Grimes v. Rave Motion Pictures Birmingham, L.L.C.

264 F.R.D. 659, 2010 U.S. Dist. LEXIS 12894, 2010 WL 547528
CourtDistrict Court, N.D. Alabama
DecidedJanuary 29, 2010
DocketCivil Action No. 07-AR-1397-S
StatusPublished
Cited by13 cases

This text of 264 F.R.D. 659 (Grimes v. Rave Motion Pictures Birmingham, L.L.C.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grimes v. Rave Motion Pictures Birmingham, L.L.C., 264 F.R.D. 659, 2010 U.S. Dist. LEXIS 12894, 2010 WL 547528 (N.D. Ala. 2010).

Opinion

MEMORANDUM OPINION

WILLIAM M. ACKER, JR., District Judge.

Plaintiff, Julie Best Grimes (“Grimes”), individually and on behalf of a putative class of similarly situated persons, moves for certification of the above-entitled action as a class action. She alleges violations of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681, et seq., as amended by the Fair and Accurate Credit Transactions Act of 2003 (“FACTA”), 15 U.S.C. § 1681c(g). Defendants, Rave Motion Pictures Birmingham, LLC, Rave Motion Pictures Birmingham II, LLC, Rave Motion Pictures Birmingham III, LLC, and Rave Reviews Cinema, LLC, (collectively “Rave”), oppose certification.

The case was earlier appealed to the Eleventh Circuit after this court held FACTA to be unconstitutionally vague and confiscatory. See Grimes v. Rave Motion Pictures Birmingham, L.L.C., 552 F.Supp.2d 1302 (N.D.Ma.2008). The Eleventh Circuit reversed, holding that a jury can be trusted to fix the statutory damages at some figure between a minimum of $100 and a maximum of $1,000 per violation. As to the issue regarding confiscation, the Eleventh Circuit found FACTA to be constitutional on its face, but that an “as applied” challenge was premature because there has not been sufficient factual development in this case to form a basis for determining whether the concept applies. See Harris v. Mexican Specialty Foods, Inc., 564 F.3d 1301 (11th Cir.2009). The Eleventh Circuit sent the case back to this court to decide, inter alia, whether class treatment under Rule 23, F.R. Civ. P. is appropriate. For the reasons that follow, the court finds that class treatment is not appropriate.

FACTS

In 2003, Congress enacted FACTA as an amendment to FCRA. FACTA provides, inter alia, that “no person that accepts credit cards or debit cards for the transaction of business shall print more than the last 5 digits of the card number or the expiration date upon any receipt provided to the cardholder at the point of the sale or transaction.” 15 U.S.C. § 1681c(g)(l) (2006). Insofar as is pertinent to this case, FACTA’s enforcement mechanism provides:

Any person who willfully fails to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of
(1) (A) any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000; or
(B) in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or $1,000, whichever is greater;
(2) such amount of punitive damages as the court may allow; and
[662]*662(3) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court.

15 U.S.C. § 1681n(a) (2006).

At about the time this court was erroneously holding FACTA to be unconstitutional on its face, Congress was enacting the Credit and Debit Card Receipt Clarification Act of 2007 (“Clarification Act”), a statute that insulated vendors from liability for violations based on the mere inclusion of the expiration dates of credit cards, as distinguished from the card owner’s identifying numbers.1 Thus, merchants like Rave who, after December 4, 2006, willfully printed more than the last 5 digits of a consumer’s credit card number on a digital receipt are liable for actual damages to the plaintiff, OR for statutory damages of not less than $100 and not greater than $1,000 per violation, for costs and attorneys fees, and for punitive damages if ordered by the court.2

Rave, in the 4 different manifestations named as defendants, owns and operates movie theaters in 12 states, including the State of Alabama. (Defs.’ Br. in Opp’n, at 6; Nelson Aff. ¶ 5.) The parties make no point of the fact that there are 4 defendants that appear to be separate corporate entities, each with different management and location. Therefore, the court will treat Rave as one enterprise for the purposes of this suit. At each of Rave’s theaters, tickets are sold and receipts are generated at point of sale terminals located either at the box office or at a free-standing automated self-serve kiosk located at the specific theater. (Defs.’ Br. in Opp’n, at 6.) These point of sale terminals and self-serve kiosks operate on software that can be configured to print only certain credit card information on receipts. (Defs.’ Br. in Opp’n, at 7-8.) In late 2006, Rave upgraded the software that was being run on its terminals and kiosks. (Defs.’ Br. in Opp’n, at 7.) Whether this was in response to FACTA does not appear.

In the spring of 2007, Rave was sued in Louisiana for an alleged FACTA violation based on its inclusion of credit card expiration dates on the receipts being generated. (Defs.’ Br. in Opp’n, at 8.) As a result, Rave began a system-wide audit of its sales software to ensure full compliance with FACTA. (Defs.’ Br. in Opp’n, at 8.) During that audit, Rave found that some point of sale terminals and self-serve kiosks were not properly configured to meet FACTA standards because some machines were printing the expiration dates of credit cards being used by customers. (Defs.’ Br. in Opp’n, at 8-9.) However, the audit did not reveal that any terminal or kiosk was printing more than the actual last 5 digits of any customer’s credit card number. (Defs.’ Br. in Opp’n, at 10.) In other words, the check of terminals reflected FAC-TA compliance except that some terminals were still printing expiration dates. By August 9, 2007, the software on all of Rave’s point of sale terminals and self-serve kiosks had been fully checked and configured to ensure that the receipts thereafter generated were fully compliant with all FACTA requirements. (Defs.’ Br. in Opp’n, at 9; Pl.’s Br. in Supp., at 3-4.)

On July 27, 2007, Grimes filed her complaint, alleging that on two different occasions (May 25, 2007 and July 21, 2007) Rave had issued her a credit card receipt containing more than the last 5 digits of her credit card number. By August 9, 2007, Rave, in its four manifestations, had been served with the summons and complaint. On March 14, 2008, after discovery was completed, Rave moved for summary judgment as against [663]*663Grimes individually. Grimes, of course, cannot be a class representative if she has no claim. The motion for summary judgment challenged FACTA’s constitutionality. This court granted Rave’s motion, whereupon Grimes appealed, obtaining the reversal and remand previously mentioned.

After remand, this court allowed discovery regarding the class certification issue. On September 28, 2009, Grimes moved to certify the action under Rule 23, F.R. Civ. P.

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Cite This Page — Counsel Stack

Bluebook (online)
264 F.R.D. 659, 2010 U.S. Dist. LEXIS 12894, 2010 WL 547528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grimes-v-rave-motion-pictures-birmingham-llc-alnd-2010.