Dormoy v. HireRight, LLC

District Court, N.D. California·Decided August 9, 2023·No. 3:23-cv-02511·Unknown

Opinion

EDWIN AGUSTIN DORMOY, Case No. 23-cv-02511-EMC

Plaintiff, ORDER RE DEFENDANT’S MOTION v. TO DISMISS

HIRERIGHT, LLC, et al., Docket No. 20 Defendants.

Plaintiff Edwin Agustin Dormoy is a former driver for Lyft, Inc. (“Lyft”) and Uber Technologies, Inc. (“Uber”). He has filed suit against Lyft and Uber, as well as HireRight, LLC (“HireRight”) (collectively, “Defendants”), because his rideshare accounts were deactivated, and there was no response to his requests for information relating to the account suspensions. HireRight is an employment screening company that provides employment background reports to employers. Plaintiff claims HireRight’s failure to respond to his request for a copy of his background screening file, violated the federal Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681 et seq., and the California Investigative Consumer Reporting Agencies Act (“ICRAA”), Cal. Civ. Code § 1786.2 et seq. HireRight moves to dismiss the complaint based on (1) lack of personal jurisdiction and (2) failure to state a claim for relief. See Fed. R. Civ. P. 12(b)(2), (6). With respect to the jurisdictional challenge, Plaintiff asks for leave to conduct jurisdictional discovery; in the alternative, Plaintiff requests a transfer of the claims against HireRight to a different district court (either in Tennessee or Oklahoma). The Court held a noticed hearing on the motion on July 27, For the reasons discussed below, the Court finds that personal jurisdiction is lacking over HireRight and denies Plaintiff’s request for jurisdictional discovery. However, in lieu of dismissal, the Court shall sever the claims against HireRight and transfer them to the Middle District of Tennessee. Because the Court lacks personal jurisdiction over HireRight, it does not address HireRight’s motion to dismiss for failure to state a claim for relief. A. Complaint In his complaint, Plaintiff alleges as follows. Plaintiff is a resident of Philadelphia, Pennsylvania. Compl. ¶ 15. Plaintiff was a driver for the rideshare companies Lyft and Uber before both his accounts were suspended. In or about February 2021, Plaintiff’s account with Lyft was deactivated. Id. ¶ 2. A few months later, in or about April 2021, Uber requested a background screening report on Plaintiff from HireRight (an employment screening company). Id. ¶ 3. In the report, HireRight alerted Uber that “Lyft, Inc. informed HireRight that [Plaintiff] is not currently eligible to use its platform due to safety-related reports.” Id. ¶ 4, Ex. 1. Due to this background report, Plaintiff’s Uber driver account was deactivated in April 2021. Id. ¶ 5. As a “direct result” of this report, “Plaintiff has lost two sources of income.” Id. ¶ 7. Approximately a year later, in March 2022, Plaintiff sent to HireRight a request for information, asking to obtain a copy of the “full file” of his original background check report. Plaintiff sent his request to a HireRight office located in Irvine, California.1 Id. ¶¶ 8, 34. Certified mail tracking showed the request as “delivered” on March 14, 2022. Id. ¶ 35. In spite of such, HireRight has never produced the employment background check report that resulted in Plaintiff’s Uber account suspension. Id. ¶ 9. Based on, inter alia, the above allegations, Plaintiff has asserted six claims for relief. For purposes of the pending motion, the Court need only concern itself with Count 3, which is the sole 1 Attached to Plaintiff’s complaint as Exhibit 1 is what appears to be the report that HireRight gave to Uber. The front page of the report includes a notice to California consumers, instructing that, “If you would like additional information regarding your disclosure rights, you can request this information from HireRight by email . . . , by telephone . . . or by mail.” Compl., Ex. 1 claim pled against HireRight. Id. ¶¶ 23-52. In Count 3, Plaintiff alleges that HireRight, a consumer reporting agency, violated its statutory duty under both federal and state law to respond to requests for copies of consumer files. Id. ¶¶ 33–37. Specifically, HireRight violated § 1681g(a)(2)2 of the FCRA and §§ 1786.103 and 1786.224 of the California ICRAA. Id. ¶¶ 15–27. B. Evidence re Personal Jurisdiction As noted above, HireRight has moved to dismiss for lack of personal jurisdiction and for failure to state a claim for relief. In support of its motion to dismiss for lack of personal jurisdiction, HireRight has submitted evidence.5 In contrast, Plaintiff has failed to submit any evidence. The Court briefly addresses the evidence provided by HireRight. “HireRight is a limited liability company organized under the laws of Delaware.” Piper Decl. ¶ 5. Apparently, HireRight once maintained its headquarters in Irvine, California. Counsel for HireRight made this express representation at the hearing on the motion to dismiss. While the Supplemental Vetter Declaration, submitted by HireRight after the hearing on the motion to dismiss, does not explicitly state such, it effectively confirms as much. Docket 46-1 (“Supp. Vetter Decl.”) ¶ 10 (testifying that “HireRight operations have been centered and directed from states other than California since approximately 2019”) (emphasis added). HireRight’s current headquarters and principal place of business are in Nashville, Tennessee. Piper Decl. ¶ 5; see also id. ¶¶ 8–9 (testifying that HireRight’s corporate office mailing address is in Nashville and that its

2 Section 1681g(a)(2) of the FCRA provides in relevant part that “[e]very consumer reporting agency shall, upon request, and subject to section 610(a)(1) [i.e., § 1681h(a)(1)], clearly and accurately disclose to the consumer: . . . (2) The sources of the information [in the consumer’s file].” 15 U.S.C. § 1681g(a)(2).

3 Section 1786.10 of the ICRAA provides, inter alia, that “[e]very investigative consumer reporting agency shall, upon request and proper identification of any consumer, allow the consumer to visually inspect all files maintained regarding the consumer at the time of the request.” Cal. Civ. Code § 1786.10(a).

4 Section 1786.22 of the ICRAA directs, inter alia, that “[a]n investigative consumer reporting agency shall supply files and information required under Section 1786.10 during normal business hours and on reasonable notice.” Cal. Civ. Code § 1786.22(a).

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