Preview:

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND ZURICH AMERICAN INSURANCE COMPANY, et al. v. FIELDSTONE MORTGAGE CO. : : : : : : : : MEMORANDUM The plaintiffs, Zurich American Insurance Company, American Zurich Insurance Company, and American Guarantee & Liability Insurance Company (collectively "Zurich"), filed a declaratory judgment action seeking a declaration that they have no duty to defend Fieldstone Mortgage Company ("Fieldstone") against alleged violations of the Fair Credit Reporting Act ("FCRA"). Fieldstone moved for partial summary judgment and Zurich responded with a cross-motion for summary judgment. The parties have fully briefed the motions and no hearing is necessary. See Local Rule 105.6. For the reasons articulated below, Zurich's motion will be denied and Fieldstone's motion will be granted.

Civil No. CCB-06-2055

BACKGROUND The dispute in this case arises from a lawsuit filed in federal court in Illinois by Jeff A. Rhodes ("Mr. Rhodes"), Rhodes v. Fieldstone Mortgage Co., No. 06-cv-00108 (N.D. Ill. filed Jan. 9, 2006). (Compl. Ex. A.) In his complaint, Mr. Rhodes alleges that Fieldstone improperly accessed and used his and others' credit information, violating FCRA's requirement that access be either consented to or for a permissible purpose.

1

Mr. Rhodes alleges that in 2005 and during the two years that preceded the filing of his action, he received "prescreened" offers from Fieldstone to refinance his mortgage. In the complaint, Mr. Rhodes claims that the "prescreening" was based on information contained in his consumer credit report, which was accessed without his consent and without a permissible purpose under FCRA (such as the extension of a firm offer of credit). Mr. Rhodes asserts that Fieldstone "obtained or used, or caused to be obtained or used, the consumer report of plaintiff Jeff A. Rhodes and every other person to whom [the offer] was sent without their written permission or a `permissible purpose.'" (Compl. Ex. A at

Download Zurich American Insurance v. Fieldstone Mortgage.pdf

Maryland Law