Robrinzine v. Big Lots Stores, Inc.

• Decision Date: 24 June 2016
• Docket Number: No. 15-cv-7239,15-cv-7239
• Parties: SHAUNDRENIKA ROBRINZINE, individually and as a representative of the class, Plaintiff, v. BIG LOTS STORES, INC., Defendant, v. STERLING INFORSYSTEMS, INC., Third-Party Defendants.
• Court: U.S. District Court — Northern District of Illinois

SHAUNDRENIKA ROBRINZINE, individually and as a representative of the class, Plaintiff, v. BIG LOTS STORES, INC., Defendant, v. STERLING INFORSYSTEMS, INC., Third-Party Defendants.

No. 15-cv-7239

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

June 24, 2016

Hon. Amy J. St. Eve

MEMORANDUM OPINION AND ORDER

AMY J. ST. EVE, District Court Judge:

Third-Party Defendant Sterling Infosystems, Inc. ("Sterling") has moved the Court to dismiss Defendant and Third-Party Plaintiff, Big Lots's ("Big Lots") Third-Party Complaint pursuant to the doctrine of forum non conveniens or, in the alternative, to transfer the case to the Southern District of Ohio, pursuant to 28 U.S.C. § 1404(a). [82]. Sterling also moves to sever and stay the Third-Party Complaint, pursuant to Federal Rules of Civil Procedure 14(a)(4) and 21. [85]. For the following reasons, the Court grants Sterling's motion to dismiss the Third-Party Complaint pursuant to forum non conveniens and denies the rest of Sterling's motions as moot.

BACKGROUND

The following facts are taken from the Complaint and the Third-Party Complaint. (R. 16, R. 59.) In evaluating the motion to dismiss, the Court accepts as true the Complaint and Third-Party Complaint's well-pleaded factual allegations and draws all reasonable inferences in favor of Plaintiff and Third-Party Plaintiff. See Stayart v. Yahoo!, Inc., 623 F.3d 436, 438 (7th Cir. 2010).

I. Ms. Robrinzine's Employment Application

Ms. Shaundrenika Robrinzine ("Ms. Robrinzine") is an adult resident of Cook County in Chicago, Illinois. (R. 16 at ¶3.) Big Lots is a corporation, incorporated and headquartered in Ohio, "operating Big Lots store locations throughout the United States, including in Cook County." (Id. at ¶4.) Sterling Infosystems, Inc. is a third-party "consumer reporting agency" that Big Lots utilizes to procure employment applicants' consumer reports. (Id. at ¶¶18-19.)

On or around March 5, 2014, Ms. Robrinzine applied to work as an overnight stocker for Big Lots's Homewood, Illinois facility. (Id. at ¶29; Ex. 2.) Subsequently, Big Lots issued Ms. Robrinzine a "Consent to Request Consumer Report & Investigative Consumer Report Information" form ("the Consent Form") through Sterling. (Id. at ¶30.) Ms. Robrinzine signed and returned this form on March 18, 2014. (Id.) On or around that same day, Big Lots procured Ms. Robrinzine's consumer report through Sterling. (Id. at ¶31; Ex. 3.)

II. The FCRA's Stand-Alone Disclosure Requirement

Ms. Robrinzine alleges that the Disclosure Form violates 15 U.S.C. § 1681b(b)(2) of the FCRA. The FCRA, in relevant part, provides:

Except as provided in subparagraph (B), a person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer unless—(i) A clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and

(ii) The consumer has authorized in writing (which authorization may be made on the document referred to in clause (i)) the procurement of the report by that person.

(Id. at ¶24, citing 15 U.S.C. § 1681b(b)(2)(A).) Specifically, Ms. Robrinzine contends that the Consent Form "is not a stand-alone disclosure and does not comply with the requirements of §1681b(b)(2)," as it does not "consist solely of the disclosure[] that a consumer report may be obtained for employment purposes." (Id. at ¶21; 15 U.S.C. § 1681b(b)(2)(a).) Instead, alleges Ms. Robrinzine, "the form contains extraneous information," such as an "implied liability waiver," "over a full page of state-specific notices," and "information on how background information will be gathered[.]" (Id. at ¶¶22, 26-28.)

III. Big Lots's Consent Form

The Consent Form that Ms. Robrinzine received, signed, and submitted includes, in relevant part, the following¹:

I understand that "Big Lots" ("COMPANY") will use Sterling Infosystems ("STERLING"), 6111 Oak Tree Boulevard, Independence, OH 44131, (800) 853-3228 to obtain a consumer report and/or investigative consumer report ("Report") as part of the hiring process. I also understand that if hired, to the extent permitted by law, COMPANY may obtain further Reports from STERLING so as to update, renew or extend my employment.

I understand Sterling's investigation may include obtaining information regarding my credit background, bankruptcies, lawsuits, judgments, paid tax liens, unlawful detainer actions, failure to pay spousal or child support, accounts placed for collection, character, general reputation, personal characteristics and standard of living, workers compensation (but only after an offer of employment is made), driving record and criminal record, subject to any limitations imposed byapplicable federal and state law. I understand such information may be obtained through direct or indirect contact with former employers, schools, financial institutions, landlords and public agencies or other persons who may have such knowledge. If an investigative consumer report is being requested, I understand such information may be obtained throughout any means, including but not limited to personal interviews with my acquaintances and/or associates or with others whom I am acquainted.

The nature and scope of the investigation sought will not exceed: credit background, bankruptcies, lawsuits, judgments, paid tax liens, unlawful detainer actions, failure to pay spousal or child support, accounts placed for collection, character, general reputation, personal characteristics and standard of living, driving record and criminal record, workers compensation (but only after an offer of employment is made).

I acknowledge receipt of the summary of my rights under the Fair Credit Reporting Act and, as required by law, any related state summary of rights (collectively "Summaries of Rights").

This consent will not affect my ability to question or dispute the accuracy of any information contained in a Report. I understand if COMPANY makes a conditional decision to disqualify me based all or in part on my Report, I will be provided with a copy of the Report and another copy of the Summaries of Rights, and if I disagree with the accuracy of the purported disqualifying information in the Report, I must notify COMPANY within five business days of my receipt of the Report that I am challenging the accuracy of such information with Sterling.

I hereby consent to this investigation and authorize COMPANY to procure a Report on my background.

In order to verify my identity for the purposes of Report preparation, I am voluntarily releasing my date of birth, social security number, and the other information and fully understand that all employment decisions are based on legitimate non-discriminatory reasons.

The name, address and telephone number of the consumer reporting agency designated to handle inquiries regarding the investigative consumer report is:

Sterling Infosystems Company, 6111 Oak Tree Boulevard, Independence, OH 44131, 800-853-3228 Option 3.

(R. 16-1, Consent to Request Consumer Report & Investigative Consumer Report Information, emphasis in original.)

IV. The Agreement Between Big Lots and Sterling

On February 9, 2016, Big Lots filed the two-count Third-Party Complaint against Sterling. (R. 59, Third-Party Complaint.) Specifically, "[i]n February 2013, Big Lots and Sterling entered into a Service Agreement (the "Agreement"), under which Sterling agreed to provide Big Lots with, inter alia, 'employment screening services' to be performed 'in a timely and accurate manner consistent with that of a professional employment screening agency.'" (R. 59, Third-Party Complaint, at 3; R. 59-1, Service Agreement.) Big Lots "engaged with Sterling to provide certain services, including conducting background searches on prospective employees and providing the Consent Form to be given to prospective employees before such searches were conducted." (Id. at 2.) The Agreement, in relevant part, provided the following forum selection clause²:

[t]his Agreement shall be governed by the laws of the State of Ohio. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties hereto, their successors and assigns. Any controversy or claim of any nature, arising out of or relating or referring in any way to this Agreement or its breach, which controversy or claim cannot be amicably resolved, shall be settled in a court of competent jurisdiction in the State of Ohio. Each party consents and agrees to submit to the exclusive jurisdiction of said court and that Franklin County Ohio shall be designated as the venue for the resolution of any claim arising hereunder.

(R. 59-1, Agreement, at 3-4.) In Count One of the Third-Party Complaint, Big Lots asserts that "[i]f [Ms. Robrinzine's] allegations are correct . . . Sterling was negligent in providing Big Lots with a Consent Form that failed to comply with the FCRA." (R. 59, Third-Party Complaint, at 6.) Thus, Big Lots seeks "indemnification and defense" from Sterling. (Id.) In Count Two, Big Lots alleges that "if [Ms. Robrinzine's] allegations are correct . . . then Sterling breached the Agreement by failing to provide Big Lots with a Consent Form that complied with the FCRA, asFCRA compliance is one of the essential services of a professional employment screening agency." (Id. at 7.)

Now, Sterling moves the Court to dismiss the Third-Party Complaint pursuant to the doctrine of forum non conveniens or, in the alternative, to transfer the case, pursuant to 28 U.S.C. § 1404(a). In addition, Sterling moves the Court to sever and stay the Third-Party Complaint, pursuant to Federal Rules of Civil Procedure 14(a)(4) and 21. The Court grants Sterling's motion to dismiss the Third-Party Complaint pursuant to forum non conveniens and denies Sterling's remaining...