California Appeals Court Revives Tenants’ Background Check Suit

Los Angeles tenants convinced a California appeals court to revive claims that their building owner violated state law when conducting background checks without giving the applicants copies of the reports.

The tenants could bring their claims under California’s Investigative Consumer Reporting Agencies Act, but not the Unfair Competition Law, according to the California Court of Appeal, Second Appellate District. In an issue of first impression, the decision answered whether plaintiffs can bring ICRAA claims even if they haven’t suffered actual damages.

“We conclude that plaintiffs have standing to pursue their ICRAA claims because ICRAA permits those who experience a violation ...