notice from Plaintiff that its initial report was incorrect, it corrected the inaccuracies and only reported correct information after that in accordance with § 1681s-2(b)(1)(E). The Court found that RGBSI’s correction complied with the FCRA and that all inaccurate information was either deleted or modified. Because those changes were made before RGBSI received notification from CARCO, the report was technically correct when notification was provided. Therefore, RGBSI was no longer under an obligation to correct the report after receiving notice. The Court also found that Plaintiff failed to identify a single “technically inaccurate” statement by RGBSI after he initially contacted CARCO to dispute the inaccurate information.
- Lack of Misrepresentation. Although Plaintiff asserted that the various reports and corrections by RGBSI were misleading, the Court found no support for this assertion in the record. In fact, both CARCO and SAIC understood that Plaintiff’s employment was clear, that he had been laid off, that he was not terminated, and that he was eligible for rehire. The FCRA provides consumers with a right to reports that are accurate and not misleading. It does not give consumers a right to edit and dictate the terms of reports before they are sent. Because neither CARCO or SAIC were misled by the information reported by RGBSI, RBSI was entitled to summary judgment on Plaintiff’s claims of willful and negligent violation of the FCRA.
- Damages. Plaintiff could not establish that he was damaged by RGBSI’s inaccurate reporting. The record clearly established that prior to December 15, 2008, the date CARCO provided RGBSI with Plaintiff’s dispute, SAIC was in possession of the corrected information and still decided not to re-extend an offer of employment to Plaintiff due to other criteria unrelated to RGBSI’s reporting. Therefore, the Court found that there was no direct evidence that Plaintiff suffered any loss that can be attributed to RGBSI.