posted on 2016-01-28 by TIM J. ST. GEORGE, DAVID M. GETTINGS AND DAVID N. ANTHONY
On November 9, 2015, Terria Harris filed an Amended Complaint against Home
Depot U.S.A., Inc. in a Fair Credit Reporting Act (“FCRA”) background check
class action lawsuit. In this complaint, she alleged that Home Depot
violated the FCRA’s background check disclosure requirement because the
disclosure she signed was allegedly “embedded with extraneous
information.” As a result, the plaintiff argued, the disclosure was not a
“stand-alone document,” in violation of the FCRA.
In response to the complaint, Home Depot moved for summary judgment,
arguing the claim was barred by the FCRA’s statute of limitations. The
applicable statute of limitations requires a plaintiff to bring a claim either
two years after the date of discovery by the plaintiff of the violation, or five
years after the date on which the violation occurs, whichever is earlier.
Because the plaintiff viewed and signed the allegedly offending disclosure in
February of 2011, Home Depot argued the claim brought in 2015 was untimely.
The Court agreed with
Home Depot, stating that “a reasonably diligent person would have discovered
the facts giving rise to Harris’ FCRA … claims by March 1, 2011.” It
concluded that the plaintiff’s FCRA claim was time-barred. The Court’s
decision should serve as a reminder to employers hit with FCRA lawsuits to
analyze the timeliness of a plaintiff’s claim. Even the most meritorious
FCRA claim may not be actionable if the plaintiff fails to assert his or her
rights until it is too late.
Troutman Sanders LLP has substantial experience in counseling employers on
disclosure form documents under the FCRA, as well as experience in litigating
challenges to such claims. We will continue to monitor this and similar
cases.
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