Merchants Home Delivery Service, Inc. v. Frank B. Hall & Co.

Plaintiff Merchants Home Delivery Service, Inc. (“Merchants”) appeals the district court’s judgments dismissing Merchants’ action against its former insurance broker, Frank B. Hall & Co., Inc. and associated defendants (collectively “Hall”). Merchants’ complaint asserts claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”). See 18 U.S.C. §§ 1961-1968 . The district court granted Hall’s motion for judgment on the pleadings due to the court’s determination that section 2(b) of the McCar-ran-Ferguson Act ( 15 U.S.C. § 1011 , et seq.) precluded the application of RICO to Hall’s alleged wrongdoing. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We reverse and remand.

I

Merchants’ complaint alleges: Merchants is a national company engaged in shipping and delivering packages. It retained Hall on a continuing basis to secure numerous insurance policies and to process claims for which Merchants was self-insured. Merchants says that employees of Hall, with Hall’s knowledge or acquiescence, defrauded Merchants in three ways: (1) by overbilling Merchants for insurance premiums on actual policies, (2) by billing Merchants for premiums on nonexistent policies, and…