Bryan Ray v. Spirit Airlines, Inc.
767 F.3d 1220
11th Cir.2014Background
- Plaintiffs allege Spirit’s Passenger Usage Fee concealed from 2008 to 2011 and used mails and wires to execute a scheme to defraud.
- District court dismissed, holding ADA preemption of civil RICO claims related to airline pricing/advertising.
- FAA/ADA create a federal regulatory scheme; DOT may penalize deceptive practices under FAA but not compensate private damages.
- RICO provides a civil remedy for injuries from a scheme operated through an enterprise via a pattern of racketeering, including mail/wire fraud.
- Court discusses whether ADA preempts civil RICO or repeals it by implication; conflict between two federal regimes is governed by overlapping but non-repealing statutes.
- Court vacates dismissal of the Passenger Usage Fee RICO claim and remands for pleading adequacy; does not address other RICO elements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the Airline Deregulation Act preempt civil RICO claims here? | Spirit preemption bars RICO damages for fee/price claims. | ADA preemption extends to airline pricing/advertising activities and forecloses related RICO claims. | No preemption of civil RICO by ADA. |
| Is there an implied repeal of RICO by the ADA? | ADA repeals or displaces RICO's civil remedy for airline pricing matters. | ADA substitutes DOT remedies and implies repeal of RICO in this domain. | No implied repeal; two regimes may coexist. |
| Can civil RICO claims predicated on mail and wire fraud survive alongside DOT regulation? | RICO acts independently of DOT regulations and is not precluded. | Federal regulation fully addresses airline pricing, leaving no room for RICO claims. | Civil RICO claims based on mail/wire fraud are not precluded by ADA/DOT regulation. |
Key Cases Cited
- Ayres v. General Motors Corp., 234 F.3d 514 (11th Cir. 2000) (disavows equating regulatory duties with mail/wire fraud; but allows deception theory)
- Sedima, S.P.R.L. v. Imrex Co., 473 U.S. 479 (S. Ct. 1985) (civil RICO remedial purposes; liberal construction)
- Reves v. Ernst & Young, 507 U.S. 170 (S. Ct. 1993) (elements of RICO liability; pattern of racketeering)
- Posadas v. Nat’l City Bank of N.Y., 296 U.S. 497 (S. Ct. 1936) (repeals by implication require clear intent)
- Rodriguez v. United States, 480 U.S. 522 (S. Ct. 1987) (clear and manifest intent required for implied repeal)
- Wood v. United States, 41 U.S. 342 (U.S. 1842) (repeals by implication require positive repugnancy)