Monday, June 22, 2015

No RICO, but maybe retaliation.

Originally published by David Coale.

clkZastrow, owner of an auto repair shop, testified in an arbitration about problems with a CLK sedan sold by Mercedes Greenway.  He later sued Mercedes Greenway himself, alleging that it “threatened him to prevent him from testifying and then, with the assistance of [a lawyer], retaliated against him by refusing to sell him auto parts after he gave his deposition.”   The Fifth Circuit affirmed the dismissal of his RICO claims, finding (1) no pattern of racketeering activity, (2) no continuity of racketeering activity, and (3) no enterprise separate from the alleged racketeering activity.  It reversed dismissal of Zastrow’s claim for retaliation under 42 U.S.C. § 1981 — while noting that “[w]e are skeptical” about its merits, the Court found that the defendant had not fully engaged the burden-shifting analysis that governs this type of claim.    Zastrow v. Houston Auto Imports Greenway Ltd., No. 14-20359 (June 12, 2015).

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