Zastrow v. Houston Auto Imports Greenway Ltd.

789 F.3d 553, 2015 WL 3649849
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 12, 2015
Docket14-20359
StatusPublished
Cited by31 cases

This text of 789 F.3d 553 (Zastrow v. Houston Auto Imports Greenway Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Zastrow v. Houston Auto Imports Greenway Ltd., 789 F.3d 553, 2015 WL 3649849 (5th Cir. 2015).

Opinion

EDITH BROWN CLEMENT, Circuit Judge.

Plaintiffs-Appellants Mark Zastrow and his company Heights Autohaus (collectively, “Zastrow”) appeal from the district court’s grant of summary judgment on their claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961-1968, and 42 U.S.C. §§ 1981 and 1982. For the reasons to be explained, we AFFIRM the district court’s judgment on Zastrow’s civil RICO claim and § 1982 claim, but VACATE its judgment on Zastrow’s retaliation claim under § 1981 and REMAND the case for further proceedings consistent with this opinion.

*558 I.

Zastrow owns Heights Autohaus, an automobile repair shop that performs mechanical repairs on German cars. Zas-trow previously purchased all of his Mercedes-Benz parts from Houston Auto M. Imports, Ltd. d/b/a Mercedes-Benz of Houston Greenway (“Mercedes Green-way”) at a 25% discount. In September of 2012, Zastrow’s customer and attorney in this action, Reginald E. McKamie, Sr., brought Zastrow a 2006 Mercedes-Benz CLK (“CLK”) to inspect. Unbeknownst to Zastrow at the time, the vehicle was the subject of a lawsuit against Mercedes Greenway that had been compelled to arbitration. The plaintiffs in that suit, Jesse Howard and JoAnn Jefferson-Howard (collectively, the “Howards”), also represented by McKamie, alleged that the CLK that Mercedes Greenway sold them was defective, and asserted claims against the dealership for fraud, negligence, breach of contract, breach of warranty, breach of fiduciary duty, credit discrimination, and racial discrimination and retaliation.

Zastrow inspected the CLK and discovered a number of mechanical problems with the vehicle. McKamie then asked Zastrow if he would testify as an expert witness in the Howards’ lawsuit and Zas-trow agreed. Zastrow’s deposition was scheduled for January 8, 2013. Zastrow alleges that on January 7, 2013, he received a phone call from a Mercedes Greenway employee advising him not to sit for the deposition and warning him that he would regret it. Zastrow, however, appeared for the deposition and testified about his inspection of the vehicle. On January 9, 2013, the day after his deposition, Zastrow received a phone call from the same Mercedes Greenway employee, who then informed Zastrow that Mercedes Greenway would no longer sell parts to him.

The final arbitration hearing began the following week on January 14 and concluded on January 17, 2013. On January 14, Mercedes Greenway’s counsel, George A. Kurisky, Jr., mailed Zastrow a letter on behalf of Mercedes Greenway formally severing the dealership’s business relationship with Zastrow because of his deposition testimony. 1 Zastrow did not testify at the arbitration hearing and was unaware it was taking place. His deposition testimony, however, was read to the arbitrator.

On January 23, 2013, McKamie sent the arbitrator a letter captioned “Notice of Retaliation Against Witness in Discrimination Suit and Intent to Sue.” On March 4, 2013, Zastrow filed the instant lawsuit naming as defendants Mercedes Green-way, Kurisky, and Kurisky’s law firm, Johnson, Deluca, Kurisky & Gould, P.C. Although Zastrow propounds a potpourri of legal theories, the gravamen of his complaint is that Mercedes Greenway threatened him to prevent him from testifying and then, with the assistance of Kurisky, retaliated against him by refusing to sell him auto parts after he gave his deposition. The district court granted summary judgment to defendants on all claims, and Zastrow appealed the judgment as to his claims under RICO and 42 U.S.C. §§ 1981 and 1982.

II.

We review a district court’s grant of summary judgment de novo, applying the same legal standard as the district court. Performance Autoplex II Ltd. v. Mid-Continent Cas. Co., 322 F.3d 847, 853 *559 (5th Cir.2003) (per curiam). Summary-judgment is appropriate only if, -interpreting all facts and drawing all reasonable inferences in favor of the non-moving party, “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a).

Where a summary judgment motion mounts challenges solely to the sufficiency of a plaintiffs pleadings, we review those challenges under a motion to dismiss standard. Ashe v. Corley, 992 F.2d 540, 544 (5th Cir.1993). Under this standard, “[t]he plaintiff must plead enough facts to state a claim to relief that is plausible on its face.” Cines v. D.R. Horton, Inc., 699 F.3d 812, 816 (5th Cir.2012) (internal quotation marks omitted). “We accept all well-pleaded facts as true, viewing them in the light most favorable to the plaintiff.” Id. (alteration and internal quotation marks omitted).

III.

Zastrow first argues that the district court erred in granting summary judgment to defendants on his civil RICO claim. A civil plaintiff has standing to sue under RICO if he has been “injured in his business or property by reason of a violation of section 1962.” 18 U.S.C. § 1964(c). Zastrow brought his claim under § 1962(c), which we have distilled to mean that “a person who is employed by or associated with an enterprise cannot conduct the enterprise’s affairs through a pattern of racketeering.” In re Burzynski, 989 F.2d 733, 741 (5th Cir.1993) (per cu-riam). 2 To succeed on his claim, Zastrow must provide evidence of the existence of “1) a person who engages in 2) a pattern of racketeering activity, 3) connected to the acquisition, establishment, conduct, or control of an enterprise.'” Id. (internal quotation marks omitted).

“Racketeering activity” means any of the predicate acts specified in § 1961(1). Zastrow alleges that defendants obstructed justice in violation of 18 U.S.C. § 1503 by attempting to intimidate him to prevent him from giving deposition testimony and testifying at the arbitration hearing. 3 As relevant here, that statute makes it a criminal offense to “corruptly or by threats or force, or by any threatening letter or communication....

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789 F.3d 553, 2015 WL 3649849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zastrow-v-houston-auto-imports-greenway-ltd-ca5-2015.