Court Deliberates Sufficiency of Standing to Bring Suit

The Eastern District of Missouri relied on Spokeo, Inc. v. Robins as well as the Third, Seventh and Ninth Circuits in determining whether a plaintiff demonstrated sufficient standing for alleged Fair Credit Reporting Act (FCRA) procedural violations.

In a recent case, Hood v. Action Logistix, LLC, Defendant, Action Logistix, conducted a background check on Hood after extending a tentative offer of employment. Upon receiving the results from that check, Hood was informed that he was no longer eligible for employment per the returned background check report. Under § 1681b(b)(3)(A) of the FCRA, anyone securing a consumer report for employment purposes is required to provide both an FCRA Summary of Rights and a copy of the report to the consumer prior to taking adverse action.

Hood claimed that he was not supplied an FCRA Summary of Rights and was also not permitted to review the report in order to address its contents before the employment offer was rescinded. Hood also did not suggest that the contents of the report were inaccurate or that his review would have resulted in a different outcome.

Action Logistix moved to dismiss, claiming that the court lacked subject matter jurisdiction since the plaintiff had not suffered concrete injury. Taking into consideration Spokeo, Inc. v. Robins, as well as the Third, Seventh and Ninth Circuits, the court ultimately determined that Hood had standing to bring suit for this procedural violation of the FCRA.

Employers are encouraged to monitor the landscape regarding the FCRA, procedural violations, and previous court decisions used by other jurisdictions when rendering determinations.

Posted: April 14, 2021

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This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.

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