Court Opinion

ID: 9479178
Source: CourtListenerOpinion
Date Created: 2023-08-05 07:10:43.638999+00
Date Added: 2024-06-11T17:46:52.396512
License: Public Domain

RIPPLE, Circuit Judge,
concurring.
I join the judgment of the court and in the essential reasoning of the majority opinion. I write separately only with respect to three points. First, I believe that the majority is quite right in concluding that, under the circumstances presented here, the Kimmels have alleged only derivative injury as guarantors and therefore do not have standing to bring either a RICO or a Bank Holding Company Action. On the other hand, as the Fifth Circuit pointed out in Swerdloff v. Miami National Bank, 584 F.2d 54, 58-59 (5th Cir.1978), there are situations — especially in the case of a closely held corporation — where the relationship between the corporation and the guarantor, combined with the conditions directly imposed by the bank on the guarantor, may require that the guarantor have standing to bring such actions. The majority opinion recognizes this possibility; it therefore would be a mistake for the bench and bar to overread today’s holding as precluding all such actions.
In Part II of its opinion, the majority disposes of Mid-State’s claim on the ground that there is no valid allegation of fraud in the complaint that could sustain a cause of action under section 1962(a) of RICO. I agree completely with this conclusion; I only point out that this disposition ought not be read as our deciding sub silentio the important question of whether Mid-State has standing to bring an action under subsection (a) of section 1962.1
*1341Finally, I believe that the district court said all that needs to be said with respect to the role of the affidavit of Professor Bryan in the disposition of the summary judgment motion:
To support its claim that Mid-State suffered a loss due to the tying arrangement, plaintiffs point only to one paragraph in the affidavit of its financial expert, William Bryan. The paragraph states, “Further, it is my opinion that the handling of the loan arrangement and use of the locked box or blocked account by Exchange National Bank personnel was such that the likely and predictable result was the demise of Mid-State as a going concern.” Bryan states he examined the pleadings, depositions, and documents in this case, but he does not recite any of the specific facts or steps in his reasoning that led him to the conclusion stated in paragraph 8 of his affidavit. Plaintiffs therefore have failed to satisfy their burden of showing specific facts in support of an essential element of their cause of action.
Mid-State Fertilizer Co. v. Exchange Nat’l Bank of Chicago, 693 F.Supp. 666, 669-70 (N.D.Ill.1988) (footnote omitted). Accordingly, I join in affirming the judgment of the district court.

. There is a controversy in the reported cases as to what injury will satisfy the standing requirement for a violation under 28 U.S.C. § 1962(a). The defendant in this case argues, and a num*1341ber of reported cases in this area agree, that an injury “by reason of a violation of section 1962(a)" requires injury by investment in an enterprise, not simply an injury caused by the predicate racketeering acts. See Rose v. Bartle, 871 F.2d 331, 357-58 (3d Cir.1989); Grider v. Texas Oil & Gas Corp., 868 F.2d 1147, 1149-50 (10th Cir.1989); Leonard v. Shearson Lehman/American Express, Inc., 687 F.Supp. 177, 181 (E.D.Pa.1988); In re Rexplore, Inc. Sec. Litig., 685 F.Supp. 1132, 1141-42 (N.D.Cal.1988); P.M.F. Servs., Inc. v. Grady, 681 F.Supp. 549, 555-56 (N.D.Ill.1988); Omega Constr. Co. v. Altman, 667 F.Supp. 453, 464-65 (W.D.Mich.1987); Airlines Reporting Corp. v. Barry, 666 F.Supp. 1311, 1314-15 (D.Minn.1987); In re Gas Reclamation, Inc. Sec. Litig., 659 F.Supp. 493, 511 (S.D.N.Y.1987); Cincinnati Gas & Elec. Co. v. General Elec. Co., 656 F.Supp. 49, 84 (S.D.Ohio 1986); Gilbert v. Prudential-Bache Sec., Inc., 643 F.Supp. 107, 109 (E.D.Pa.1986); DeMuro v. E.F.Hutton, 643 F.Supp. 63, 66-67 (S.D.N.Y.1986); Eastern Corp. Fed. Credit Union v. Peat, Marwick, Mitchell & Co., 639 F.Supp. 1532, 1536-37 (D.Mass.1986); Heritage Ins. Co. of America v. First Nat'l Bank of Cicero, 629 F.Supp. 1412, 1417 (N.D.Ill.1986); and Econo-Car Int'l Inc. v. Agency Rent-A-Car, Inc., 589 F.Supp. 1368, 1372 n. 1 (D.Mass.1984). Contrary authority indicates that injury caused by predicate racketeering acts is sufficient for any type of section 1962 violation. See In re National Mortgage Equity Corp. Mortgage Pool Certificates Sec. Litig., 682 F.Supp. 1073, 1081-82 (C.D.Cal.1987); Smith v. MCI Telecommunications Corp., 678 F.Supp. 823, 828-29 (D.Kan.1987); Haroco, Inc. v. American Nat'l Bank & Trust Co. of Chicago, 647 F.Supp. 1026, 1032-33 (N.D.Ill.1986); Louisiana Power & Light Co. v. United Gas Pipe Line Co., 642 F.Supp. 781, 805-07 (E.D.La.1986); and Snider v. Loan Star Art Trading Co., 659 F.Supp. 1249, 1255-56, opinion upon reconsideration, 672 F.Supp. 977 (E.D.Mich.1987), aff’d by unpublished order, 838 F.2d 1215 (6th Cir.1988).