Karraker v. Rent-A-Center, Inc.

239 F. Supp. 2d 828, 2003 WL 57363
CourtDistrict Court, C.D. Illinois
DecidedJanuary 8, 2003
Docket02-CV-2026
StatusPublished
Cited by6 cases

This text of 239 F. Supp. 2d 828 (Karraker v. Rent-A-Center, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karraker v. Rent-A-Center, Inc., 239 F. Supp. 2d 828, 2003 WL 57363 (C.D. Ill. 2003).

Opinion

ORDER

McCUSKEY, District Judge.

Plaintiffs wish to raise a claim under the Americans with Disabilities Act, and De *832 fendants would like this court to rule on the merits of their motions to dismiss the state law claims currently pending. Both sides therefore objected to the Magistrate Judge’s recommendation that this court deny Plaintiffs’ request to add an ADA claim to their complaint and also decline to exercise supplemental jurisdiction over the state law claims.

This court has reviewed the Magistrate Judge’s reasoning and the objections of the parties. After a thorough and careful de novo review, this court will allow the filing of the Second Amended Complaint, dismiss the FCRA claim, limit the invasion of privacy claim to public disclosure of private facts, and dismiss one defendant for want of personal jurisdiction.

BACKGROUND

Plaintiffs’ Amended Complaint (# 4) sought to initiate a class action lawsuit against Rent-A-Center, Inc. (RAC); J. Ernest Talley, RAC’s Chairman of the Board and Chief Executive Officer; and Associated Personnel Technicians (APT). Plaintiffs, current and former employees of RAC, alleged that RAC required all employees or outside applicants seeking management positions to take a battery of written tests, collectively referred to as the Management Test. Several tests included in the Management Test were personality inventories that inquired about personal information including sexual preferences and orientation, religious beliefs and practices, and medical conditions.

APT scored and interpreted the Management Test for RAC, creating a two-page psychological profile about the individuals. RAC distributed this report to the employees’ immediate supervisor and placed a copy of it in the employees’ personnel file. RAC used the test results in deciding which employees to promote and what additional training to require. Plaintiffs assert that RAC formulated no policy or procedure for keeping the test results confidential.

Plaintiffs’ Amended Complaint sought relief based on four legal theories: a violation of the Fair Credit Reporting Act (FCRA); a violation of the Illinois Mental Health and Developmental Disabilities Confidentiality Act; engaging in the practice of psychology without a license and committing malpractice; and invasion of privacy. RAC filed a Motion to Dismiss Amended Complaint (# 6), along with a Memorandum of Law in Support (# 7). Plaintiffs responded to the Motion to Dismiss (#22), and also filed a Motion to Allow Filing Second Amended Complaint (# 23), which includes an additional count based on a violation of the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq. (ADA). RAC filed a Memorandum in Opposition to Plaintiffs’ Motion to Allow Filing of Second Amended Complaint (# 26), arguing that Plaintiffs’ proposed ADA claim is meritless. Defendant APT adopted this argument (# 30). Plaintiffs tendered a Reply (#46), further explaining and justifying their ADA claim. By letter dated July 1, 2002, RAC notified this court that it wished to continue its Motion to Dismiss in spite of Plaintiffs’ request to file a second amended complaint.

Defendant Talley filed a Motion to Dismiss Amended Complaint (#24), and a Memorandum of Law in Support (#25). Plaintiffs filed a Response to Defendant Talley’s Motion to Dismiss (# 45).

Not wanting to be left out (or “in” the lawsuit, as the case may be), APT filed a Motion to Dismiss Amended Complaint (#32), and a Memorandum in Support (# 33). Additionally, APT adopted (# 31-32) the arguments set forth in Talley’s motion to dismiss and memorandum in support and the arguments RAC raised in its motion to dismiss and accompanying *833 memorandum. Plaintiffs’ submitted a Response to APT’s Motion to Dismiss (# 44).

After thoughtful analysis, ' the Magistrate Judge’s Report and Recommendation (R & R)(# 60) recommends first denying Plaintiffs’ motion to file a Second Amended Complaint because Plaintiffs could not state a claim under the ADA. The R & R also recommends dismissing the FCRA claim as to APT because the employee profiles it generated from the individual responses to the Management Test do not fall under the purview of the FCRA and because APT was not acting as a third-party consumer reporting agency. The R & R also concludes that Plaintiffs cannot state a claim against RAC under the FCRA because RAC was also not acting as a consumer reporting agency. After disposing of the ADA claim and the FCRA claim, the Magistrate Judge recommends that this court decline to exercise supplemental jurisdiction over the state law claims in Plaintiffs’ Amended Complaint.

Plaintiffs filed objections to the R & R(# 68), disputing the Magistrate Judge’s conclusion about their ADA claim, but not challenging the FCRA analysis. On that same.day, RAC filed an Objection to Recommendation to Decline Jurisdiction Over Plaintiffs’ State Law Claims (# 67), arguing that this court has federal diversity jurisdiction over the state law claims and so should rule on the merits of RAC’s motion to dismiss those claims, even if the court elects to dismiss the federal claims. This court ordered Plaintiffs to respond, and they did so (# 69), agreeing that diversity jurisdiction exists and tendering a Third Amended Complaint that explicitly pleads diversity should this court find no viable federal claim.

ANALYSIS

After receiving an objection from either party concerning the Magistrate Judge’s R & R, this court must conduct a de novo review to those portions of the R & R in dispute. Fed.R.Civ.P. 72(b); Kruger v. Apfel, 214 F.3d 784, 787 (7th Cir.2000).

1. ADA Claim 2

The ADA claim included in Plaintiffs’ proposed Second Amended Complaint *834 alleges that Defendants violated the ADA’s prohibition against medical examinations and inquiries for job applicants. The Magistrate Judge recommended denying Plaintiffs’ request for leave to file an amended complaint because he determined the proposed ADA claim to be without merit. Specifically, he concluded that Plaintiffs must be qualified individuals with disabilities in order to assert a prayer for relief under the ADA. Plaintiffs are not claiming that they are disabled under the statute, but they disagree that the particular provision at issue requires them to be.

In the context of employment, the ADA prohibits discrimination against “a qualified individual with a disability ... in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.” 42 U.S.C. § 12112(a).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Franklin v. City of Slidell
936 F. Supp. 2d 691 (E.D. Louisiana, 2013)
Hudson v. Dr. Michael J. O'Connell's Pain Care Center, Inc.
822 F. Supp. 2d 84 (D. New Hampshire, 2011)
Horgan v. Simmons
704 F. Supp. 2d 814 (N.D. Illinois, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
239 F. Supp. 2d 828, 2003 WL 57363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karraker-v-rent-a-center-inc-ilcd-2003.