Judge Dismisses FCRA Lawsuit Over Background Check Disclosure for Lack of Standing Under Article III

On June 15, 2017, a Judge in the Northern District of Texas issued a Memorandum Opinion and Order granting a dismissal for the defendants in a class action lawsuit, Dyson v. Sky Chefs, Inc., holding that the plaintiff who alleged the improper inclusion of “extraneous” information in a Fair Credit Reporting Act (FCRA) disclosure for a background check lacked standing under Article III of the U.S. Constitution.

United States District Judge Jane J. Boyle cited the Supreme Court of the United States decision on May 16, 2016, in the case of Spokeo Inc. v. Robins: “A ‘concrete’ injury must be ‘de facto’; that is, it must actually exist.” Judge Boyle concluded that the Plaintiff suffered no concrete injury and therefore lacked standing under Article III. As a result, the Court lacked subject matter jurisdiction over this case.

In December 2015, the plaintiff applied to work for the defendants as a cook. As part of the application process, the defendants provided applicants with a ‘Disclosure and Authorization Form.’ The plaintiff claimed that due to the form’s non-compliance with the FCRA, the defendants obtained information about him – and thousands of their other employees – that they had no legal right to obtain. FULL ARTICLE