Salazar v. ABC Automotive Investments, LLC
2:19-cv-00039
D. Nev.Jul 8, 2019Background
- Plaintiff Richard Salazar visited defendant ABC Automotive (d/b/a Las Vegas Mitsubishi) in Dec. 2018 to trade in a car and presented a preapproval letter from America First Credit Union.
- Salazar expressly told three dealership employees not to run a credit check and the salesperson wrote "DO NOT RUN CREDIT" on his application.
- Despite that instruction, ABC Automotive made at least three credit inquiries to major credit reporting agencies; the dealership initially acknowledged one inquiry and later two additional inquiries were discovered.
- Salazar alleges the inquiries caused an 8‑point drop in his credit score, increased his preapproved loan rate by 3 percentage points, and caused emotional distress (humiliation, anxiety, loss of sleep and appetite).
- Salazar sued under the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); ABC moved to dismiss for lack of Article III standing, and Salazar moved to strike ABC’s reply.
- The court denied ABC’s motion to dismiss and denied Salazar’s motion to strike as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III standing (concrete injury) | Salazar alleges concrete harms: 8‑point credit score drop, higher loan rate, and emotional distress from unauthorized credit inquiries | No concrete injury; mere procedural FCRA violation insufficient for Article III standing | Court: Alleged credit‑score drop, higher loan rate, and emotional distress are concrete/intangible injuries sufficient for standing; motion to dismiss denied |
| Motion to strike defendant's reply | Reply brief should be stricken (procedural objection) | Reply is proper; opposition to motion to strike | Court: Motion to strike denied as moot (because motion to dismiss resolved) |
Key Cases Cited
- Faulkner v. ADT Sec. Servs., 706 F.3d 1017 (9th Cir. 2013) (standard for ruling on Rule 12(b)(6) motion)
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (plausibility standard for pleadings)
- Bassett v. ABM Parking Servs., Inc., 883 F.3d 776 (9th Cir. 2018) (intangible harms or risk of real harm can be concrete for Article III standing)
- Moran v. Screening Pros., LLC, 923 F.3d 1208 (9th Cir. 2019) (FCRA allows recovery without proof of actual damages; procedural violations require a concrete injury to confer standing)