Boyle v. Hasbro, Inc.

103 F.3d 186
CourtCourt of Appeals for the First Circuit
DecidedDecember 24, 1996
Docket96-1337
StatusPublished
Cited by354 cases

This text of 103 F.3d 186 (Boyle v. Hasbro, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boyle v. Hasbro, Inc., 103 F.3d 186 (1st Cir. 1996).

Opinion

TORRUELLA, Chief Judge.

Plaintiffs-appellants, H.P. Leasing, Inc., and Patrick J. Doyle (“Doyle”), H.P. Leas *189 ing’s sole stockholder and President, brought this civil action against Hasbro, Inc.; Alan Hassenfeld (“Hassenfeld”), Hasbro’s President, Chairman of the Board of Directors, and Chief Executive Officer; Israel Laudon (“Laudon”), Vice President of Hasbro’s Traffic Department; Miriam Laudon, Laudon’s wife; David Thibodeau, Laudon’s assistant; Hugh Maxwell, an Executive Vice President at Hasbro; and Michael Oliva d/b/a Transport Services (“Oliva”). Plaintiffs claimed violation of- the federal racketeering laws, 18 U.S.C. §§ 1962(c) & (d) (“RICO”), as well as the following violations of Massachusetts state law: breach of contract against all defendants (Count I); civil conversion and civil larceny against Laudon, Oliva and Thibodeau (Count II); intentional and malicious interference with an advantageous business relationship against Laudon, Oliva, and Thibodeau (Count III); intentional infliction of emotional distress against Laudon, Oliva, and Thibodeau (Count IV); fraud, deceit and misrepresentation against Laudon, Thibodeau, Hassenfeld, and Hasbro (Count V); and negligent entrustment or negligent supervision against Hasbro (Count VI).

The district court dismissed the RICO claim and Counts I through VI as to defendants Hassenfeld, Oliva, and Thibodeau. Doyle v. Hasbro, 884 F.Supp. 35, 42 (D.Mass. 1995). In an order dated May 4, 1995, the claims against Israel and Miriam Laudon were also dismissed. The RICO claim against Hasbro was dismissed from the bench on March 27, 1995, see id. at 38-39, and Counts I, V, and VI were also dismissed as to Hasbro. 1 This appeal followed. 2

I. BACKGROUND

Plaintiffs’ amended complaint alleges the following facts. In August and September 1980, plaintiffs met with Laudon, who agreed, on Hasbro’s behalf, to retain the plaintiffs’ services for hauling and delivering freight. In October 1980, Laudon required that Doyle pay to Oliva a “commission” of ten percent of the traffic - charges billed by H.P. Leasing. Doyle acceded to Laudon’s request, viewing the payments as a business expense that would ensure a consistent volume of business. Doyle was instructed by Laudon that receipt of the commissions was necessary for the continuance of the contracts. Early in the relationship, Laudon informed plaintiffs that business would increase and that additional tractor-trailers would be required. In reliance on these representations, plaintiffs purchased 28 tractors. The increase in business that materialized, however, did not merit such expansion.

As time went on, Oliva and Laudon reduced the volume of business sent to H.P. Leasing. Between 1982 and 1985, H.P. Leasing paid Laudon and Oliva commissions averaging $440,000 per year, but from 1990 to 1992, these payments averaged only $45,-000.

Over the twelve years from 1980 to 1992, Laudon also forced Doyle to pay for yearly Christmas parties for Hasbro employees, to give gift certificates to Hasbro employees, to pay for personal vacations for Laudon and his wife, and to pledge $30,000 to the Holocaust Memorial. Doyle and his wife were personally contacted, harassed and threatened during the period. For example, Thibodeau, Laudon, and their wives would demand to be taken out to dinner. These demands were accompanied by comments such as “I own you” and “I can put you out of business and you won’t have a house to live in.” Laudon, Thibodeau and, Hassenfeld worked closely together and were aware of each other’s conduct.

In 1992, Laudon informed plaintiffs that H.P. Leasing ought to file for bankruptcy under Chapter 11 of the Bankruptcy Code. He promised that Hasbro would support H.P. Leasing with a minimum of $50,000 a week in revenue. Doyle felt he had no *190 choice, and, on March 12,1992, H.P. Leasing filed for bankruptcy. Defendants did not provide the support promised by Laudon.

In June 1992, Doyle stopped making commission payments to Laudon. Doyle perceived Hasbro’s failure to award contracts to plaintiffs as a breach of the prior representations made to him. In November 1992, Doyle met with Hassenfeld, who directed that plaintiffs receive twenty to thirty thousand dollars per week in business. In January 1993, plaintiffs received $28,000 in business from Hasbro. On January 27, 1993, H.P. Leasing was closed for business.

II. STANDARD OF REVIEW

We review the motion to dismiss de novo. Aulson v. Blanchard, 83 F.3d 1, 3 (1st Cir. 1996). We accept as true “all well-pleaded factual averments and indulg[e] all reasonable inferences in the plaintiffs favor.” Id. Dismissal under Federal Rule of Civil Procedure 12(b)(6) is appropriate if the facts alleged, taken as true, do not justify recovery. Id. The pleading requirement, however, is “not entirely a toothless tiger.” The Dartmouth Review v. Dartmouth College, 889 F.2d 13, 16 (1st Cir.1989). “The threshold [for stating a claim] may be low, but it is real.” Gooley v. Mobil Oil Corp., 851 F.2d 513, 514 (1st Cir.1988). In order to survive a motion to dismiss, plaintiffs must set forth “factual allegations, either direct or inferential, regarding each material element necessary to sustain recovery.” Id. at 515. Although all inferences must be made in the plaintiffs’ favor, this court need not accept “bald assertions, unsupportable conclusions, periphrastic circumlocutions, and the like.” Aulson, 83 F.3d at 3.

In conducting our review of the case, we are limited to those allegations contained in the amended complaint. This is true both as to facts, see Litton Indus., Inc. v. Colón, 587 F.2d 70, 74 (1st Cir.1978) (“[0]ur focus is limited to the allegations of the complaint. The question is whether a liberal reading of [the complaint] can reasonably admit of a claim.” (internal quotations omitted)), and as to arguments, see McCoy v. Massachusetts Inst. of Technology, 950 F.2d 13, 22 (1st Cir.1991) (“It is hornbook law that theories not raised squarely in the district court cannot be surfaced for the first time on appeal.”). We, therefore, do not consider factual .allegations, arguments, and claims that were not included in the amended complaint.

III. THE RICO CLAIMS (COUNT VII)

We begin by considering plaintiffs-appellants’ claims under 18 U.S.C.

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