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World Wrestling Entertainment, Inc. v. Jakks Pacific, Inc.

Citation: 328 F. App'x 695Docket: No. 08-0118-cv

Court: Court of Appeals for the Second Circuit; May 19, 2009; Federal Appellate Court

Narrative Opinion Summary

In this case, World Wrestling Entertainment, Inc. (WWE) appealed the dismissal of its claims against several defendants, including a former employee and a licensing agent, involving allegations under the Racketeer Influenced and Corrupt Organizations Act (RICO) and antitrust violations under the Sherman Act and the Clayton Act. The district court dismissed WWE's RICO claims, deeming them time-barred by the four-year statute of limitations, which commenced when WWE should have been aware of the alleged injuries by mid-1998, based on 'storm warnings' such as licensing disputes and unusual business deals. WWE's argument for tolling the statute of limitations due to fraudulent concealment by the defendants was rejected, as no adequate evidence was presented to demonstrate concealment of critical information. Furthermore, WWE's antitrust claims were similarly dismissed for being filed beyond the four-year limitation period, as the injurious act occurred in June 1998. The appellate court conducted a de novo review and affirmed the district court's dismissal on the basis of the statute of limitations, upholding the decision on any valid basis found in the record. Consequently, the judgment of the District Court was affirmed, and the claims were dismissed without further tolling considerations.

Legal Issues Addressed

De Novo Review in Appellate Courts

Application: The appellate court conducted a de novo review of the district court's dismissal, which involves accepting all factual allegations as true.

Reasoning: The appellate review of the district court's dismissal is de novo, accepting all factual allegations as true.

Equitable Tolling and Fraudulent Concealment

Application: The court found no grounds for equitable tolling of the statute of limitations for RICO claims, as the defendants' actions did not conceal critical information relevant to the plaintiffs' claims.

Reasoning: The plaintiffs' claim that the defendants' activities were fraudulently concealed during the statute of limitations period is rejected, even in light of complaints from the incumbent licensee.

Statute of Limitations in Antitrust Claims

Application: The antitrust claims were dismissed based on the expiration of the four-year statute of limitations, which commenced when the alleged injurious act occurred in June 1998.

Reasoning: The statute of limitations for private antitrust suits is four years, and the act causing injury to the plaintiffs' business occurred on June 23, 1998, when they entered into a license agreement.

Statute of Limitations under RICO

Application: The RICO claims were dismissed as time-barred because the four-year statute of limitations began when WWE had sufficient information to discover the alleged injury, which was determined to be by mid-1998.

Reasoning: WWE's RICO claims, filed in October 2004, are deemed time-barred by a four-year statute of limitations, which began in mid-1998.