SUPREME COURT OF THE UNITED STATES
_________________
No. 23–365
_________________
MEDICAL MARIJUANA, INC., et al.,
PETITIONERS
v. DOUGLAS J. HORN
on writ of certiorari to the united states
court of appeals for the second circuit
[April 2, 2025]
Justice Kavanaugh, with whom The Chief Justice
and Justice Alito join, dissenting.
The Racketeer Influenced and Corrupt
Organizations Act, known as RICO, provides that any “person
injured in his business or property by reason of a
violation” of the Act “shall recover threefold the damages he
sustains.” 18 U. S. C. §1964(c) (emphasis added). Under
the text of RICO, therefore, a plaintiff may sue for “business or
property” injuries, and he may seek recovery of the damages he
sustains from those injuries. But a plaintiff may not sue for
“personal injuries.”
RJR Nabisco, Inc. v.
European
Community, 579 U.S. 325, 350 (2016).
Importantly, and key to my disagreement with the
Court’s opinion in this case, the term “injured” is a tort-law term
of art and therefore “should be given its established common-law
meaning.”
United States v.
Castleman,
572 U.S.
157, 163 (2014) (quotation marks omitted). In tort law, the
term “injured” means to have suffered “the invasion of any legally
protected interest.” Restatement (Second) of Torts §7(1) (1964).
Personal, property, and business injuries all have well-defined
meanings in tort law: They mean the invasion of a legal right in
one’s person, property, or business, respectively.
The dispute in this case arises because personal
injuries in tort law, and thus also in RICO cases, often result in
losses or damages that are related to the victim’s business or
property. For example, personal injuries from defective products or
car accidents often lead to lost wages (loss of “business”
according to plaintiff Horn) and medical expenses (loss of
“property” according to Horn).
So the fundamental question here is whether
business or property losses from a personal injury transform a
traditional personal-injury suit into a business-injury or
property-injury suit that can be brought in federal court for
treble damages under RICO. Plaintiff Horn and the Second Circuit
say that the answer is yes. Defendant Medical Marijuana, as well as
the Sixth, Seventh, and Eleventh Circuits, contend that the answer
is no—that RICO does not authorize suits for personal injuries
regardless of what losses or damages a victim sustains from a
personal injury. I agree with defendant Medical Marijuana and the
Sixth, Seventh, and Eleventh Circuits.
A plaintiff cannot circumvent RICO’s categorical
exclusion of personal-injury suits simply by alleging that a
personal injury resulted in losses of business or property, thereby
converting otherwise excluded personal-injury suits into business-
or property-injury suits. If the rule were otherwise, as plaintiff
Horn advocates here, RICO would federalize many traditional
personal-injury tort suits. When enacting civil RICO in 1970,
Congress did not purport to usher in such a massive change to the
American tort system. As the Eleventh Circuit rightly said, if
“Congress intended to create a federal treble damages remedy for
cases involving bodily injury, injury to reputation, mental or
emotional anguish, or the like,
all of which will cause some
financial loss, it could have enacted a statute referring to
injury generally, without any restrictive language.”
Grogan
v.
Platt, 835 F.2d 844, 847 (1988) (quotation marks
omitted). Congress did not enact such a statute. On the contrary,
it excluded personal-injury suits. And it is not remotely plausible
to conclude that Congress
excluded personal-injury suits
under RICO and then turned around and somehow still
implicitly authorized most personal-injury suits
under RICO.
For its part, the Court today neither fully
agrees with plaintiff Horn and the Second Circuit, nor fully agrees
with defendant Medical Marijuana and the Sixth, Seventh, and
Eleventh Circuits. Instead, the Court charts an unusual middle way.
The Court agrees with Horn that the term “injured” in RICO is not a
tort-law term of art and therefore should be read according to its
ordinary conversational meaning, rather than its longstanding legal
meaning. Therefore, the Court agrees with Horn that personal-injury
suits are not excluded by RICO so long as the personal injuries
lead to “business or property loss.”
Ante, at 6. But the
Court then declines to decide whether lost wages and medical
expenses (which are among the most common economic damages in
personal-injury suits) qualify as business or property losses
recoverable in those RICO suits.
By concluding that traditional personal-injury
suits are not excluded by RICO and then punting on the critical
questions of whether lost wages and medical expenses are
recoverable losses of business or property in those RICO suits, the
Court’s opinion both errs on the law and leaves substantial
confusion in its wake. The aftermath of the Court’s opinion could
be quite a mess, as courts grapple with RICO personal-injury cases
where the question is what losses qualify as business or property
losses.
Unlike the Court, I would heed the text of the
statute, recognize that the term “injured” in RICO is a
longstanding tort-law term of art, and keep things relatively
simple: RICO excludes suits for personal injuries, regardless of
what losses or damages ensue from those personal injuries.
I
For three reasons, I conclude that RICO does
not authorize suits for personal injuries even when those personal
injuries result in losses or damages related to one’s business or
property: (1) the text of RICO excludes personal-injury suits and
incorporates traditional tort-law principles about what injury
means; (2) this Court’s antitrust precedents, which interpret the
same “injured in his business or property” language on which RICO
was deliberately modeled, confirm that RICO excludes all losses
resulting solely from personal injuries; and (3) the federalism
canon counsels against federalizing large swaths of ordinary
state-court tort cases absent clear direction from Congress.
A
First is the statutory text. RICO expressly
distinguishes among different kinds of injuries—personal injuries
versus business or property injuries.
When it enacted RICO in 1970, Congress did not
pluck the word “injured” out of thin air. Rather, Congress adopted
language that comes straight from longstanding tort-law principles.
And those longstanding tort-law principles matter when courts
construe RICO: In interpreting statutory torts, this Court starts
“from the premise that when Congress creates a federal tort it
adopts the background of general tort law.”
Staub v.
Proctor Hospital,
562 U.S.
411, 417 (2011). Therefore, to define the scope of civil RICO’s
cause of action, this Court has repeatedly looked to “general
common-law” tort principles regarding “legal injury.”
Bridge
v.
Phoenix Bond & Indemnity Co.,
553
U.S. 639, 656 (2008); see
Beck v.
Prupis,
529 U.S.
494, 500–501 (2000).
Stated otherwise, “injured” is a “common-law
term of art” that “should be given its established common-law
meaning.”
United States v.
Castleman,
572 U.S.
157, 163 (2014) (quotation marks omitted). Here, as elsewhere,
when “Congress transplants a common-law term, the ‘old soil’ comes
with it.”
United States v.
Hansen, 599 U.S. 762, 778
(2023) (quotation marks omitted).
What constitutes injury as a matter of
traditional tort law? For tort-law purposes, injury is the
infringement of a legal right—“the invasion of any legally
protected interest of another.” Restatement (Second) of Torts
§7(1).
And with injury so defined, Congress’s “cabining
RICO’s private cause of action to particular kinds of
injury”—business or property injuries, not personal injuries—makes
perfect sense.
RJR Nabisco, Inc. v.
European
Community, 579 U.S. 325, 350 (2016). That is because tort law
has long categorized different kinds of legal injuries along
precisely those lines.
Personal injury includes “acts constituting a
tort because intended or likely to cause bodily harm or emotional
distress.” Restatement (Second) of Torts §924, Comment
a
(1977); see
id., ch. 2, Introductory Note, at 22;
Ballentine’s Law Dictionary 941 (3d ed. 1969). Typical
personal-injury claims may involve, for example, car accidents or
defective products.
Property injury—like trespass or conversion—is
an act “materially affecting the capacity of particular property
for ordinary use and enjoyment” or “the diminishing” of one’s
“property” by tortious means. Ballentine’s, at 627; see
Chattanooga Foundry & Pipe Works v.
Atlanta,
203
U.S. 390, 396, 398–399 (1906).
Those categories are long and widely recognized.
In detailing the “several injuries cognizable by the courts of
common law,” Blackstone separated “wrongs or injuries that affected
the rights of persons” from “such injuries as affect the rights of
property.” 3 W. Blackstone, Commentaries on the Laws of England
115, 144 (1768). As one court phrased it 150 years later, actions
“to recover damages caused by bodily injuries, or by injuries to
property,” were “well known as distinct classes of actions” and
“each separately treated in the text books of law”—and “so clearly
distinguished” that “there is no difficulty in recognizing and
classifying them.”
Gridley v.
Fellows, 166 Cal. 765,
769, 138 P. 355, 357 (1914); see
Kelley v.
Boyne, 239
Mich. 204, 213, 214 N.W. 316, 319 (1927).
Business injury such as unfair competition and
tortious interference with contract eventually developed into its
own standalone tort-law category, distinct from personal or
property injury. By the late 19th and early 20th centuries, courts
and commentators embraced the general principle that “to interfere
with a man’s trade by a malicious act is actionable” because it
violates “a concrete right as distinct as his right to his lands
and chattels, one which imposes on his fellows a correlative duty,
the breach of which is a tort.” E. McClennen, Some of the Rights of
Traders and Laborers, 16 Harv. L. Rev. 237, 237–238, 241
(1903); cf. F. Cooke, The Law of Combinations, Monopolies and Labor
Unions §7 (2d ed. 1909). And by 1938, the First Restatement
included a division titled “Interference with Business Relations”
that described trade-related wrongs like unfair competition and
tortious interference with contract. See Restatement (First) of
Torts, div. 9.
In short, tort law has long distinguished
personal-injury suits from business-injury or property-injury
suits. And RICO incorporated that traditional distinction into the
statutory text. Like some of the States, Congress could have
decided to authorize RICO suits for any person who has been
“injured,” period, which would have covered personal-injury suits
as well as business- or property-injury suits. See Ga. Code Ann.
§16–14–6(c) (2024); Fla. Stat. §772.104(1) (2023). But Congress
instead decided to limit civil RICO suits to plaintiffs who have
been “injured in” their “business or property.”
More specifically, RICO’s private right of
action is available to a person who has suffered a business or
property injury “by reason of a violation” of RICO. §1964(c). And a
RICO violation generally requires the defendant to have engaged in
a “pattern of racketeering activity,” where “racketeering activity”
includes conduct chargeable as any of a host of state- and
federal-law crimes, such as money laundering, extortion, and mail
or wire fraud, to take some common examples. §1962; see §§1961(1),
(5). The question for a court under civil RICO is simply whether
the plaintiff was “injured in his business or property by reason
of ” whatever the defendant did to violate RICO. §1964(c).
One further important point: Under tort law,
injury is distinct from the
losses or damages that result
from an injury. Since before the Founding, courts have
distinguished “injury” from “damage.”
Uzuegbunam v.
Preczewski, 592 U.S. 279, 286 (2021) (citing
Cable v.
Rogers, 3 Bulst. 311, 312, 81 Eng. Rep. 259 (K. B. 1625)).
Stated simply, injury is “the illegal invasion of a legal right;
damage is the loss, hurt, or harm which results from the injury.”
Ballentine’s, at 303; see Black’s Law Dictionary 466 (rev. 4th ed.
1968).
For example, negligently driving a car into a
pedestrian inflicts a legal injury on the pedestrian—wrongful
invasion of the pedestrian’s physical safety. The pedestrian’s
losses or damages resulting from the injury typically will include
his lost wages and medical expenses, among other things like pain
and suffering. The injury (the hit from the negligently driven car)
gives the pedestrian a right to sue; the lost wages, medical
expenses, and pain and suffering that follow are damages that a
plaintiff may be able to recover for the injury. See Restatement
(Second) of Torts §§910, 912, Comment
a.
All of that means that when a victim suffers
only a personal injury (such as from a car accident or defective
product), his lost wages and medical expenses are merely the losses
or damages that result from that personal injury, not themselves a
separate business or property injury—that is, not a distinct
infringement of a legal right in one’s business or property.
Therefore, a victim who suffers only a personal
injury “by reason of ” a RICO violation has not been “injured”
in his “business or property,” even if that personal injury leads
him to lose wages or incur medical expenses. That victim may not
sue under RICO.
B
This Court’s antitrust precedents further
confirm that RICO’s exclusion of personal-injury suits means what
it says and cannot be circumvented by recharacterizing
personal-injury losses or damages (such as lost wages or medical
expenses) as their own standalone business or property
injuries.
By the time Congress enacted RICO in 1970, this
Court had already interpreted identical text in the antitrust
laws—“injured in his business or property”—to adhere to the
traditional tort-law understanding of business or property injuries
as distinct from personal injuries. Those prior antitrust holdings
interpreting that same statutory language carry weight both as a
matter of precedent and because this Court presumes that in
enacting RICO, Congress adopted “the interpretation federal courts
had given the words earlier Congresses had used” in the antitrust
laws.
Holmes v.
Securities Investor Protection
Corporation,
503
U.S. 258, 268 (1992); see,
e.
g.,
Agency
Holding Corp. v.
Malley-Duff & Associates, Inc.,
483 U.S.
143, 151 (1987).
Enacted long before RICO, the Sherman and
Clayton Acts provided that any “person who shall be
injured in
his business or property . . . by reason of ” an
antitrust violation may “sue therefor” and “shall recover three
fold the damages by him sustained.” Sherman Act, §7, 26Stat. 210
(1890) (emphasis added); see Clayton Act, §4, 38Stat. 731 (1914),
as amended, 15 U. S. C. §15(a). And in applying that
statutory text, the Court opined that “injured in his business or
property” had its traditional tort-law meaning.
The Court expressly said so in an antitrust
price-fixing case,
Keogh v.
Chicago & Northwestern R.
Co.,
260 U.S.
156 (1922). There, the Court accepted that the plaintiff “was
damaged” directly by the defendants’ illegal conduct—he “lost the
benefit of rates” that “he would have enjoyed” “but for the
conspiracy.”
Id., at 160, 162. But being “damaged”—suffering
a loss—was not what the statutory text demanded. The Sherman Act
required legal
injury. As the Court put it, “Section 7 of
the Anti-Trust Act” gave “a right of action” only to “one who has
been ‘
injured in his business or property.’
Injury
implies
violation of a legal right.”
Id., at 163
(emphasis added).
In other words, the
Keogh Court ruled
that “injured” referred to the violation of a legal right, not to
the harm or damage resulting from the violation of a legal right.
And so the Court went on to determine whether the plaintiff had
been legally “injured”—which, in
Keogh, he had not.[
1]
Therefore, for an antitrust plaintiff to be
“injured in his business or property,” this Court and others have
required that the plaintiff be legally wronged in a business or
property interest as traditionally understood. See
Chattanooga
Foundry, 203 U. S., at 396, 399;
Gerli v.
Silk
Assn. of Am.,
36 F.2d 959, 960 (SDNY 1929). The question is whether the
plaintiff ’s business or property rights were legally
violated—not whether the plaintiff suffered some sort of business
or property loss or damage
from an injury.
In
Reiter v.
Sonotone Corp., the
Court applied those basic principles to hold that the antitrust
laws “exclude personal injuries.”
442 U.S.
330, 339 (1979). That is true, the Court suggested, even when
the personal injuries led to losses or damages related to the
plaintiff ’s business or property. As its example of excluded
personal injuries, the Court cited
Hamman v.
United
States,
267 F. Supp. 420 (Mont. 1967). In
Hamman, the plaintiffs
had tried to evade the personal-injury exclusion by contending that
their property damage from a personal injury itself qualified as a
distinct property injury for purposes of the antitrust laws.
Id., at 429, 432. Under the antitrust laws, however, that
argument does not suffice, which is presumably why the
Reiter Court cited
Hamman as exactly the kind of
personal-injury suit that the antitrust laws exclude. 442
U. S., at 339. The
Reiter Court’s citation to
Hamman supports the conclusion that damages to one’s
business or property from personal injuries do not somehow
magically transform those personal injuries into distinct business
or property injuries that can be alleged in an antitrust suit.
To summarize: Antitrust law has long required
plaintiffs to allege business or property injuries, and has long
excluded suits for personal injuries. And critically, antitrust law
has defined “injured” as traditionally understood under tort
law—that is, as an invasion of a legal right and distinct from the
losses or damages that ensue.[
2]
RICO aims “to compensate the same type of
injury” as the antitrust laws; “each requires that a plaintiff show
injury ‘in his business or property by reason of ’ a
violation.”
Agency Holding, 483 U. S., at 151. Those
antitrust precedents therefore strongly buttress the conclusion
that RICO excludes personal-injury torts, regardless of what kinds
of losses or damages ensue. See,
e.
g.,
Gause
v.
Philip Morris, 2000 WL 34016343, *4–*5 (EDNY, Aug. 8,
2000) (rejecting an attempt to reframe loss of income from
emphysema as a property injury under RICO).
In RICO, Congress surely did not copy verbatim
antitrust law’s well-established business or property requirement
in order to silently convert ordinary personal-injury tort cases
into federal RICO lawsuits with treble damages available.
C
Third, even if the above textual and
precedential points do not themselves clinch the matter, the
federalism canon weighs heavily against reading RICO to encompass
traditional personal-injury suits.
The federalism canon directs courts not to
significantly alter the federal-state balance absent “exceedingly
clear language” from Congress.
Sackett v.
EPA, 598
U.S. 651, 679 (2023) (quotation marks omitted); see,
e.
g.,
Gregory v.
Ashcroft,
501 U.S.
452, 460 (1991). If RICO covered personal injuries that lead to
lost wages and medical expenses, as Horn advocates, then civil RICO
would federalize huge swaths of state tort law in a manner that
Congress never contemplated or authorized.
That reading would eviscerate the careful
balance that Congress struck when enacting RICO.[
3] Again, most personal-injury torts lead to
damages involving a loss of employment or income (such as lost
wages) or loss of money (such as medical expenses). Horn
characterizes those damages as lost business or lost property. So
if Horn’s argument were accepted and RICO’s exclusion of personal
injuries did not actually exclude most personal-injury tort suits,
then RICO would suddenly authorize a vast new category of
personal-injury suits seeking treble damages in federal court. For
example, plaintiffs could easily plead everyday product liability
claims as federal RICO claims, at least so long as there were two
or more instances of fraud that a plaintiff could cast as a
“pattern” of racketeering activity. 18 U. S. C. §1961(5);
see Brief for Petitioners 25–29; Brief for Chamber of Commerce of
the United States of America et al. as
Amici Curiae
19–21.
Most state tort suits are personal-injury suits.
And the States assume an especially active role regarding the rules
of personal-injury cases, exercising their “traditional authority
to regulate tort actions.”
Wos v.
E. M. A.,
568 U.S.
627, 639 (2013).
Interpreting civil RICO to allow plaintiffs to
bypass those state-law limits—and to triple their damages in
federal court—would supplant vast “areas of traditional state
responsibility.”
Bond v.
United States,
572 U.S.
844, 858 (2014). In the antitrust context, this Court has
emphasized that the “maintenance in our federal system of a proper
distribution between state and national governments” is “of
far-reaching importance,” and an “intention to disturb the balance
is not lightly to be imputed to Congress.”
Hunt v.
Crumboch,
325 U.S.
821, 826 (1945) (quotation marks omitted).
So too with RICO. Indeed, the federalism
concerns are even greater with RICO than with antitrust. Few
antitrust violations are likely to inflict personal injury on a
plaintiff—anticompetitive acts break laws, not legs. But “the
breadth of the predicate offenses” in RICO practically covers the
waterfront of personal-injury tort law.
Sedima, S. P. R. L.
v.
Imrex Co.,
473 U.S.
479, 500 (1985). So if RICO were interpreted as Horn suggests,
RICO suits for treble damages in federal court could supplant many
everyday tort suits in state court. Avoiding such seismic shifts in
the federal-state balance, Congress drew the critical RICO boundary
at issue here—“cabining RICO’s private cause of action to
particular kinds of injury” and “excluding” “personal injuries.”
RJR Nabisco, 579 U. S., at 350.
II
To sum up so far: When civil RICO employed the
language “injured in his business or property,” it broke no new
ground. It incorporated well-established tort-law principles and
antitrust precedents in a straightforward way. If the only injury
(that is, invasion of a legal right) that a plaintiff suffers is a
personal injury, the plaintiff cannot recover under civil RICO. And
RICO does not allow access to its treble-damages remedy by silently
green-lighting personal-injury suits that have downstream financial
consequences like lost wages or medical expenses. After all, most
personal injuries generate those downstream financial consequences.
So if RICO were interpreted in that way, it would federalize
significant swaths of state tort law, and substantially alter the
federal-state balance.
Despite all of that, the Court today agrees in
part (with some important caveats as discussed below) with
plaintiff Horn on this basic statutory issue and thereby
circumvents RICO’s exclusion of personal injuries—letting in
through the back door at least some of the personal-injury suits
that RICO’s text bars at the threshold.
The Court’s key mistake, in my view, is to
employ an ordinary-meaning definition of the term “injured” rather
than its longstanding meaning as a term of art in American tort
law. As the Court sees it, the ordinary meaning of “injured” simply
is to have suffered harm or losses or damages. Therefore, when a
personal injury leads to harm or losses or damages related to one’s
business or property, those downstream harms to business or
property are actually their own distinct business or property
injuries for purposes of RICO. So under that reasoning, many
personal-injury suits seeking treble damages can in fact be brought
under RICO in federal court. Voila.
A
To navigate around RICO’s distinction between
personal-injury suits and business- or property-injury suits, and
the key point that injury is a longstanding tort-law term of art,
the Court stresses that RICO uses the term “injured” instead of
“injury.” That single piece of “context,” says the Court, means
that we should look to the ordinary meaning of “injured” and that
the traditional tort-law understanding of injury does not carry
over to RICO.
Ante, at 7–8. I am mystified by the Court’s
attempt to hang its analytical hat on such a thin distinction
between “injured” and “injury.” After all, a person “injured” is a
person who has suffered an “[i]njury,” a “violation of a legal
right”—that is, the victim of a tort or wrong.
Keogh v.
Chicago & Northwestern R. Co.,
260
U.S. 156, 163 (1922) (quotation marks omitted); see,
e.
g.,
Chattanooga Foundry & Pipe Works v.
Atlanta,
203
U.S. 390, 398–399 (1906);
Ziglar v.
Abbasi, 582
U.S. 120, 130 (2017);
Alabama Power Co. v.
Ickes,
302 U.S.
464, 479 (1938);
Taylor v.
Carryl, 20 How. 583,
599 (1858).
After reviewing a single dictionary definition
of “injured,” the Court concludes that the term “injured,” as
distinct from “injury,” has no specialized legal meaning. From
there, the Court says that it “is hard to make a term-of-art
argument without the term of art.”
Ante, at 8. But the
Court’s nifty turn of phrase has no substance behind it. Every one
of the Court’s dictionaries—its legal dictionaries, and even its
generalist ones—includes the rights-violation definition of
“injure” or “injured,” not just of “injury.” See Ballentine’s, at
627 (“injured party”); Black’s, at 924 (to “injure”); Webster’s New
International Dictionary 1111 (1913) (“injured”); American Heritage
Dictionary 676 (1969) (to “injure”); Webster’s Third New
International Dictionary 1164 (1971) (“injured”). Those sources do
not draw the distinction that the Court creates in order to avoid
RICO’s exclusion of personal injuries.[
4]
Simply put, the Court’s attempt to find a key
difference between “injured” and “injury” rings hollow. And the
Court’s textual gymnastics do not end there. If the Court were
correct that injured simply means having suffered harm or losses or
damages, then the statutory term “injured” would refer to the same
thing as the statutory term “damages.” But the statute
distinguishes “injured” from “damages” and makes clear they are not
the same thing. See §1964(c) (“Any person
injured in his
business or property by reason of a violation” of RICO “shall
recover threefold the
damages he sustains” (emphasis
added)). The text instead makes clear that damages are the losses
that a victim sustains from an injury.
Faced with the problem that its definition of
injured refers to the same thing as damages in this statute, the
Court simply redefines “damages” not to mean losses, but rather to
mean only “monetary redress” to be paid for the losses.
Ante, at 8–9.
The Court is surely correct that “damages”
can mean (i) losses suffered or (ii) monetary redress from a
lawsuit for those losses. In fact, the term “damages” is often used
in both ways. But in this statutory context, only the former
definition—losses—makes any sense. As used in the RICO statute,
“damages” are something that a victim “sustains.” And the term
“sustains” means to “experience or suffer (loss or injury).”
American Heritage, at 1296. A plaintiff cannot suffer or sustain
“monetary redress,” as the Court seems to think. But he
can
sustain losses.
So the term “damages” in RICO means losses, but
that is exactly what the Court says the term “injured” means. The
Court affords the same meaning to those different terms. In this
context, that is another clue that the Court’s analysis of the term
“injured” has gone off track.[
5]
In short, to reach its conclusion that RICO
allows personal-injury suits involving losses or damages to
business or property, the Court reasons that “injured” means
something different from “injury.” And it changes the statutory
definition of “damages” to avoid that word carrying the same
meaning as the Court’s reading of “injured.” Neither of those
efforts is persuasive or permissible as an interpretation of RICO’s
text, in my view.
The correct reading is instead the textually
straightforward one: A person “injured in his business or property”
is a person who has suffered injury in a business or property right
as traditionally defined—the violation of a legal right in his
business or property.
Keogh, 260 U. S., at 163. Civil
RICO allows a person to “recover damages” if the damages result
from a business or property injury, but not if the damages result
from a personal injury.
Id., at 162.[
6]
B
The Court also contends that precedent compels
us to read “injured” as meaning “harmed or damaged,” not as a
tort-law term of art meaning invasion of a legal right.
Ante, at 6; see
ante, at 9–11. But the Court does not
cite any cases actually holding as much. Instead, the Court offers
out-of-context citations of isolated mentions of “harm” in other
cases.
In relying on passages pulled out of context
from judicial opinions, the Court makes the mistake of parsing “the
language of an opinion” “as though we were dealing with language of
a statute.”
Reiter v.
Sonotone Corp.,
442 U.S.
330, 341 (1979). The Court seizes in particular on the word
“harm,” which is not in the RICO statute. The Court says that
injury simply means harm as ordinarily understood. So any harm to
business or property is its own distinct business or property
injury, the Court says. But that is wrong as a matter of
elementary tort law. As the Restatement plainly says, “harm, which
is merely personal loss or detriment, gives rise to a cause of
action only when it results from the invasion of a legally
protected interest, which is to say an injury.” Restatement
(Second) of Torts §7, Comment
d.[
7]
Moreover, contrary to the Court’s telling,
multiple civil RICO precedents confirm that to be “injured” in
civil RICO means to have suffered “legal injury,” not merely to
have suffered harm or loss or damage of some kind.
Bridge v.
Phoenix Bond & Indemnity Co.,
553
U.S. 639, 656 (2008). In
Bridge, for example, the Court
explained that whether an element is required in order to state a
civil RICO claim turns on whether that element is necessary to show
“legally cognizable injury” under “general common-law
principle[s].”
Ibid.[
8]
In
Beck v.
Prupis, the Court likewise held that when
civil RICO says that anyone “injured” by reason of a “violation”
may sue, it means that a plaintiff may recover only if “injured” by
a “violation” under “well-established common law” principles.
529 U.S.
494, 500–501, 506 (2000).[
9]
Those
Bridge and
Beck precedents
directly contradict the Court’s test today that RICO’s private
right of action “requires nothing more” than that a
plaintiff ’s “business or property has been harmed or
damaged.”
Ante, at 6. Under this Court’s precedents, more is
certainly required. Specifically, the plaintiff must have suffered
a business or property injury as those terms are understood under
general tort principles—meaning an invasion of a legal right in his
business or property.
C
The Court further says that distinguishing
personal injuries from business or property injuries, as the text
of RICO requires, would be difficult at times. To be sure, as with
almost everything in the law, there may be close calls at the
margins—here, about whether a plaintiff plausibly alleges a
business or property injury as distinct from a personal injury. But
that inquiry is at least a familiar judicial exercise. Cf.
United States v.
Burke,
504 U.S.
229, 239 (1992); see also,
e.
g.,
Willard
v.
Moneta Bldg. Supply, Inc., 262 Va. 473, 482, 551
S.E.2d 596, 600 (2001) (“applicable statute of limitations” turns
on “the type of injury alleged”). And the commonplace reality of
some close calls does not mean that we can or should disregard
Congress’s textual limitation on the kinds of injury that a
plaintiff must allege—and ultimately prove—in order to recover
under RICO.
The Court also focuses incessantly on a scenario
where, as sometimes happens, a single episode results in injuries
both to one’s person
and to one’s business or
property. Some kinds of wrongful acts can cause the invasion of
multiple legal rights—for example, a car accident might damage the
car (property injury) and physically harm the driver (personal
injury). See generally W. Loyd, Actions Arising Out of Injury to
Both Person and Property, 60 U. Pa. L. Rev. 531 (1912); contra,
ante, at 14, n. 9 (resisting dividing negligence actions
along these lines). In those scenarios, civil RICO allows recovery
for the business or property injury (assuming RICO’s other
requirements are met), but not the personal injury.
I therefore
agree with the Court—and so
does defendant Medical Marijuana—that civil RICO allows for
recovery any time a defendant has “invaded the plaintiff ’s
business or property rights,” “even if the plaintiff also suffered
a personal injury.” Brief for Petitioners 34–35; see Reply Brief 7.
As defendant Medical Marijuana acknowledges, and I too agree, if a
defendant’s act causes both personal and property injuries to
another, then civil RICO “allows suit for the” “property injury”
but not the “personal injury,” no matter which came first. Reply
Brief 8.
In other words, neither Medical Marijuana nor I
actually adopt the position the Court today labels as the
“antecedent-personal-injury bar.”
Ante, at 4, 14. Under that
supposed bar, RICO would “implicitly” exclude any business or
property injuries whenever they follow a personal injury.
Ante, at 4. But by repeatedly criticizing that supposed
rule, the Court invents and knocks down a straw man. So just to be
crystal clear, I agree with the Court (as does defendant Medical
Marijuana) that if the plaintiff at some point also suffered a
personal injury in addition to a business or property injury, the
plaintiff can still recover damages for the business or property
injury.
Consider the Court’s hypotheticals. They are
supposed to show that the so-called “antecedent-personal-injury
bar” would bar recovery and lead to untenable results in certain
cases. But in almost all of them, the rule that defendant Medical
Marijuana proposes (and I agree with) would
allow recovery,
not bar it. Indeed, they are not close calls. Why does Tony Soprano
“injure” a victim in his property by extracting a computer password
through violence and then using it to drain a bank account? Because
he has committed at least two traditional wrongs: battery on the
password holder and conversion of the money. Restatement (Second)
of Torts §§13, 222. A mobster who assaults a carwash owner in order
to force him to do business with the mob “intentionally and
improperly interferes” with the owner’s right to do business with
whom he pleases.
Id., §§766A, 766B; cf.
id., §§766C,
912, Comment
d (no business injury from lost profits after a
personal injury “unless the harm to the business was intended”);
contra,
ante, at 6. And when a fraudster or a kidnapper uses
deceit or extortion to obtain money, the victim parts with it
because he “has been defrauded or subjected to duress, or whatever
it may be”—in other words, “injured in his property.”
Chattanooga Foundry, 203 U. S., at 399.
The correct rule therefore remains the one that
civil RICO expressly provides: In a RICO suit, a plaintiff can
recover “damages” from a “business or property” injury, but not
damages from a personal injury.
III
Now, we get to the important juncture where
the Court diverges from plaintiff Horn in terms of what RICO
plaintiffs may recover in personal-injury suits.
Plaintiff Horn seeks a rule that would blatantly
circumvent RICO’s exclusion of personal-injury suits. In Horn’s
world, plaintiffs could routinely bring RICO claims for personal
injuries from drug mislabeling, dangerous products, medical
malpractice, car accidents, and health consequences from pollution,
to name a few. As Horn sees it, “injured” means to have experienced
a loss, and losing money via lost wages or medical expenses
always entails being “injured” in one’s business or
property. See
Reiter v.
Sonotone Corp.,
442 U.S.
330, 338 (1979) (“Money, of course, is a form of property”).
Therefore, plaintiffs could routinely repackage many state
personal-injury suits as RICO suits (so long as the defendant
committed two or more predicate acts) and obtain treble recovery
for medical expenses, lost wages, and other pecuniary losses. The
only kind of damages that Horn would exclude are non-economic
damages like pain and suffering.[
10]
Plaintiff Horn’s approach would dramatically
expand civil RICO and allow plaintiffs to seize on RICO to replace
ordinary state-law tort suits. Plaintiffs could convert, for
example, everyday product liability claims into RICO mass-tort
class actions and multi-district litigation where plaintiffs might
now seek recovery of triple their lost wages and triple their
medical expenses.
Horn’s game-changing rule would likely produce
significant cascading effects on the American economy and federal
and state court systems. American businesses facing novel RICO
suits with treble damages would incur significantly increased
litigation exposure and corresponding settlement pressure. Their
insurance premiums would rise. And all of those costs would mean
higher prices for consumers, and fewer jobs and lower wages for
workers. In short, the effects of Horn’s rule would likely be
dramatic, as Medical Marijuana and its
amici explain. See
Brief for DRI Center for Law and Public Policy et al. as
Amici
Curiae 20–22; Brief for Chamber of Commerce of the United
States of America et al. as
Amici Curiae 22–23.
Where is the Court on all of this? Having
accepted plaintiff Horn’s basic statutory argument, the Court
declines to accept all the implications of that position. Instead,
the Court stops short and does not (yet) go as far as Horn would.
After agreeing with Horn that RICO does not exclude what are
traditional personal-injury suits, the Court does not (for now)
adopt Horn’s view that lost wages and medical expenses are
“necessarily” recoverable.
Ante, at 18. The Court instead
suggests that lost wages (as distinct from lost profits) may not
necessarily be a business loss, and pecuniary losses such as
medical expenses may not necessarily be a property loss.
It is good that the Court pulls back from the
precipice and does not adopt Horn’s argument in full. In
particular, the Court seems to recognize that it would border on
the absurd to adopt Horn’s position in full and interpret RICO to
federalize (and allow treble damages for) such a large number of
otherwise standard personal-injury tort suits.
But instead of simply interpreting RICO not to
authorize suits for personal injuries, as the statutory text says
and as I would do, the Court still sticks partway with Horn and his
overly broad interpretation of the statutory text. The Court then
backfills to avoid some of the absurd implications of that position
by emphasizing certain statutory limitations on RICO suits and then
leaving other questions unanswered for now.
For example, the Court stresses that proximate
cause is strictly cabined in the RICO context, requiring a direct
relationship, not mere foreseeability.
Ante, at 17; see
Hemi Group, LLC v.
City of New York,
559 U.S.
1, 12 (2010);
Anza v.
Ideal Steel Supply Corp.,
547 U.S.
451, 457 (2006);
Holmes v.
Securities Investor
Protection Corporation,
503 U.S.
258, 266–267 (1992). The Court helpfully suggests, moreover,
that Horn’s suit will not clear that direct-relationship bar,
saying that it may pose an “insurmountable obstacle” to Horn’s
continuing this suit.
Ante, at 17. And the Court notes that
RICO does not allow suits for a single tort, but requires a
“pattern of racketeering activity.”
Ante, at 18.
I welcome those limits, and I appreciate that
they may mitigate some of the potential consequences of the Court’s
overbroad statutory interpretation.
But the Court then does not answer a significant
real-world question spawned by its expansive statutory
interpretation: Can civil RICO plaintiffs claim lost wages and
medical expenses as business or property injuries? Lower courts
will have to resolve the question that the Court’s opinion does not
answer. All of the above text, context, and history should counsel
against interpreting RICO to cover classic damages like lost wages
and medical expenses resulting solely from personal injuries. But
at least until the Court squarely holds that lost wages and medical
expenses are not recoverable, the Court’s opinion will leave a good
deal of uncertainty for the lower courts to address. The Court’s
opinion will generate far more confusion and litigation than simply
reading the statute as written—as the Sixth, Seventh, and Eleventh
Circuits have done—in light of the basic tort-law principles
regarding injury that Congress incorporated into civil RICO.
The Court says: “You can’t replace something
with nothing.”
Ante, at 13. But the Court does not heed its
own admonition. Today, the Court replaces a statutory limit derived
from centuries of tort law with a punt that will leave substantial
confusion and litigation in its wake.
* * *
This case should have been reasonably
straightforward. RICO does not authorize personal-injury
suits—period. That is true even when a personal injury leads to
losses related to one’s business or property, as personal injuries
often do. The Court’s decision to allow personal-injury suits under
RICO is mistaken as a matter of statutory text and context. And the
Court’s failure to decide the lost-wages and medical-expenses
questions will undoubtedly produce significant confusion and
litigation in the lower courts, all of which is wasteful and
unnecessary—and contrary to Congress’s decision to categorically
exclude personal-injury suits from civil RICO. I respectfully
dissent.