Hines v. Equifax Information Services LLC

CourtDistrict Court, E.D. New York
DecidedSeptember 10, 2024
Docket1:19-cv-06701
StatusUnknown

This text of Hines v. Equifax Information Services LLC (Hines v. Equifax Information Services LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hines v. Equifax Information Services LLC, (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ---------------------------------------------------------x DUANE A. HINES, on behalf of himself and all others similarly situated,

Plaintiff, ORDER ADOPTING REPORT AND RECOMMENDATION v. 19-CV-6701 (RPK) (JAM) EQUIFAX INFORMATION SERVICES LLC,

Defendant. ---------------------------------------------------------x RACHEL P. KOVNER, United States District Judge: Plaintiff Duane A. Hines brings a putative class action against defendant Equifax Information Services LLC, alleging violations of the Fair Credit Reporting Act (“FCRA”) and the New York Fair Credit Reporting Act (“NYFCRA”). Plaintiff moved to certify a nationwide FCRA class and three claim-based subclasses. See Mot. to Certify Class (Dkt. #43). In a report and recommendation (“R. & R.”), then-Magistrate Judge Reyes recommended certifying two of plaintiff’s proposed subclasses and appointing plaintiff as the class representative and his counsel as class counsel. See R. & R. (Dkt. #48). Defendant timely objected to Judge Reyes’s recommendation that two proposed subclasses be certified. See Obj. (Dkt. #53). For the reasons set out below, Judge Reyes’s R. & R. is adopted, with the exception that the subclasses must have a defined end date. STANDARD OF REVIEW The standard of review a district court should use when considering an order or recommendation from a magistrate judge depends on whether the issue is “dispositive of a party’s claim or defense.” Fed. R. Civ. P. 72(a); see 28 U.S.C. § 636(b)(1). Motions for class certification are treated as dispositive matters under Rule 72. Gortat v. Capala Bros., No. 07-CV-3629 (ILG), 2010 WL 1423018, at *1 (E.D.N.Y. Apr. 9, 2010); see 28 U.S.C. § 636(b)(1)(A). If a party timely objects to a magistrate judge’s recommendation on a dispositive issue, then the district court must “determine de novo” those parts of the ruling that have been “properly objected to.” Fed. R. Civ. P. 72(b)(3); see 28 U.S.C. § 636(b)(1). Those parts of an R. & R. that are uncontested or are not

properly objected to may be reviewed, at most, for “clear error.” Alvarez Sosa v. Barr, 369 F. Supp. 3d 492, 497 (E.D.N.Y. 2019) (citation omitted); see Nelson v. Smith, 618 F. Supp. 1186, 1189 (S.D.N.Y. 1985) (citing Fed. R. Civ. P. 72 advisory committee’s note to 1983 addition). DISCUSSION I assume familiarity with the underlying facts and procedural history. For the reasons stated below, Judge Reyes’s R. & R. is adopted in substantial part. Plaintiff is directed to file a letter proposing a definite end date to the classes within thirty days of this order. I. Standing Equifax offers no basis to set aside Judge Reyes’s conclusion that plaintiff has adequately established standing for purposes of class certification. “[A] plaintiff has class standing if he plausibly alleges (1) that he ‘personally has suffered some actual . . . injury as a result of the

putatively illegal conduct of the defendant,’” NECA-IBEW Health & Welfare Fund v. Goldman Sachs & Co., 693 F.3d 145, 162 (2d Cir. 2012) (quoting Blum v. Yaretsky, 457 U.S. 991, 999 (1982)), “and (2) that such conduct implicates ‘the same set of concerns’ as the conduct alleged to have caused injury to other members of the putative class by the same defendants,” ibid. (quoting Gratz v. Bollinger, 539 U.S. 244, 267 (2003)). While “[e]very class member must have Article III standing in order to recover individual damages,” TransUnion LLC v. Ramirez, 594 U.S. 413, 431 (2021), a plaintiff is not required to show that each class member has standing before a class can be certified, Denney v. Deutsche Bank AG, 443 F.3d 253, 263–64 (2d Cir. 2006); see Barrows v. Becerra, 24 F.4th 116, 128 (2d Cir. 2022); see also 1 William B. Rubenstein, Newberg and Rubenstein on Class Actions § 2:3 (6th ed. 2024) (“[T]he vast majority of courts continue to heed the basic rule that the standing inquiry focuses on the class representatives, not the absent class members.”). Here, plaintiff has met the prerequisites for class standing with respect to both the New

York Subclass and the Capital One Subclass. As Judge Reyes determined, Hines himself has Article III standing with respect to these claims. Specifically, Hines plausibly alleges as relevant to the New York Subclass claims that Equifax’s failure to properly reinvestigate his claims caused him to waste time and money. R. & R. 18–19. He further alleges that he suffered reputational harm when the disputed information and assertedly inaccurate information was shared with a third party. Id. at 19. Hines also plausibly alleges that he suffered injury because Equifax failed to adopt reasonable procedures to ensure that it only shared consumer information for permissible purposes as required by 15 U.S.C. § 1681e(a). R. & R. 20. He alleges that failure led Equifax to furnish Hines’s personal information to Capital One without authorization and then to report that unauthorized transaction to Synchrony Bank in violation of 15 U.S.C. § 1681b(c). Id. at 19, 23–

24. As a result, Hines allegedly suffered reputational harm—a concrete injury sufficient to confer standing. Id. at 23–24; TransUnion, 594 U.S. at 425. Judge Reyes also correctly determined that Hines has class standing. “[A] plaintiff has class standing if he plausibly alleges (1) that he ‘personally has suffered some actual . . . injury as a result of the putatively illegal conduct of the defendant,’ . . . and (2) that such conduct implicates ‘the same set of concerns’ as the conduct alleged to have caused injury to other members of the putative class by the same defendants,’” NECA-IBEW, 693 F.3d at 162 (citations omitted). Hines alleges that he was injured by Equifax’s policy against reinvestigating disputed inquiries, see R. & R. 18–20, and by Equifax’s inadequate procedures to prevent unauthorized inquiries, see id. at 20–24. Because Equifax allegedly applies those policies and procedures uniformly to all consumers, see id. at 28, Hines’ injuries are sufficiently similar to those suffered by other members of the proposed class that their interests in litigating this case are aligned. See NECA-IBEW, 693 F.3d at 164 (finding that a class representative had class standing because all class members

received the same misleading information and therefore had the same stake in litigating whether the lenders had followed guidelines). II. Personal Jurisdiction The Court has personal jurisdiction over the class claims that Judge Reyes recommended certifying.

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Bluebook (online)
Hines v. Equifax Information Services LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hines-v-equifax-information-services-llc-nyed-2024.