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Deaton v. Chevy Chase Bank

Citation: 157 F. App'x 23Docket: Nos. 03-16440, 03-16584; D.C. No. CV-01-00352-SPK/BMK

Court: Court of Appeals for the Ninth Circuit; November 27, 2005; Federal Appellate Court

Narrative Opinion Summary

In this appellate case, the plaintiff challenges the district court's denial of her motion for judgment as a matter of law and the grant of summary judgment in favor of the defendants, two banking institutions. The case centers on claims under the Fair Credit Reporting Act (FCRA) and Hawaii Revised Statute 480-2. The plaintiff contends that her claims under the FCRA were timely filed within the two-year limitations period following the banks' notification of her credit dispute. Despite the banks' argument that the claims were time-barred under other statutes, the court finds the FCRA applicable. The district court's summary judgment, which dismissed her unfair and deceptive trade practices claim as time-barred under Hawaii law, did not address preemption issues. The appellate court remands the case for the district court to assess the merits of the FCRA claims. The plaintiff's continuing violation argument under Hawaii law is noted but not upheld, as the state has not extended this doctrine to her allegations. The outcome of the remand will determine the resolution of the plaintiff's claims against the banks, focusing on whether the banks fulfilled their statutory duties under the FCRA.

Legal Issues Addressed

Continuing Violation Doctrine under Hawaii Revised Statute 480-2

Application: Deaton contends that the Banks' ongoing failure to correct credit card charges constitutes a continuing violation, but the court notes Hawaii does not extend this doctrine to her claims.

Reasoning: Deaton argues that the Banks’ failure to correct the error and ongoing collection efforts constitute a 'continuing violation,' despite Hawaii not extending this doctrine to her allegations.

Duty to Investigate under FCRA

Application: The Banks' duty to investigate Deaton's claims was triggered by her notifications to credit reporting agencies, making her claims timely.

Reasoning: Deaton notified the Credit Bureau of the Pacific (CBP) of her dispute on August 13, 1999, and Equifax and TransUnion on January 27, 2002. The Banks' duty to investigate was triggered by these notifications, making her claims timely since her initial complaint was filed on May 25, 2001, and supplemented on July 9, 2002.

Judgment as a Matter of Law and Summary Judgment Standards

Application: The court conducts a de novo review to determine if the evidence supports a single reasonable conclusion that contradicts the jury's time-bar decision.

Reasoning: The appeal involves a de novo review of the judgment, assessing whether the evidence permits only one reasonable conclusion that contradicts the jury's decision.

Statute of Limitations under Fair Credit Reporting Act (FCRA)

Application: The court evaluates whether Deaton's claims were timely filed under the FCRA, which requires filings within two years from when the liability arose.

Reasoning: According to the FCRA, Deaton must file her complaint within two years from when the liability arose, which is triggered once the Banks are notified of a dispute by the credit reporting agency.