157 F. Supp. 3d 341
S.D.N.Y.2016Background
- Plaintiff Ulti11ess, Inc. sued FedEx Corp., FedEx Services, and FedEx Ground on March 11, 2011, alleging miscalculated package weights and improper Canadian charges.
- Plaintiff’s TAC asserts violations of RICO, 49 U.S.C. § 13708(b), and New York General Business Law § 349, based on billing and collection practices.
- Prior rulings dismissed state-law, 49 U.S.C. § 13708 claims, and a RICO conspiracy claim; partial summary judgment limited to a contractual class action waiver.
- The remaining RICO counts focus on alleged enterprise conduct by FedEx Corp. and FedEx Services in relation to FedEx Ground.
- The factual dispute centers on whether FedEx Corp. and FedEx Services are sufficiently distinct from FedEx Ground to sustain a RICO claim.
- Judge Forrest grants summary judgment, holding the alleged RICO persons are not distinct from the enterprise, terminating the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FedEx Corp./FedEx Services are distinct from FedEx Ground for RICO liability | Pltf contends distinct entities exist under Cedric Kushner framework. | Defs contend lack of distinctness under Riverwoods/Discon and related rulings. | Not distinct; RICO liability does not attach. |
Key Cases Cited
- Riverwoods Chappaqua Corp. v. Marine Midland Bank, N.A., 30 F.3d 339 (2d Cir.1994) (distinctness not satisfied when enterprise consists of a corporation and its agents carrying on regular affairs)
- Discon, Inc. v. NYNEX Corp., 93 F.3d 1055 (2d Cir.1996) (separate corporate existence not enough if unified structure shows single consciousness)
- Cedric Kushner Promotions, Ltd. v. King, 533 U.S. 158 (2001) (supreme court refined distinctness doctrine; owner/employee not controlling for distinctness)
- Cruz v. FXDirectDealer, LLC, 720 F.3d 115 (2d Cir.2013) (reaffirmed limits of Discon/Riverwoods; discussed enterprise vs. person structure)
- City of New York v. Smokes-Spirits.com, Inc., 541 F.3d 425 (2d Cir.2008) (distinctness analysis for primary vs. association-in-fact enterprises)
- In re ClassicStar Mare Lease Litig., 727 F.3d 473 (6th Cir.2013) (limits use of parent-subsidiary structure to impose RICO liability)