Legal Document

528 U.S. 549120 S.Ct. 1075145 L.Ed.2d 1047 SyllabusNOTE: Where it is feasible, a syllabus (headnote) will be released, as being done in connection with this case, at the time opinion issued. The constitutes no part of Court but has been prepared by Reporter Decisions for convenience reader. See United States v. Detroit Timber & Lumber Co., 200 321, 337. SUPREME COURT OF THE UNITED STATES ROTELLAv.WOOD et al. CERTIORARI TO OFAPPEALS FOR FIFTH CIRCUIT No. 98 896. Argued November 3, 1999Decided February 23, 2000 Petitioner Rotella was admitted to private psychiatric facility 1985 and discharged 1986. In 1994, facility's parent company one its directors pleaded guilty criminal fraud related improper relationships illegal agreements between doctors. learned plea that same year, 1997 he filed civil damages action under Racketeer Influenced Corrupt Organizations Act (RICO), claiming respondents, doctors business entities, had conspired keep him hospitalized maximize their profits. RICO makes "to conduct" an "enterprise's affairs through pattern racketeering activity," 18 C. §1962(c). A "pattern" requires least two acts activity, last which occurred within 10 years after commission prior act. §1961(5). person injured violation may bring action. §1964(c). District granted respondents summary judgment on ground 4-year limitations period claims, see Agency Holding Corp. Malley-Duff Associates, Inc., 483 143, 156, expired 1990, four discovering his injury. affirming, Fifth Circuit rejected Rotella's argument does not begin run until plaintiff discovers (or should have discovered) both injury activity. Held: "injury discovery rule" invoked govern start claims. Pp. 3 11. (a) Malley-Duff, based choice uniform statute Clayton analogy, did decide when began run. Malley-Duff's wake, some Circuits, like Fifth, applied accrual rule starting clock knew or known injury, while others seeks. This Third Circuit's "last predicate act" rule, Klehr A. O. Smith Corp., 521 179, now eliminates another possibility. 4. (b) unsound number reasons. It would extend potential most cases well beyond plaintiff's cause complete. Under provision recognizing possibility apart, even occurrence unsoftened feature could theory open door proof occurring before 14 commencement suit. allow more remote from trial and, hence, litigation odds basic policies all provisions: repose, elimination stale certainty about opportunity recovery defendant's liabilities. See, e.g., Klehr, supra, 187. circumstance medical malpractice, where cry loudest, emphatic justification such Kubrick, 444 111, 122. suffering inadequate treatment thus responsible determining then running whether inadequacy malpractice. There good reason accepting lesser degree responsibility part. fact, notes, identifying require considerable effort place significantly different position malpractice victim, who thwarted ignorance details decisions prevailing practice standards. also recognized insufficient years, 149, adopting lenient amount backtracking Malley-Duff. less demanding clash imposed suits. clear legislative record congressional reliance consideration, Act's injury-focused established enacted. Both statutes share common objective encouraging merely compensate victims turn them into attorneys general,supplementing Government efforts undertaking public good. analogy reflects Congress's intent reject potentially longer RICO. Neither remaining points itself undercut analogy; without plaintiffs barred suit Federal Rule Civil Procedure 9(b), particularity supports adoption protracted period. 5 147 F.3d 438, affirmed. Souter, J., delivered unanimous Court. Opinion 1 NOTICE: subject formal revision publication preliminary print Reports. Readers are requested notify Decisions, Supreme States, Washington, D. 20543, any typographical other errors, order corrections made goes press. 896 2 MARK ROTELLA, PETITIONERv.ANGELA M. WOOD ON WRIT STATESCOURT APPEALS 4 Justice Souter petitioner's treble-damages (RICO) timely only if so-called discovery" governs We hold not. 6 * 1985, petitioner, Mark Rotella, Brookhaven Psychiatric Pavilion diagnosis major depression. Pederson, 144 892, 894 (CA5 1998). He Brookhaven's charges perpetrated agreement claim against group Court.1 7 RICO, U.S.C. § 1961 1968 (1994 ed. Supp. III), 1962(c), defined behavior violates certain laws, either enumerated federal state laws addressing specified topics bearing penalties, 1961(1) (Supp. III). "Pattern" term requiring "at activity , ten act activity." 1961(5). 8 provides actions (like one) "[a]ny property" seek treble attorney's fees. 1964(c) alleged admit, treat, retain simply Respondents raised defense sought bringing sued. 9 156 (1987), held discovered concedes 1986 latest. 439 accordingly ordered respondents. appealed Circuit, arguing After ruled him, ibid., we certiorari address split authority among Courts Appeals, triggered accordance Rotella. 526 1003 (1999). affirm. II Given RICO's want express enforcement actions, undertook derive determined take account differences multifarious covered statute. Although chose §4b, added, 69 Stat. 283, 15 15b run, question divided Appeals. 11 Three distinct approaches emerged wake Some Grimmett Brown, 75 506, 511 (CA9 1996); McCool Strata Oil 972 F.2d 1452, 1464 1465 (CA7 1992); Rodriguez Banco Central 917 664, 665 666 (CA1 1990); Bankers Trust Co. Rhoades, 859 1096, 1102 (CA2 1988); Pocahontas Coal Bethlehem Steel 828 211, 220 (CA4 1987). 12 seeks, accrues claimant discovers, discover, Caproni Prudential Securities, 614, 619 620 (CA6 1994); Granite Falls Bank Henrikson, 924 150, 154 (CA8 1991); Bath Bushkin, Gaims, Gaines Jonas, 913 817, 820 821 (CA10 Bivens Gardens Office Building, Inc. Barnett Bank, 906 1546, 1554 1555 (CA11 1990). 13 Keystone Ins. Houghton, 863 1125, 1130 (CA3 1988). soon anew upon each forming pattern. 179 (1997), cut possibilities one, rejecting rule. Since can continue indefinitely, separated many might extended decades, so limit Congress contemplated. ibid. Preserving right vast stretch repose underlying very notion id., 189. likewise model Act, "generally, begins defendant commits injures business." Zenith Radio Hazeltine Research, 401 338 (1971); 188. decision left candidates favored various Appeals: form (preferred majority Circuits considered it), Today, guided principles enunciated eliminate latter.2 III 16 think minority realization finding litigation. 187; U.S., 156; Wilson Garcia, 471 261, 270, 271 (1985). 17 How long too is, course, matter experience, gives us great pause extension traditional discovery, unwarranted rule's rationale. courts, sure, generally apply silent issue, here. 191 (citing Connors Hallmark Son 935 336, 342 (CADC 1991), Corman, Limitation Actions §6.5.5.1, p. 449 (1991)). But applying pains explain elements claim, what starts clock. injury: "We unconvinced purposes legal rights fact receive identical treatment. That unknown unknowable manifests itself; facts causation control putative defendant, unavailable difficult obtain. prospect bleak possession critical hurt inflicted mercy latter. tell wronged, need ask." 122 (1979). 19 20 plaintiff. true, out, unique requirement, ("[T]he heart complaint allegation racketeering"); H. J. Northwestern Bell Telephone 492 229, 236 (1989) (referring "RICO's key requirement racketeering"). And true complex, concealed, fraudulent. professional negligence real complexity, required running. 122, 124. said "need ask" wronged doctor, enquiry investigation necessary make actionability unsuccessful received. then, demonstrable victim. ability investigate injuries impaired than standards practice. Nor gain strength patterns include fraud, associated rule; already found seeks backsliding 21 What equally bad law applies important because, previously noted, there Sedima, S. P. R. L. Imrex 473 479, 489 (1985), focus therefore, honoring accepted relied upon, promotes objectives readily furthers objects Act. supplement deter penalize respectively prohibited practices. object prosecutors, "private general," dedicated eliminating activity.3 Id., 187 151) (civil specifically "further purpose [of] diligently investigate"). justified expected benefit suppressing pursued sooner better. would, accordingly, strange provide unusually effect postponing whatever realize. avoids policy conflict business," 338, 22 sum, softened every single mentioned. By tying reasonable rather point complete,4 case shows. deny occurred, complete time. started (his assumption reasonably discover sooner). begun eight became ripe bar prove godsend doom hope liability. Whatever disputes arise pinpointing moment himself dwarfed controversy inherent divining concealed fraudulent, involve harm parties wholly unrelated difficulty 235, n. (collecting cases), reinforces our reluctance parlay complexity worse trouble Cf. Wilson, 270 (discussing firmly defined, easily rules). patently disserve scheme parallel regime, aimed rewarding swift undertake 23 word said. encountered render inapt, explained why neither nor ignore model, 7. Here remains respond ourselves force comparable antitrust 495. fails support cuts position. complication anything element have, extent, simpler counterpart, comparative simplicity respect surely 24 Finally, returns cases, argues unless sometimes must particularity. While assume 9(b) exact cost, wary allowing speculation cost resolution issue presented effectively his, ignores flexibility provided 11(b)(3), pleadings evidence anticipated further discovery. Corley Rosewood Care Center, Peoria, 142 1041, 1050 1051 1998) (relaxing requirements lacks access detail claim). mean concern "blameless ignorance" defeat Urie Thompson, 337 163, 170 (1949); do unsettle understanding equitable tolling, Holmberg Armbrecht, 327 392, 397 (1946), obscure face diligence seeking identify it, tolling answer 's difficulty, complementing 11(b)(3). ibid.; 192 193 (noting distinctions devices). virtue relying lies nature exception, 25 Appeals 26 ordered. Notes 27 1. "a entities improperly conspir[ed] reasons own financial interests patient's condition." As injuries, alleged, things, confinement excessive because conspiracy draw down patients' insurance coverage, loss personal items, fraudulent unnecessary Brief 3; App. 24. 28 2. not, however, settle final addition entertained Scalia espoused occurrence" irrelevant, 198 (1997) (opinion concurring judgment), leaves straight Amicus American Council Life Insurance urges adopt Curiae 14, focused option pass attentive advocacy. 29 3. prompt combat obvious adopted "RICO read broadly" " 'liberally construed toeffectuate remedial purposes,' 497 498 (1985) (quoting Pub. 91 452, §904(a), 84 947). 30 out fear precedes second act, otherwise expire created. E.g., 1991). argue overlooks cardinal principle Rawlings Ray, 312 96, (1941); Lindsay, 346 568, 569 (1954); Clark Iowa City, Wall. 583, 589 (1875). quandary hypothetical here; dispute completed Hence, allows follows case. event, doubt actionable weak general

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