All Direct Travel Services, Inc. v. Delta Air Lines, Inc.

MEMORANDUM *

All Direct Travel and Ann’s Crossroads Travel Center (“Plaintiffs”) brought suit against Delta Airlines (“Delta”) under the Racketeer Influenced Corrupt Organization Act, 18 U.S.C. § 1961 , et seq. (“RICO”) and also asserted an equitable claim for unjust enrichment. The district court granted summary judgment for Delta on both claims. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

A. RICO Claim

To prevail on a civil RICO claim the plaintiffs must show, among other elements, a “pattern of racketeering activity.” 18 U.S.C. § 1962 . “ ‘Racketeering activity’ is any act indictable under several provisions of Title 18 of the United States Code,” including extortion and mail and wire fraud. Rothman v. Vedder Park Management, 912 F.2d 315, 316 (9th Cir. 1990).

Extortion is defined as “the obtaining of property from another, with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right.” 18 U.S.C. § 1951 . Plaintiffs’ claim that Delta has engaged in a pattern of extortion fails because Delta had a legal right under the Agent Reporting Agreement (“ARC Agreement”) to collect damages for ticketing…