Stein v. Bank of America Corporation
887 F. Supp. 2d 126
D.D.C.2012Background
- Plaintiffs Stein and Ramson sue Bank of America for RFPA violations under 12 U.S.C. § 3401 et seq. (Second Am. Compl. ¶¶ 118–122).
- Bank of America operates US-based call/data centers and expanded to overseas centers staffed by foreign nationals with access to customer records.
- Customers may be routed to foreign-based representatives via domestic toll-free numbers without notice of overseas handling.
- Plaintiffs allege overseas handling allows US authorities to access records without constitutional/legal impediments, citing broad NSA practices.
- Court addressing only the Rule 12(b)(1) standing challenge; declines to reach other Rule 12(b)(6) grounds after finding no injury-in-fact.
- RFPA prohibits financial institutions from providing government access to financial records except as specified by the statute; plaintiffs must show their records were released or provided.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do Plaintiffs have RFPA standing? | Stein and Ramson allege concrete RFPA violations harm | No injury-in-fact; speculative, not concrete | Lack of standing; dismissed for lack of injury-in-fact |
| Was there a concrete injury in fact under RFPA? | Statutory violation constitutes injury; inferred from records release | Injury derived from speculation about overseas releases | Insufficient concrete and particularized injury; standing lacking |
| Should court dismiss for lack of standing before addressing merits? | Standing should not bar consideration if RFPA violated | Standing is prerequisite to jurisdiction | Court dismisses for lack of subject-matter jurisdiction due to no standing |
Key Cases Cited
- Linda R.S. v. Richard D., 410 U.S. 614 (U.S. 1973) (statutory rights can create standing even without injury, but injury must exist for plaintiff)
- Warth v. Seldin, 422 U.S. 490 (U.S. 1975) (injury must be distinct and palpable for standing)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (establishes the three-part standing test (injury, causation, redressability))
- Haase v. Sessions, 835 F.2d 902 (D.C. Cir. 1987) (standing is threshold, court may consider outside pleadings to resolve jurisdiction)