685 F.Supp.3d 465
W.D. Ky.2023Background
- Plaintiff Amber Reid, a Kentucky resident, sued Tenant Tracker, Inc. and TT Marketing, Inc. (Texas corporations) under the FCRA and FDCPA for reporting a disputed apartment debt on her credit report.
- Reid discovered a collection tradeline on her TransUnion report listing Southwind Management as the original creditor and alleging a $495 balance.
- Reid sent a dispute; TT Marketing replied, and communications included letters dated Nov. 22, 2019 and Mar. 17, 2020 (and a 2022 response letter).
- Defendants submitted sworn declarations (Clifton) stating their operations, reporting, and contracts were performed in Texas and denying purposeful contacts with Kentucky.
- Defendants moved to dismiss under Fed. R. Civ. P. 12(b)(2) for lack of personal jurisdiction; the court reviewed written submissions and granted the motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendants "transacted any business" in Kentucky (KRS 454.210(2)(a)(1)) | Reid: Furnishing credit information and mailing collection letters to her in KY constitute transacting business. | Defs: Contacts were limited, irregular, and mainly responses to Reid; core activities occurred in Texas. | Court: Reid failed to show a reasonable, direct nexus; 2019 letter insufficient to connect to the 2022 alleged harm. |
| Whether defendants contracted to supply services in Kentucky (KRS 454.210(2)(a)(2)) | Reid: Defendants contracted with Southwind (a KY entity) to provide collection services in the Commonwealth. | Defs: Contract terms and performance were in Texas; services were performable in Texas. | Court: No prima facie evidence services were to be supplied in Kentucky; jurisdiction not established. |
| Whether defendants caused tortious injury by an act in Kentucky (KRS 454.210(2)(a)(3)) | Reid: Mailing dunning letters to Reid in KY with allegedly false information caused tortious injury in KY. | Defs: Any mailings originated outside KY; acts were committed outside the Commonwealth. | Court: KRS 454.210(2)(a)(3) requires acting in Kentucky; out-of-state mailings do not satisfy the provision. |
| Whether FCRA or republishing-to-CRAs supports jurisdiction | Reid: Furnishing information to CRAs knowing she lived in KY establishes jurisdiction and harm in KY. | Defs: Reporting and data transmissions occurred in Texas (and Illinois for TransUnion); no predicate long-arm category shown. | Court: Reid did not tie FCRA-based allegations to a specific long-arm provision; jurisdictional inquiry ends—no personal jurisdiction. |
Key Cases Cited
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (establishes purposeful-direction/availment standard for specific jurisdiction)
- Int'l Shoe Co. v. Washington, 326 U.S. 310 (minimum contacts due process framework)
- Caesars Riverboat Casino, LLC v. Beach, 336 S.W.3d 51 (Ky. 2011) (KRS 454.210 requires two-step analysis: statutory predicate then due process)
- Blessing v. Chandrasekhar, 988 F.3d 889 (6th Cir. 2021) (KRS 454.210(2)(a)(3) does not apply to acts committed outside Kentucky)
- Air Prod. & Controls, Inc. v. Safetech Int'l, Inc., 503 F.3d 544 (6th Cir. 2007) (plaintiff must make prima facie showing to defeat 12(b)(2) on written submissions)
- Neogen Corp. v. Neo Gen Screening, Inc., 282 F.3d 883 (6th Cir. 2002) (prima facie contacts showing with reasonable particularity)
- Schneider v. Hardesty, 669 F.3d 693 (6th Cir. 2012) (mailings can support jurisdiction where defendant could reasonably expect injury in forum)
- Rice v. Karsch, [citation="154 F. App'x 454"] (6th Cir. 2005) (mailings may form the basis for jurisdiction if they are the basis for the action)
- H.E.B., LLC v. Jackson Walker, L.L.P., 587 S.W.3d 333 (Ky. Ct. App. 2019) (interpretation of "transacting business" under KRS 454.210)