Lawrence Kates v. Crocker National Bank

Summary

The Ninth Circuit affirmed summary judgment for Crocker National Bank in claims arising from a notice that an investigative consumer report might be made under the Fair Credit Reporting Act. The court held that the Act was not triggered because no investigation or report occurred, rejected the unfair-business-practices damages claim under California law, and upheld denial of leave to amend to add intentional infliction of emotional distress.

Holdings

1. The Fair Credit Reporting Act was not activated because Crocker conducted no investigation and transmitted no consumer-report information. A notice stating that an investigative consumer report may be made did not, on these facts, constitute conduct proscribed by the Act.
2. California law did not recognize recovery of damages by individuals for unfair business practices.
3. The district court did not abuse its discretion in denying Kates leave to amend because Kates offered no reason for his delay in seeking amendment.

Questions Presented

1. Whether Crocker's notice that an investigative consumer report might be made, without any investigation or report actually occurring, triggered liability under the Fair Credit Reporting Act.
2. Whether California law permitted an individual to recover damages for alleged unfair business practices.
3. Whether the district court abused its discretion by denying Kates leave to amend his complaint to add an intentional-infliction-of-emotional-distress claim.

Disposition

affirmed