NCJ Number
130266
Journal
St. John's Law Review Volume: 64 Issue: 4 Dated: special issue (Fall 1990) Pages: 825-848
Date Published
1990
Length
24 pages
Annotation
Attempts have been made to curtail the extensive use of civil actions under the Racketeer Influenced and Corrupt Organizations (RICO) Act by "weeding out" garden variety lawsuits which were not contemplated by the statute's drafters.
Abstract
RICO was passed as Title IX of the Organized Crime Control Act of 1970. Under Section 1964(c) of RICO, a plaintiff aggrieved as a result of a Section 1962 violation may bring a private civil action for treble damages and costs including reasonable attorney fees. Section 1961 of RICO establishes predicate offenses which constitute racketeering activity. The U.S. Supreme Court has concluded that the extension of RICO to "garden variety" fraud cases is warranted, given the act's legislative history. Nonetheless, Senate Bill 438 seeks to narrow RICO's application to defendants outside the sphere of organized crime. The bill proposes to exclude nonviolent forms of public speech undertaken for reasons other than economic or commercial advantage from the prohibited activities of Section 1962. The bill also proposes a complete revamping of RICO's civil remedies, including the addition of burden of proof, punitive damages, and the removal of treble damages for private civil plaintiffs. It is recommended that Congress proceed with caution on these and other provisions of Senate Bill 438 so as not to negate the intended purpose and spirit of RICO. 153 footnotes