Facts
- Zoe Ajjahnon, a former insurance agent, filed a lawsuit against Amerilife of North Carolina, alleging violations under the RICO Act stemming from her employment with Amerilife of Central Florida. [lines="12-13"], [lines="42-50"].
- As part of her employment, Ajjahnon signed a contract requiring her to secure errors and omissions (E&O) insurance and repay advanced costs from her commissions. [lines="48-50"], [lines="53-55"].
- Ajjahnon was terminated by Amerilife of Central Florida and was subsequently demanded to repay $500, a fee stipulated in her contract. [lines="61-63"], [lines="72"].
- Throughout the proceedings, Ajjahnon's claims were focused exclusively against Amerilife of North Carolina, without implicating Amerilife of Central Florida or its affiliates. [lines="82-84"].
- The court denied Ajjahnon's claims because Amerilife of North Carolina was found not to have a contractual relationship with her and because her RICO claims were not supported by sufficient evidence. [lines="38-40"], [lines="381-381"].
Issues
- Whether Amerilife of North Carolina is a proper party in the lawsuit due to an alleged lack of contractual relationship with Ajjahnon. [lines="204-207"].
- Whether Ajjahnon's allegations constituted valid RICO claims of extortion and illegal debt collection against Amerilife of North Carolina. [lines="382-383"].
Holdings
- The court held that Amerilife of North Carolina was not a proper party because it did not hold a contractual relationship with Ajjahnon, which precluded her from bringing claims against it under the RICO Act. [lines="378-381"].
- The court further found that Ajjahnon's RICO claims failed as a matter of law due to an absence of evidence indicating a pattern of racketeering activity or resultant injury linked to the alleged misconduct. [lines="550-550"].
OPINION
ZOE AJJAHNON v. AMERILIFE OF NORTH CAROLINA, LLC
Case No: 6:22-cv-329-JSS-LHP
UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION
November 7, 2024
Document 104 Filed 11/07/24 Page 1 of 16 PageID 1918
ORDER
Plaintiff, Zoe Ajjahnon, proceeding pro se, has sued Defendant, Amerilife of North Carolina, LLC, under the Racketeer Influenced and Corrupt Organizations (RICO) Act,
BACKGROUND
Plaintiff is a former insurance agent who worked for non-party Amerilife of
Plaintiff did not generate any business during her first two months working for Amerilife of Central Florida, and she elected to take a leave of absence in December 2021. (See id. at 112-13, 495.) Amerilife of Central Florida terminated her and sent her a letter on December 15, 2021, demanding payment of $500 in contractually based fees. (Id. at 212; Dkt. 84-1 at 7-9.) Neither Amerilife of Central Florida nor Defendant collected this debt or reported, or threatened to report, it to any credit agency, collection agency, or insurance reporting agency. (Dkt. 82-1 at 135, 238-39; Dkt. 83-1 ¶¶ 17-18; Dkt. 84-1 ¶¶ 19-20.)
Plaintiff initiated this action against Defendant on February 11, 2022. (Dkt. 1.) After two pleading amendments, (see Dkts. 7 & 11), the operative complaint brings several counts under the RICO Act, mainly under the theory that the December 15 letter was an extortionate attempt to collect an unlawful debt, (see Dkt. 11). Throughout this action, Plaintiff‘s claims have been solely against Defendant, not
On June 1, 2023, the court issued the case management and scheduling order in this case. (Dkt. 34.) That order set a discovery deadline of May 31, 2024, and a deadline for dispositive motions, such as motions for summary judgment, of July 2, 2024. (Id. at 1.) These deadlines were not extended. (See Dkt. 58 (an order denying without prejudice a motion to extend the discovery deadline).) On June 22, 2023, Plaintiff filed a motion seeking summary judgment as to Defendant‘s affirmative defenses. (Dkt. 38.) On March 5, 2024, the court granted Plaintiff‘s motion in part and denied it in part. (Dkt. 45.) Plaintiff did not move for summary judgment again before the July 2, 2024 deadline. Defendant timely filed the instant motion for summary judgment on that date. (Dkt. 85.) Plaintiff filed her motion for modification on August 21, 2024. (Dkt. 96.)
APPLICABLE STANDARDS
On a motion for summary judgment, a district court views “all facts and reasonable inferences in the light most favorable to the nonmoving party.” Wesson v. Huntsman Corp., 206 F.3d 1150, 1152 (11th Cir. 2000). “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”
The movant “bears the initial responsibility of informing the district court of the basis for its motion” and “identifying those portions” of the record that “it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). If the movant demonstrates the absence of a genuine issue of material fact, “[t]he burden . . . shifts to the non[]moving party” to “go beyond the pleadings” and “present affirmative evidence to show that a genuine issue of material fact exists.” Porter v. Ray, 461 F.3d 1315, 1320 (11th Cir. 2006). To satisfy its burden, the nonmoving party “must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). In resolving the motion for summary judgment, the district court must consider the materials in the record to which the parties cite, but it does not need to consider any other materials in the record.
“District courts have ‘unquestionable’ authority to control their own dockets.” Smith v. Psychiatric Sols., Inc., 750 F.3d 1253, 1262 (11th Cir. 2014) (quoting Canada v. Mathews, 449 F.2d 253, 255 (5th Cir. 1971)). “This authority includes ‘broad discretion
Although courts “give liberal construction” to documents filed by pro se plaintiffs, Albra v. Advan, Inc., 490 F.3d 826, 829 (11th Cir. 2007), pro se plaintiffs are still “required . . . to conform to procedural rules,” Loren v. Sasser, 309 F.3d 1296, 1304 (11th Cir. 2002). See Cummings v. Dep‘t of Corr., 757 F.3d 1228, 1234 n.10 (11th Cir. 2014) (“The right of self-representation does not exempt a party from compliance with
ANALYSIS
Defendant seeks summary judgment on two grounds: (1) Defendant is an improper party to this action, and (2) in any event, Plaintiff cannot prevail on her RICO claims as a matter of law. (Dkt. 85 at 14-25.) In response, Plaintiff moves for modification of the case management and scheduling order so that she may file a motion for summary judgment. (Dkt. 96.) She also moves for a bench trial. (Dkt. 99.) The court discusses Defendant‘s two grounds in turn and then addresses Plaintiff‘s motion for modification. Because Defendant is entitled to summary judgment, the court denies as moot Plaintiff‘s motion for a bench trial.
1. Improper Party
Defendant contends that it is not a proper party to this action because it did not have a contractual or business relationship with Plaintiff and did not otherwise participate in the conduct alleged in the operative complaint. (Dkt. 85 at 14-17.) Plaintiff responds that Defendant “exercised full rights to enforce the contract . . . because it is party to it.” (Dkt. 86 at 8; accord Dkt. 95 at 6-7.) According to Plaintiff, her former employer, “Amerilife of Central Florida[,] is one [and] the same as any other Amerilife” entity, including Defendant. (Dkt. 82-1 at 18.)
In support of her argument that Defendant is a proper party, Plaintiff relies on paragraph 18 of the contract, (see Dkt. 86 at 5-6), which states that “[f]or purposes of this
In addition, Plaintiff relies on paragraph 31 of the contract to support her position. (See Dkt. 86 at 7-8; Dkt. 95 at 5; see also Dkt. 83-1 at 12.) Under the subheading “Enforcement,” paragraph 31 provides that the “affiliates of the Agency . . . are expressly intended by the parties to be intended third[-]party beneficiaries of [the contract] and have full rights to enforce [the contract] as if they were a party hereto.” (Dkt. 83-1 at 12.) Plaintiff claims that because this provision makes Defendant an intended third-party beneficiary of the contract, Defendant is a party to the contract and can be sued for events arising out of the contract. (See Dkt.
Plaintiff further contends that because the December 15 letter states that the $500 bond is payable to “Ameri[l]ife of Polk County, LLC,” rather than Amerilife of Central Florida, all Amerilife entities could be proper parties to this action. (Dkt. 86 at 3; see Dkt. 84-1 at 7.) John Schrieffer, a vice president with Defendant, stated in an affidavit that the designation of “Ameri[l]ife of Polk County, LLC” as the payee was
“[W]hen a plaintiff files suit against the wrong company, a court may grant summary judgment in favor of the improperly named defendant.” Cacho v. Monevo, Inc., No. 6:22-cv-1998-PGB-RMN, 2023 U.S. Dist. LEXIS 207057, at *4 n.2 (M.D. Fla. Apr. 14, 2023) (citing Overstreet v. Southern Ry. Co., 371 F.2d 411, 412 (5th Cir. 1967)). There is no genuine dispute that Defendant is not a proper party to this action, for it did not have the contractual relationship with Plaintiff on which she bases her RICO claims. Defendant is thus entitled to summary judgment on that basis alone.
2. RICO Claims
On the merits, Plaintiff alleges that Amerilife, including Defendant and other subsidiaries, has engaged in an ongoing criminal enterprise involving extortion of payment of illegal debt via mail and wire fraud. (See Dkt. 11.) Plaintiff claims that Defendant recruits individuals to become insurance agents, coerces them into agreeing to pay back certain debts in their employment contracts, and ultimately extorts them into paying back the debts. (Dkt. 86 at 9; accord Dkt. 95 at 5-6 (describing the December 15 letter as an “extortionate demand for money“).) Plaintiff labels the resultant debt as “unlawful” and the interest rate associated with the debt as “usurious.” (Dkt. 86 at 9; accord Dkt. 95 at 6 (accusing Defendant of “unlawful debt collection“).) Plaintiff submits that Defendant “embezzles” its agents’ required monthly E&O insurance premiums by depositing the premiums into a “nonexistent” E&O insurance group account. (Dkt. 86 at 9-10, 13; accord id. at 22.) Based on these allegations, Plaintiff brings claims for RICO violations under
Defendant maintains that there is an absence of evidence in the record to support Plaintiff‘s claims, (see Dkt. 85 at 17-25), and the court agrees. Moreover, Defendant has presented unrebutted evidence in the form of affidavits and deposition testimony that undisputedly establishes three facts. First, the contract to which Plaintiff was a party provided that she had to repay certain costs and advances. (Dkt. 83-1 ¶¶ 22-23.) Second, Amerilife of Central Florida did not embezzle Plaintiff‘s E&O insurance premiums but acquired bona fide E&O coverage for Plaintiff. (Dkt. 82-1 at
Further, Plaintiff‘s claims under section 1962(a) to (d) are each deficient. The plaintiff in a civil RICO case must prove four elements: “(1) conduct (2) of an enterprise (3) through a pattern (4) of racketeering activity.” Lehman v. Lucom, 727 F.3d 1326, 1330 (11th Cir. 2013) (quoting Williams v. Mohawk Indus., Inc., 465 F.3d 1277, 1282 (11th Cir. 2006)); see also Ironworkers Loc. Union No. 68 v. AstraZeneca Pharms. LP, 585 F. Supp. 2d 1339, 1342-43 & n.3 (M.D. Fla. 2008). “A plaintiff . . . must identify and prove a pattern of racketeering activity, defined as two ‘predicate acts’ of racketeering activity within a ten[-]year period.” Durso v. Summer Brook Pres. Homeowners Ass‘n, 641 F. Supp. 2d 1256, 1265 (M.D. Fla. 2008) (quoting
In opposing Defendant‘s motion, Plaintiff relies on a Florida regulation
The claims also fail because Plaintiff cannot demonstrate the existence of a RICO enterprise. Plaintiff appears to assert that the RICO enterprise in this case is Amerilife and its affiliates or Amerilife‘s officers and executives, especially Schrieffer. (See Dkt. 86 at 3, 8, 12, 19-22.) The RICO Act defines an “enterprise” to include “any individual, partnership, corporation, association, or other legal entity” and “any union or group of individuals associated in fact although not a legal entity.”
Finally, Defendant is entitled to summary judgment because there is no evidence that Plaintiff suffered an injury as a result of Defendant‘s purported misconduct. See Ray, 836 F.3d at 1349. The “connection between the racketeering activity and the injury can be neither remote, purely contingent, nor indirect.” Id. (citing Anza v. Ideal Steel Supply Corp., 547 U.S. 451, 457 (2006), and Williams, 465 F.3d at 1287-88). Defendant has presented unrebutted evidence that the $500 debt was consistent with Plaintiff‘s contract with Amerilife of Central Florida and that the debt was not collected or reported to a third party. (Dkt. 82-1 at 135, 210-11, 238-39; Dkt. 83-1 ¶¶ 17-18; Dkt. 84-1 ¶¶ 19-20.) Even when viewed in the light most favorable to Plaintiff, the record shows that she did not suffer an injury under the RICO Act through Defendant‘s attempt to collect a debt from her. Accordingly, as a matter of law, Plaintiff cannot prevail on her RICO claims.
3. Plaintiff‘s Motion for Modification
The court issued the case management and scheduling order on June 1, 2023.
More to the point, the court should not have to speculate as to Plaintiff‘s basis for the requested scheduling modification. As the party seeking to extend the deadline for dispositive motions, Plaintiff must establish that she has been diligent in acquiring information through discovery and in acting on the information that she has acquired. See Sosa, 133 F.3d at 1418; Lord, 223 F. Supp. 2d at 1277. Plaintiff fails to establish due diligence and thus good cause; therefore, the court denies her motion. See Hermann v. McFarland, No. 22-10644, 2022 U.S. App. LEXIS 27130, at *10-11 (11th Cir. Sept. 28, 2022) (“Even if she were surprised by the extent of the [d]efendants’ summary[-]judgment motion and supporting documents, [the plaintiff] waited over a month to ask for an extension. Given the relationship between good cause and diligence, the district court did not abuse its discretion in refusing [her request].“); Valencia v. Affiliated Grp., Inc., No. 07-61381-CIV-MARRA/JOHNSON, 2008 U.S. Dist. LEXIS 73008, at *12-13 (S.D. Fla. Sept. 23, 2008) (denying the plaintiff‘s motion for an extension of time because she did “not demonstrate[] good cause for her failure
CONCLUSION
Accordingly:
- Defendant‘s motion for summary judgment (Dkt. 85) is GRANTED.
- Plaintiff‘s motion for modification (Dkt. 96) is DENIED.
- Plaintiff‘s motion for a bench trial (Dkt. 99) is DENIED as moot.
- The Clerk is DIRECTED to enter judgment in favor of Defendant, to terminate any other pending motions and deadlines, and to close this case.
ORDERED in Orlando, Florida, on November 7, 2024.
JULIE S. SNEED
UNITED STATES DISTRICT JUDGE
Copies furnished to:
Unrepresented Parties
Counsel of Record
