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RDK NY Inc. v. City of New York

Carmack Amendment Preempts Claims Against FedEx Ground Over Hemp Products

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MEMORANDUM & ORDER Plaintiff RDK NY Inc. is a hemp company owned by Plaintiff Oren Levy. Those two plaintiffs brought this case in state court along with a third plaintiff, Oren’s brother Ronen, against various defendants — Federal Express Corporation (“FedEx”), FedEx Ground Package System, Inc. (“FedEx Ground”), the City of New York (“City”), named and unnamed individual NYPD officers, and an unnamed driver for FedEx Ground.1 They allege numerous claims, including for negligence, property damage, and civil rights violations. FedEx Ground, with the consent of FedEx and the City, removed the case to federal court in March 2021. Notice of Removal, ECF No. 1. All plaintiffs then moved to remand to state court under 28 U.S.C §1447. Ronen Levy also moved to sever his claims under Federal Rule of Civil Procedure 21, in the event that remand of the other plaintiffs’ claims was denied. For the reasons that follow, the motions to remand and sever are DENIED in their entirety. I. Background RDK NY trades in hemp products. Am. Compl. 38. Oren arranged for an order of hemp plants to be shipped via defendant FedEx Ground to his brother, Ronen. Id. 40. Before the hemp reached Ronen, a FedEx Ground driver — defendant John Doe — brought the hemp to an NYPD precinct and reported that he believed the plants to be marijuana. Id. 43. When Ronen appeared at the police precinct to inquire about the plants, he was arrested by NYPD officers and held overnight. Id. 80. The officers also “attempted to arrest” Oren. Id. 53. Plaintiffs allege that the NYPD refused to release the hemp even after learning that it was not, in fact, marijuana, causing Plaintiffs “to be deprived of their business and livelihood.” Id. 44. The RDK Plaintiffs assert claims for deprivation of personal property, conversion, trespass, tortious interference with property, and negligence against FedEx Ground and FedEx. Id.

41-43, 51-54, 57, 59, 112-14. Against the City and the NYPD defendants, they assert those same claims and also claims for civil rights violations. Id.

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