Garrett v. Advantage Plus Credit Reporting Incorporated

CourtDistrict Court, D. Arizona
DecidedAugust 31, 2023
Docket2:21-cv-02082
StatusUnknown

This text of Garrett v. Advantage Plus Credit Reporting Incorporated (Garrett v. Advantage Plus Credit Reporting Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garrett v. Advantage Plus Credit Reporting Incorporated, (D. Ariz. 2023).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Cecil C Garrett, No. CV-21-02082-PHX-DJH

10 Plaintiff, ORDER

11 v.

12 Advantage Plus Credit Reporting Incorporated, 13 Defendant. 14 15 This class action suit arises under the Fair Credit Reporting Act (“FCRA”), 16 15 U.S.C. §§ 1681, et seq. Plaintiff Cecil C. Garrett (“Plaintiff”) filed a First Amended 17 Class Action Complaint (“FAC”) (Doc. 41) against Defendant Advantage Plus Credit 18 Reporting Incorporated (“Advantage”). On December 8, 2022, the parties filed a “Notice 19 of Settlement and Joint Motion to Stay Case Deadlines” (Doc. 63) indicating they resolved 20 the claims in the FAC. (Doc. 63 at 1). Plaintiff has since filed an “Unopposed Motion for 21 Preliminary Approval of Class Action Settlement” (Doc. 65) under Federal Rule of Civil 22 Procedure 23. The Court will grant Plaintiff’s Unopposed Motion provided that the parties 23 make certain revisions to their supporting documents. 24 I. Background 25 Plaintiff is a “consumer” as defined by the FCRA. (Doc. 41 at ¶ 16 citing 26 15 U.S.C. § 1681a(c)). Advantage is a “consumer reporting agency” (“CRA”) as defined 27 by the FCRA. (Id. at ¶ 18 citing 15 U.S.C. § 1681a(f)). That is, Advantage assembles 28 consumer credit information “for the purpose of furnishing consumer reports to third 1 parties.” 15 U.S.C. § 1681a(f). 2 A. Plaintiff’s First Amended Class Action Complaint 3 On July 12, 2022, Plaintiff filed the FAC against Advantage on behalf of himself 4 and other similarly situated consumers. (Doc. 41 at ¶ 63). Plaintiff brought a single cause 5 of action: Count I for violation of 15 U.S.C. § 1681e(b). (Id. at ¶¶ 70–79). Plaintiff alleged 6 Advantage failed to follow reasonable procedures to assure maximum possible accuracy 7 when it “assembled, merged, and resold patently false consumer reports concerning 8 Plaintiff and [similarly situated consumers], incorrectly indicating that they were 9 deceased.” (Id. at ¶ 73). He further claimed Advantage’s violation of the FCRA was 10 willful and so it is liable for statutory damages under 15 U.S.C. § 1681n(a). 11 On November 11, 2022, Plaintiff filed his original Motion to Certify Class 12 (Doc. 50). This prompted the parties to engage in arm’s length negotiations. (Doc. 63). 13 To resolve Plaintiff’s Count I, the parties ultimately formalized a Settlement Agreement & 14 Release (Doc. 65-1) (the “Proposed Settlement Agreement” or “Proposed Settlement”) and 15 Class Action Settlement Notice (Id. at 23–29) (the “Proposed Settlement Notice” or 16 “Proposed Notice”). Below is an overview of the parties’ agreed upon terms. 17 B. The Proposed Settlement Agreement 18 The parties signed the Proposed Settlement Agreement on January 20, 2023. (Id. at 19 19–20). The Proposed Settlement Class (“Proposed Class” or “Proposed Class Members”) 20 consists of ninety-one (91) individuals and is defined as follows: 21 all natural persons who were the subject: (1) of a consumer report furnished 22 by [Advantage] to a third party from December 8, 2019 through November 2021; (2) where the consumer report contained a notation that the consumer 23 was deceased from at least one of Experian, Equifax, or Trans Union;1 and 24 (3) where at least one other of Experian, Equifax, or Trans Union did not contain a deceased notation. 25 26 (Id. at 6 ¶ 1.21). Advantage agrees to pay $96,000 into the Settlement Fund, from which

27 1 Experian, Equifax, or Trans Union are the “Big Three” national CRAs that “accumulate and sell data concerning individuals’ credit histories and other personal information” to 28 reseller CRAs such as Advantage. (Doc. 41 at ¶¶ 4–7). 1 Plaintiff would be paid $5,000 as a Service Award and each Proposed Class Member would 2 be paid $1,000. (Id. at 5 ¶¶ 1.12–13, 13 ¶ 4.3). The parties intend any unclaimed, 3 remaining funds be donated to Public Justice as a cy pres recipient. (Id. at 14 ¶ 4.6). 4 Advantage also agrees to pay $99,000 into a separate Settlement Attorneys’ Fees and Costs 5 Fund. (Id. at 5 ¶ 1.5). Plaintiff intends to petition the Court to approve the distribution of 6 fees in an amount not to exceed $99,000. (Id.) 7 In exchange for the Proposed Settlement, Plaintiff and the Proposed Class agree to 8 release all claims of any kind or nature, known or unknown, that they may have as a result 9 of the of the inclusion of a deceased indicator or deceased notation on a consumer report. 10 (Id. at 12 ¶ 4.2). 11 C. The Proposed Settlement Notice 12 The Proposed Settlement details the parties’ intended Notice Plan. (Id. at 7 ¶ 3.2). 13 Plaintiff’s Counsel will act as the Settlement Administrator “[g]iven the small size of the 14 [Proposed] Settlement Class, and in order to avoid the expense of hiring a third party.” 15 (Doc. 65 at 5). Plaintiff’s Counsel will send the Proposed Class the Proposed Notice “via 16 U.S. Mail to the last known address, as updated by appropriate public records.” (Doc. 65- 17 1 at 7 ¶ 3.2.2). Plaintiff’s Counsel will also create and maintain a Settlement Website to 18 “host important settlement documents, such as the Complaint, the Class Notice, the 19 Settlement Agreement, and the Preliminary Approval Order[,]” and “procedural 20 information regarding the status of the Court-approval process, such as an announcement 21 regarding when the Final Approval Hearing is scheduled, when the Final Judgment and 22 Order has been entered, when the Effective Date is expected or has been reached, and when 23 payments will likely be mailed.” (Id. at 8 ¶ 3.2.3). 24 II. Legal Standard 25 Rule 232 governs the requirements and procedures for class action settlements. The 26 Ninth Circuit has declared a strong judicial policy that favors settlement of class actions. 27 Class Plaintiffs v. City of Seattle, 955 F.2d 1268, 1276 (9th Cir. 1992); Hyundai and Kia

28 2 Unless where otherwise noted, all Rule references are to the Federal Rules of Civil Procedure. 1 Fuel Economy Litig., 926 F.3d 539, 556 (9th Cir. 2019). Nevertheless, where, as here, 2 “parties reach a settlement agreement prior to class certification, courts must peruse the 3 proposed compromise to ratify both [1] the propriety of the certification and [2] the fairness 4 of the settlement.” Staton v. Boeing Co., 327 F.3d 938, 952 (9th Cir. 2003); see also In re 5 Bluetooth Headset Products Liab. Litig., 654 F.3d 935, 949 (9th Cir. 2011) (holding when 6 parties seek approval of a settlement negotiated prior to formal class certification, “there is 7 an even greater potential for a breach of fiduciary duty owed the class during settlement”). 8 When parties seek class certification only for the purposes of settlement, courts 9 “must pay ‘undiluted, even heightened, attention’ to class certification requirements” 10 because, unlike in a fully litigated class action suit, the court will not have future 11 opportunities “to adjust the class, informed by the proceedings as they unfold.” Amchem 12 Prods. Inc. v.

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Garrett v. Advantage Plus Credit Reporting Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garrett-v-advantage-plus-credit-reporting-incorporated-azd-2023.