553 F. App'x 56
2d Cir.2014Background
- Richmond entered a natural gas supply contract with Just Energy; the contract was later transferred to National Grid.
- Richmond attempted to cancel and was charged an exit fee by Just Energy; National Grid later sought to collect the fee after the transfer.
- Richmond alleged National Grid attempted to collect without verifying the fee or informing her she could contest the charge while paying undisputed portions.
- She sued, asserting RICO mail/wire fraud, fraudulent misrepresentation, unjust enrichment, and violations of N.Y. Gen. Bus. Law §§ 349 and 350.
- District Court dismissed Richmond’s claims against National Grid; initial appeal was dismissed for lack of finality until claims against Just Energy were resolved, then reinstated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| RICO (pattern of racketeering via mail/wire fraud) | National Grid’s collection letters and actions constituted mail/wire fraud and part of a fraudulent scheme | Collection attempts were not pleaded with particularity and did not further a fraudulent scheme | Dismissed: fraud not pleaded with particularity; no scheme alleged to be furthered by National Grid (RICO fails) |
| Fraudulent misrepresentation | National Grid’s failure to respond to complaints amounted to a false/material representation | Poor customer service is not a false or material representation under NY law | Dismissed: allegations insufficient to show a false or material representation |
| Unjust enrichment | National Grid was unjustly enriched by collecting the exit fee transferred from Just Energy | Richmond did not allege she paid the exit fee or that National Grid benefited | Dismissed: plaintiff failed to allege payment/benefit necessary for unjust enrichment |
| N.Y. Gen. Bus. Law §§ 349 & 350 | National Grid’s conduct was deceptive/false advertising affecting consumers | Conduct was a private, dispute-specific harm, not consumer-oriented conduct affecting the public | Dismissed: plaintiff’s allegations concerned only her and did not allege consumer-wide impact required by §§ 349/350 |
Key Cases Cited
- DeFalco v. Bernas, 244 F.3d 286 (2d Cir. 2001) (elements of a RICO claim)
- Lundy v. Catholic Health Sys. of Long Island Inc., 711 F.3d 106 (2d Cir. 2013) (RICO liability requires predicate acts that further a scheme)
- Bridgestone/Firestone, Inc. v. Recovery Credit Servs., Inc., 98 F.3d 13 (2d Cir. 1996) (requirements for fraud pleadings under New York law)
- Kaye v. Grossman, 202 F.3d 611 (2d Cir. 2000) (elements of unjust enrichment under New York law)
- Maurizio v. Goldsmith, 230 F.3d 518 (2d Cir. 2000) (N.Y. Gen. Bus. Law § 349 requires conduct affecting consumers generally)