Rectrix Aerodome Centers, Inc. v. Barnstable Municipal Airport Commission

632 F. Supp. 2d 120, 2009 U.S. Dist. LEXIS 59216
CourtDistrict Court, D. Massachusetts
DecidedJuly 10, 2009
DocketCivil Action 06-11246-RGS
StatusPublished
Cited by4 cases

This text of 632 F. Supp. 2d 120 (Rectrix Aerodome Centers, Inc. v. Barnstable Municipal Airport Commission) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rectrix Aerodome Centers, Inc. v. Barnstable Municipal Airport Commission, 632 F. Supp. 2d 120, 2009 U.S. Dist. LEXIS 59216 (D. Mass. 2009).

Opinion

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

STEARNS, District Judge.

On July 20, 2006, Rectrix Aerodome Centers, Inc. (Rectrix), filed a thirteen-count Complaint against the Barnstable Municipal Airport Commission (BMAC or Airport), and five individuals. 1 On August 27, 2007, defendants filed a motion to dismiss Rectrix’s claims for violation of section 2 of the Sherman Act (Count IV), and the Massachusetts Antitrust Act, Mass. Gen. Laws ch. 93, § 4 (Count V). On February 15, 2008, 534 F.Supp.2d 201 (D.Mass.2008), the court dismissed the claims, finding that the defendants were immune from antitrust liability under the state action doctrine. Now before the court is defendants’ motion for summary judgment on the balance of plaintiffs claims: violations of the federal anti-racketeering statute (RICO), 18 U.S.C. § 1962, et seq.; violations of the rights to due process and equal protection, 42 U.S.C. § 1983 (the Federal Civil Rights Act); and retaliation for Rectrix’s exercise of its right to free speech. 2 The court heard oral argument on June 19, 2009.

*124 BACKGROUND

The material facts, viewed in the light most favorable to Rectrix as the nonmoving party, are as follows. 3 In 2002, Rectrix entered into a long-term lease with the BMAC to build and operate a private jet hangar at the Airport. The lease permitted Rectrix to apply to become a fixed-base operator (FBO) as it expanded its business. 4 Article 4 of the lease provided, in part,

2a. It is further agreed that Lessee shall not conduct or permit to be conducted on said premises any flight schools, or aircraft refueling activities specifically relating to, and including resale of aviation or jet fuels, all subject to 2(b) below.
2b. Lessee may at any time during the term of this Lease ... submit in writing to the [BMAC], Lessee’s desire to modify or expand its scope of operation. Lessee agrees that any change in its scope of operation may be subject to negotiable rates and charges, with agreed upon terms and conditions to be executed by both parties on separate letters of agreement.

In addition, the lease specifically incorporated the “rules and regulations in effect at the time of the signing....”

The Airport is governed by various rules and regulations, some self-promulgated and others issued by the Federal Aviation Administration (FAA). They include the FBO Standards (Minimum Standards); the Standards of Conduct for Persons and Businesses; the Guidelines for Construction, Alteration, and Improvements at the Airport (Construction Guidelines); and the Airport Self-Service Standards (Self-Service Standards). Under the terms of the Self-Service Standards, FBOs are not permitted to sell jet fuel. 5 The Minimum Standards, however, offer the possibility that an FBO might obtain permission to sell jet fuel. Article III, paragraph (e) of the Minimum Standards provides:

A fixed base operator shall provide all fuel services, including the sale and storage of 80-octane, 100-octane, and jet fuel, for as long as these grades are normally available for resale. The [BMAC] may limit the types of fuel to be sold. 6

Defendants did not disclose the Minimum Standards to Rectrix until June of 2004, two years after Rectrix’s lease was executed. Rectrix claims that only after it parsed through the Minimum Standards, did it realize that it had a right to sell jet fuel. However, when Rectrix applied to sell jet fuel as an FBO, defendants allegedly responded with a campaign of intimidation, discrimination, and retaliation undertaken to preserve their illegal monopoly.

The Airport on occasion submits applications to the FAA for grants to fund airport development, planning, and aviation-related projects. As a condition of funding, the FAA requires the Airport to comply with certain assurances. Among the pertinent *125 grant guarantees are those relating to the exercise of exclusive rights, use of airport revenues, and economic nondiscrimination.

DISCUSSION

Rectrix’s primary claim is that defendants are unlawfully diverting Airport revenues generated by a monopolization of the sale of jet fuel to the Town of Barnstable. According to Reetrix, the BMAC has illegally diverted (over time) $178,000 in Airport revenues to the Town Treasury.

1. RICO

To state a successful RICO claim, a plaintiff must allege four elements: “(1) conduct (2)' of' an enterprise (3) through a pattern (4) of racketeering activity.” Sedima, S.P.R.L. v. Imrex Co., Inc., 473 U.S. 479, 496, 105 S.Ct. 3275, 87 L.Ed.2d 346 (1985). Under the RICO statute, the term “ ‘enterprise’ includes any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.” 18 U.S.C. § 1961(4). The existence of an enterprise is “proved by evidence of an ongoing organization, formal or informal, and by evidence that the various associates function as a continuing unit.” United States v. Turkette, 452 U.S. 576, 583, 101 S.Ct. 2524, 69 L.Ed.2d 246 (1981). “Such a group need not have a hierarchical structure or chain of command.” Boyle v. United States, — U.S. -, 129 S.Ct. 2237, 2245, 173 L.Ed.2d 1265 (2009). However, “[t]he ... failure to identify any enterprise, distinct from a named person defendant, is fatal under RICO.” Doyle v. Hasbro, Inc., 103 F.3d 186, 191 (1st Cir.1996). To conduct or participate, directly or indirectly, in the affairs of an enterprise requires a showing that a defendant took “some part .in directing [the enterprise’s] affairs.” Reves v. Ernst & Young, 507 U.S. 170, 179, 113 S.Ct. 1163, 122 L.Ed.2d 525 (1993).

A “pattern” of racketeering activity means the commission of at least two related predicate acts over a span of years. See Schultz v. Rhode Island Hosp. Trust Nat’l Bank, N.A., 94 F.3d 721, 731-732 (1st Cir.1996).

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Cite This Page — Counsel Stack

Bluebook (online)
632 F. Supp. 2d 120, 2009 U.S. Dist. LEXIS 59216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rectrix-aerodome-centers-inc-v-barnstable-municipal-airport-commission-mad-2009.