Grider v. Texas Oil & Gas Corp.

Summary

The Tenth Circuit affirmed dismissal of Guy Grider’s civil RICO claims under Federal Rule of Civil Procedure 12(b)(6). The court held that a plaintiff asserting damages under RICO § 1962(a) must allege injury caused by the use or investment of racketeering income, not merely injury caused by the underlying racketeering acts. The court also held that the related RICO conspiracy claims failed because Grider did not allege injury from the substantive violations.

Holdings

1. A plaintiff seeking civil damages under RICO sections 1962(a) and 1964(c) must allege facts showing injury caused by the use or investment of racketeering income. Injury caused only by the underlying racketeering acts is insufficient because section 1962(a) prohibits the use or investment of racketeering income, not the receipt or commission of the underlying racketeering acts.
2. A plaintiff cannot recover damages for a conspiracy to violate section 1962(a) without alleging injury resulting from the underlying substantive section 1962(a) violations.

Questions Presented

1. Whether a plaintiff asserting a civil damages claim under RICO sections 1962(a) and 1964(c) must allege injury from the use or investment of racketeering income, rather than injury from the underlying racketeering acts alone.
2. Whether alleged conspiracies to violate RICO section 1962(a) support a civil damages claim when the plaintiff has not alleged injury from the substantive section 1962(a) violations.

Disposition

affirmed