935 F. Supp. 2d 826
D. Maryland2013Background
- Plaintiffs sue First American Title Ins. Co. for RICO and related state-law claims over alleged overcharging on title insurance premiums in Maryland.
- Plaintiffs allege First American and United General used an association with title agents to collect premiums above Maryland-filed reissue rates and shared excess with agents.
- Maryland Insurance Administration (MIA) determined overcharges and ordered refunds to Mitchell Tracey and Austin; class members’ refunds were not fully resolved.
- This case follows Mitchell Tracey I, where the court decertified the class after finding failure to exhaust administrative remedies; the Fourth Circuit later affirmed this approach.
- Plaintiffs allege ongoing RICO pattern and seek treble damages, attorneys’ fees, and costs, with First American as sole remaining defendant after United General’s termination.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Mootness of the claims | Tracey argues MOOT because refunds were issued to plaintiffs. | First American says refunds render claims moot unless judgment offered. | Mootness denied; full relief including class relief未 offered; still potential treble damages and fees. |
| Timeliness under statutes of limitations | American Pipe tolling preserves timeliness for class members; Tracey timely due to tolling. | Timeliness not tolled because dismissal was without prejudice; American Pipe tolling not automatic in Maryland claims. | Timeliness viable; Tracey claims timely due to federal class-action tolling applied per Maryland doctrine. |
| RICO enterprise distinctiveness and association-in-fact | Enterprise is distinct from First American; agents are part of association-in-fact. | Plaintiffs fail to show separate enterprise from defendant; improper association. | Sufficient allegations of distinct enterprise and association-in-fact exist; RICO claims viable. |
| RICO predicate acts and conspiracy under 18 U.S.C. §1962(a),(c),(d) | Plaintiffs pled mail and wire fraud, and interstate transport of money as predicates; conspiracy alleged. | Arguments about specificity and intracorporate conspiracy defects; challenges to predicate acts. | Pled with particularity sufficient; intracorporate conspiracy not fatal; RICO counts survive. |
| State-law claims (money had and received, negligence, breach of contract) | Claims founded on unlawful overcharges; implied contract theory. | Arguments rely on contract principles and Maryland Insurance Code; some claims dismissed. | All three state-law claims survive under pleading and Bourgeois interpretation; not dismissed. |
Key Cases Cited
- Simmons v. United Mortg. & Loan Inv., LLC, 634 F.3d 754 (4th Cir.2011) (offers of relief short of judgment do not moot claims)