Daskal Ex Rel. 333-345 Green LLC v. Tyrnauer
123 A.D.3d 652
| N.Y. App. Div. | 2014Background
- Plaintiff Martin Daskal sued multiple defendants, including Joseph Tyrnauer and various corporate entities, alleging RICO violations (18 U.S.C. § 1962(c) and (d)) and seeking damages.
- Defendants moved to dismiss the first and second causes of action as asserted against them pursuant to CPLR 3211(a)(7) for failure to state a claim.
- Supreme Court, Kings County, granted the dismissal of those RICO claims as to the moving defendants.
- Plaintiff appealed only the portions of the order dismissing the RICO substantive and conspiracy claims against these defendants.
- The Appellate Division, Second Department affirmed the dismissal as to the appealed defendants.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Daskal pleaded a viable §1962(c) RICO claim (pattern and enterprise, and predicate acts) | Daskal asserted defendants engaged in a pattern of racketeering and operated/participated in an enterprise to commit predicate acts | Defendants argued the complaint failed to allege the required RICO elements (no adequate pattern/enterprise or predicate acts) | Dismissed: Complaint failed to state a §1962(c) claim; dismissal affirmed |
| Whether Daskal stated a §1962(d) RICO conspiracy claim | Daskal claimed a conspiracy among defendants to violate RICO based on the alleged substantive violations | Defendants argued conspiracy claim fails when substantive RICO claim is inadequately pleaded | Dismissed: Conspiracy claim fails because §1962(c) claim was not adequately pled; dismissal affirmed |
Key Cases Cited
- H. J. Inc. v. Northwestern Bell Telephone Co., 492 U.S. 229 (discusses RICO "pattern" requirement)
- Sedima, S.P.R.L. v. Imrex Co., Inc., 473 U.S. 479 (foundational RICO standing and elements discussion)
- Greenstone/Fontana Corp. v. Feldstein, 72 A.D.3d 890 (2d Dep't) (applied RICO pleading standards)
- Grafstein v. Schwartz, 78 A.D.3d 772 (2d Dep't) (conspiracy claim fails when substantive RICO claim is deficient)