Narrative Opinion Summary
In this case, Elkins sued Telecheck Services, Inc. after his checks were wrongly disapproved by merchants due to inaccuracies in Telecheck's reporting system. A jury trial resulted in findings against Telecheck for negligence, defamation, and violations of the Federal Fair Credit Reporting Act (FCRA), awarding Elkins actual and exemplary damages. Telecheck appealed, contesting the sufficiency of evidence supporting the malice necessary for exemplary damages and arguing errors in the trial court's decisions. The appellate court determined that the evidence did not sufficiently demonstrate malice, specifically the gross negligence required to justify exemplary damages. Consequently, the appellate court reversed the award of exemplary damages and remanded the case for further proceedings. The court maintained that the trial court's jury instructions on the definition of malice were appropriate for the pre-2003 context of Elkins's claims. The appellate court also dismissed Telecheck's challenge to the denial of its directed verdict motion regarding FCRA violations due to inadequate briefing. As a result, the case was remanded for a new trial to address the issues surrounding exemplary damages and other claims.
Legal Issues Addressed
Defamation in Credit Reportingsubscribe to see similar legal issues
Application: Elkins successfully claimed defamation against Telecheck for incorrect information associated with his identity.
Reasoning: The jury found Telecheck... defamed Elkins.
Definition and Application of Malice in Exemplary Damagessubscribe to see similar legal issues
Application: The court evaluated malice in terms of gross negligence rather than specific intent to harm.
Reasoning: Elkins did not claim Telecheck had specific intent to harm, so the appeal focused solely on gross negligence.
Directed Verdict on Federal Statutory Violationssubscribe to see similar legal issues
Application: Telecheck's appeal on directed verdict denial for FCRA violations was inadequately briefed and not considered.
Reasoning: Telecheck's appeal regarding the trial court's denial of a directed verdict on FCRA violations was deemed inadequately briefed due to lack of citations.
Exemplary Damages and Malicesubscribe to see similar legal issues
Application: The appellate court reversed the trial court's exemplary damages award due to insufficient evidence of malice.
Reasoning: The appellate court found insufficient evidence to support the malice finding, leading to the reversal of the trial court's judgment concerning exemplary damages.
Federal Fair Credit Reporting Act Violationssubscribe to see similar legal issues
Application: Telecheck was found to violate both negligent and willful provisions of the FCRA.
Reasoning: The jury awarded Elkins... $200 for negligent FCRA violation, and $300 for willful FCRA violation.
Negligence in Credit Reportingsubscribe to see similar legal issues
Application: The jury determined Telecheck Services, Inc. was negligent in handling Elkins's check disapprovals.
Reasoning: The jury found Telecheck negligent, attributing 60% of the negligence to Telecheck and 40% to Elkins.