### In the



# United States Court of Appeals

For the Seventh Circuit

____________________

No. 17

‐ 2324

A RMADA (S INGAPORE ) PTE L IMITED

, Plaintiff

‐ Appellant

,

v.

A MCOL I NTERNATIONAL C ORPORATION

,

et al.,

Defendants

‐ Appellees

.

____________________

Appeal from the United States District Court for the

Northern District of Illinois, Eastern Division.

No. 1:13

‐ cv

‐ 03455

— Elaine E. Bucklo

, Judge

.

____________________

A RGUED J ANUARY 19, 2018

— D ECIDED M ARCH 26, 2018

____________________

Before B AUER

, M ANION

, and R OVNER

, Circuit Judges

.

M ANION

, Circuit Judge

. The plaintiff in this case is a Sin

‐

gaporean shipping company. It entered into shipping con

‐

tracts with an Indian mining company, but the Indian com

‐

pany breached those contracts. Now, the plaintiff believes

that American businesses engaged in racketeering activity to

divest the Indian company of assets so as to thwart the

plaintiff’s attempts to recover damages for the breached con

‐2 No. 17

‐ 2324

tracts. Seeking redress for this alleged wrong, the plaintiff

brought this lawsuit, claiming violations of the Racketeering

Influenced and Corrupt Organizations Act (“RICO”). While

the plaintiff’s case was pending in the district court, the Su

‐

preme Court decided RJR Nabisco, Inc. v. European Communi

‐

ty

, 136 S. Ct. 2090 (2016). Addressing RICO’s extraterritorial

effect, the Supreme Court held that “[a] private RICO plain

‐

tiff

... must allege and prove a domestic injury to its business

or property.” Id. at 2106. After this decision came down, the

American defendants moved for judgment on the pleadings,

maintaining the plaintiff had not pleaded a domestic injury.

The district court agreed and entered judgment on the RICO

claims against the plaintiff, who now appeals. Because we

also conclude the plaintiff has not pleaded a domestic injury,

we affirm.

I.

As this case comes to us on appeal from judgment on the

pleadings, we present the facts as stated in the plaintiff’s

amended complaint. See Matrix IV, Inc. v. Am. Nat’l Bank and

Trust Co. of Chicago

, 649 F.3d 539, 547 (7th Cir. 2011). Amcol

International Corporation, an Illinois corporation with its

principal place of business in Illinois, owns 100% of Ameri

‐

can Colloid Company and Volclay International Corporation

(n/k/a Volclay International LLC). Both companies are also

organized under the laws of Illinois with their principal

places of business in Illinois. Given the extent of the three

entities’ affiliation, we will refer to them collectively as

“Amcol.” Amcol was the largest shareholder of Ashapura

Minechem Limited (“Ashapura”), a foreign corporation with

its principal place of business in Mumbai, India.No. 17

‐ 2324 3

Originally, Ashapura focused its business on the produc

‐

tion and marketing of the mineral bentonite. But in 2007 and

early 2008, Ashapura expected to sell large quantities of the

mineral bauxite in China. Needing to get that bauxite to

China, in April 2008 Ashapura entered into two long

‐ term

contracts of affreightment with Armada (Singapore) PTE

Limited (“Armada”), a foreign corporation with its principal

place of business in the Republic of Singapore. Unfortunate

‐ ly, Ashapura encountered problems with its bauxite suppli

‐

ers, so it defaulted under the contracts with Armada at the

end of September 2008. Ashapura failed to pay Armada for

the shipment Armada had already carried and did not pro

‐

vide any further cargoes.

Armada subsequently initiated two arbitration actions in

London against Ashapura, one for each contract. The arbitra

‐

tor found for Armada and awarded more than $70,000,000 in

two awards on February 16, 2010. About a year and a half

later, Armada had the arbitration awards recognized by the

United States District Court for the Southern District of New

York, which entered a judgment for Armada. Armada had

the judgment registered with the United States District

Court for the Northern District of Illinois the next year. In

addition to this activity, Armada sought to collect on its

awards by filing maritime attachment proceedings in New

York and Illinois, naming Amcol as garnishee. Through

these actions, Armada was able to garnish and recover ap

‐ proximately $687,000 worth of debts that Amcol owed to

Ashapura.

But Armada thinks Amcol obstructed its attempts to re

‐

cover from Ashapura, and this brings us to the crux of the

matter currently before the court. Armada alleges Amcol4 No. 17

‐ 2324

used its influence as Ashapura’s largest shareholder to en

‐

gage in a number of schemes aimed at draining Ashapura of

assets to thwart Armada’s collection efforts. These plots

ranged from routine collection avoidance—such as having

Ashapura file for protection with the Board of Industrial and

Financial Reconstruction in India and file a Chapter 15 bank

‐

ruptcy petition in the United States—to more complicated

methods—such as setting off debts owed by Ashapura affili

‐

ates against debts Amcol owed to Ashapura.

In 2013, Armada filed this lawsuit against Amcol, Asha

‐

pura, and five John Does. In July 2015, Armada filed an

amended complaint setting out state

‐ law claims for fraudu

‐

lent transfer, wrongful dividend, and breach of fiduciary du

‐

ties and a claim for maritime fraudulent transfer. Armada

also made two claims pursuant to RICO’s private right of

action, 1 alleging Amcol engaged in racketeering activity and

a racketeering conspiracy that harmed Armada’s business or

property.

While the case was pending, the Supreme Court decided

RJR Nabisco and announced a domestic

‐ injury requirement

for civil RICO cases. Just over a month later, Amcol filed a

motion for judgment on the pleadings. The district court en

‐

tered judgment for Amcol on the state

‐ law claims. The dis

‐

trict court also entered judgment on the RICO claims, con

‐ cluding that Armada’s claimed injury—harm to its ability to

collect on its judgment and other claims—was economic. Be

‐

cause economic injuries are felt at a corporation’s principal

place of business, and Armada’s principal place of business

is in Singapore, Armada had not pleaded a “domestic inju

‐

1 See 18 U.S.C. § 1964(c).No. 17

‐ 2324 5

ry” as required by RJR Nabisco

. However, the district court

allowed the maritime fraudulent transfer claim to go for

‐

ward, so it denied Amcol’s motion to that extent. Armada

now brings this interlocutory appeal, challenging only the

district court’s ruling concerning the RICO claims.

II.

Our review of the grant of a motion for judgment on the

pleadings is de novo

. St. John v. Cach, LLC

, 822 F.3d 388, 389

(7th Cir. 2016). The standard for entering judgment on the

pleadings is the same as that for dismissing a complaint for

failure to state a claim: “the complaint must state a claim

that is plausible on its face.” Id. (quoting Vinson v. Vermilion

Cty., Ill.

, 776 F.3d 924, 928 (7th Cir. 2015)). In this appeal, the

sole issue is whether Armada has pleaded a “domestic inju

‐ ry.”

18 U.S.C. § 1964(c), colloquially referred to as “civil

RICO,” empowers private parties to bring lawsuits against

those engaged in racketeering activity when that activity has

caused them harm. See generally Rotella v. Wood

, 528 U.S. 549,

557 (2000) (“The object of civil RICO is

... not merely to

compensate victims but to turn them into prosecu

‐

tors

... dedicated to eliminating racketeering activity.”). By

its terms, § 1964(c) requires that the plaintiff have suffered

an injury to “his business or property by reason of” the rack

‐ eteering activity. 18 U.S.C. § 1964(c). In this case, Armada

claims that it suffered an injury to its property, namely its

judgment and other claims against Ashapura. Armada

claims that Amcol, by means of racketeering activity, injured

that property by divesting Ashapura of assets, thereby mak

‐ ing the judgment and other claims against Ashapura uncol

‐

lectable. A cause of action is recognized as a property right6 No. 17

‐ 2324

that can suffer injury. See Pitts v. Unarco Indus., Inc.

, 712 F.2d

276, 279 (7th Cir. 1983); cf. Malley

‐ Duff & Assocs., Inc. v.

Crown Life Ins. Co.

, 792 F.2d 341, 354 (3d Cir. 1986) (recogniz

‐ ing that an injury to a cause of action can be a “business inju

‐ ry” for RICO purposes). For Armada, so far so good.

But we do not ask only whether Armada has pleaded an

injury. We also must determine, in light of RJR Nabisco

, whether that injury is “domestic.” Regrettably, the Supreme

Court did not have occasion to elaborate on what it meant in

RJR Nabisco by “domestic injury,” as the plaintiffs in that

case had specifically waived their claims for domestic inju

‐

ries. See 136 S. Ct. at 2111. But the Court did provide some

vague hints at what “domestic injury” might entail. For in

‐

stance, it consistently referred to the location where an inju

‐

ry was suffered

. See, e.g.

, id. at 2108 (“Nothing in § 1964(c)

provides a clear indication that Congress intended to create

a private right of action for injuries suffered outside of the

United States.”); id. at 2111 (directing the dismissal of the

remaining claims because they “rest entirely on injury suf

‐

fered abroad”). It also made a point of noting the domestic

‐ injury requirement does not categorically bar foreigners

from recovering under the statute’s provisions. See id. at 2110

n.12.

Having announced the domestic

‐ injury requirement, but

having declined to define the term, the Court cautioned that

“application of this rule in any given case will not always be

self

‐ evident, as disputes may arise as to whether a particular

injury is ‘foreign’ or ‘domestic.’” Id. at 2111. Unsurprisingly,

that statement has proved prescient. Since RJR Nabisco came

down, many district courts have done their best to craft a

rule for determining which injuries are domestic and whichNo. 17

‐ 2324 7

are foreign. See, e.g.

, Cevdet Aksüt O ğ ullari Koll. Sti v. Cavuso

‐ glu

, 245 F. Supp. 3d 650, 657 (D.N.J. 2017) (“These cases ex

‐

hibit a wide array of factual scenarios and justifiable reason

‐ ing, with no clear victor in the ‘domestic injury’ debate.”).

These cases have only now begun percolating up to the

courts of appeals.

In October of last year, the Second Circuit became the

first court of appeals to address the “domestic injury” issue.

In Bascuñán v. Elsaca

, 874 F.3d 806 (2d Cir. 2017), the plaintiff,

a resident of Chile, alleged that his cousin had stolen mil

‐

lions of dollars from him through various schemes. Id. at

809. The district court in that case, applying similar reason

‐ ing to the district court in this case, concluded that all of the

plaintiff’s injuries were economic, that economic injuries are

suffered at a person’s residence, and thus the injuries were

Chilean, not domestic. Id.

On appeal, the Second Circuit rejected such a one

‐

dimensional approach, noting that RICO’s requirement that

injury must be to business or property means all RICO

claims are by nature based on “economic” injury. See id. at

817. In its place, the Second Circuit adopted an approach

that addresses each individual injury alleged. Id. at 818. The

court considered the four injuries pleaded by the plaintiff:

the theft of dividends paid by a foreign corporation, the fun

‐ neling of money into a private investment fund in Chile, the

theft of money from a New York bank account, and the theft

of physical bearer shares from a safe

‐ deposit box in New

York. Id. at 811–13. Concerning the theft of the dividends

and the funneling of money into the investment fund, the

only connection to the United States was that those funds

either passed through or were placed in bank accounts in the8 No. 17

‐ 2324

United States at some point in the scheme. Id. at 818. The

court concluded that such minimal, defendant

‐ initiated con

‐

tacts with the United States were not sufficient to make the

resulting injuries to the plaintiff “domestic.” Id. On the other

hand, the court held that the alleged theft of the bearer

shares and the theft of the money in the New York bank ac

‐

count were “domestic injuries.” Id. at 820. What set these in

‐ juries apart was the presence of harm to tangible property

that was located in the United States. Id. at 820–24. The court

held that “where the injury is to tangible property, we con

‐

clude that, absent some extraordinary circumstance, the in

‐ jury is domestic if the plaintiff’s property was located in the

United States when it was stolen or harmed, even if the

plaintiff himself resides abroad.” Id. at 820–21. Because of

the importance of the presence of tangible property to its

conclusion, the court was quick to distinguish the situations

in the case before it from those involving intangible harms.

See id. at 823–24. For instance, concerning the theft of the

bearer shares, the court pointed out the plaintiff was not al

‐ leging any harm to the value of those shares, but rather the

harm caused by the defendant’s theft of the physical shares

themselves. Id. at 824.

Both Armada and Amcol tell us Bascuñán is a win for

them. At oral argument, Armada maintained that its judg

‐

ment and claims are tangible properties located in the Unit

‐

ed States. For its part, Amcol argued that there is no tangible

property in this case, only “a bundle of litigation rights,” and

that the connections to the United States are too tenuous to

make Armada’s alleged injuries domestic. We agree with

Amcol.No. 17

‐ 2324 9

To begin with, the property Armada claims Amcol has

harmed is not tangible. A “tangible asset” is one “that has a

physical existence and is capable of being assigned a value.”

Tangible asset

, Black’s Law Dictionary (9th ed. 2009). As

much as a judgment or a cause of action is a piece of proper

‐

ty, it does not have a “physical existence.” The property at

issue here, then, is an “intangible asset,” which is one that

“can be amortized or converted to cash, such as pa

‐

tents,

... or a right to something, such as services paid for in

advance.” Intangible asset

, Black’s Law Dictionary (9th ed.

2009); see also Blodgett v. Silberman

, 277 U.S. 1, 12 (1928) (con

‐ cluding that right to receive money was “a chose in action,

and an intangible”).

The Second Circuit’s reasoning in Bascuñán focused on

how to address situations involving tangible property. Here,

we must determine where to locate an injury to intangible

property. As we noted above, the Supreme Court directs us

to focus on where the injury is suffered

. To “suffer” is “[t]o

experience or sustain

... [an] injury.” Suffer

, Black’s Law Dic

‐ tionary (9th ed. 2009). It is well understood that a party ex

‐ periences or sustains injuries to its intangible property at its

residence, which for a corporation like Armada is its princi

‐ pal place of business. See, e.g.

, Kamel v. Hill

‐ Rom Co., Inc.

, 108

F.3d 799, 805 (7th Cir. 1997) (“The place of injury was clearly

Saudi Arabia, where Kamel’s business would suffer as a re

‐

sult of Hill

‐ Rom’s conduct.”); CMACO Auto. Sys., Inc. v.

Wanxiang Am. Corp.

, 589 F.3d 235, 246 (6th Cir. 2009) (con

‐ cluding “the economic injury suffered by [the plain

‐ tiff]

... was clearly felt at its corporate headquarters”); Engine

Specialties, Inc. v. Bombardier Ltd.

, 605 F.2d 1, 19 (1st Cir. 1979)

(“The place of injury is where plaintiff suffered the

harm

... at its place of business, Pennsylvania.”). Here, Ar

‐10 No. 17

‐ 2324

mada’s principal place of business is in Singapore, so any

harm to Armada’s intangible bundle of litigation rights was

suffered in Singapore. Thus, the injury is not domestic, and

Armada has failed to plead a plausible claim under civil

RICO.

III.

A plaintiff advancing a civil RICO claim must allege a

domestic injury. Armada has not done so. Therefore, the dis

‐

trict court’s entry of judgment on the pleadings on the RICO

counts of Armada’s amended complaint is AFFIRMED.