Document: 483 U.S. 143 107 S.Ct. 2759 97 L.Ed.2d 121 AGENCY HOLDING CORPORATION, et al., Petitioners,v.MALLEY-DUFF & ASSOCIATES, INC. CROWN LIFE INSURANCE COMPANY, Petitioners, v. MALLEY-DUFF INC., al. Nos. 86-497, 86-531. Argued April 21, 1987. Decided June 22, Syllabus In February 1978, petitioner Crown Life Insurance Co. terminated its relationship with agent, respondent Malley-Duff Associates (Malley-Duff), for failure to satisfy a production quota. Alleging, inter alia, that the real reason termination was petitioners' desire acquire lucrative territory, brought suit in March 1981 under Racketeer Influenced and Corrupt Organizations Act (RICO). The Federal District Court granted summary judgment motion, dismissing RICO claims on ground they were barred by Pennsylvania's 2-year fraud statute of limitations. absence limitations, court concluded best state law analogy. However, Appeals reversed, holding State's "catchall" 6-year residual limitations contained appropriate period all arising State. Held: 1. 4-year applicable Clayton civil enforcement actions, 15 U.S.C. § 15b, applies actions. Because predicate acts may establish violation are far ranging cannot be reduced single generic classification, because important concepts unknown common law, there is need uniform order avoid intolerable uncertainty parties time-consuming litigation. offers closest analogy RICO, light similarities purpose structure between statutes, clear legislative intent pattern RICO's provision Act's. Moreover, provides closer than any statute. It unlikely Congress intended statutes apply or such would fairly serve federal interests vindicated and, those States do not have catchalls, selection at odds sui generis nature. cases commonly involve interstate transactions, possibility multiplicity periods presents dangers forum shopping complex, expensive, unnecessary Application also avoids application unduly short thwart providing an effective remedy. Section 15b preferable 5-year criminal prosecutions, since does reflect congressional balancing competing equities unique Pp. 146-156. 2. this litigation filed less four years after Malley-Duff's as Life's which earliest time action could accrued, timely. 156-157. 792 F.2d 341 (CA3 1986), affirmed. O'CONNOR, J., delivered opinion Court, REHNQUIST, C.J., BRENNAN, WHITE, MARSHALL, BLACKMUN, POWELL, STEVENS, JJ., joined. SCALIA, concurring judgment, post, p. 157. Robert L. Frantz, Pittsburgh, Pa., petitioners No. John H. Bingler, Jr., 86-497. Harry Woodruff Turner, respondents both cases. Justice O'CONNOR Court. 1 At issue these consolidated actions (RICO), 18 1964 (1982 ed. Supp. III). 2 * Petitioner Company (Crown Life) Canadian corporation engaged business selling life, health, casualty insurance policies. Respondent Associates, Inc. agent territory Pittsburgh area. agency 13, failed This case second two following termination. 3 first (Malley-Duff ) against United Western Pennsylvania, alleging violations antitrust laws claim tortious interference contract. See 734 133 1984). Before trial, however, 20, 1981, II same court, causes 42 1985, conspiracy law. Initially, I, but severed before trial. Only 4 arose out alleged incidents. First, alleges Life, together several employees Agency Holding Corporation formed enterprise whose false fraudulent means pretenses various agencies had territories. allegedly acquired imposing impossibly high annual quota nine months into fiscal year 1977 then terminating when meet further used similar scheme other cities. Second, obstructed justice during course discovery I. On July 29, 1982, motion judgment. entered counts. dismissed fraud, Pa.Cons.Stat. 5524(7) (1982), concluding claims. Third Circuit reversed. view, Wilson Garcia, 471 261, 105 1938, 85 254 (1985), 5527, Pennsylvania. (1986). We certiorari, 479 983, 569, 93 573 (1986), resolve question RICO. 5 As sometimes provide express provision. Although it has been suggested courts always should most analogous each individual whenever silent proper period, see supra, U.S., 280, S.Ct., 1949 (dissent); DelCostello Teamsters, 462 151, 174, 103 2281, 2296, 76 476 (1983) (O'CONNOR, dissenting), majority rejected path. Instead, stated: 6 "In situations we ordinarily assume no limit all; rather, our task 'borrow' suitable rule timeliness from some source. generally closely 'The implied absorption State limitation within interstices enactments phase fashioning remedial details where spoken left matters judicial determination general framework familiar legal principles.' " 158-159, 2287-2288, quoting Holmberg Armbrecht, 327 392, 395, 66 582, 584, 90 L.Ed. 743 (1946). 7 characterization purposes selecting 269-270, 1942-1944, determining initial inquiry whether "should characterized way, evaluated differently depending upon varying factual circumstances theories presented case." 268, 1942. Once made, next used. held Rules Decision Act, 28 1652, requires unless "a drawn elsewhere applied." 159, n. 2288, 13; id., 1, 2295, dissenting). Given longstanding practice borrowing awareness practice, can intends silence borrow limited circumstances, led conclude "state unsatisfactory vehicles instances, inappropriate choose adopt rules operation substantive law." 161, 2289. While mere fact fails perfect cause never itself sufficient justify use found more federal, rather state, statutes: 8 "[A]s often discovered, obvious state-law choice given action; yet resort remains norm periods. Nevertheless, clearly available policies stake practicalities make significantly vehicle interstitial lawmaking, hesitated turn away 171-172, 2294. 9 Occidental Ins. Cal. EEOC, 432 355, 2447, 53 407 (1977) (adopting EEOC actions); McAllister Magnolia Petroleum Co., 357 221, 78 1201, 1272 (1958) (federal applied unseaworthiness admiralty law); supra (refusing enforce federally created equitable right). 10 adopted consistent approach problem Indeed, American Bar Association force described current regarding "confused, inconsistent, unpredictable." Report Ad Hoc Civil Task Force ABA Corporation, Banking Business Law 391 (1985) (hereinafter Report). Some simply offenses particular claim. See, e.g., Silverberg Thomson McKinnon Securities, Inc., 787 1079 (CA6 1986); Burns Ersek, 591 F.Supp. 837 (Minn.1984). Others, case, chosen Tellis Fidelity Guaranty 805 741 (CA7 Compton Ide, 732 1429 (CA9 1984); Teltronics Services, Anaconda-Ericsson, 587 724 (EDNY courts, uniformly looked 387. 11 agree that, reasons expressed 272-275, 1944-1946, selected Judge Sloviter aptly observed: 12 "RICO [42 U.S.C.] 1983 'encompass numerous diverse topics subtopics.' [Wilson 273, 1946.] Many wire mail acts, 1961 defines 'racketeering activity' include felonies over 25 including prohibiting bribery, counterfeiting, embezzlement pension funds, gambling offenses, obstruction justice, transportation stolen property, labor crimes." A.J. Cunningham Packing Corp. Financial Corp., 330, 337 1986) (concurring judgment). 13 large complaints securities required insignificant number allege activity type associated professional criminals arson, theft political corruption. 56-57. noted, "[e]ven based 'garden variety' disputes might analogized breach contract, conversion, relations, misappropriation trade secrets, unfair competition, usury, disparagement, etc., periods." F.2d, 348. designed remedy injury caused racketeering, "[c]oncepts 'enterprise' 'pattern racketeering Ibid. 14 Under therefore, 1983, "uncertainty litigation." 272, 1945. real-world consequences plaintiffs defendants "Plaintiffs denied their just if delay filing claims, having wrongly postulated longer Defendants calculate contingent liabilities, knowing confidence delicts lie repose." Id., 275, 34, 1946, 34. surprising, support adoption Brief Petitioners 17; 86-531, 12. Unlike believe 38 Stat. 731, amended, 15, alternative. Even cursory comparison reveals patterned Act. provides: 16 "Any person who shall injured his property anything forbidden sue therefor district . recover threefold damages him sustained, cost reasonable attorney's fee." 15(a). 17 section 1962 chapter he sustains suit, 1964(c). Both economic recovery treble damages, costs, fees. bring bear pressure "private attorneys general" serious national public prosecutorial resources deemed inadequate; mechanism reach objective carrot damages. aim compensate injury; plaintiff show "in of" violation. 19 close similarity provisions accident. "clearest current" history "is reliance model." Sedima, S.P.R.L. Imrex 473 479, 489, 3275, 3281, 87 346 (1985). early 1967, Senator Hruska proposed bills "the novel adapting organized crime." 78. explained: 20 "The now well established attacking anticompetitive kinds. They contain broad sanctions. These extraordinarily flexible remedies ought extensively 'legitimate' activities 113 Cong.Rec. 17999 (1967). 21 Association's Antitrust agreed "[t]he tested machinery contains useful workable features crime," treble-damages remedies. 115 6995 (1969). 22 model development crime unquestionably work later considered bill eventually became That bill, introduced Senators McClellan 1969, did not, form, private Representative Steiger, addition "similar damage anti-trust laws." Hearings S. 30, Related Proposals, Subcommittee House Committee Judiciary, 91st Cong., 2d Sess., 520 (1970). During hearings, amendment "to additional authorizing suits concept Act" 543-544. approved amendment, full included debates, bill's sponsor "another example being adapted criminality," 116 35295 (1970), Steiger stated viewed "parallel remed[y]" 27739 (letter Judiciary Committee). 23 Together strongly counsels favor 15b. especially true lack satisfactory analogue atrocities" enact "plainly sounded tort," 277, 1947, comparable noted above, ranging, unlike characterization. Appeals, 278, 1948, apply. Furthermore, 391, "distinguishes made Garcia." 339 (Sloviter, Garcia personal minimized risk "would 1983," 279, 1949, statement about statutory 'catch alls.' 339. Any without catchall wholly Appeals' recognition nature 24 suggest period. SCALIA recognizes preferred us "may pre-empt discriminates rights too permit right vindicated." Post, 162. view present equally compelling pre-emption otherwise even SCALIA's approach. illustrates, conceivably govern nexus foreign commerce jurisdictional element claim, §§ 1962(b) (c), heart complaint allegation racketeering. Thus, will occur States. marked contrast typical commerce, involves dispute one multistate indicates desirability With multiple danger very least, "virtually guarante[e] complex expensive what straightforward matter." 392. creating Ibid.; 166, 167-168, 2291, 2292 (concluding short). petitioners, specifically note offered comprehensive six provisions, 35346 "reject" proposal, however. voluntarily withdrew immediately so referred study. 35346-35347. reference absolutely nothing another remedy, Poff observed "prudence dictate carefully explore potential new have." 35346. unable find opposing point predecessor Hruska, 1623, 6996 dropped introduce 87. simple, way remotely suggests rejection limitations: thus obviously 88. Finally, cite inclusion 16, Remedies Victims Racketeering Activity Theft 1972, amended enacted. 118 29368 (1972). focused broaden particular, authorized intervene permitted injunctive relief. Congress' read 26 recognize prosecutions 3282. includes either remedies, only provided specified. or, indeed, better 27 accepts conclusion concludes codes fail furnish none 170. 271, 1944, however: "A 'brought distance time' 'utterly repugnant genius laws.' Adams Woods, Cranch 336, [2 297] (1805). Just determinations when, passage time, memories witnesses faded evidence lost. wrongdoers entitled sins forgotten." 29 sum, statute, behind 30 accrued—i.e., date 1978. Accordingly timely brought. accrued filed, occasion decide accrual 31 Affirmed. 32 33 today continues (1983), although enacted III), supply "borrowing" glance seem small step today's decision one, my turns giant leap realm judgments. I therefore join Court's opinion. 34 arise respect every offense governed If (or prescribes 3281) offense, operates forbid prosecution, punishment "unless indictment information instituted five committed." kind default suits; long enacting periods, wrestling what, any, Prior DelCostello, virtually look departed frustrated policy governs suit. 361, 366-372, 2454-2457, 402 (1977). Until responded applying different 35 To understand why differs from—and legitimate than—the necessary two-phase through earlier developed. essential understanding certain conceptions mistaken. Part I-A explains detail, label describe practice—"borrowing"—is misleading. original term "first phase" doctrine, reality involved believed own force, pre-empted "second approached differently. Whereas originally inquiry—i.e., ascertain conflicted statute's terms purposes—we came source obligation is, instead treating treat affirmative directive deviation analytical error. error commits compounds) deciding Today's two. outlined above (and discussed detail below) suggests, erroneous basis in, degree approximates results of, think correct matter. said statutes. A. 36 analysis representing doctrine exemplified McCluny Silliman, Pet. (28 U.S.) 270, 70 676 (1830), presenting specify limit. Plaintiff-in-error sought purchase land sale lands owned States, register, officer, refused tendered payment. trespass Ohio, arguing register wrongfully withheld land, causing $50,000 prevailed below Ohio governing plaintiff's argued erred. contended, officer conferred Congress, intend (an raised neither party dispute) Legislature so. 270-274. matter 276 ("The depends construction Ohio"), applied. reasoned while doubtless contemplated framing legislature cover torts contemplation. 277-278. Ohio's power rights, otherwise. Rather, "well settled" forum, operat[e] submit themselves jurisdiction." 276-277. opinion, mentioned 37 "[T]he states, except constitution, treaties, require provide, regarded trials apply." 1789, 92, codified, 1652. But power, confirmation "no special congress," Pet., 277. 39 odd modern ears, McCluny's right, expressly create action. Yet nor certainly ask today: gave "implied right" sue. Instead seeking common-law writ case. feature leaves open argument acceptance pass 40 argument, Campbell Haverhill, 155 610, 217, 280 (1895), faced patent infringement Massachusetts requiring tort years. suits, legislation, exclusive jurisdiction. Accordingly, legislate manner subject 615, 219. replied "this assert distinction difference," ibid., contrary, neutrally 614-615, 618-620, 220-221 (although discriminated excessively bringing 218-219).1 B 41 foundation reasonably coherent theory appear though mind. McCluny, imposition States' powers, Congress. 218-219, 220-221; Third, spring statute; relevant one. 616, Fourth, insufficient statutes; "special provision" that. Fifth, statute—its silence—may vindicated. 218-219. role Act: Haverhill question, plays deriving principles above. directs follow apply," cases, opinions displaying classes Hawkins Barney's Lessee, (30 457, 464, 190 (1831) (the "has declaration it: wit, lex loci must whatever jurisdiction comes examined"); Bank Hamilton Dudley's (27 492, 525-526, 496 (1829) states [as States] independent enactment"); Hill, Erie Doctrine Bankruptcy, Harv.L.Rev. 1013, 1026, 1035 (1953); Jackson Chew, Wheat. (25 153, 162, 583 (1827) (holding Supreme settled state-court decisions mentioning Act); Shelby Guy, (24 367, 495 (1826) duty administer respective Act). fact, future effect passage, constitutional challenge improper delegation declaratory point. Wayman Southard, (23 47-48, 253 (1825). 43 changes insofar fourth principle. Its "requires provides" creates presumption implicit rebutted action, preclusion discriminate vindication right. 44 So understood, all. engage everyday interpretive exercises: pre-empts embark quest "appropriate" extent making entail judgments nevertheless makes "inappropriate." determine inconsistent end matter, 45 us, historical intervened adhere it. 172-174, 2294-2295 (STEVENS, For many years, analysis. perhaps forgetting origins, directive, subject. Automobile Workers Hoosier Cardinal 383 696, 706, 86 1107, 1113, 192 (1966); (1946).2 plausible interpretation silence. natural intention impute wished none. century half reacting statutes—first reason, wrong one—by least say result expect, hence intend, legitimacy, event produces correct.3 III 46 pointed her dissent "congressional intent" justification actual alteration departing 174-175, 2295-2296 knows otherwise, direct wants something else. addition, former approach, discover borrow, ones run afoul policy, 47 showing prowling hungrily Statutes Large appetizing pouncing Of course, depart tradition quite impossible. ordinary construction, identity language Act's civil-remedy relied arguments would, coupled enactment latter, demonstrate—if rule—a passed up opportunities impose ante, 154-155. troublesome requirement finding simple expedient reformulating rule, transforming federal. go along this, reasons. 48 rule. prior expects whatsoever signifies borrowed. enacts one—for example, itself. until judge 341, 356 Courts (1986) (case below); Cullen Margiotta, 811 698 (CA2 1987); La Porte Construction Bayshore National Bank, 1254 (CA5 Alexander Perkin Elmer 729 576 (CA8 Hunt Trust 783 1011 (CA11 1986). extremely expected different. borrowed appropriate, considerations advances here—that promote uniformity litigation, differences covered statutes—would warrant almost plainly cases.4 49 demonstrates, general, face latter context how among whole category hand, invariably tied specific consequence select traditional classification deal time. elements frame contract reality, examine served other, answer classified sounding Goodman Lukens Steel 482 656, 662, 2617, 2621, 96 572 (1987) ( sound tort); 670, 2625 (BRENNAN, dissenting) (§ contract). terms, genuinely whether, underlying covering job injury. seems me quintessentially legislature. Wilcox Fitch, Johns. *472, *475 (N.Y.1823) (limitations creatures exist Wall Robson, Nott McCord 498, 499 (S.C.1820) (same); E. Coke, Institutes 95 (6th 1680). 50 generality versus particularity really already balance struck "protecting valid [and] prosecution stale ones." Johnson Railway Express Agency, 421 454, 1716, 1722, 295 (1975). knowledge range contractual matters, contemplated. aware difficulty. declines 3282, "does actions." Ante, 156. objection also, lead reject reflects 51 52 accept gives refusing here, 152-154, reached hold Such effectively avoiding issues took (1977), Title VII unmoved fear prove ' "repugnant 156, (6 342, 297 (1805).5 3281 (no capital offenses). prompt believes "appropriate," competence ours. 614, 218, appears so, careful reading belies interpretation. regard treated questions applicability interchangeable. squarely correctly analyzing changed then. 159-160, 2287-2289, 13. Contrary R. Tompkins, 304 64, 58 817, 82 1188 (1938), scholarship change. Neither diversity 1033-1034 173, (noting 'the [Act] distinction' federal-question 219, (1895)); Friendly, Praise Erie—And New Common Law, N.Y.U.L.Rev. 383, 408, 122 (1964) (characterizing "oft-encountered heresy"). produce results, attributed (as old provided) cf. 268-269, 1943, Imagine, handicapped persons contracts. injury, theory, serves conducting analysis, supplies hypothetical assault battery. conclusion, ruthlessly faithful logic, turned indistinguishable infra, 168—169. fully reformulation "our taken departure action" "not mean eschew anytime analogy." 171, arguably terms. 170, 2293. event, here rests intent, 10(b) Labor Relations 160(b), claiming fair representation tells claimed abandoned place notice henceforth interpret lower regular interpreting opinions, worked change 167, enough form expectations transformed. announced adapt, assumption done down. 1970, DelCostello. Pub.L. 91-452, 84 943, 1963. advanced inapplicable ambiguous issue. Cranch, 341-342.

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