Opinion ID: 3051091
Heading Depth: 2
Heading Rank: 1

Heading: Federal Civil RICO Violations

Text: It is illegal “for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity. . . .” 18 U.S.C. § 1962(c). Section 1964(c) permits a civil action if a person is injured due to another person’s violation of § 1962. 18 U.S.C. § 1964(c). To establish a federal civil RICO violation under § 1964(c), a plaintiff must prove (1) conduct (2) of an enterprise (3) through a pattern (4) of racketeering activity and (5) injury to “business or property” (6) that was “by reason of” the substantive RICO violation.2 Mohawk Indus., 465 F.3d at 1282–83 (citing 18 U.S.C. §§ 1962(c), 1964(c)). The “by reason of” requirement implicates two concepts: (1) a sufficiently direct injury so that a plaintiff has standing to sue and (2) proximate cause. Id. at 1287. Thus, to state a claim, civil RICO plaintiffs must prove proximate causation. See id. (citing Anza v. Ideal Steel Supply Corp., 547 U.S. 451, 126 S. Ct. 1991 2 The first four requirements apply to both civil and criminal RICO claims. Mohawk Indus., 465 F.3d at 1282. 9 Case: 13-13284 Date Filed: 02/07/2014 Page: 10 of 18 (2006)); see also Hemi Grp., LLC v. City of New York, N.Y., 559 U.S. 1, 9, 130 S. Ct. 983, 989 (2010). Courts should scrutinize proximate causation at the pleading stage and carefully evaluate whether the injury pled was proximately caused by the claimed RICO violations. Mohawk Indus., 465 F.3d at 1287. Here, the district court dismissed plaintiff Corcel’s complaint for lack of proximate causation. We, thus, review what constitutes proximate cause in the federal civil RICO context and then determine whether plaintiff Corcel’s complaint alleges facts sufficient to establish proximate causation.