Portionpac Chemical Corp. v. Sanitech Systems, Inc.

210 F. Supp. 2d 1302, 2002 U.S. Dist. LEXIS 12184, 2002 WL 1447957
CourtDistrict Court, M.D. Florida
DecidedJune 14, 2002
Docket8:01-cv-01297
StatusPublished

This text of 210 F. Supp. 2d 1302 (Portionpac Chemical Corp. v. Sanitech Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Portionpac Chemical Corp. v. Sanitech Systems, Inc., 210 F. Supp. 2d 1302, 2002 U.S. Dist. LEXIS 12184, 2002 WL 1447957 (M.D. Fla. 2002).

Opinion

ORDER

KOVACHEVICH, Chief Judge.

THIS CAUSE comes before the Court for consideration of Defendants’ Motion to Dismiss Counts 5, 8, 9, 18, 19, 20 and 21 and Incorporated Memorandum in Support (Dkt. No. 81); and Plaintiffs Opposition to Defendants’ Motion to Dismiss Counts 5, 8, 9, 18, 19, 20 and 21 (Dkt. No. 84).

Factual Background

Plaintiff, Portion Pac Chemical Corporation (Plaintiff) created the SFSPac Program, a food service sanitation package of products and methodologies that Plaintiff claims is unique and distinctive. The SFSPac Program is directed at school districts and includes, among other things, color-coordinated and portion-controlled cleaning products; training programs; computer-generated reports; and inventory control features.

In 1993, Plaintiff and Defendant Sani-tech Systems, Incorporated (Defendant Sanitech) 1 entered into a distributorship agreement in which Defendants agreed to distribute Plaintiffs line of food service sanitation products to school districts in Florida. To distribute the products to school districts, Defendants were required to submit the products through the competitive-bidding process. Each school specified the products that were required to be included in each bid.

During the term of the agreement between the parties, Defendants were distributing other products to the school district. In 2000, Defendants terminated the distributorship agreement with Plaintiff in accordance with the terms of the agreement. Subsequently, Defendants began offering a food service sanitation package similar to the SFSPac Program that Plaintiff offered.

Procedural Background

On July 9, 2001, Plaintiff brought suit in this Court for copyright and trade dress *1305 infringement, among other claims. Additionally, Plaintiff moved for a preliminary injunction. Defendants then filed a counterclaim, asserting causes of action against Plaintiff for copyright infringement; violations of the Sherman Act; tortious interference with business relationships; violations of the Florida Deceptive and Unfair Trade Practices Act; and unfair competition. Additionally, Defendants filed their own motion for preliminary injunction. Now, Defendants move to dismiss Counts five, eight, nine, eighteen, nineteen, twenty, and twenty-one. 2

Standard of Review

In ruling on a motion to dismiss, the court should not dismiss a complaint unless it appears beyond doubt that the plaintiff can prove no set of facts that would entitle him to relief. Conley v. Gibson, 355 U.S. 41, 56-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957). In considering a motion to dismiss, the court must take all material allegations of the complaint as true and liberally construe those allegations in favor of the plaintiff. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974). However, a plaintiff may not merely “label” claims to survive a motion to dismiss. Blumel v. Mylander, 919 F.Supp. 423, 425 (M.D.Fla.1996).

At a minimum, the complaint must provide a “short and plain statement of the claim” that “will give the defendant fair notice of what the plaintiffs claim is and the grounds upon which it rests.” Conley, 355 U.S. at 47, 78 S.Ct. 99 (quoting Fed. R.Civ.P. 8(a)(2)). When, on the basis of a dispositive issue of law, no construction of the factual allegation will support the cause of action, dismissal of the complaint is appropriate. Executive 100, Inc. v. Martin County, 922 F.2d 1536 (11th Cir.1991). Additionally, “[cjlaims under [the Federal Racketeering Influenced and Corrupt Organizations Act (RICO), Title 18, United States Code, Section 1961, et seq.] must be subjected to scrutiny due to their potential for abuse by civil litigants.” Bill Buck Chevrolet v. GTE Fla., 54 F.Supp.2d 1127, 1137 (M.D.Fla.1999) (quoting Ste Ame Isorait v. Atlantic Mut. Co., 1993 WL 37330, at *3 (E.D.N.Y.1993)).

Discussion

I. RICO Claims

Defendants claim that Plaintiffs complaint should be dismissed because it fails to state a claim under the Federal Racketeering Influenced and Corrupt Organizations Act (RICO), Title 18, United States Code, Section 1961, et seq. Congress designed RICO as a flexible tool to fight organized crime.. As such, it makes the following activities unlawful:

(a) investing income derived, directly or indirectly, from a pattern of racketeering activity through collection of an unlawful debt in any enterprise which affects interstate commerce; (b) acquiring or maintaining an interest in any enterprise which affects interstate commerce through a pattern of racketeering activity or through collection of an unlawful debt; (c) conducting or participating in the affairs of any enterprise which affects interstate commerce through a pattern of racketeering activity or collection of an unlawful debt; or (d) conspiring to *1306 violate any of the provisions of Section 1962(a)-(c).

18 U.S.C. § 1962.

“Racketeering activities” covers a wide-range of federal and state crimes, including acts that are “ ‘chargeable’ under several generically described state criminal laws, any act ‘indictable’ under numerous specific federal criminal provisions, including mail and wire fraud, and any ‘offense’ involving bankruptcy or securities fraud or drug-related activities that [are] ‘punishable’ under federal law.” Sedima, S.P.R.L. v. Imrex Co. Inc., 473 U.S. 479, 482, 105 S.Ct. 3275, 87 L.Ed.2d 346 (1985) (quoting 18 U.S.C. § 1961(1)).

To engage in a “pattern of racketeering activity,” the defendant must have participated in “at least two acts of racketeering activity, one of which occurred after the effective date of [RICO] and the last of which occurred within ten years (excluding any term of imprisonment) after the commission of a prior act of racketeering activity.” 18 U.S.C. § 1961(5). Finally, “enterprise” is defined under the statute as “any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.” Id. § 1961(c).

RICO establishes both criminal and civil penalties for violations of Section 1962. The civil remedies provision provides a private cause of action for “any person injured in his business or property by reason of a violation of Section 1962.” 18 U.S.C.

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Related

Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Scheuer v. Rhodes
416 U.S. 232 (Supreme Court, 1974)
United States v. Turkette
452 U.S. 576 (Supreme Court, 1981)
Sedima, S. P. R. L. v. Imrex Co.
473 U.S. 479 (Supreme Court, 1985)
H. J. Inc. v. Northwestern Bell Telephone Co.
492 U.S. 229 (Supreme Court, 1989)
Neder v. United States
527 U.S. 1 (Supreme Court, 1999)
Langford v. Rite Aid of Alabama, Inc.
231 F.3d 1308 (Eleventh Circuit, 2000)
Wilson v. De Angelis
156 F. Supp. 2d 1335 (S.D. Florida, 2001)
Bill Buck Chevrolet, Inc. v. GTE Florida, Inc.
54 F. Supp. 2d 1127 (M.D. Florida, 1999)

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210 F. Supp. 2d 1302, 2002 U.S. Dist. LEXIS 12184, 2002 WL 1447957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/portionpac-chemical-corp-v-sanitech-systems-inc-flmd-2002.