Landrum v. Harris County Emergency Corps

122 F. Supp. 3d 617, 2015 U.S. Dist. LEXIS 92361, 2015 WL 4394010
CourtDistrict Court, S.D. Texas
DecidedJuly 16, 2015
DocketCivil Action No. 4:14-CV-1811
StatusPublished
Cited by1 cases

This text of 122 F. Supp. 3d 617 (Landrum v. Harris County Emergency Corps) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Landrum v. Harris County Emergency Corps, 122 F. Supp. 3d 617, 2015 U.S. Dist. LEXIS 92361, 2015 WL 4394010 (S.D. Tex. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

KENNETH M. HOYT, District Judge. •

I. INTRODUCTION

The plaintiff, Jeffrey . K. Landrum (“Landrum”), brings this putative class action lawsuit against the defendant, Harris County Emergency Corps (“HCEC”), under the Fair Credit Reporting Act (“FCRA” or the “Act”), 15 U.S.C. § 1681 et seq. The complaint alleges that HCEC violated the Act by obtaining consumer reports on job applicants and employees of the company without first complying with the statute’s notice requirements, then using those reports to make adverse employment decisions. HCEC moves for summary judgment on Counts 2 and 3, raising the following questions of first impression in this Circuit: (1) whether including a waiver of rights provision in an FCRA-regulated disclosure document violates clause (i) of § 168 lb (b) (2) (A) (i)-(ii), and if so, (2) whether such a violation is willful. The Court concludes that the added waiver violates the statute, but that a willful violation did not occur in this case. Accordingly, HCEC’s motion is GRANTED.

II. FACTUAL BACKGROUND AND PROCEDURAL HISTORY

The material facts are undisputed. HCEC is a not-for-profit emergency medical service provider. As a condition of employment, HCEC requires a job applicant to complete paperwork authorizing it to conduct a pre-employment background check. HCEC uses the results of the check to assess fitness for employment.

Landrum began applying for various HCEC positions as early as September 2013. According to the complaint, HCEC asked him to sign two background check authorization forms as part of its online application. The1 first form was part of an eight-page document entitled “Employment Application.” The second was part of a' three-page document entitled “Employee Background Check Authorization Form.” Landrum signed and submitted both forms. The record also shows — and Landrum has since acknowledged — that on December 4, 2013, after Landrum had completed several online applications and a qualifying exam, HCEC emailed him' a one-page “Background Check Form” containing the following text:

I understand that HCEC will conduct a pre-employment and annual background and reference check, which mil include a review of public records (ie. driving records, List of Excluded Individuals and Entities), my’-criminal history, my credit history and inquiries of my references and former employers. I hereby authorize HCEC to conduct this background check as part of my application or employment process. My signature below hereby authorizes HCEC to disclose pertinent information as requested below to agencies or firms, as may be necessary, for the purpose of obtaining records related to this background screening check, including, but not limited to, driving record, List of Excluded Individuals and Entities (Medicare Exclusion List), criminal conviction records and credit reports. Further, on behalf of myself and my heirs, assignees, and personal represen [620]*620 tatives, I hereby release and forever discharge Harris County Emergency Corps, and its employees, agents and contractors, from any and all causes of action, liability, claim, loss, cost, or expense, and promise not to sue on any such claims against any such person. or organization, arising directly or indirectly from or attributable in any legal way to .this background; check I also hereby release and forever discharge any individual, agency or organization providing any information about me to Harris County Emergency Corps, fpom any and all causes of action, liability, claim, loss, cost or expense whatsoever related to the furnishing of such information.

(italics in original). There is no dispute that Landrum signed this form and that HCEC used it to order a background check on him. The check revealed that Landrum had been charged with and convicted of several crimes. After reviewing this report, HCEC denied Landrum’s application on December 16,2013.

On June 6, 2014, Landrum filed a three-count class action complaint against HCEC on behalf of job applicants and employees .who were the subject of a consumer report procured by the company. The first class — the “Adverse Action Class” — covers individuals who did not receive from HCEC (on or after November 7, 2008) a copy of their consumer report before being disqualified from employment. Count 1 alleges that HCEC violated § 1681b(b)(3)(A)(i) of the Act by failing to furnish class members with a copy of their report. The second class — the “Background Check Class” — covers individuals who executed a disclosure and authorization form (on or after November 7, 2008) permitting HCEC to obtain a.consumer report as a condition .of employment. With respect'to this class: Count 2 alleges that HCEC failed to comply with § 1681b(b)(2)(A)(i)’s formatting requirements for disclosing that a consumer report might be obtained, and Count 3 asserts that HCEC ■ procured the reports without proper authorization under § 1681b(b)(2)(A)(ii). Landrum claims that these violations were willful, triggering an award of statutory and punitive damages, attorney’s fees and costs under § 1681n(a). Having answered the complaint, HCEC now moves for summary judgment on Counts 2 and 3 as to all individuals in the Background Check Class,.

III. CONTENTIONS OF THE PARTIES

HCEC' contends that its Background Check Form complies with the FCRA’s basic - requirements under § 1681b(b)(2)(A)(i)-(ii): it is a single, one-page document that (1) contains a clear ánd conspicuous’ disclosure that a background check will be performed, and (2) obtains the necessary authorization to conduct the check. Insofar as the form contains a liability waiver or release, HCEC argues that its inclusion does nothing to violate clause (i)’s requirement that the form “consist[] solely of the disclosure.” The term “solely,” it posits, has a flexible, not “hypertechnical,” meaning in light of clause (ii)’s permissive wording allowing an authorization to “be made on the document referred to in clause (i).” In support of this view, HCEC relies on Smith v. Waverly Partners, LLC, No. 3:10-cv-00028, 2012 WL 36345324 (W.D.N.C. Aug. 23, 2012), Syed v. M-I LLC, No. 1:14-742, 2014 WL 5426862 (E.D.Cal. Oct. 23, 2014), and model FCRA disclosure forms set forth in a 2013 employment treatise.1 Because the [621]*621issue presents an open question in the Fifth Circuit, HCEC urges the Court to adopt the view of these authorities and not those that take a contrary position.

Alternatively, HCEC argues that even if the Court finds that it violated the FCRA, Landrum cannot establish that the violation was willful, a requirement for recovering statutory and punitive damages. Citing Safeco Ins. Co. of Am. v. Burr, 551 U.S. 47, 127 S.Ct. 2201, 167 L.Ed.2d 1045 (2007), HCEC maintains that Landrum cannot demonstrate that the decision to include the liability waiver was objectively unreasonable given the competing interpretations of § 1681b(b)(2)(A) at the time its disclosure form was in use.

Landrum counters.that HCEC violated the plain language of § 1681b(b)(2)(A) by including the liability release in its Background Check Form.2

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Cite This Page — Counsel Stack

Bluebook (online)
122 F. Supp. 3d 617, 2015 U.S. Dist. LEXIS 92361, 2015 WL 4394010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landrum-v-harris-county-emergency-corps-txsd-2015.