S.C. Johnson & Son, Inc. v. Transport Corporation of America, Inc.

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 11-3577
Decision Date: 
September 21, 2012
Federal District: 
E.D. Wisc.
Affirmed and reversed in part and remanded
Dist. Ct. erred in dismissing plaintiff’s state-court lawsuit alleging, among other things, bribery and violation of Wisc. RICO statute arising out of alleged scheme in which defendants-transport carriers bribed employee of plaintiff to have employee select defendants to transport plaintiff’s goods at inflated prices. While Dist. Ct. found that instant action was preempted under Federal Aviation Administration Authorization Act since lawsuit related to price, route or services of any motor carrier, Ct. of Appeals found that both bribery and RICO claims were not preempted since bribery amounts paid to employee or alleged fraudulent conduct in failing to disclose true basis of transport transactions did not necessarily have any effect on actual prices plaintiff paid to its carriers.