The Kneafsey Firm successfully defended a claim brought under the federal Rackeeter Influenced and Corrupt Organizations ("RICO") Act. (18 U.S.C. § 1962). The RICO Act was passed by Congress in the 1970s to combat organized crime in the United States. It has since been successfully used by plaintiffs to attack a wide variety of otherwise tortious business activities.
In this particular case, the Kneafsey Firm represented an automotive dealer whose customer claimed that he had purchased a fleet of vehicles that the dealer refused to deliver. The plaintiff/customer claimed that the dealer was part of a criminal enterprise that schemed to defraud such customers.
Among other defenses, The Kneafsey Firm successfully established that the Plaintiff had not established "use or investment injury" which is a particularized type of damage required in order to establish a RICO claim. In particular, a plaintiff must prove that it suffered a "use or investment injury" that is separate from the injury caused by the racketeering act itself. See Syberesound Records, Inc. v. UAV Corp., 517 F.3d 1137 (9th Cir. 2008).
The Kneafsey Firm also established that there was no "closed-ended continuity" which is a factor required to demonstrate a pattern of racketeering activity for RICO liability. I other words, in order to prove a RICO claim, the plaintiff must establish that the wrongful activity is part of an ongoing criminal enterprise and not simply an isolated incident of alleged wrongdoing.
In successfully defending this claim, The Kneafsey Firm also recovered attorneys fees and costs on behalf of its client.