Nader Afgan, et al. v. Marco G, LLC, et al.

Summary

The United States District Court for the Eastern District of Virginia granted defendants’ motion to dismiss plaintiffs’ civil RICO claim arising from alleged deficient and unlicensed architectural and renovation services. The court held that plaintiffs failed to plead a RICO enterprise distinct from the defendants and the alleged racketeering activity. The court declined supplemental jurisdiction over the remaining state-law claims and dismissed them without prejudice.

Holdings

1. The complaint failed to plausibly allege the existence of a RICO enterprise because the alleged enterprise consisted of the same persons and entities alleged to have violated RICO and its alleged affairs were not distinct from the alleged pattern of racketeering activity. Count I was therefore dismissed for failure to state a claim.
2. After dismissing the only claim over which it had original federal-question jurisdiction, the court declined to exercise supplemental jurisdiction over the remaining state-law claims and dismissed those claims without prejudice under 28 U.S.C. § 1367(c)(3).

Questions Presented

1. Whether the complaint plausibly alleged a civil RICO enterprise distinct from the defendants and distinct from the alleged pattern of racketeering activity.
2. Whether the court should exercise supplemental jurisdiction over the remaining state-law claims after dismissing the only claim within its original federal-question jurisdiction.

Disposition

dismissed