MEMORANDUM OPINION AND ORDER
Defendant Joseph E. Pascente has filed these motions to dismiss against these two consolidated cases. For convenience, the cases, which are numbered 84 C 6128 and 84 C 6129, will be referred to as “6128” and “6129”, respectively. Jurisdiction over both eases exists under both 28 U.S.C. §§ 1331 and 1332.
Count 2 of 6128 and count 3 of 6129 allege violations of RICO, 18 U.S.C. § 1961
et seq.
The two counts are indistinguishable for purposes of deciding this motion. Pascente’s first argument is that the various mail and wire communications alleged in those counts as predicate acts show on their face that they cannot be used to make out a RICO claim. Apparently copies of each of the communications exist, and although no such copies are attached to the complaint Pascente has attached them to his motion, citing several cases in which courts in other circuits have considered material referenced by but not included in the complaint in deciding a motion to dismiss. See, e.g.,
Interstate Natural Gas Co. v. Southern California Gas Co.,
Pascente’s next argument is that the RICO counts fail to adequately plead a pattern of racketeering activity because there is no “factual statement similar to a bill of particulars” setting forth the predicate acts.
Bache Halsey Stuart Shields, Inc. v. Tracy Collins Bank and Trust Co.,
Pascente’s final argument is that the RICO counts are barred by the statute of limitations. Where, as with RICO, “Congress has not established a time limitation for a federal cause of action, the settled practice has been to adopt a local time limitation as federal law if it is not inconsistent with federal law or policy to do so.”
Wilson v. Garcia,
— U.S.-,
Wilson,
which dealt with a statute (42 U.S.C. § 1983) very similar to RICO for purposes of this issue, sets forth the steps to follow in deciding what statute of limitations should govern a federal cause of action that contains no limitation period. See
In
Wilson,
the Court determined that actions under 42 U.S.C. § 1983 should be given one characterization so that at least in a given state all § 1983 actions would be governed by one limitations period.
Choosing the proper characterization for civil RICO claims is a matter of federal law.
In
Wilson,
the Court determined that at the time § 1983 was passed Congress’s concern was with “the campaign of violence and deception in the South, fomented by the Ku Klux Klan, which was denying decent citizens their civil and political rights.” Id.
In analyzing RICO, “the legislative history forcefully supports the view that the major purpose of [RICO] is to address the infiltration of legitimate business by organized crime.”
United States v. Turkette,
at the suggestion of the gentleman from Arizona (Mr. Steiger) and also the American Bar Association and others, the committee has provided that private persons injured by reason of a violation of the title may recover treble damages in Federal courts — another example of the antitrust remedy being adapted for use against organized criminality.
116 Cong.Ree. 35295 (1970). That comment suggests that Congress viewed the treble damages provision as civil RICO’s most distinctive feature. That suggestion is certainly consistent' with the nature of RICO. In most, if not all, RICO cases there exist state-law remedies for the same conduct that forms the basis of the RICO count. RICO’s attractiveness, what sets it apart from the other available legal theories, is not the wrong but the remedy. Thus, to the extent Congress had any intent in adding the civil provisions to RICO, Congress intended the treble damages provision to provide the incentive necessary to cause private citizens to assist the government in eradicating organized crime. Therefore, this court concludes that for purposes of choosing the proper statute of limitations RICO should be characterized as a treble damages action.
The other possible analogies offered by plaintiffs are not persuasive. Plaintiffs argue that their case is most like a common law fraud action, citing
Eisenberg v. Gagnon,
Plaintiffs seem to suggest that the 5-year period for criminal RICO, 18 U.S.C. § 3282, should apply to civil RICO also. One commentator has also suggested that solution, Note,
Civil RICO: Searching for the Appropriate Statute of Limitations in Actions Under Section 1964(c),
14 Loy. U.Chi.L.J. 765, 793-94 (1983), but the only court to consider a criminal statute of limitations has rejected that approach.
D'Iorio v. Adonizio,
Plaintiffs also suggest RICO should be analogized to a common law action for tortious interference with economic relations, citing
NSC International Corp. v. Ryan,
For the same reason, this court rejects the 5-year period that applies to actions “to recover damages for an injury done to property, real or personal.” Ill.Rev.Stat. ch. 110, § 13-205. While RICO is only available to those who suffer injury to business or property, 18 U.S.C. § 1964(c), and in that sense is analogous to a property damage action, that characterization also ignores the treble damages feature of RICO and hence fails to capture the essence of a civil RICO claim.
Having characterized RICO as an action for treble damages, the next step is to determine what limitations period applies to such an action. In Illinois that period is the 2-year period of Ill.Rev.Stat. eh. 110 § 13-202.
Hoskins Coal & Dock Corp. v. Truax Traer Coal Co.,
Finally, this court must consider whether a 2-year limit conflicts with the federal policy underlying RICO. Plaintiffs argue that the only reason Illinois courts would apply the 2-year limit is because they see treble damages as penal, and that conflicts with Congress’s statement that RICO “shall be liberally construed to effectuate its remedial purposes.” Section 904 of Title IX, Pub.L. 91-452, 84 Stat. 947. See
Steven Operating, Inc. v. Home State Savings,
Two years is indeed shorter than the 5 years that would apply to plaintiffs’ proposed analogies. However, to paraphrase the Supreme Court, it does not follow that because five years is long enough, 2 years is too short.
Del Costello v. International Brotherhood of Teamsters,
A violation of RICO involves a very serious injury; a kind of injury that cannot go unnoticed by the victim, at least not for long. Two years is certainly long enough to realize one has been injured by a RICO violation and to bring suit. And the normal rules on accrual and tolling should ensure that no diligent RICO plaintiff will find his claim time-barred. See
Compton v. Ide,
Since plaintiffs’ actions were brought over 2 years after they accrued, and plaintiff does not argue that the statute of limitations was tolled, the RICO counts must be dismissed as time-barred.
State Claims
Paseente has also moved to dismiss count 1 of 6129, which alleges that Pas
*654
cente intentionally interfered with a contract between plaintiff and defendant ERI-Energy, Inc., of which Pascente was president, managing officer and (indirectly through another company) principal shareholder. Pascente’s principal argument is that as an officer of ERI-Energy his actions benefit from the rule that “corporate officers who, ‘in accordance with their business judgment and discretion,’ interfere with their corporations’s contractual relations lack the requisite ‘malice’ and therefore are not liable in tort.”
Swager v. Couri,
Pascente also argues that plaintiff’s contract with his corporation was assigned to another corporation before the date that plaintiff alleges as the date of breach. That agreement is attached to the motion to dismiss, so again is matter outside the pleadings. Moreover, there is a dispute (which is partly factual) as to whether the assignment was really intended to assign the entire contract or just portions thereof, so the issue cannot be resolved on a motion to dismiss. Therefore, the motion to dismiss count 1 in 6129 is denied.
Conclusion
IT IS THEREFORE ORDERED that defendant Joseph Pascente’s motions to dismiss count 2 in 84 C 6128 and count 3 in 84 C 6129 are granted and those counts are dismissed. Pascente’s motion to dismiss count 1 of 84 C 6129 is denied. Pascente is given 7 days from the date of this order to respond to all outstanding written discovery. This case is set for status hearing and discovery will close on July 17, 1985 at 9:15 a.m.
ON RECONSIDERATION
Plaintiffs have asked this court to reconsider its holding in the order of 21 May 1985 that the statute of limitations for private RICO actions is the two-year period of Ill.Rev.Stat. ch. 110 § 13-202. Plaintiffs argue that the proper characterization of RICO is as an action created by statute and therefore the proper statute of limitations is the five-year period of Ill.Rev.Stat. ch. 110 § 13-205 which, though it is phrased in terms of “all civil actions not otherwise provided for” has been held to apply to rights of action created by statute.
Blakeslee’s Storage Warehouses v. City of Chicago,
Plaintiffs understandably do not argue that their characterization is a closer analogy than the treble damages characterization this court chose. Instead, plaintiffs argue that their characterization is superi- or because it results in one uniform period for all RICO actions while this court’s choice would apply only to actions seeking treble damages. Plaintiffs point out that 18 U.S.C. § 1964(a) gives district courts jurisdiction to order various sorts of equitable relief, such as divestiture, investment restrictions, dissolution, reorganization, and injunctive relief. Plaintiffs also claim that a suit could be brought under § 1964(c) seeking only single rather than treble damages. Since a suit seeking only equitable relief or single damages is obviously not a treble damages action, plaintiffs argue that this court’s choice of the two-year period fails to achieve the uniformity that this court interpreted
Wilson v. Garcia,
— U.S. -,
Plaintiffs’ claim that a single damages action could be brought under § 1964(c) and would not be subject to the two-year period applied to treble damages actions is simply not tenable. No rational person would ask for single damages when treble damages can be had, so plaintiffs’ scenario will simply not occur.
3
Even if someone did bring a single damages RICO action, that would not change the fact that treble damages is the essence of private RICO. The characterization of a cause of action depends not on how a particular litigant actually uses it but on how Congress intended for it to operate. See
Wilson,
Plaintiffs’ argument also fails because the reasons given in Wilson for adopting a uniform limitations period — avoiding the uncertainty and wasteful litigation that results from trying to choose an analogy based on each case’s facts — do not apply here. The actions plaintiffs claim would not be governed by the two-year period of § 13-202 are easily identified and distinguished from treble damages actions simply by perusing the complaint. No litigation would be necessary to decide which limitations period to apply, so neither uncertainty nor waste could result. Therefore, there is no reason to strive for complete uniformity and the more analogous period of Ill.Rev.Stat. ch. 110 § 13-202 remains the best choice.
IT IS THEREFORE ORDERED that on reconsideration this court adheres to the view that plaintiffs’ RICO claims are time-barred.
Notes
. So far, courts faced with predicate acts that allow two characterizations and hence simultaneous application of different limitations periods have avoided that result by choosing one characterization over the other. Compare
Burns v. Erserk,
. At least two judges in this district have held that private litigants may not sue under § 1964(a).
DeMent v. Abbott Capital Corp.,
. Perhaps plaintiffs are thinking that a single damages action would be brought by one who had missed the two-year limit but that is not so — a litigant who misses the time limitation has a time-barred RICO claim, not a single damages RICO claim.
