Bridge v. Phoenix Bond & Indemnity Co.
- Case Date: 2/21/2008
- Project Name: Civil Justice Reform
On June 9, 2008, the U.S. Supreme Court took a pass on an opportunity to halt the seemingly endless expansion of civil lawsuits brought under RICO (the acronym for the federal Racketeer Influenced and Corrupt Organizations Act), ruling that any limits on RICO tort liability must come from Congress instead of the courts. The was a setback for WLF, which filed a brief in support of the defendant. WLF argued that plaintiffs should not be able to recover in a civil RICO action unless they can demonstrate that they "reasonably relied" on the defendant's alleged fraud. WLF argued that reliance has always been an element of common-law fraud actions and should be required in RICO actions as well. The Court disagreed, finding no indication that Congress, when it adopted RICO and its broad proscriptions against fraud, intended to incorporate limitations traditionally imposed on fraud claims by the common law.
More Information and Downloads:
2/21/2008: Download the Brief
Litigation Update: Court Declines Opportunity to End Expansion of Civil RICO Claims
Press Release: Court Urged to End Expansion of Civil RICO Claims