Shutts blocks potential FACTA class action against hotels

MIAMI - Sept. 29, 2017 - PRLog -- Frank Zacherl and Jake Monk of Shutts & Bowen achieved a victory in U.S. District Court for their clients Ocean Properties, Ltd. and GHM Jupiter, LLC, the Jupiter Beach Resort & Spa's management company, defeating a plaintiff's attempt to certify a class in a lawsuit against a group of 12 hotels under the Fair and Accurate Credit Transaction Act (FACTA) 15 U.S.C. §1681c(g).

The suit, Justin Bouton v. Ocean Properties, Ltd., et al., case number 9:16-cv-80502, alleged that in 2016, the plaintiff used his credit card to pay for his stay at the Jupiter Beach Resort & Spa and the electronically printed receipt from the front desk showed more than the allowed six digits, including the expiration date of his credit card in violation of FACTA, which was enacted to protect consumers from identity theft. Bouton's expiration date was printed as a result of a software glitch from point-of-sale software system recently installed at the resort that coveted a fully compliant FACTA system to one that may have printed violative documents.

Bouton attempted to certify a class related to this issue, have himself appointed class representative and bring in other hotels.  Judge Beth Bloom ruled in favor of the defendants and denied the plaintiff's motion.

"This is a significant victory," said Frank A. Zacherl a Partner and Chair of the firm's Class Action Practice Group in Miami. "Certifying a class action is complex and nuanced and the court took the time to go through each issue in detail."

"Judge Bloom's order signals a marked turn from a recent string of cases where defendants have settled and stipulated a class should be certified." said Jake Monk, an Associate in the Miami office of Shutts, where he is a member of the Insurance Law and Appellate Practice Groups.

Judge Bloom's 32-page order rejected the plaintiff's attempts to expand the scope of the proposed class to 12 hotels allegedly affiliated with Ocean Properties, Ltd., and ruled that the Plaintiff could not enlarge the class through what the court stated would amount to an "eleventh-hour amendment."

Judge Bloom likewise ruled that the classes, both as a 12-hotel class and as a single-hotel subclass, could not be certified because the classes were not ascertainable, the predominance factor was not met, and a class action was not superior in this case to individual FACTA lawsuits.

"Many hotels were affected by the software glitch," said Daniel F. Benavides, a Partner of the firm's Hospitality Practice Group. "This is a victory not only for the Jupiter Beach Resort & Spa, but for many other hotels that might have been the targets of similar litigation as well as the international software vendor."

As a result of the court's ruling, the defendants' potential liability is limited from possibly millions to between $100 and $1000.  However, to even recover $100, which is still hotly contested between the parties, the plaintiff will have to prove the expiration date was printed willfully.

About Shutts & Bowen LLP Established in 1910, Shutts & Bowen is a full-service business law firm with more than 260 lawyers with offices in Fort Lauderdale, Jacksonville, Miami, Orlando, Sarasota, Tallahassee, Tampa and West Palm Beach.  Learn more about Shutts & Bowen at www.shutts.com.