Supreme Court to Hear Case on Statutory Damages Without Actual Harm; Could Impact FDCPA Cases

Alan Kaplinsky

The U.S. Supreme Court has agreed to hear an important case that will decide whether a plaintiff who cannot show any actual harm from a violation of the Fair Credit Reporting Act (FCRA) nevertheless has standing under Article III of the U.S. Constitution to sue for statutory damages in federal court. The consequences of the Supreme Court’s eventual decision will likely extend significantly beyond FCRA litigation, and affect numerous other statutes and the viability of class actions where alleged technical violations did not cause any actual harm.

In Spokeo, Inc. v. Robins, No. 13-1339 (cert. granted, April 27, 2015), the plaintiff claimed that the defendant website operator willfully violated the FCRA by allegedly publishing inaccurate personal information about him. After initially denying the defendant’s motion to dismiss based on standing, the district court reconsidered and dismissed the action. The court ruled that the plaintiff had failed to plead an injury in fact, and any injuries pled were not traceable to the defendant’s alleged FCRA violations.