Document: 493 U.S. 455 110 S.Ct. 792 107 L.Ed.2d 887 Francine TAFFLIN, et al., Petitionersv.Jeffrey A. LEVITT al. No. 88-1650. Argued Nov. 27, 1989. Decided Jan. 22, 1990. Leave to File Second Petition for rehearing denied April 23, See 495 915, 1942. Syllabus Petitioners, nonresidents of Maryland who are holders unpaid certificates deposit issued by a failed savings and loan association, filed civil action in the Federal District Court against respondents, former association officers directors others, alleging claims under, inter alia, Racketeer Influenced Corrupt Organizations Act (RICO), 18 U.S.C. §§ 1961-1968. The court dismissed action, concluding, among other things, that federal abstention was appropriate as RICO claims, which had been raised pending litigation state court, since courts have concurrent jurisdiction over such claims. Appeals affirmed. Held: State presumption favor has not rebutted any factors identified Gulf Offshore Co. v. Mobil Oil Corp., 453 473, 478, 101 2870, 2875, 69 784. Pp. 458-467. (a) As petitioners concede, there is nothing RICO's explicit language suggest Congress has, affirmative enactment, divested jurisdiction. To contrary, § 1964(c)'s grant plainly permissive thus does operate oust from 460-461. (b) legislative history reveals no evidence even considered question jurisdiction, much less suggestion affirmatively intended confer exclusive on courts. Petitioners' argument that, because modeled 1964(c) after 4 Clayton Act—which confers courts—it intended, implication, rejected. Sedima, S.P.R.L. Imrex Co., 473 479, 105 3275, 87 346, Agency Holding Corp. Malley-Duff & Assocs., 483 143, 2759, 97 121, distinguished, those cases looked interpreting without benefit background juridical type presented here. 461-463. (c) No "clear incompatibility" exists between interests. interest uniform interpretation criminal laws, see 3231, inconsistent with merely would be required construe crimes constitute predicate acts. Section "offenses laws United States," do result imposition sanctions. There also significant danger application law, bound interpretations acts, guided judgments misinterpreting law subject direct review this Court. Moreover, ability handle complexities actions. Many involve asserted violations presumably greater expertise, it seem anomalous rule they incompetent adjudicate when adjudication arbitration, Shearson/American Express Inc. McMahon, 482 220, 239, 2332, 2344, 96 185. Further, although fact procedural mechanisms applicable only may tend itself suffice create And, extent serve broad remedial purposes, will advance rather than jeopardize policies underlying statute. 464-467. 865 F.2d 595 (CA4 1989), O'CONNOR, J., delivered opinion unanimous WHITE, concurring opinion, post, p. 467. SCALIA, KENNEDY, joined, 469. M. Norman Goldberger, Philadelphia, Pa., petitioners. Andrew H. Marks, Washington, D.C., respondents. Justice O'CONNOR 1 This case requires us decide whether actions brought under Pub.L. 91-452, Title IX, 84 Stat. 941, amended, 2 * arises failure Old Savings Loan, (Old Court), attendant collapse Savings-Share Insurance (MSSIC), state-chartered nonprofit corporation created insure accounts associations were federally insured. Brandenburg Seidel, 859 1179, 1181-1183 1988) (reviewing Maryland's crisis). Petitioners hold Respondents Court, MSSIC, firm accounting Deposit Fund state-created successor MSSIC. allege various causes well Securities Exchange 1934 (Exchange Act), 48 881, 15 78a seq., RICO. 3 granted respondents' motions dismiss, concluding claim court. Fourth Circuit (1989). agreed "securities" within meaning Act, 78c(a)(10), petitioners' therefore properly dismissed. F.2d, at 598-599. further held, reliance its prior decision supra, "a could instituted 'comprehensive scheme rehabilitation liquidation insolvent associations,' 1191, provided proper basis district abstain authority Burford Sun 319 315, 63 1098, L.Ed. 1424 (1943)." 600 (citations omitted). resolve conflict appellate supreme courts,1 we certiorari limited 490 1089, 109 2428, 104 985 We accordingly affirm judgment Appeals. II 5 begin axiom our system, States possess sovereignty Government, limitations imposed Supremacy Clause. Under system dual sovereignty, consistently held inherent authority, presumptively competent, arising States. See, e.g., Houston Moore, Wheat. 1, 25-26, 19 (1820); Claflin Houseman, 93 130, 136-137, 23 833 (1876); Plaquemines Tropical Fruit Henderson, 170 511, 517, 685, 688, 42 1126 (1898); Charles Dowd Box Courtney, 368 502, 507-508, 82 519, 522-523, 7 (1962); 477-478, 2874-2875, 784 (1981). noted Claflin, "if neither express nor implied, whenever, their own constitution, competent take it." U.S., 136; Box, S.Ct., 522-523 ("We start premise concept prevents enforcing rights law. Concurrent common phenomenon judicial history, exception rule"). generally J. Kent, Commentaries American Law *400; Federalist (A. Hamilton); F. Frankfurter Landis, Business Supreme 5-12 (1927); Friendly, Jurisdiction: A General View 8-11 (1973). 6 deeply rooted is, course, if ousts particular claim. 137 ("Congress may, see[s] fit, give jurisdiction") omitted); Houston, 25-26. stated Offshore: "In considering propriety state-court claim, begins enjoy Congress, however, confine either explicitly or implicitly. Thus, can an statutory directive, unmistakable implication clear incompatibility interests." 2875 8 136 (state "where excluded provision, exercise nature case"). parties agree these principles, "remained unmodified through years," 508, 523, provide analytical framework resolving case. III 9 precise presented, therefore, hear "by Offshore, 2875. Because find none present respect RICO, retain presumptive 10 At outset, concede RICO—much "explicit directive" provision authorizing provides full: 11 "Any person injured his business property reason violation section 1962 chapter sue therefor shall recover threefold damages he sustains cost suit, including reasonable attorney's fee." (emphasis added). 12 permissive, mandatory, "[t]he statute exclusive. It suits kind described 'may' courts, must be." 506, 522. Indeed, "[i]t black letter . mere cause action." (citing Bank New York Trust 296 463, 56 343, 348, 80 331 (1936)). 13 rely solely second third suggested arguing established interests," 14 Our Courts concluded, contains indication ever expressly jurisdiction; indeed, principal draftsman remarked, 'no one thought issue.' " Brandenburg, 1193 (quoting Flaherty, Two Lay Claim Nat.L.J., May 7, 1984, 10, col. 2); Lou Belzberg, 834 730, 736 (CA9 1987) ("The establishes attention focused private right action' ") (citation omitted), cert. denied, 485 993, 108 1302, 99 512 (1988); Chivas Products Ltd. Owen, 864 1280, 1283 (CA6 ("There 'smoking gun' sponsors indicated intention commit courts"). nonetheless insist issue, argument, misplaced, reliably discern what Congress' intent might question, liberty so speculate; did consider issue readily disposes unmistakably divest Sensing void rely, alternative, decisions 346 (1985), 121 (1987), 15(a). 489, 3281; Holding, 151-152, 2764-2765. assert interpreted see, Investment Lake Shore M.S.R. 260 261, 286-288, 43 106, 116-117, 67 244 (1922), presumed aware incorporated used similar cf. Cannon University Chicago, 441 677, 694-699, 1946, 1956-1958, 60 560 (1979), 1964(c). 16 flawed. rebut all divined silence but deliberations said exclusively federal. In instant case, lack assumed importing into jurisdictional implications dispositive. "mere borrowing imply incorporate baggage attached borrowed language." Lou, 737. impute knowledge precedents, makes sense sought every incentive expressly. 17 Sedima contrary. Although observed clearest current [the legislative] [of ] model," 3281, statement made context noting distinction "private governmental actions" Act. Ibid. intimated implied establish rejected requirement proving "racketeering injury," borrow "antitrust injury" antitrust "creat[e] exactly problems avoid." Id., 498-499, 3285-3286. Likewise, concerned "borrowing," light period "analogous" 146, 2762. circumstances, found 152, 2765. contrast, where concurrent, free add content via analogies statutes unless legislature specifically endorsed action. counsels, compels, enforce short, both whatever analogy relevant generally, place inquiry finally urge clearly incompatible indicating "include desirability interpretation, expertise judges hospitality peculiarly claims." 483-484, 2877-2878 footnote primary contention 3231,2 acts defined activity," 1961(1)(B), (C), (D). predict permitted interpret statutes, body precedent relating consequently lose control orderly development perceive preliminary matter, 3231 itself, sanctions otherwise. 240-241, 2344-2345, 185 (1987) (civil primarily punitive). 20 More point, today creates concern need uniformity consistency taken, Ableman Booth, 21 Haw. 517-518, 169 (1859); Musser Utah, 333 95, 97, 68 397, 398, 92 562 (1948) (vague violate Due Process Clause), pursuant full responsibility offenses constituting adjudicating will, addition, just sitting diversity Commissioner Estate Bosch, 387 456, 465, 1776, 1782, 886 (1967). would, think practice, most negligible effect Pan-American Petroleum Superior Delaware, Newcastle County, 366 656, 665-666, 81 1303, 1308-1309, 584 (1961) (rejecting Natural Gas jeopardized jurisdiction), not, event, more inconsistency multimembered, multi-tiered already creates, H.J. Northwestern Bell Telephone 492 229, 235, n. 2, 2893, 2898 106 195 (1989) (surveying "pattern racketeering activity" requirement). contrary fears, faith actions, particularly many fraud expertise. 1961(1)(A) (listing acts); 484, 2878 ("State applying" "whose governing rules law"); 499, 3286 (RICO "has become tool everyday cases"); BNA, Civil Report, Vol. 44, (Apr. 14, (54.9% involved "common fraud" another 18% "nonsecurities "theft conversion"). otherwise denigrate accorded coequal sovereigns, ignore "consistent hospitable acceptance jurisdiction," 523. recently subjecting arbitration. Express, 2344 "RICO too complex arbitration" "there irreconcilable arbitration purposes"). 22 note, incompatibility, include extended venue service-of-process provisions 1965. sufficient, observe previously special supra (finding Labor Management Relations 301(a) suits, despite enforcement provisions); Maine Thiboutot, 448 3, 100 2502, 2503, 65 555 (1980) 1983 1988); Hathorn Lovorn, 457 255, 269, 102 2421, 2430, 72 824 (1982) disputes regarding applicability Voting Rights 1965, 1973c, three-judge panel). congressional specification Finally, note far disabling frustrating interests, "[p]ermitting entertain facilitates rights." 4, 4; 514, 526. (conflicts deriving "not necessarily unhealthy"). 904(a), 947 "be liberally construed effectuate purposes"); 492, 3283, 10. ("[I]f liberal-construction mandate applied anywhere, 1964, purposes evident"), 24 For above reasons, Nothing language, structure, suggests 25 Affirmed. 26 concurring. 27 I join few words rarely contentions based heard observes ante, construction insignificant recognized potential dangers nonuniform confined caution before related assessing each interests constructions statutes. 28 unusual borrows heavily law; activity terms numerous chargeable 1961(1)(A), offenses. quite likely damage misunderstanding law—a problem, sure, solved named close, though perhaps exact, state-law analogues, Durland States, 161 306, 312, 510, 40 709 (1896), mail statute, unlikely Nor incorrect threat posed improper disastrous interstate commerce, Government. Racketeering includes given written until now litigation, doubt greatly disruptive important 29 possibility disrupt launching new "pattern" "enterprise" elements offense hearing suits. possibility, insubstantial, North- western 429 (1989), enough require Even varying drastically change consequences flow variations cannot make act blameless implicate core due process concerns 464, reduce risk of, set aside, liability. 30 whom KENNEDY joins, 31 addressing issues argued parties, included dictum (1981), 'the interests.' Ante, 459-460. Such dicta, repeatedly point departure analysis, regrettable tendency acquire practical status legal rules. write separately, entrenched, my view correct be. 32 "conferred" upon them Congress; powers permit transitory foreign McKenna Fisk, How. 241, 247-249, 117 (1843); several binding citizens thereof are. two together form jurisprudence, constitutes land State; jurisdictions other. ." Minneapolis St. Louis R. Bombolis, 241 211, 221-223, 36 595, 598-599, 961 (1916). 33 takes power Clause jurisdiction—an earliest referred "the congress withdraw" 26, (1820) 221, 598 (concurrent "unless excepted constitutional limitation valid legislation"); Missouri ex rel. Louis, B. M.R. Taylor, 266 200, 208, 45 47, 48, 247 (1924) ("As [Congress] concerning remedy, jurisdiction"). 34 original proposition, eminently arguable depriving sovereign done, utmost clarity, Atascadero Hospital Scanlon, 234, 243, 3142, 3147, 171 (1985) immunity eliminated statement"), least That Alexander Hamilton: 35 "When governments national governments, truly are, kindred systems, parts ONE WHOLE, inference seems conclusive Union, prohibited." 82, 132 (E. Bourne ed. 1947). Galveston, S.A.R. Wallace, 223 481, 490, 205, 206, 516 (1912) ("[J]urisdiction defeated implication"). early 137, late exclusion achieved acted principle Sherman Act—where analysis compelling giving "show right] exercised 'court States.' Michigan Southern 287, 117, (1922) Blumenstock Bros. Advertising Curtis Publishing 252 436, 440, 385, 386, 64 649 (1920) (dictum); Freeman Bee Machine 448, 451, 6, 1146, 1147-1148, 1509 (1943) 267, 18, 2429, (dictum). standard fields recite suit "only" Company 1940, 1429, 80a-35(b)(5); "exclusive," 1934, 902, 78aa; 1938, 52 833, 717u; Employee Retirement Income Security 1974, 88 892, 1132(e)(1); indeed "exclusive (criminal cases); 1333 (admiralty, maritime, prize cases), 1334 (bankruptcy 1338 (patent, plant variety protection, copyright 1351 (actions consuls vice states), 1355 recovery fine, penalty, forfeiture incurred Congress), 1356 (seizures water admiralty maritime jurisdiction). 37 Assuming, possible, surely text merely, part permit, "unmistakable history." (1962), "does [federal] exclusive," id., 522, proceeded unnecessarily examine reinforce contradict conclusion reached. never implication" history. harmless say be, hardly imagine "implication history" "unmistakable"—i.e., demonstrates agreement proposition majority Houses President—unless embodied assent. But simply wrong talking about clarity. What needed (i.e., law), discussion. 38 true preclusion mentions plus scheme. conceivably meant dictum, If phrase broadly however—if taken some exclude systemic undesirable absolutely foundation precedent. 39 cited three support "incompatibility" formulation. first principle, except quotation cited, Claflin. response "[o]nly judiciary possesses familiarity labor legislation monolithic necessary" elaborate coherent said: "Whatever merits matter policy, indicate adopted policy enacting 301." 507, case." 136. subsequent discussion entirely clear, "incompatibility case" impliedly "Congress," said, "may, sees "sometimes enactment sometimes implication." 137. Garner Teamsters, 485, 74 161, 98 228 (1953), National whose Board prevent assuming disputes, Myers Bethlehem Shipbuilding 303 41, 58 459, 462, 638 (1938), prevented well. sum: holds, meets tests recited Offshore. Since so, meeting sufficed here, there. test assuredly enough, Compare McCarter Mitcham, 883 196, 201 (CA3 1989) jurisdiction); 1193-1195 (same); 738-739 (same), Simpson Elec. Leucadia, Inc., N.Y.2d 450, 534 N.Y.S.2d 530 N.E.2d 860 (1988) Rice Janovich, Wash.2d 742 P.2d 1230 Cianci Cal.3d 903, 221 Cal.Rptr. 575, 710 375 County Cook MidCon 773 905, (CA7 1985) Dubroff Dubroff, 557, (CA5 "probably" court), 1286 (exclusive VanderWeyst First Benson, 425 N.W.2d 803, 812 (Minn.) (expressing "serious reservations" 488 943, 369, 359 (1988). Note, 57 Ford L.Rev. 271, conflict); 73 Cornell 1047, 62 John's 301, 303, (same). "The "Nothing title away impair thereof."

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