Robert L. Kroenlein Trust Ex Rel. Alden v. Kirchhefer
764 F.3d 1268
10th Cir.2014Background
- Kroenlein Trust owns J&B Liquors in Torrington, WY; a distributor employee Kirchhefer began stealing beer around 2005–2007.
- Discovered thefts prompted investigation by store management; Alden became full-time manager in 2007 after moving to Torrington.
- Alden inventory checks in Aug 2007 revealed discrepancies between beer ordered and delivered from Orrison Distributing.
- Kroenlein filed a federal RICO action on Aug 15, 2011, naming Kirchhefer, the Commodore Bar, Silver Dollar Bar, and others.
- District court granted summary judgment: (i) RICO claims time-barred under four-year statute of limitations; (ii) no RICO enterprise established; Kroenlein appealed.
- Court held Kroenlein’s RICO claims were time-barred under RICO’s four-year statute of limitations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether RICO claims accrue under injury-occurrence or injury-discovery rule | Alden injury occurred when theft happened; discovery rule applies only if undiscoverable. | Accrual should follow injury-occurrence or discovery as adopted by circuit; fact-specific. | Barred under either accrual rule; claims time-barred. |
| Whether undisputed facts show discovery within four years of injury | Alden could not identify thief until 2007; discovery within four years. | Alden had inquiry notice by 2005 and failed to act. | Alden should have discovered injury by 2005; claims time-barred. |
| Whether fraudulent concealment tolls the limitation period | Fraudulent concealment tolls limitations if concealment prevented discovery. | No reasonable due diligence prevented discovery; concealment not proven. | Fraudulent concealment not shown; tolling not available. |
Key Cases Cited
- Sedima, S.P.R.L. v. Imrex Co., 473 U.S. 479 (1985) (defined RICO liability elements and injury conceptually)
- Rotella v. Wood, 528 U.S. 549 (2000) (discussed accrual rule and injury-discovery applicability to RICO)
- Dummar v. Lummis, 543 F.3d 614 (10th Cir. 2008) (explains equitable tolling standards and fraud concealment)
- Rotella v. Wood (Rotella main case cited above), 528 U.S. 549 (2000) (context for accrual and discovery rules in RICO)