Marie Ann Fuges v. Southwest Financial Services, 2012 U.S. App. LEXIS 25009

Fuges appeals a district court summary judgment in favor of Southwest on willful FCRA violation claims.
Southwest sells current owner title/property reports to lenders; reports contain owner name, address, marital status, mortgage, and encumbrances.
Fuges’ property report to PNC included a tax delinquency note and a $2,923.63 judgment lien wrongly tied to her late husband; some items were arguably inaccurate.
District Court held Southwest’s reading of FCRA was objectively reasonable; Safeco safe harbor applied; no willful violation found.
On appeal, court evaluates whether Southwest is a CRA and whether its interpretation was reasonable under Safeco; court also addresses timing of a potential pre-litigation reading.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Southwest is a CRA under FCRA	Fuges: Southwest reports on consumers and falls within FCRA.	Southwest: reports concern property, not information on consumers; not a CRA.	Ambiguous definitions; not clearly a CRA; resolution favors Safeco defense.
Whether Safeco’s reasonable-interpretation defense applies	Fuges: Southwest acted recklessly by misreading statute.	Southwest relied on a reasonable interpretation that its reports aren’t consumer reports.	Safeco defense applies; interpretation not objectively unreasonable.
Whether Southwest acted recklessly in applying FCRA	Fuges contends Southwest knowingly disregarded FCRA or acted recklessly.	Southwest did not know it violated FCRA; no reckless disregard.	No reckless disregard; no willful violation found.
Timing of Southwest's interpretive reading for Safeco	Reading need not have existed pre-litigation.	Safeco applies if a reasonable reading could support conduct, regardless of pre-litigation reading.	Reading can be post hoc; objective reasonableness governs.
Whether summary judgment was proper given Safeco framework	Evidence supports willful violation under reckless standard.	No genuine issue for willful violation under Safeco's objective standard.	Summary judgment affirmed; no willful violation.

Safeco Insurance Co. of America v. Burr, 551 U.S. 47 (Supreme Court 2007) (establishes objective-reasonableness Safeco test for willfulness)
Long v. Tommy Hilfiger U.S.A., 671 F.3d 371 (3d Cir. 2012) (pre-Safeco reading not required to invoke reasonable-interpretation defense)
Cortez v. Trans Union, LLC, 617 F.3d 688 (3d Cir. 2010) (distinguishes reliance on contrary authority for recklessness)
Levine v. World Financial Network National Bank, 554 F.3d 1314 (11th Cir. 2009) (discusses Safeco defense in post-Safeco context)
Birmingham v. Experian Info. Solutions, Inc., 633 F.3d 1009 (10th Cir. 2011) (no Safeco-based liability where no contradiction in statutory interpretation)
Saunders v. Branch Banking & Trust Co. of Va., 526 F.3d 142 (4th Cir. 2008) (discusses willfulness context prior to Safeco)