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RICO Obstacle Removed For Business Owners2/25/10 Download Article Civil RICO is a powerful cause of action which may be used to protect your interests against the entities which have defrauded you or your business. One bar to its use in Missouri and certain other states was a requirement that you, the plaintiff, relied upon the misrepresentations of the parties which caused you harm. This same requirement, however, did not exist if the same cause of action was filed by the United States Attorneys’ office as a criminal matter. This conflict has been resolved by a recent United States Supreme Court decision. Certain federal circuits had grafted a requirement of reliance upon the fraudulent scheme or representations upon the injured party. However, after years of hinting that it may do so, the United States Supreme Court has definitively stated otherwise, stating that “a plaintiff asserting a RICO claim predicated on mail fraud need not show . . . that it relied on the defendant's alleged misrepresentations.” Bridge v. Phoenix Bond & Indemnity Co., 128 S.Ct. 2131, 2145, 553 U.S. - (2008). The Supreme Court’s decision now clearly expands the relief available when a party has been the target of a fraudulent scheme or misrepresentations. For further discussion, please feel free to contact your Lashly & Baer attorney or Matthew S. McBride at (314) 621-2939. |
