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Enterprise Liability in Private Civil RICO Actions

NCJ Number
126885
Journal
Washington and Lee Law Review Volume: 45 Issue: 4 Dated: (Fall 1988) Pages: 1447-1474
Author(s)
J D Higgason Jr
Date Published
1988
Length
28 pages
Annotation
Court decisions in private civil cases under the Racketeer Influenced and Corrupt Organizations (RICO) Act of 1970 should reflect the law's legislative history and policy considerations, which indicate that Congress intended for an enterprise to be liable to a private civil plaintiff when the enterprise directly takes part in racketeering activity prohibited by Sections 1962(a) and 1962(b).
Abstract
Unlike State law actions designed to combat organized crime and racketeering, the private civil RICO action allows plaintiffs to recover triple damages and attorney's fees. However, Federal courts have generally held that RICO's language and policy considerations prohibit courts from holding a business enterprise liable as a person under section 1962(c). Although Federal courts have disagreed on whether recovery from an enterprise is possible under sections 1962(a) and 1962(b), the statutory language does not prohibit an enterprise from being a person liable to a private civil plaintiff. The courts should recognize this language and allow recovery from enterprises in civil suits. 215 footnotes