Obabueki v. International Business Machines Corp.

145 F. Supp. 2d 371 (2001)

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Obabueki v. International Business Machines Corp.

United States District Court for the Southern District of New York
145 F. Supp. 2d 371 (2001)

Facts

In 1995, Abel Obabueki (plaintiff) was charged with welfare fraud under California law. Obabueki entered a no-contest plea and served jail time. In 1997, Obabueki’s conviction was vacated and dismissed. In 1999, International Business Machines Corp. (IBM) (defendant) gave Obabueki a job offer that was conditioned on passing a background check. Obabueki completed IBM’s security data sheet (SDS), which asked applicants whether they had pleaded guilty or no contest to a crime in the last seven years. It instructed applicants not to include any conviction that had been “expunged.” Obabueki indicated that he had no convictions. IBM retained Choicepoint, Inc. (defendant) to conduct background checks. Choicepoint had a minimal verification process when conviction records were uncovered. Choicepoint returned a background report for Obabueki that included his 1995 conviction. On October 13, 1999, Obabueki received a letter from IBM stating that it intended to withdraw his offer and attaching a copy of the report. Obabueki explained that the conviction had been dismissed and provided a copy of the dismissal order. IBM determined that Obabueki should have disclosed the conviction and rescinded his job offer by letter on October 18, 1999. Obabueki sued IBM for violation of the New York State Human Rights Law (NYSHRL), and both IBM and Choicepoint for violations of the Fair Credit Reporting Act (FCRA). The parties filed cross-motions for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Schwartz, J.)

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