RM Construction, Inc. v. 413 Cabins, LLC d/b/a Stone Canyon Homes, LLC, et al.

Summary

The court denied motions by 413 Cabins, LLC, Douglas Merryman, and George Outlaw seeking dismissal or judgment on the pleadings as to fraud and civil RICO claims. The court held that RM Construction sufficiently pleaded the alleged fraudulent conduct under Rules 8 and 9(b), and adequately alleged multiple predicate acts and open-ended continuity for its RICO claim. The court ordered the parties to meet and confer and file a revised Rule 26(f) report by April 30, 2026.

Holdings

1. The complaint sufficiently pleaded the alleged fraud under Rules 8(a) and 9(b) because it identified the defendants, the allegedly doctored photographs and related misrepresentations, the relevant payment dates, the manner in which the photographs were sent, and the resulting payments.
2. The complaint adequately alleged at least two predicate acts of wire fraud because it alleged multiple payments induced by separate transmissions of doctored photographs.
3. The complaint did not adequately allege close-ended continuity because the alleged predicate acts occurred over approximately five months, but it adequately alleged open-ended continuity by alleging a threat that defendants' scheme could continue against other victims.
4. The Rule 12(c) motion was governed by the same standard as the Rule 12(b)(6) motions, including the plausibility and Rule 9(b) requirements.

Questions Presented

1. Whether the complaint pleaded the alleged fraud with sufficient plausibility and particularity under Federal Rules of Civil Procedure 8(a) and 9(b).
2. Whether the complaint adequately alleged a pattern of racketeering activity, including at least two predicate acts and the continuity required for a civil RICO claim.
3. Whether the fraud and RICO claims should be dismissed under Rule 12(b)(6) or rejected on a Rule 12(c) motion for judgment on the pleadings.

Disposition

other