Bizzie Walters v. Todd McMahen
2012 U.S. App. LEXIS 13682
4th Cir.2012Background
- Five Perdue hourly-wage employees allege a Perdue conspiracy to hire unauthorized aliens to depress wages; plaintiffs sue on behalf of themselves and similarly-situated employees.
- Scheme involves HR clerks processing applications with fake IDs and attesting to validity on I-9 forms.
- Facility managers across fourteen Perdue locations allegedly receive instructions from corporate managers to carry out the scheme.
- Plaintiffs allege two RICO predicate acts: illegal hiring under 8 U.S.C. §1324(a)(3) and false attestation under 18 U.S.C. §1546(b).
- District court granted transfer to Maryland and dismissed the action under Rule 12(b)(6); Fourth Circuit reviews de novo and affirms dismissal.
- Court holds plaintiffs failed to plead plausible RICO predicate acts or a conspiracy, warranting dismissal with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the amended complaint plausibly pleads a RICO conspiracy under §1962(d). | Plaintiffs allege a coordinated scheme among Perdue managers and HR clerks. | Defendants contend no plausible conspiracy is pleaded. | Yes, plaintiffs failed to plead a plausible conspiracy. |
| Whether the illegal hiring predicate under §1324(a)(3) is plausibly pled. | Plaintiffs claim clerks knowingly hired hundreds of unauthorized aliens brought in illegally. | Defendants argue insufficient factual detail tying knowledge and entry to ten+ hires in a 12-month period. | No, predicates not plausibly alleged. |
| Whether the false attestation predicate under §1546(b) is plausibly pled and proximate to injuries. | Plaintiffs detail false I-9 attestations by clerks. | Predicate lacks proximate causation to wage depression. | No proximate causation; predicate not pled sufficiently. |
| Whether the intracorporate immunity doctrine affects viability of the claim. | Plaintiffs seek to impose liability across corporate officers. | Issue potentially barred by intracorporate immunity. | Not reached; claim failed on predicates. |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (Supreme Court 2007) (plausibility standard for pleading; not mere conclusory allegations)
- Ashcroft v. Iqbal, 556 U.S. 662 (Supreme Court 2009) (requirement of plausible claims; context-specific analysis)
- Robinson v. American Honda Motor Co., 551 F.3d 218 (4th Cir. 2009) (de novo review of Rule 12(b)(6) dismissals)
- Edwards v. Prime, Inc., 602 F.3d 1276 (11th Cir. 2010) (illegal hiring predicate discussed; two mens rea elements)
- Commercial Cleaning Servs., L.L.C. v. Colin Serv. Sys., Inc., 271 F.3d 374 (2d Cir. 2001) (two-element illegal hiring predicate; distinct mens rea elements)
- Mendoza v. Zirkle Fruit Co., 301 F.3d 1163 (9th Cir. 2002) (pre-Twombly standard; pleading sufficiency discussed)
- Beck v. Prupis, 529 U.S. 494 (Supreme Court 2000) (proximate cause and civil conspiracy framework)