Smith v. LexisNexis Screening Sols., Inc.

David Alan Smith’s employer, Tasson, was sold to Great Lakes Wine and Spirits. Former Tasson employees were not guaranteed a position with Great Lakes. Each employee had to apply for a Great Lakes job. Smith applied for the position of delivery driver, the position he had at Tasson. Great Lakes contracted with LexisNexis to carry out criminal history checks for employment applicants. Great Lakes provided Lexis with Smith’s date of birth but not his middle name. Lexis’s check returned a fraud conviction of a man named David Oscar Smith, resulting in six weeks’ delay in Smith’s being hired. Lexis had requested, but not required, the input of a middle name, and did not cross-reference the criminal history report with a credit report that showed Smith’s middle initial. Smith sued under the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681e(b). Following a jury trial, the court awarded Smith $75,000 in compensatory damages for six weeks of lost wages, emotional distress, and harm to his reputation, plus $150,000 in punitive damages. The Sixth Circuit reversed in part. Although a reasonable jury could conclude that Lexis negligently violated the FCRA by not requiring Smith’s middle name, there was not sufficient evidence of willfulness to support punitive damages. View "Smith v. LexisNexis Screening Sols., Inc." on Justia Law