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Bascunan v. Elsaca

RICO Domestic Injury Requirement Met to Extent U.S. Property's Injury Alleged

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Appeal from the United States District Court for the Southern District of New York.

*1  t he question presented in this appeal is whether the plaintiffs have plausibly alleged a “domestic injury” to their business or property within the meaning of Section 1964(c) of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), the provision commonly referred to as civil RICO. 18 U.S.C. §1964(c). This question is one of first impression — in this (or any) Court of Appeals — arising from the Supreme Court’s decision in RJR Nabisco, Inc. v. European Community, 136 S. Ct. 2090 (2016).In RJR Nabisco, the Supreme Court held, among other things, that Section 1964(c) of the RICO statute, which gives a private right of action to “any person injured in his business or property by reason of a violation of [RICO's substantive provisions],” does not apply extraterritorially. Id. at 2111. Accordingly, the Supreme Court explained that “[s]ection 1964(c) requires a civil RICO plaintiff to allege and prove a domestic injury to business or property and does not allow recovery for foreign injuries.” Id. (emphasis added). The Supreme Court did not explain, however, how to determine whether an alleged injury is domestic or foreign.

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