A District Court judge in Texas has denied competing summary judgment motions from both the plaintiff and the defendant in a Fair Credit Reporting Act lawsuit where the defendant mixed the plaintiff’s credit file with that of his son. The court found that genuine disputes of material fact remain on whether the defendant used reasonable procedures to assure maximum possible accuracy and whether the alleged inaccuracies caused compensable harm.
The background: The case stems from an undisputed error in which the defendant mixed the plaintiff’s credit file with that of his son, resulting in inaccurate information appearing in the plaintiff’s credit report.
- The plaintiff alleged that the file mixing led to adverse credit consequences and asserted claims under the FCRA, including that the defendant failed to follow reasonable procedures to ensure accuracy and that the inaccuracies caused actual damages.
- The defendant did not dispute that the files were mixed but argued that its procedures were reasonable as a matter of law, that the plaintiff could not show actual damages, and that any violation was not willful.
- Both sides asked the court to resolve the case at summary judgment, with the plaintiff seeking partial summary judgment on inaccuracy and damages and the defendant seeking dismissal on multiple grounds.
The ruling: Judge Amos L. Mazzant of the District Court for the Eastern District of Texas rejected both sides’ efforts to win the case, concluding that the record presents factual disputes that must be resolved by a jury.
- Judge Mazzant stated that the court was “not convinced that [either party] has met [its] burden of demonstrating that there is no material issue of fact … entitling [that party] to judgment as a matter of law.”
- The judge also addressed a statute of limitations argument tied to when an FCRA violation “occurs,” noting that the defendant failed to carry its burden to show the claims were time barred based solely on the date the files were mixed, as opposed to the preparation and dissemination of consumer reports.
