Moran v. Screening Pros, LLC, CD Calf.

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Moran v. Screening Pros, LLC, CD Calf.

Postby Administrator » Tue Oct 07, 2014 7:25 pm

As an initial matter, Plaintiff's claims for injunctive relief are preempted by the FTC. (FAC ¶¶ 103, 109). “Preemption may be implied when state law actually conflicts with federal law.” Bank of Am. v. City and Cnty. of San Francisco, 309 F.3d 551, 558 (9th Cir.2002). A conflict arises “when state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Id. Here, Congress has made clear its intent to vest in the FTC the exclusive power to seek injunctive relief against FCRA violations. The Fifth Circuit reasoned that

the affirmative grant of power to the FTC to pursue injunctive relief, coupled with the absence of a similar grant to private litigants when they are expressly granted the right to obtain damages and other relief, persuasively demonstrates that Congress vested the power to obtain injunctive relief solely with the FTC.

Washington v. CSC Credit Servs., 199 F.3d 263, 268 (5th Cir.2000). At least one court in this Circuit has applied this ruling and held that the FCRA preempts a UCL claim for injunctive relief predicated on FCRA § 1681e. Quadrant Info. Servs., LLC v. LexisNexis Risk Solutions, No. 11–5548, 2012 WL 3155559, at *2–3 (N.D.Cal. Aug.2, 2012). The Court finds these authorities persuasive. Allowing private litigants to enforce provisions of the FCRA by injunction through a state law vehicle would constitute an end-run around Congress's clear intent that the power to enforce the FCRA must rest with the FTC alone. Accordingly, the UCL claims for injunctive relief are preempted.

Moran v. Screening Pros, LLC
Not Reported in F.Supp.2d, 2012 WL 10655744
September 28, 2012
David A. Szwak
Bodenheimer, Jones & Szwak, LLC
416 Travis Street, Suite 1404, Mid South Tower
Shreveport, Louisiana 71101
318-424-1400 / Fax 221-6555
President, Bossier Little League
Chairman, Consumer Protection Section, Louisiana State Bar Association

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