Melissa Simpson v. Sanderson Farms, Inc.

744 F.3d 702, 2014 WL 888498, 2014 U.S. App. LEXIS 4259
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 7, 2014
Docket13-10624
StatusPublished
Cited by97 cases

This text of 744 F.3d 702 (Melissa Simpson v. Sanderson Farms, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melissa Simpson v. Sanderson Farms, Inc., 744 F.3d 702, 2014 WL 888498, 2014 U.S. App. LEXIS 4259 (11th Cir. 2014).

Opinion

MARCUS, Circuit Judge:

Plaintiffs Melissa Simpson and Sabrina Roberts appeal the dismissal of a putative class action suit brought under the Racketeer Influenced and Corrupt Organizations (RICO) Act, 18 U.S.C. §§ 1961-68. In this case, we must determine whether these two former employees of a poultry processing plant owned by Sanderson Farms, Inc. have stated a civil RICO claim under the pleading standard articulated by the Supreme Court in Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). More precisely, we examine today whether the plaintiffs have alleged enough facts plausibly to establish two things: first, that they were actually injured; and, second, that the claimed predicate RICO violations were a proximate cause of the injury. The plaintiffs have attempted to show injury in the form of depressed wages. They further claim that the defendants proximately caused depressed wages by falsely attesting — in violation of 18 U.S.C. § 1546 — that their illegal employees presented genuine work-authorization and identification documents. The district court dismissed the amended *705 complaint for failing plausibly to show proximate cause.

The essential problem with the amended complaint is that it offers virtually no real evidence to plausibly suggest either injury or proximate cause. The only wage data even mentioned in the amended complaint show that the plaintiffs actually received increasing wages at the plant. In attempting to plead injury nonetheless, the plaintiffs have presented only a conclusory market model that is stated at a very high order of abstraction. That model does not permit the plausible inference of injury, nor does it plausibly establish that the defendants’ alleged violations of § 1546 directly caused the plaintiffs’ wages to become depressed. Accordingly, we affirm.

I.

It is by now clear that to state a prima facie civil RICO claim under 18 U.S.C. § 1964(c), a plaintiff must establish “three essential elements”: first, that the defendant committed a pattern of RICO predicate acts under 18 U.S.C. § 1962; second, that the plaintiff suffered injury to business or property; and, finally, that the defendant’s racketeering activity proximately caused the injury. Avirgan v. Hull, 932 F.2d 1572, 1577 (11th Cir.1991); see Holmes v. Secs. Investor Prot. Corp., 503 U.S. 258, 265-68, 112 S.Ct. 1311, 117 L.Ed.2d 532 (1992).

We review de novo the dismissal of a civil RICO complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). See Ironworkers Local Union 68 v. AstraZeneca Pharm., LP, 634 F.3d 1352, 1359 (11th Cir.2011). At this stage in the proceedings, we accept as true the facts as the plaintiffs have alleged them. Id. Additionally, “[w]e may affirm the district court’s judgment on any ground that appears in the record, whether or not that ground was relied upon or even considered by the court below.” Powers v. United States, 996 F.2d 1121, 1123-24 (11th Cir.1993).

The facts as pled and the procedural history are straightforward. Plaintiffs Simpson and Roberts formerly worked at a poultry processing plant in Moultrie, Georgia. Defendant Sanderson Farms, Inc. owns the Moultrie plant, which employs over 1,500 workers and is one of the largest employers in Colquitt County. Simpson worked at the plant from 2008 to 2010, while Roberts worked there from 2009 to 2010. The plaintiffs were legally authorized to work in the relevant period, and both provided hourly-paid, unskilled labor. The amended complaint does not describe the plaintiffs’ actual duties at the Moultrie plant, nor does it begin to explain what constitutes “unskilled” labor.

On February 16, 2012, the plaintiffs filed a putative class action suit under the federal and Georgia RICO statutes. 1 The plaintiffs named one corporate and seven individual defendants (collectively, “defendants” or “Sanderson”): Sanderson Farms, Inc., a Mississippi corporation; Jennifer Harrison Buster, Sanderson Farms’ corporate human resources manager; Perry Hauser, the complex manager of Sanderson Farms’ poultry processing plant in Moultrie, Georgia; Jeff Black, the plant’s assistant manager; Demishia Croft, the plant’s human resources manager; Aristides Carral-Gomez, a human resources employee; Janie Perales, a human re *706 sources employee; and Karina Fondon, a human resources employee.

In their first complaint, the plaintiffs alleged that Sanderson committed patterns of three substantive RICO predicate acts: violations of 8 U.S.C. § 1324(a)(3)(A) (knowingly hiring unauthorized aliens who have been brought illegally into the United States); violations of 18 U.S.C. § 1028(a)(7) (knowingly transferring, possessing, or using, without lawful authority, another person’s means of identification in order to engage in unlawful activity); and violations of 18 U.S.C. § 1546 (fraud and misuse of visas, permits, and other documents). The first complaint also alleged conspiracies under 18 U.S.C. § 1962(d) and 18 U.S.C. § 1028(f). See 18 U.S.C. § 1962(d) (“It shall be unlawful for any person to conspire to violate any of the provisions of subsection (a), (b), or (c) of this section.”); id. § 1028(f) (“Any person who attempts or conspires to commit any offense under [§ 1028] shall be subject to the same penalties as those prescribed for the offense.... ”).

According to the complaint, this pattern of racketeering activity allowed Sanderson, since 2008, to pay depressed wages to all genuinely work-authorized employees at its chicken processing plant. Finally, the plaintiffs claimed in the first complaint that each pattern of predicate acts was a “substantial and direct factor in causing the depressed wages.” Compl. ¶ 80.

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744 F.3d 702, 2014 WL 888498, 2014 U.S. App. LEXIS 4259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melissa-simpson-v-sanderson-farms-inc-ca11-2014.