United States District Court, E.D. Michigan, Southern Division
MEMORANDUM AND ORDER DENYING DEFENDANT REUNION
STUDENT LOAN FINANCE'S MOTION FOR SUMMARY JUDGMENT OR
TRANSFER OF VENUE (DOC. 27) 
COHN, UNITED STATES DISTRICT JUDGE
a Fair Credit Reporting Act, 15 U.S.C § 1681 et seq.
(FCRA) case. Plaintiff John Booth (Booth) has sued defendants
Trans Union, LLC (Trans Union), Experian Information
Solutions (Experian), Independent Bank Corporation, Reunion
Student Loan Finance Corporation (RSL), and Xerox Education
Services, d/b/a ACS Education Services (ACS). In general, Booth
claims that his ex-wife forged his signature on student loan
applications, and that RSL and the other defendants failed to
properly investigate his dispute, respond as obligated under
the FCRA, and remove the student loan debts from his credit
report despite numerous requests.
the Court is RSL's “motion for summary judgment or
to transfer venue” on the grounds that (1) Booth's
claim is time-barred, (2) venue is improper due to a forum
selection clause in the promissory note. (Doc.
For the reasons that follow, the motion will be denied.
complaint alleges that in 2011, Booth discovered his ex-wife
had forged his signature on multiple student loan
applications. On January 19, 2012, Booth filed for Chapter 7
Bankruptcy, reaffirming his house mortgage and car loan,
which was discharged on April 17, 2012. On March 19, 2013,
Booth filed a police report regarding the fraudulent errant
trade lines (the disputed student loans). On August 22, 2017,
Booth obtained his credit report and noticed the disputed
student loans remained on his report. Booth then sent a
letter to Experian, Trans Union, and Equifax around October
19, 2017, disputing the loans and asking for them to be
corrected. They forwarded his dispute to RSL. Although
Experian, Trans Union, and Equifax were supposed to inform
Booth of the results of their investigation, Booth says they
failed to do so. Booth then obtained copies of his credit
file from each between November 30-December 6, 2017, and
found that Equifax had removed the student loans from his
report but Trans Union had not.
December 18, 2017, Booth filed a complaint against defendants
in state court. Defendants later removed the case to federal
Forum Selection Clause
promissory note contains the following clause:
I hereby agree that this Promissory Note and related
documents shall be construed and enforced according to the
laws of the state of South Dakota and I consent to the long
arm jurisdiction of courts in the state of South Dakota for
this purpose. I further agree that any action in any manner
to this Note and/or related documents shall be litigated or
processed in the state of South Dakota."
(Doc. 27, Ex. A)
12(b)(6) motion tests the sufficiency of a plaintiff's
pleading. The Rule requires that a complaint "contain
something more . . . than . . . a statement of facts that
merely creates a suspicion [of] a legally cognizable right of
action." Bell Atlantic Corp. v. Twombly, 550
U.S. 544 (2007) (internal citation omitted). A
"plaintiff's obligation to provide the
'grounds' of his 'entitlement to relief'
requires more than labels and conclusions, and a formulaic
recitation of the elements of a cause of action will not
do." Id. "[T]hat a court must accept as
true all of the allegations contained in a complaint is
inapplicable to legal conclusions. Threadbare recitals of all
the elements of a cause of action, supported by mere
conclusory statements ...