Quadrant Information Services, LLC v. LexisNexis, ND Calif.

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Quadrant Information Services, LLC v. LexisNexis, ND Calif.

Postby Administrator » Tue Oct 07, 2014 7:31 pm

Quadrant's first claim for injunctive relief under the UCL relies on a violation of the FCRA. Compl. ¶¶ 6–22. The FCRA requires credit reporting agencies to adopt reasonable procedures relating to the collection, communication, and use of consumer credit information to ensure fair and accurate credit reporting. 15 U.S.C. § 1681 e. Although private litigants may maintain a claim for damages under the FCRA, only the Federal Trade Commission (“FTC”) is empowered by statute to seek equitable relief. See Washington v. CSC Credit Servs., 199 F.3d 263, 268 (5th Cir.2000). As such, this Court has uniformly concluded that a UCL claim for injunctive relief is preempted by the FCRA. Howard v. Blue Ridge Bank, 371 F.Supp.2d 1139, 1145 (N.D.Cal.2005) (“Because the Court finds that plaintiff's § 17200 claim is preempted by the FCRA, he cannot obtain an injunction for this claim.”); accord White v. E–Loan, Inc., 409 F.Supp.2d 1183, 1187 n. 6 (N.D.Cal.2006); Hogan v. PMI Mortg. Ins. Co., No. C 05–3851 PJH, 2006 WL 1310461, at *10 (N.D.Cal., May 12, 2006); Yeagley v. Wells Fargo & Co., No. C 05–3403 CRB, 2006 WL 193257, at *2 (N.D.Cal. Jan. 23, 2006).


Plaintiff argues that LexisNexis' preemption argument is at odds with the Supreme Court's pronouncement in Califano v. Yamasaki, 442 U.S. 682, 99 S.Ct. 2545, 61 L.Ed.2d 176 (1979) that, “absent the clearest command to the contrary from Congress, federal courts retain their equitable power to issue injunctions in suits over which they have jurisdiction.” Id. at 705. Califano, however, addressed a materially different statute—the Social Security Act (“SSA”). Unlike the FCRA, which expressly places authority to seek injunctions in the FTC instead of private parties, see 15 U.S.C. § 1681s(a), the SSA is silent on the issue of enforcement, see Califano, 442 U.S. at 705. Thus, Califano' s recognition that a federal court has equitable power to issue injunctions absent clear Congressional command is inapposite where, as here, the statute at issue sets forth a detailed remedial scheme that permits private parties to seek actual and punitive damages, but not injunctive relief—and vests the authority to seek equitable relief in a specified agency. See 15 U.S.C. §§ 1681n, 1681o. The Court therefore dismisses Quadrant's first claim for relief.

Quadrant Information Services, LLC v. LexisNexis Risk Solutions, Quadrant Information Services, LLC v. LexisNexis Risk Solutions, Inc.
Not Reported in F.Supp.2d, 2012 WL 3155559
N.D.Cal.,2012.
August 02, 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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Re: Quadrant Information Services, LLC v. LexisNexis, ND Cal

Postby Administrator » Tue Oct 07, 2014 7:32 pm

In the instant case, amendment to Quadrant's first claim for injunctive relief under the UCL is futile because said claim is preempted by the FCRA
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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