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USDA v. Kirtz (Fair Credit Reporting Act / Sovereign Immunity)
Manage episode 399953802 series 2286679
DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT RURAL HOUSING SERVICE v. KIRTZ
Reginald Kirtz obtained a loan from the Department of Agriculture Rural Development Rural Housing Service. According to Kirtz, the USDA later told one of the major credit agencies (TransUnion) that Kirtz was behind on his payments. Kirtz says this was false and these false statements hurt his credit report and score. He sued the USDA under the Fair Credit Reporting Act. The USDA moved to dismiss in District Court because on sovereign immunity grounds. The FCRA defines "person" to include government agencies -- but the statute does not expressly abrogate sovereign immunity otherwise. The District Court granted the USDA's motion to dismiss on these grounds. The Third Circuit reversed. The issue in front of the Supreme Court was whether the federal government can be sued for violation of the Fair Credit Reporting Act, or if this is precluded on sovereign immunity grounds. Held: A consumer may sue a federal agency for defying the FCRA’s terms.
Justice Gorsuch writing for a unanimous Court.
414 episode
Manage episode 399953802 series 2286679
DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT RURAL HOUSING SERVICE v. KIRTZ
Reginald Kirtz obtained a loan from the Department of Agriculture Rural Development Rural Housing Service. According to Kirtz, the USDA later told one of the major credit agencies (TransUnion) that Kirtz was behind on his payments. Kirtz says this was false and these false statements hurt his credit report and score. He sued the USDA under the Fair Credit Reporting Act. The USDA moved to dismiss in District Court because on sovereign immunity grounds. The FCRA defines "person" to include government agencies -- but the statute does not expressly abrogate sovereign immunity otherwise. The District Court granted the USDA's motion to dismiss on these grounds. The Third Circuit reversed. The issue in front of the Supreme Court was whether the federal government can be sued for violation of the Fair Credit Reporting Act, or if this is precluded on sovereign immunity grounds. Held: A consumer may sue a federal agency for defying the FCRA’s terms.
Justice Gorsuch writing for a unanimous Court.
414 episode
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