U.D. Registry, Inc. v. State

According to the complaint in this action, U.D. Registry, Inc. (UDR) is a credit reporting agency serving the rental housing industry: “In order to assist landlords, property managers and others in determining the eligibility of a consumer for hiring of a dwelling, UDR maintains a database on unlawful detainers and other public records on tens of millions of prospective tenants throughout the state of California and other states.”

UDR brought this lawsuit against the State of California to enjoin the enforcement of Civil Code section 1785.11.2 (the Freeze Statute) because, among other things, the statute “on its face, unconstitutionally limits UDR’s right to discuss all judicial proceedings . . .” and thus “by its own terms abridges the right of free speech with respect to this Plaintiff and others similarly situated in direct contravention of both the California and Federal Constitutions.” As UDR explained in its trial brief, “At issue in this case is whether a State may pass and enforce a statute that gives consumers the right to completely suppress the dissemination of truthful and lawfully obtained public record information by third parties about entirely lawful activity in…

I. INTRODUCTION

Plaintiff, the U.D. Registry, Inc., and defendants, the State of California and Attorney General Bill Lockyer, appeal from a September 9, 2004 judgment. Defendants separately appeal from an April 13, 2005 postjudgment order awarding plaintiff attorney fees. Plaintiff is a credit reporting agency that provides consumer credit reports to landowners who rent and lease apartments and to property managers. Plaintiff sought declaratory relief and to enjoin enforcement of Civil Code 1 section 1785.11.2 on federal and state constitutional free speech grounds. Section 1785.11.2 is known as the “security freeze” law; it allows California consumers to prevent the dissemination of their credit reports. Plaintiff argues section 1785.11.2 violates its First Amendment right to disseminate consumer credit reports containing truthful, lawfully obtained information; much of it secured from federal and state court records. The trial court ruled the security freeze law was unconstitutional with respect to information included in the consumer credit reports that *410 is culled from public records. The trial court’s injunction only enjoined defendants from enforcing section…

Certified for Partial Publication. [*]

Plaintiff, the U.D. Registry, Inc., and defendants, the State of California and Attorney General Bill Lockyer, appeal from a September 9, 2004 judgment. Defendants separately appeal from an April 13, 2005 post-judgment order awarding plaintiff attorney fees. Plaintiff is a credit reporting agency that provides consumer credit reports to landowners who rent and lease apartments and property managers. Plaintiff sought declaratory relief and to enjoin enforcement of California Civil Code [1] section 1785.11.2 on federal and state constitutional free speech grounds. Section 1785.11.2 is known as the "security freeze" law; it allows California consumers to prevent the dissemination of their credit reports. Plaintiff argues section 1785.11.2 violates its First Amendment right to disseminate consumer credit reports containing truthful, lawfully obtained information; much of it secured from federal and state court records. The trial court ruled the security freeze law was unconstitutional with respect to information included in the consumer credit reports that is culled from public records. The trial court's injunction only enjoined…