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Fidelity Leasing Corp. v. Dun & Bradstreet, Inc.

Citations: 494 F. Supp. 786; 1980 U.S. Dist. LEXIS 12229Docket: Civ. A. 79-1134

Court: District Court, E.D. Pennsylvania; July 9, 1980; Federal District Court

Narrative Opinion Summary

This case involves a lawsuit filed by a small Pennsylvania corporation, Fidelity Leasing Corporation, against Dun & Bradstreet, Inc. in the U.S. District Court for the Eastern District of Pennsylvania. Fidelity alleged negligence, gross negligence, recklessness, and breach of contract after suffering a financial loss from a lease agreement with Intercontinental Consulting Corporation, a fraudulent entity. The dispute centers on a credit report provided by Dun & Bradstreet, which contained an exculpatory clause disclaiming accuracy guarantees. The court evaluated a motion for summary judgment by Dun & Bradstreet, finding that the exculpatory clause was enforceable regarding ordinary negligence claims, but not for gross negligence or recklessness, due to requirements under Pennsylvania law. While the court granted summary judgment on the negligence claims, it denied the motion concerning breach of contract due to unresolved factual disputes about the adequacy of information provided and contractual interpretations. The outcome underscores the complexities of contract law and the enforceability of liability limitations within commercial agreements.

Legal Issues Addressed

Breach of Contract Claims

Application: Fidelity's breach of contract claim remains due to disputed material facts about the adequacy of information and the interpretation of contractual obligations.

Reasoning: Summary judgment is deemed inappropriate for the contract claim due to disputed questions, leading to the denial of the defendant's motion.

Definition of Gross Negligence

Application: The court noted that gross negligence lacks a universal definition but found that the evidence suggested ordinary negligence rather than gross negligence.

Reasoning: Gross negligence lacks a universal definition but is generally viewed as a severe lack of care.

Enforceability of Exculpatory Clauses

Application: The court found the exculpatory clause enforceable for negligence claims, but not for gross negligence or recklessness due to Pennsylvania law's requirement for explicit language covering these terms.

Reasoning: The court concludes that the exculpatory clause does not protect the defendant from liability for gross negligence or recklessness.

Exculpatory Clauses in Contracts

Application: The contract between Fidelity and Dun & Bradstreet contains an exculpatory clause that impacts the viability of claims of negligence, as it disclaims accuracy guarantees.

Reasoning: The subscription contract with Dun. Bradstreet contained an exculpatory clause stating that the company cannot guarantee the accuracy or completeness of the information it provides, a point that may impact the viability of Fidelity's claims.

Summary Judgment Standard

Application: Dun & Bradstreet's motion for summary judgment was partially granted on negligence claims, as no genuine issues of material fact were found, except for the breach of contract claim.

Reasoning: The court grants the defendant's motion for summary judgment regarding the claims of gross negligence and recklessness, stating that the plaintiff has not alleged anything beyond potential negligence.