Maribel Delrio-Mocci v. Connolly Properties Inc
2012 U.S. App. LEXIS 3698
| 3rd Cir. | 2012Background
- Bolmer sues Connolly Properties alleging a conspiracy to harbor illegal aliens and induce residence to keep rents high despite disrepair.
- Plaintiffs claim the Pingry Arms property deteriorated under CPI management, with inadequate heat, broken locks, mold, pests, and unreported crime.
- Bolmer asserts CPI targeted aliens not lawfully present as tenants through a Spanish-speaking agent and Spanish flyers, exempting them from background checks.
- District Court dismissed Count I (RICO) for failure to allege harboring, and Bolmer’s motion to amend was denied; final judgment entered.
- Court reviews de novo the Rule 12(b)(6) dismissal, focusing on facial plausibility of a RICO predicate-act pattern.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether harboring under INA §1324(a)(l)(A)(iii) was pled. | Bolmer asserts CPI harbored aliens by targeted rentals. | Harboring requires substantial facilitation; mere rental does not satisfy test. | Harboring not shown; mere rental not substantially facilitating. |
| Whether encouraging or inducing under INA §1324(a)(l)(A)(iv) was pled. | CPI’s scheme provided housing to undocumented aliens to entice them to reside here. | Encouraging/inducing requires substantial affirmative acts; no such acts shown. | No substantial affirmative act; conduct not enough to convict. |
| Whether the District Court abused its discretion by denying a third amend. | Bolmer sought leave to plead additional facts to show detection avoidance. | Amendment would be futile; Bolmer did not provide a draft third complaint. | No abuse; denial of leave to amend was proper. |
| Whether RICO standing/proximate causation requirements were satisfied. | Bolmer contends injury by reason of predicate acts satisfies RICO injury. | Injury too remote; insufficient nexus to predicate acts. | RICO claim rejected for lack of proximate-cause connection. |
Key Cases Cited
- United States v. Ozcelik, 527 F.3d 88 (3d Cir.2008) (harboring requires substantial facilitation of unlawful stay)
- Lozano v. City of Hazleton, 620 F.3d 170 (3d Cir.2010) (harboring generally not satisfied by ordinary renting)
- United States v. Cuevas-Reyes, 572 F.3d 119 (3d Cir.2009) (cohabitation alone not harboring)
- United States v. Silveus, 542 F.3d 993 (3d Cir.2008) (cohabitation not harboring; clarifies test)
- Sedima, S.P.R.L. v. Imrex Co., 473 U.S. 479 (U.S.1985) (RICO standing and breadth; treble damages purpose)
- Anza v. Ideal Steel Supply Corp., 547 U.S. 451 (U.S.2006) (proximate causation; injury must be by reason of racketeering acts)
- Holmes v. Sec. Investor Prot. Corp., 503 U.S. 258 (U.S.1992) (proximate causation in RICO injuries)
- Allegheny General Hosp. v. Philip Morris, Inc., 228 F.3d 429 (3d Cir.2000) (nexus between predicate acts and injury governs standing)
- Hemi Group, LLC v. City of New York, 130 S. Ct. 983 (2010) (proximate causation; injury must be by reason of acts)