Opinion ID: 399203
Heading Depth: 1
Heading Rank: 2

Heading: did the district court properly grant summary judgment?

Text: 12 Plaintiff argues that two genuine issues of material fact stood in the way of summary judgment: (A) Whether Dun & Bradstreet reports are consumer credit reports, and (B) whether Dun & Bradstreet is a consumer credit reporting agency. The significance of these question is that an affirmative answer to each could subject Dun & Bradstreet to liability under the California Act for disseminating false or obsolete information about a consumer. 13 A. The Dun & Bradstreet Reports in Issue Are Not Consumer Credit Reports Within the Meaning of the California Act. 14 The California Act defines a consumer credit report as: 15 any written, oral, or other communication of any information by a consumer credit reporting agency bearing on a consumer's credit worthiness, credit standing, or credit capacity, which is used or is expected to be used, or collected in whole or in part, for the purpose of serving as a factor in establishing the consumer's eligibility for: (1) credit to be used primarily for personal family or household purposes, or (2) employment purposes, or (3) other purposes authorized in Section 1785.11. 16 Cal.Civ.Code § 1785(c). No California case construes the term consumer credit report in the California Act; the parties therefore have examined the construction of the virtually identical phrase consumer report in the Federal Fair Credit Reporting Act (Federal Act), 15 U.S.C. § 1681 et seq. The legislative history of the Federal Act supports the proposition that the definition does not cover business credit reports. S.Rep.No. 91-517, 91st Cong., 1st Sess. (1969) (Committee on Banking & Currency). 17 Defendant maintains that the Dun & Bradstreet Reports relate to the business entities in which plaintiff participated. Moreover, defendant has filed affidavits to the effect that it only provides credit information concerning business entities or individuals engaged in their business capacities. The affidavits indicate that Dun & Bradstreet has not prepared consumer reports since 1974. Dun & Bradstreet also requires that its subscribers sign an agreement that they will use reports on businesses only as a basis for credit to businesses in their capacity as such. 18 The instant case is like Wrigley v. Dun & Bradstreet, 375 F.Supp. 969 (W.D.Ga.1974), in which the court granted summary judgment against Wrigley on the following findings and conclusions: 19 ... The Court finds that the undisputed facts of the instant action are that Dun & Bradstreet issued its credit report on Wrigley Construction Co. for Dun & Bradstreet subscribers to use in deciding whether to extend commercial credit to Wrigley Construction Co. It is therefore clear that the Fair Credit Reporting Act would not ordinarily apply to the credit report issues on Wrigley Construction Co. 20 ... Dun & Bradstreet issued a credit report on Wrigley Construction Co. which contained information on the personal financial situation of Mr. Wrigley. The credit report issued was for the extension of commercial credit and the Fair Credit Reporting Act therefore does not apply. Accordingly, the Court grants Dun & Bradstreet's motion for summary judgment. 21 Id. at 970, 971 (footnote omitted). 22 Mende filed no competent evidence in the trial court opposing the Dun & Bradstreet affidavits. He made no showing whatsoever that the reports were used for consumer purposes. The trial court properly used the affidavits to find that there was no genuine issue of material fact as to whether Dun & Bradstreet issued a consumer credit report. The very mission of the summary judgment procedure is to pierce the pleadings and to assess the proof in order to see whether there is a genuine issue of fact. Notes of Advisory Committee on Rules, Fed.R.Civ.Proc. 56(e). 23 Plaintiff suggests that the reports here at issue could have been used as consumer credit reports, and on that basis argues for the application of the very expansive definition of consumer credit report in Belshaw v. Credit Bureau of Prescott, 392 F.Supp. 1356 (D.Ariz.1975). 2 Belshaw held that 24 consumer report must be interpreted to mean any report made by a credit reporting agency of information that could be used for one of the purposes enumerated in § 1681a. 25 Id. at 1359-60 (emphasis in the original). The Belshaw definition depends on whether information could be used for certain purposes, not on whether it is collected for certain purposes. This expansive interpretation of consumer report has been criticized as bringing within the coverage of the Act any gathering of information about an individual, even if the context were such clearly non-consumer activities as engagement in profit-making transactions ... or litigation against a defendant whose insurer requests a report .... Henry v. Forbes, 433 F.Supp. 5, 9 n.5 (D.Minn.1976). 26 Here there was no evidence that the reports were used for any other purpose than their intended purpose as commercial credit reports. We do not believe that the mere fact that a report could be used as a consumer report is enough to make it one. More is required; however, we reserve the question of just what additional showing is required until a case properly presents the issue. 27 In passing, we note that the present case is very different from Beresh v. Retail Credit Co., 358 F.Supp. 260 (C.D.Cal.1973). Beresh held that reports prepared by a consumer-reporting agency for the purpose of determining whether an insured was disabled, and purportedly used by the insurer for the purpose of terminating monthly payments, were consumer reports within the meaning of the Federal Act. The court reasoned that the reports were consumer reports within the meaning of the Federal Act because they were used in connection with a business transaction involving a consumer. 358 F.Supp. at 262. In Beresh, there was no dispute that the credit agency was a consumer reporting agency within the meaning of 15 U.S.C. § 1681a(f). Second, Beresh was a consumer who had bought personal insurance. In contrast, Dun & Bradstreet disputes that it is a consumer reporting agency. Moreover, Dun & Bradstreet claims that its reports relate to Mende only in his business capacity, not his individual consumer capacity. Thus, Beresh is clearly distinguishable. 28 B. Dun & Bradstreet Is Not a Consumer Credit Reporting Agency. 29 The California Act defines consumer credit reporting agency to mean 30 any person who, for monetary fees, dues, or on a cooperative non-profit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties .... 31 Cal.Civ.Code § 1785.3(d). As discussed above in subpart III(A), Dun & Bradstreet affidavits show that its credit information concerns business entities or individuals engaged in business in their business capacities, and not as consumers. On the basis of these affidavits, it appears that Dun & Bradstreet is not a consumer credit reporting agency. Under the Federal Act, if a reporting entity is not a consumer reporting agency within the meaning of the Act, then such entity cannot be held to have violated the statute, and dismissal is required. Belshaw v. Credit Bureau of Prescott, supra, at 1361. The same result should follow under the California Act.