Barry Aviation, Inc. v. Land O'Lakes Municipal Airport Commission

366 F. Supp. 2d 792, 2005 U.S. Dist. LEXIS 7757, 2005 WL 957055
CourtDistrict Court, W.D. Wisconsin
DecidedApril 25, 2005
Docket02C635C
StatusPublished
Cited by1 cases

This text of 366 F. Supp. 2d 792 (Barry Aviation, Inc. v. Land O'Lakes Municipal Airport Commission) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barry Aviation, Inc. v. Land O'Lakes Municipal Airport Commission, 366 F. Supp. 2d 792, 2005 U.S. Dist. LEXIS 7757, 2005 WL 957055 (W.D. Wis. 2005).

Opinion

OPINION AND ORDER

CRABB, District Judge.

This is a civil action for monetary damages in which plaintiff Barry Aviation, Inc. contends that defendants fraudulently induced it to enter a contract to become a fixed-base operator at the Land O’Lakes Municipal Airport by misrepresenting the number of annual aircraft landings and takeoffs by over 2,000%. Plaintiff contends that in so doing, defendants (1) violated the Wisconsin Organized Crime Control Act, Wis. Stat. § 946.83; (2) violated the Racketeer Influenced and Corrupt Organizations Act (RICO) 18 U.S.C. § 1961; (3) committed common law fraud; (4) engaged in a civil conspiracy to commit fraud; (5) violated plaintiffs constitutional due process and equal protection rights; and (6) breached the parties’ contract.

Shortly after plaintiff filed this case in November 2002, defendants moved to dismiss the complaint, arguing among other things that plaintiff had not pleaded its claims of fraud with particularity as required under Fed.R.Civ.P. 9(b). In an order dated May 14, 2003, I agreed with defendants and dismissed plaintiffs federal fraud claims. In addition, I held that even if plaintiff had satisfied the Rule 9(b) particularity requirement, its allegations failed to make out actionable claims under 42 U.S.C. § 1983 or RICO. Because plaintiff had not established diversity jurisdiction, I dismissed its state law claims for lack of jurisdiction. Finally, I denied plaintiff leave to amend because it appeared clear from the complaint that the four-year statute of limitations for plaintiffs RICO claim had expired in 1997 and the six-year limitations period for plaintiffs § 1983 claim had expired in 1999.

On appeal, the Court of Appeals for the Seventh Circuit held that it was error to deny plaintiff leave to amend, reasoning that the allegations in the complaint did *796 not foreclose entirely the possibility that the pertinent statutes of limitations had not run. Barry Aviation Inc. v. Land O’Lakes Municipal Airport Commission, 377 F.3d 682, 688-90 (7th Cir.2004). Noting that the period for filing actions under RICO and § 1983 begins to run when the plaintiff knew or should have known it sustained an injury, the court held that the complaint could be fairly read as alleging that plaintiff became aware of its disappointing business levels only gradually. Id. at 688. In addition, the court held that the doctrine of equitable estoppel might apply because plaintiff alleged that defendants had provided plaintiff with fraudulent documents misrepresenting the number of aircraft takeoffs and landings. Id. at 689.

On October 5, 2004, plaintiff filed its first amended complaint. In response, defendants filed a motion to dismiss. Instead of defending its first amended complaint, plaintiff filed a motion for leave to file a second amended complaint, which I granted while expressing reservations about plaintiffs ability to make out a claim against defendant. Again, defendant moved to dismiss, arguing that plaintiffs second amended complaint suffered from a variety of pleading and jurisdictional problems. This motion is now before the court, as is plaintiffs motion for oral argument.

Plaintiffs motion for oral argument will be denied. Although plaintiff suggests that oral argument would allow the court to clear up any questions arising from the parties’ lengthy briefs on the complex issues raised in defendants’ motion, I do not believe it is necessary. The parties have presented the issues in this case in their briefs; neither side suggests that any particular issue needs further development or could not be developed fully on paper.

Plaintiffs RICO claim must be dismissed because plaintiff has not alleged two predicate acts of mail or wire fraud with particularity. As for the § 1983 claims, plaintiffs allegations do not implicate the equal protection clause and the availability of meaningful state law remedies dooms its due process claim. With the dismissal of all of plaintiffs federal claims, I will decline to exercise supplemental jurisdiction over plaintiffs state law claims. It is true that those claims have been pending in this court for two years, but no judicial resources have been expended in considering their merits and § 1367(d) provides for tolling of the applicable statutes of limitations in state courts for closely related claims. Finally, I will deny plaintiff leave to amend. Plaintiff has had three opportunities over the course of several years to allege a federal claim. Furthermore, plaintiff has shown through its pleadings and briefs that it does not appreciate its obligation to conduct a pre-filing investigation when bringing claims of fraud. Thus, it is doubtful that plaintiff would expend the necessary effort to state a claim of fraud if given a fourth opportunity to plead.

Before setting out the factual allegations, I will address the parties’ dispute regarding the effect of the exhibits plaintiff attached to its second amended complaint. Generally, exhibits attached to a pleading are treated as part of the pleading for all intensive purposes. Fed. R.Civ.P. 10(c). Although courts do not presume that a plaintiff means to adopt every word in its exhibits, attachments trump contradictory allegations. Northern Indiana Gun & Outdoor Shows, Inc. v. City of South Bend, 163 F.3d 449, 454 (7th Cir.1998).

In its second amended complaint, plaintiff alleged that it had attached as Exhibit C a certain petition defendants filed with the Wisconsin Department of Transportation and the Federal Aviation Administra *797 tion in 1993, which incorporated a document entitled “Airport Master Record,” allegedly containing flight information for the 13 months ending in September 1991. A review of Exhibit C shows that it contains 12 pages, only two of which are clearly part of the petition described in the complaint. The first five pages of exhibit C appear to be a report drafted by the Wisconsin Department of Transportation in response to the petition; the sixth page is a map of the airport entitled “Project Statement Sketch,” is dated January 3, 1994 which would be after the petition was allegedly filed; the seventh page is the Wisconsin DOT routing memo for the petition; the eighth page is labeled “Airport Master Record” but contains flight information for 12 months ending in September 1991; page nine is another document prepared by the Wisconsin DOT entitled “Tentative Six-Year Airport Improvement Program”; page ten is a duplicate of page eight; and finally, pages eleven and twelve appear to be the petition plaintiff referred to in its allegation, although there is no indication on either page that the petition incorporates the “Airport Master Record.”

Citing the rule that attachments may negate contradictory allegations, defendants argue that exhibit C shows that the “Airport Master Record” was not incorporated in the petition that was sent to the state and federal government.

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Bluebook (online)
366 F. Supp. 2d 792, 2005 U.S. Dist. LEXIS 7757, 2005 WL 957055, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barry-aviation-inc-v-land-olakes-municipal-airport-commission-wiwd-2005.