Stacy v. Dollar Tree Stores, Inc.

274 F. Supp. 3d 1355
CourtDistrict Court, S.D. Florida
DecidedAugust 11, 2017
DocketCASE NO. 16-61032-CIV-ZLOCH
StatusPublished
Cited by3 cases

This text of 274 F. Supp. 3d 1355 (Stacy v. Dollar Tree Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stacy v. Dollar Tree Stores, Inc., 274 F. Supp. 3d 1355 (S.D. Fla. 2017).

Opinion

ORDER

WILLIAM J. ZLOCH, Sr. United States District Judge

THIS MATTER is before the Court upon Defendant Dollar Tree Stores, Inc.’s Motion To Sever And Remand Counts II And III Of The First Amended Complaint Pursuant To 28 U.S.C. § 1441 (DE 50). The Court has carefully reviewed said Motion, the entire court file and is otherwise fully advised in the premises.

"When Plaintiff Sherika ‘Stacy (“Stacy”) applied for a promotion with Defendant Dollar-Tree Stores, Inc. (“Dollar Tree”), she completed a form- authorizing a background check. That form contained the disclosure mandated by the Fair Credit Reporting Act (“FCRA”). Despite the FCRA’s requirement that this disclosure be in a stand-alone document, 15 U.S.C. § 1681b(b)(2)(A)(I), the form also contained information to assist Stacy in understanding her rights and the scope of the background check. Stacy understood she was authorizing a background check when she completed the form, but has nevertheless sued Dollar Tree for providing more information than the FCRA requires. The Court must now decide whether she suffered a concrete injury or instead whether she merely trifles with a “bare procedural violation” of the statute. Spokeo, Inc. v. Robins, — U.S. —, 136 S.Ct. 1540, 1549, 194 L.Ed.2d. 635 (2016).

I. Background

A. The Statutory Backdrop

The FCRA regulates the creation and use of “consumer reports”—reports containing information “bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living,” that are used for, among other things, “employment purposes.” 15 U.S.C. § 1681a(d)(1) (hereinafter, “consumer report” or “background check”).' A “consumer” is simply an individual. 15 U.S.C. § 1681a(c). “Employment purposes” include “evaluating a consumer for employment, promotion, reassignment or retention as ah employee.” 15 U.S.C. § 1681a(d)(1).

As pertinent here, the FCRA prohibits the procurement of a consumer report for employment purposes, unless: (1) “a clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured ,.. that a consumer report may be obtained for employment purposes” and (2) “the consumer has authorized in writing ... the procurement of the report. ...” 15 U.S.C. § 1681b(b)(2)(A). The FCRA mandates that this disclosure be “in a document that consists solely of [1359]*1359the disclosure.” Id. (hereinafter, .the “stand-alone document requirement”).

B. Stacy’s Employment at Dollar Tree Dollar Tree owns and operates a chain of discount variety stores across the country, From 2013 to 2015, Stacy worked as a sales associate at a Dollar Tree store in Tallahassee, Florida. Because Dollar Tree does not conduct background checks on applicants for sales associate positions, Dollar Tree did not conduct a background check on Stacy before she was hired. Dollar Tree does, however, conduct background checks on applicants for assistant store manager. So, when Stacy applied for a promotion to that position, Dollar Tree sent her an email notifying her of its intent to conduct a background check.

In that email, Dollar Tree provided a link to a five-page disclosure and authorization form, titled “Consent To Request Consumer Report & Investigative Consumer Report Information” (“the Form”). The Form advised Stacy that Dollar Tree would use a company called Sterling Info-Systems, Inc., to conduct the background check. In substantial part, the Form reads:

I understand that [Dollar Tree Management, Inc. and it’s [sic] affiliated companies](‘COMPANY’) will use Sterling InfoSystems Inc., 249 West 17th Street, New York, NY 10011, (877) 424-2457 to obtain a consumer report (“Report”) as part of the hiring process. I also understand that if hired, to the extent permitted by law, COMPANY may obtain further Reports from STERLING so as to update,' renew or extend my employment.
I understand Sterling InfoSystems Inc.’s (“STERLING”) investigation. may include obtaining information regarding my credit background, bankruptcies, lawsuits, judgments, paid tax liens, unlawful detainer actions, failure to pay spousal support or child support, accounts place for collection, character, general reputation, personal characteristics and standard of living, driving record and criminal record, subject to any limitations imposed by applicable federal and state law. I understand such information may be. obtained through ‘direct or indirect contact with former employers, schools, financial institutions, .landlords, and public agencies or other persons who may have such knowledge.
The nature and scope of the investigation sought is indicated by the selected services below: [including criminal background check, Social Security' number trace, and motor vehicle report]
I acknowledge receipt of the attached summary of my fights under the Fair Credit Reporting Act and, as required by law, any related state summary of rights (collectively “Summaries of Rights”).
This consent will not affect my ability to question or dispute the accuracy of any information contained in a Report. I understand if COMPANY makes a conditional decision to disqualify me based all or in part on my Report, I will be provided with a copy of the Report and another copy of the Summaries of Rights, and if I disagree with the accuracy of the purported disqualifying information in the Report, I must notify COMPANY within five' business days of my receipt of the Report that I am challenging the'accuracy of such information with STERLING.
I hereby consent to this investigation and authorize COMPANY to procure a report on my background.
In order to verify my identity for purposes of Report preparation, I am voluntarily releasing my date of birth, social security number and .the other information and fully understand, that all employment decisions are based on legitimate non-discriminatory reasons.
[1360]*1360The name, address, and telephone number of the nearest unit of the consumer reporting agency designated to handle inquiries regarding the investigative consumer report is: [Sterling]

DE 50-1. On the first and second pages of the Form, there are also notices about consumers’ rights under various state laws. The second and third pages of the Form contain lines for the applicant’s signature and space where applicants provide information necessary to conduct the background check. And the fourth and fifth pages of the Form contain information about consumers’ rights under the FCRA and contact information for federal agencies tasked with handling consumer protection matters.

Stacy completed, signed, and returned the Form.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
274 F. Supp. 3d 1355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stacy-v-dollar-tree-stores-inc-flsd-2017.