Andrew Feldman v. American Dawn, Inc.
2017 U.S. App. LEXIS 3863
11th Cir.2017Background
- Andrew Feldman worked 14 years as a regional sales manager for American Dawn and was a lead salesperson to ALSCO, a major customer.
- American Dawn fired Feldman after an ALSCO audit revealed a deferred-billing scheme; Feldman admitted participation but alleged he was scapegoated for broader misconduct (shipment of substandard goods) involving his supervisor Vyto Tozer and ALSCO consultant Paul Rasband.
- After his firing Feldman was hired by competitor Baltic Linen; Rasband and Tozer allegedly conspired to freeze Baltic out of ALSCO’s business, Rasband sharing rival bids with American Dawn and warning ALSCO against using Baltic employees including Feldman.
- Baltic lost a contract to American Dawn despite a low bid; Feldman alleges the conspiracy and bid manipulation caused his subsequent termination from Baltic.
- Feldman sued American Dawn, Tozer, and Rasband asserting federal antitrust claims, federal and Georgia RICO, tortious interference (business and employment), civil conspiracy, negligent misrepresentation, and fraud; the district court dismissed and the Eleventh Circuit affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Antitrust standing | Feldman argues he has standing because the conspiracy caused his termination and targeted labor and the linens market | Defendants argue the conspiracy targeted Baltic/market competition, not the labor market or Feldman individually, so no antitrust injury | No standing: Feldman suffered collateral injury to employment, not the antitrust injury the statute protects; dismissal affirmed |
| RICO predicate acts / proximate cause | Feldman contends wire fraud and Travel Act predicates arise from defendants’ misrepresentations and concealment | Defendants contend Travel Act inapplicable (no enumerated unlawful activity) and alleged statements are opinions, not wire fraud; alleged acts targeted ALSCO, not Feldman | RICO claims dismissed: no viable predicate acts and insufficient proximate causation |
| Tortious interference / civil conspiracy | Feldman says Tozer/Rasband interfered with his ALSCO and Baltic employment relationships and conspired | Defendants assert they were not strangers to relationships (Tozer/American Dawn had interwoven interests); civil conspiracy requires underlying tort | Claims dismissed: Tozer/American Dawn not strangers; interference and conspiracy fail (some arguments waived on appeal) |
| Fraud / negligent misrepresentation (severance promise) | Feldman alleges Tozer falsely promised severance to induce reliance | Defendants argue promise was indefinite/unenforceable (no determinable sum), so cannot support fraud or negligent misrepresentation | Claims dismissed: promissory statement unenforceable and insufficiently particular; negligent misrepresentation abandoned |
Key Cases Cited
- Sunbeam Television Corp. v. Nielsen Media Research, Inc., 711 F.3d 1264 (11th Cir. 2013) (antitrust standing and efficient-enforcer framework)
- Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc., 429 U.S. 477 (U.S. 1977) (definition of antitrust injury)
- Blue Shield of Va. v. McCready, 457 U.S. 465 (U.S. 1982) (nonmarket participants’ standing when injury is inextricably intertwined)
- Nat’l Indep. Theatre Exhibitors, Inc. v. Buena Vista Distrib. Co., 748 F.2d 602 (11th Cir. 1984) (employees lack standing to sue for antitrust injuries to employer)
- Am. Dental Ass’n v. Cigna Corp., 605 F.3d 1283 (11th Cir. 2010) (RICO predicate and fraud pleading standards)
- Anza v. Ideal Steel Supply Corp., 547 U.S. 451 (U.S. 2006) (proximate-cause requirement for RICO and antitrust-related claims)