This is a demand letter informing Sandpiper Crossing of pending litigation for defrauding my clients through systematic overcharging. You're shredding in there! I'm not deaf! I can hear you! Stop right now! [shredding continues] This here this makes it official, right? If you don't stop shredding right now, that's destruction of evidence! Spoliation! That's what it's called, and it's a felony! So call your lawyers right now and tell them I said that! Me! James McGill Esquire!
“RICO” · Season 1, Episode 8
In this episode: Jimmy McGill (4), Chuck McGill (2), Rich (2)
[Jimmy gets a call from Rich Schweikart, a lawyer representing Sandpiper Crossing, as he looks for the shredded documents in a dumpster]
RSRich Schweikart
Mr. McGill, Rich Schweikart of Schweikart and Cokely. We're the law firm representing Sandpiper Crossing assisted living. How are you this evening?
Quite well, thank you. How are you?
Doing fine. I'm sorry to call so late. Did I catch you at a bad time?
No, no. No, it's fine.
It's just that you're whispering.
I'm at the opera.
Oh? What opera?
Magic Flute.
Mozart, lovely. Well, I'll try not to keep you. We received something from you today, and we're not quite sure what.
It's a demand letter.
Ah... Well, it was a little confusing 'cause it was written on...
Well, I had to write it quickly because your clients were in the process of destroying evidence!
Mr. McGill, if you're talking about "shredding documents", it's neither irregular nor illegal. Every business in America does it.
You say potato, I say spoliation.
Maybe you should walk me through what you're alleging here.
I believe it's all in the letter.
Uh, I–I'm not saying it's not, but it's a bit hard to read. Next time, I'd use double-ply.
Let's not fixate on the medium, okay? Let's look at the message. Now, your clients are facing multiple counts of elder abuse, and fraud, and deceptive and unfair trade practices, and that's just the start, okay? I'm not a betting man, but I bet the farm I'll find more.
Mr. McGill, are you related to Charles McGill?
He's my brother.
Yeah? How's he doing these days?
I–I fail to see the relevance of this.
Well, frankly, the only reason that I made this phone call was out of respect for Charles, on the off chance that you might be related to him. My partner suggested that the best response would be to send a Rule 11 letter and have you sanctioned, but I didn't want to jump to that immediate length.
How about you stop trying to rattle my cage and just, you know, respond to the merits?
This is my response, Mr. McGill. You have no good-faith basis to threaten any litigation. This is a shakedown, and we both know it. Now, if you push this any further, my hands will be tied. Sorry for interrupting your evening. Enjoy The Magic Flute.
[after Schweikart has hung up] Blow my magic flute!
You broke into a nursing home?
Assisted living.
And you stole their garbage. My God.
No, it was in public. There was no lock, no nothing. I just lifted the lid, and there it was. There's no reasonable expectation of privacy in that situation, is there? You can't say it's private if a hobo can use it as a wigwam!
[Jimmy and Chuck arrange a meeting with Sandpiper's lawyers]
Well, let's get started. We've read your revised demand; it's quite a laundry list, very creative.
Yeah, creative. Like the way your clients have been billing my clients? Because that's, like, Salvador Dali creative.
That's cute–you know you're not gonna make this stick. Setting aside evidentiary concerns–
Whoa, your guys couldn't afford ten bucks for a padlock? That's on them: public property.
Maybe a judge sees that your way, maybe he doesn't, but the damages for elder abuse? The statute requires proof that there was some undue influence. Someone threatening the residents of Sandpiper Crossing.
AAlvin
As far as I understand it, no one has claimed that there was a guy with a knife telling them to hand over their lunch money.
There are a lot of assisted living facilities out there that may be disreputable, but that's not the case with our client, not even close. All their facilities, all 12 of them, every single one, five-star rated. You go to any one of them right now, and you know what you'll see? You'll see happy, healthy residents. Sandpiper takes care of these people, they don't bilk them...but, we looked into it and some of your clients have, in fact, been overbilled. It's a–it's an accounting error. It doesn't rise to the level of fraud–not even close.
PPhil
We've calculated the damages. All told, it's $46,320.
Mhm. So, here's what we're prepared to do: we're gonna make your clients whole. A check for the 46 and change right now, and on top of that, we'll give you another 46K to cover your expenses. So what's that, 92? Let's call it $100,000, even. We admit to no wrongdoing, and your clients release all claims. [leans back in chair]
[Jimmy glances at Chuck, then retrieves the syringe invoice]
I think you're gonna need to do better than that.
Ah. This was in your demand letter. They're syringes. So? I-I don't know if you know this, but that's a pretty standard item in an assisted living facility.
Correct, but it's not what it is that matters. It's where it's from.
Lincoln, Nebraska?
Go Cornhuskers. [beat] Well, since you're not picking up what I'm putting down, I'll explain it to you. Nebraska, although they both begin with the letter N, actually turns out to be a different state than New Mexico, so your client accepted shipments across state lines for its enterprise. I-in the U.S. mail, no less!
Are you trying to make this a RICO case?
PPhil
Like our client is John Gotti, or something?
Well, you know as well as I do, RICO's used mostly for business beefs. Sedima establishes a pretty low threshold for RICO provisions to kick in. Interstate commerce is a bitch, huh? As soon as we establish a pattern to–what was your word–uh, "overbillings?" I prefer the classic term of fraud. You're looking at treble damages, so your 100 grand? I think you know where you can stick it.
...Will you give us a moment?
[Sandpiper's lawyers whisper to each other]
Well, what number exactly did you have in mind?
Twenty million.
Excuse me?
You heard me.
Oh, you can't expect-
Twenty. Million. Dollars... or we'll see you in court.
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