*1 through group, “experience” that runs every spends

beyond the fact that member percentage of his or her time

a certain privilege It is true that the of a

classroom.

college enjoyed education continues to be only minority of our citizens. Never-

theless, variety rep- groups that are college classrooms is vast and

resented economic,

growing, geographic, so that the

racial, sexual, political, religious demo-

graphics minority nearly of that as those of the nation itself. It is

diverse suggest college expe-

farfetched to that the points

rience could coalesce the diverse necessary product

view that are the of such

divergent experiences single into a “com-

munity go unrepre- of interest” that will jury “college

sented on a if there are no among

students” its members.2 Fletcher has failed to establish a

Because of her Sixth Amendment

violation AF- impartial jury, judgment

FIRMED. OSCAR; Spinosa,

Ruth E. Charles

Plaintiffs-Appellants,

UNIVERSITY STUDENTS CO-OPERA- ASSOCIATION; Proper, George

TIVE al., Defendants-Appellees.

et

No. 90-15750. of Appeals,

United States Court

Ninth Circuit.

Argued and Submitted En

Banc Feb. 1992.

Decided June 1992. Furthermore, college group.” stu- in this case v. Southern 2. Fletcher’s reliance on Thiel Pacific "systematically and automatical- L.Ed. 1181 dents were ly" venire, jury daily had excluded from the prohibited the exclusion of service, unavailing. See id. at 66 S.Ct. at 987. jury been in Thiel. wage earners from presence evi- Thiel, "deliberately of the two students at venire the court In intentionally the clerk of group’s representation jury in the selec- lists all dences the from the excluded per- wage.” pool. students daily tion would have persons 221, for a who work[ed] desired, long to serve if so and would decided mitted at 986. Thiel was based on status have been excused their student not consider whether “dai- Duren and did before had not been in session. wage a "distinctive if classes ly constituted earners" *2 WALLACE, Before: Judge, Chief and HUG, SCHROEDER, ALARCON, POOLE, NELSON, BRUNETTI, D.W. NOONAN, THOMPSON, RYMER, KLEINFELD, and Judges. Circuit NELSON, D.W. Judge: Circuit Plaintiffs Ruth Oscar and Spino Charles (collectively Oscar) sa apartments rented Berkeley Hall, Barrington near a student co-operative run University defendant Students Co-Operative Association (USCA). Angered by range wide of un- neighborly behavior part Barring- on the residents, ton including drug dealing, Oscar sued USCA and all the residents of Bar rington Hall. Oscar claimed that the activi Barrington ties of residents collectively vio lated the Racketeer Corrupt Influenced and Organizations (RICO), Act sought and tre damages ble 1964(c). under 18 U.S.C. § The district court complaint dismissed the for failure to state a claim. judge A three panel reversed, of this court Oscar v. Uni versity Co-operative Ass’n, Students (9th Cir.1991), F.2d 808 agreed and we rehear the case en banc. Oscar v. Univer sity Co-operative Ass’n, Students (9th Cir.1992). We affirm the district court’s dismissal of complaint. I.

According allegations to the factual plaintiffs’ complaint, Barrington Hall resi- collectively agreed dents at a house meet- ing drug dealing allow Barrington. At least nineteen different individuals with- co-operative there, in the drugs sold and drug sales allegedly going on at Barrington twenty years. for over In fur- agreement, therance of according this complaint, posted defendants lookouts Driscoll, Francisco, Cal., Donald P. San neighboring on dumped plaintiffs-appellants. persons bodies of suffering drug ov- erdoses on neighbors’ land. The con- Ephraim Margolin, Margolin, Arguimbau spiracy told, responsible, was also we are Battson, Francisco, Cal., & San for defen- “filth, disease, noise”; risk of dants-appellees. “violence, throwing garbage proper-

ty, urinating vandalism”; on cars [and] crimes, misdemeanors, for numerous other nuisances, annoyances. apartments large rent property by reason of a violation of” RICO apartment buildings Barrington. near Bar- recover treble and attorney’s rington city Berkeley, is located in the fees. While RICO is to be “liberally con California, strued,” Sedima, which has one of the strictest S.P.R.L. v. Imrex 479, 497-98, rent control ordinances the nation. The 3285- *3 86, plaintiffs began renting 87 there the mid- L.Ed.2d 346 it is well-estab filed, complaint 1980’s. Since the lished that all injuries was first not compensable out; plaintiffs one of the has moved under this section. Two limitations are plaintiffs significant allege First, other remains. The in this that case. a showing of they “injury” have lost enjoyment requires proof the use and of concrete finan is, loss, “property” their their cial rental inter- and not mere “injury to a valuable —that Barring- intangible property est—as a result of the activities at Berg interest.” v. 460, ton. First State (9th Ins. 915 F.2d 464 Cir.1990) (citing First Bancorp v. Pacific allowing After opportunities Oscar three Bro, 542, (9th 847 F.2d 547 12 & n. Cir. complaint, to amend her the district court 1988)); see Feltner, also Fleischhauer v. grounds dismissed it on the that Oscar 1290, 879 F.2d (6th Cir.1989) could not demonstrate a causal connection (plaintiffs 1964(c) under section entitled to pattern racketeering between a activity recover for money they paid out as a and to Oscar. We affirm the dismis- result racketeering activity), cert. de complaint sal of ground Oscar’s on the that nied, 1074, 1122, 493 U.S. 110 S.Ct. 107 alleged Oscar has not to business 1027, L.Ed.2d 1029 and 494 U.S. 110 S.Ct. property cognizable under RICO. 1473, (1990). II. In Berg, we held that directors of the Getty Company Oil could not maintain an complaint Dismissal of a under Fed. action under against the insurers 12(b)(6) R.Civ.P. is reviewed de novo. Kru who had cancelled liability policies their so v. Corp., International Tel. & Tel. 872 because the directors had incurred no actu- 1416, 1421(9th Cir.1989), denied, F.2d cert. expenses al as a result of the cancellation. 937, 3217, 110 L.Ed.2d 915 F.2d at 463-64. This was true even 12(b)(6) In reviewing 664 dismis though alleged directors had sal, allegations all of material fact in the protection lost “both the ... afforded complaint are taken as true and are con against potential financial loss the fu- light strued in the most favorable to the present ture peace and the of mind that States, nonmoving party. Love v. United protection,” flows from such interests 1242, (9th Cir.1989). 915 F.2d 1245 which we characterized as “valuable intan- may decision of the district court be af gible property Id. at 464. interest[s].” any ground finding support firmed on injuries Berg lesson of is that Myers the record. v. United States Parole erty are not under actionable RICO unless Comm’n, 957, (9th Cir.1987). result financial loss to plaintiff.1 III. 1964(c) provides Second,

18 U.S.C. personal inju it is clear that § “[a]ny person injured in his compensable business or ries are not under RICO. attempts distinguish Berg 1. The dissent The dissent also makes much of the fact that establishing case, the other cases requirement by suggesting the financial Berg summary judgment was a while this Berg could have case arises on a motion to dismiss. That dis- requiring reached the result it did without fi- Berg tinction is not relevant in this case. stated point. Berg nancial loss. That is beside the proposition of law: under RICO re- unambiguously "by injury,’ held that 'actual we quires proof of financial loss. We affirm the meant financial loss ..." 915 F.2d at 464. The dismissal Oscar’s claim not because she failed point single rejecting dissent cannot case loss, prove but because she failed requirement, the financial loss or even a case attempts allege any after four facts which allowing recovery for nonfinancial losses under could show financial loss. RICO. legal ordinary non-RICO injuries to Corp., 442 sonal See, Reiter v. Sonotone e.g., measures. (dictum); Reso (1979) Genty Congress’ enlarge L.Ed.2d 931 thus refuse We (3rd recovery F.2d Corp., 937 Trust limitation of RICO specific lution not recover medi Cir.1991) significance could (plaintiffs business result 1964(c)’s language emotional distress expenses plain cal of section waste); to toxic exposure dam- ing recover clear: RICO (loss security and F.2d at 464 Berg, ages for harm to business insur injuries cancellation of due to peace only, physical of mind and emotional actionable policy exposure to toxic waste. ance were harmful due to Services, 888 RICO); v. Beaton Rylewicz agree. RICO was F.2d at 918-19. We Cir.1989) (harassment 1175, 1180 F.2d crime, not to organized intended to combat *4 attempt in an litigants of and intimidation action and treble a federal cause of provide not lawsuit could to settle get to them plaintiff. Requiring every tort damages Platt, claim); Grogan v. 835 support RICO loss plaintiff demonstrate a financial that a Cir.) (11th (family of mur 844, 846-47 F.2d property consistent or to her business recover under RICO could not der victim also consistent purpose. It is with murder), consequences of for economic termed Supreme Court has what with 531, denied, 488 cert. phrase significance” of the “restrictive (1988); v. B.F. 562 Drake 102 L.Ed.2d property.” or “injured in his business 644 Cir. Goodrich at 2331. Reiter, physical injury 1986) (damages for compensable inju- limitations these With exposure to resulting from wrongful death mind, allegations of we turn to the ry in were not recoverable toxic waste complaint. Oscar’s RICO). IV. are consistent limitations These any financial alleged Oscar has not enacting Congress in the intent with compensable under would be loss which explained: Genty court As the RICO. alleged out-of- has not RICO. She unwillingness to apparent Congress’ or indirect expenditures a direct pocket personal injuries un- recovery for allow racketeering activity at Bar result of consistent with appears to be der RICO re incurred to rington, example costs specific intention its enacting RICO and property or personal her pair damage to criminal invasion organized to thwart security system. The a purchase even en- legitimate business acquisition of alleged is a “decrease she has only injury Ample law al- terprises and property” due value of her in the recovery for provide ready existed do not racketeering activity door. We next injuries. wrongfully inflicted entails finan a that such decrease believe unavailability a civil RICO treble to Oscar.2 cial loss personal injuries damages action city in the apartment rents right to Oscar plaintiffs way restricts the property own the Berkeley. She does not wrongful death pendent state bring a lives; property interest her on which she along RICO with a personal injury action Although interest.3 land is a leasehold damages to business action for an owner’s might measure limiting one injustice discern no erty. We value, the same in fair market per- diminution recovery for his dissent’s ex- conclusion, puzzled only 3. We are somewhat deal with reaching we this 2. In rights. property injury, proximate of Oscar's tended discussion the issue what, any, types suggest if not have Oscar does We do consider cause. We nowhere might property by neighboring merely owners apartment. claims We her requirements proximate causation "injury” survive has not shown that she conclude Investor Pro v. Securities 1964(c). See Holmes of RICO. meaning of section within — U.S. -, S.Ct. Corp., tection (1992). L.Ed.2d 532 cannot be said for a renter. If the resale also Oscar claims that she has lost goes down, value of the Oscar has the “use enjoyment” of her leasehold nothing. Indeed, interest; lost if the she values her apartment less property drops enough, far than Oscar’s rent she otherwise would because there go drug should down. She living would incur a finan- dealers next door.4 No gain, cial not a loss. doubt this is true. This diminution in en joyment is not a proper renter, As a Oscar could suffer financial ty, however. Whether or not Oscar herself loss in this situation if she had an enjoys less, her apartment the bottom line interest she could sublet and the racketeer- is that the market value of Oscar’s lease ing enterprise reduced the rent she could hold interest has not declined. charge to apartment. sublet her Before court, this claims to Oscar have suffered What Oscar is really complaining just injury. such an reject argu- We this “personal about is the discomfort and an First, for several ment reasons. Oscar’s noyance which has subjected [she] complaint allege does not even that she has by a adjoining nuisance on property.” In right apartment. Second, her sublet gram City Gridley, Cal.App.2d so, even Oscar has the to do she 815, P.2d agree We alleged has not that she ever sublet *5 with the dissent—this is a perfectly cogni apartment, attempted that she ever to sub- zable claim for nuisance under California apartment, let the or even that she ever law. The injury alleged, however, “is like wished or apartment. intended to sublet the claimed in personal Any supposed spec- loss is therefore purely seen, per action.” As we have ulative. Finally, Berkeley rent control injuries sonal are not actionable under prevents law Oscar from charging subles- RICO. “peace Oscar has no doubt lost of sor rent excess the rent-controlled mind” as a result of the activities at Bar price of the apartment. injury, To show rington. Berg, 915 F.2d at 464. As we therefore, would allege Oscar have to however, in Berg, held such a loss—even racketeering activity caused the market when it flows from a valuable apartment value of her to decline below the personal interest —is “a the form (artificially low) price, rent control and that distress, of emotional not a claim for an simply she could not hap- move out if that 1964(c) as section re pened. quires.” 915 F.2d at 464.5

Oscar has had four chances to such make denigrate We do not intend to the severi- allegations. She has not done so. ty To re- of the problems alleged Oscar has or the mand her complaint clear, trial on the off however, harm inflicted on It her. chance that she could showing any make such a she has suffered is at core in the future would be to rely allow her to an intangible injury, not a finan- precisely speculative the sort of future cial loss to Oscar recover for can injury which injuries RICO disdains. See such myriad Hecht v. under one of a House, Clearing Commerce state law causes of action. cannot do She (2nd Cir.1990). RICO, so under however. smashed, enjoyment 4. Oscar has the use "lost” of her 5. If Oscar’s Maserati was or her house down, property only injured very variety in a was burned ways. she is in a technical She sense. However, pays if her the full apartment insurance first moved her into mid- items, replacing cost of these 1980’s; has suffered she according allegations, to her own Bar- might loss. Oscar be attached to rington conducting drug neigh- iinancial deals in the Maserati, certainly her and she almost long borhood before then. Oscar has not thus down, burning not be indifferent to her house anything; really lost she what means that she though buy even intangible she could new one. This has never had enjoyment as much use and compensable or sentimental value is her she as believes she is to. entitled action, just in a compensable. as distress is tort emotional yet step This is another removed from financial compensable Neither is under loss. RICO, however. terms, meanings empowers peo- of its recently said law Circuit As the Seventh expense at the ple attorneys economic losses to hire claim for rejecting'a RICO drug narcotics fundamentally per neighboring whose from a dealers which derived nearby quality economic of life for “Perhaps dealing ruins the injury: sonal as could, homeowners, a theoretical apartment dwellers and pects injuries of such matter, injuries money. away ‘business res- be viewed take criminals’ allying in such meta property,’- engaging neighborhoods, by law abid- but cue of task left to speculation is a best physical ing self-interest with citizens’ financial judiciary.” federal philosophers, altruism, through the mechanism Roe, Cir. F.2d against Doe v. racke- treble lawsuits pleading an 1992). requirements for teers, just appears to what Con- quite are cognizable intended. v. Imrex gress Sedima not met here. They clear. 479, 495, (1985),taught us that L.Ed.2d 346 “[t]here AFFIRMED. n isno language for an statutory room in the additional, ‘racketeering injury’ amorphous KLEINFELD, Judge, with whom Circuit Likewise, there is no room join, requirement.” BRUNETTI Judges HUG and Circuit tangible financial loss re- for an additional dissenting: authorized quirement. Congress has not respectfully I dissent. and shut it on a kind us to erect this door promul- President have Congress and the achieving pur- of case most central people of enables gated a statute which poses of the statute. attorneys with means to retain moderate 1964(c) provides that Title 18 U.S.C. § shifting provision, and fee the aid of a injured in his business or [a]ny person suing narcotics damages, by recover treble *6 of sec- property by reason of a violation of life in quality dealers who reduce the there- chapter this sue tion 1962 of bounty, taken neighborhood. This their appropriate States dis- dealers, any for in United of- property of narcotics from the threefold the and recover trict court shall citizens to act as fers a benefit to induce and the cost he sustains offsets the attorneys general, and private attorney’s suit, including a reasonable rely- might deter them from which burdens fee. justice sys- entirely upon the criminal ing novel construction narrow and

tem. Our say “injured in his ... does not The statute statutory damages vitiates of RICO financial loss.” consequential property with application. important in scheme an property.” in says “injured his ... just It damages for required, but Damages are decision, University v. panel’s Oscar The generally measured Association, 939 Co-operative Students by financial loss. Sedi than realized other correct, Cir.1991), is and its F.2d 808 of a RICO forth the elements ma sets strengthened by the subse correctness is incorrectly opinion at The claim. in decision Holmes quent Supreme Court — meaning to narrow tributes a novel and Corp., Protection Investor Securities In the case at “damages.” “injured” and U.S. -, 112 S.Ct. true, bar, then Oscar complaint if the is traditional con (1992). Elucidation paying the same probably Spinosa were property, property, cepts of money they would have rent amount of concepts application of those damages, and pattern drug dealing, but the without case, in this harms claimed the kind of the value dealing reduced of narcotics permitted be that the lawsuit requires dam they suffered apartments, their so Damages the kind claimed proceed. in value. by the reduction ages measured not re traditionally do Spinosa Oscar and loss, in though tangible quire I. Facts applications financial RICO some other appeal important this involves statute, interpreted It is proved. must be 12(b)(6)rather than under Rule dismissal common according to the well established summary adverse decision judgment an actionable under RICO unless result required at trial. We are tangible to assume in financial loss to plaintiff. truth of the complaint averments in the Second, it is clear inju- purposes of determining whether ries compensable are not under RICO. upon a claim state which relief can be Maj. op. (citations omitted). granted. McKeithen, Jenkins v. 395 U.S. premise second plainly correct, is but does 411, 421, 1843, 1848-49, 23 L.Ed.2d not lead to the conclusion reached (1969). A dismissal for failure to state majority, because the injury claimed is of a proper only appears a claim is “it beyond kind that the always law has considered doubt that prove can no set of person. support of his claim which facts premise The first unsupported novel and Gibson, entitle him to relief.” Conley v. by the authorities. Whether injury to a 41, 45-46, 99, 101-02, 2 tenant’s property interest real estate L.Ed.2d yet There is as no evi- without pecuniary loss confers upon dence before the court standing appears question abe evaluation could made be of the truth of first impression. The authorities relied alleged facts. upon by the majority do not resolve the issue, and reasoning their cuts in favor of We must therefore assume that USCA plaintiffs. aided, intentionally conspired abetted and LSD, in the sale of methamphetamine Berg Ins., v. First State 915 F.2d 460 (9th Cir.1990), Barrington heroin at Hall. We must summary judgment as- case, 12(b)(6) sume that apart- Oscar and not a Rule rented case. That mat- ters, adjacent building ments because the and that RICO claim in Berg Os- had evidence, against car rented to be tested parking. just off-street Unless alle- gations. beyond plaintiffs brought doubt that prove could no a RICO against suit their support companies facts in insurance proposition, this we wrongful that, liability cancellation of their complaint avers, must assume as the in- policies. They surance suffered racketeering activity “negatively af- mone- tary loss, companies because the insurance plaintiffs’ fected the value of the despite cancellation, defended them apartments.” drug against the lawsuits them were settled in a assume, dealing, generated we must fear in *7 way money. which cost them no We people entering Spinosa’s Oscar’s and ac- proposition cepted poli- the that insurance building, caused risk of disease from dis- cies are property, but we found no dam- needles, hypodermic carded and caused ages, the because directors had suffered filth, cars, noise, urination on tenants’ and loss. We also determined that the deposits feces, garbage, financial vomit and the interference with the peace directors’ deposition of bodies of drug overdosed pending while the lawsuit mind was parts the common parking users and personal injury, injury not property. to building areas of the Spi- where Oscar and nosa lived. Assuming things that these Berg distinguishable, is because the na- true, are we must decide whether this claim ture of property right. the was a contract one upon is which relief could be granted only damages The injury from to that under RICO. erty per- would be on account of loss of formance of the contract. The directors Berg

II. and Other Authorities Cited put good position by were in as a the defense and settlement would as have majority opinion The premises states two by performance, damages been so no for its conclusion: type injury rights for awarded to contract First, showing “injury” requires proved. be could loss, proof of concrete financial and not “injury intangible mere to a policy valuable Had insurance been valuable property handsome, interest.” tangible property, say ... lesson of as an- Berg injuries property is that to parchment are not cient leather-bound seal, proxy fight. and not from the threatened and ribbon sulted a wax Lloyd’s with apply Id. at 544. Bro does a financial right, injury then to the contract just as a requirement to screen out a claim analogous more would have been property injury an in there is to interest real injuries. where Spinosa’s claimed to Oscar’s estate in the nature of reduction of value. the dam- analogy would exist because require- does it a financial loss Nor create generally ages injury property are just Bro notes the absence of finan- ment. property. in the reduction cial loss in a context where financial loss damages at issue in like those Contract damages possi- only kind of would be generally designed put Berg are ble. he good position in as victim per- contract enjoyed had the Feltner, Fleischauer For tortious formed. Cir.1989), denied, cert. U.S. land, damages is the usual measure of 1122, 107 L.Ed.2d 1029 and 494 harm, by the reduction in value caused use, annoyance loss of and discomfort trial, (1990), went to so the court was not (Second) of occupant. Restatement

to the deciding damages kinds of could be what 929(1)(1977). proposition Tofts § pleaded, rather what kinds had been but requires financial loss is property expectancy proved. Fleischauer denied thing Berg, one where the damages, “[although expect in some cases promise protect of a the nature damages might appropriate,” ancy be id. loss, against quite an- owner financial proof support because the did property estate where the is real other them that case. damaged by a tort. majority opinion cites a number of only propositions

Berg stands proposition for the correct other authorities damages an element of a RICO compensable personal injuries are not claim, damages that the must be for RICO, I no case from but can find summary judg- In the injury to standing proposition for the any circuit case, plaintiffs of that needed ment context must tangible that realized financial loss be damages re- cognizable evidence of some Tangible financial loss must be pleaded. sulting from the where, proved if the had dam- policies and did not rights in the insurance ages plaintiff’s from the Only tangible financial have it. evidence business, tangible would be Berg sufficed in loss would have category of loss. Where the cognizable dam- kind of tangible that was person, finan- harm is possible ages have been standing; which would cial loss cannot confer RICO property at stake. injury to the kind of given proposition im- explanations for this category ply of harm that where Bro, F.2d Bancorp v. First Pacific type of a measured injury to (9th Cir.1988), summary also involved value, fi- reduction of absence dismiss. *8 judgment rather than a motion to away take RICO stand- nancial loss cannot “[ajbsent damages, We affirmed because ing. sustained,” and claim can not be RICO showing of had “failed to make a plaintiffs’ the bank majority concedes that the The “provided no evi- injury” actual and had apartments constitute interests in their support the inference that finan- dence to n. 3. Maj. op. at 786 property interests. a result injury or was incurred as is injury cial loss to those interests This means that proposed proxy solicitations or the concludes property. majority injury to at 547 & although plaintiffs’ derivative suit.” Id. interests are shareholder injury. that a threat- erty, they pleaded n. 12. The had claimed have not bank has fight deposits majority that Oscar proxy had caused concedes ened step off, at presented no evidence a claim for nuisance. pleaded to fall but loans different majority and I take specifically noted that the prove it. We which to money the next one. Under paths or had not obtained defendants Spinosa did not view, Oscar and corporate action had re- because property and no loss, they gest tangible pecuniary that absence of realized plead view, of value damages. my losses compensability Under cannot eliminate the nuisance, damages for with- will suffice under property injury flowing RICO of disagree We on out financial loss. racketeering activities, from provided that whether, RICO, the resemblance of damages. always there are The issue is for reduction of the value of the reasons damages whether there are injury from to by afflicted nuisance to emotional dis- land property; pecuni- whether there is realized personal injury, converts nuisance tress ary only loss matters where that is the injury property a claim for to to a from appropriate damages. measure of Similar- injury persons. to I cannot ac- claim ly, v. Drake B.F. Goodrich 782 F.2d cept proposition that a loss of the bene- 638, (6th Cir.1986), per- purely ownership, property fits of even “it flows claim, injury sonal sickness and death interest,” maj. op. from a valuable allegedly arising exposure out of to toxic 787-88, in the personal injury is a claim workplace. Grogan, chemicals at the As in exchange producing of a market absence consequential pecuniary the existence of financial loss. None of the cited cases claim, harm could not save RICO be- speak point. to that personal injury, cause it was for Corp., v. 442 U.S. Reiter Sonotone to (1979) 2326, 60 L.Ed.2d 931 does bar, Bro, In the case at as in Berg and speak Genty at all to this. Nor does v. plaintiffs may develop cognizable fail to 899, 918 Corp., Trust Resolution damages opposition evidence to a Cir.1991). (3d by claim Genty was RICO motion, summary judgment persuasive buyers against developers who fraud- home damages at trial. If fail evidence dump re- ulently concealed a toxic produce necessary evidence of dam- home. The Third duced the value of their ages their RICO that the reduction in value of Circuit held properly claim would be dismissed because RICO, compensable under the house was proof. present of the failure of But at the personal injuries, including medi- but required proceed juncture, we are expenses and mental distress caused cal develop ev- cancer, supposition that could In fear were not. the case at damages, bar, in the idence of the aver plaintiffs alleged a “decrease damages complaint. of their caused defen- in their racketeering,” Genty supports so dant’s value of their lease-

them. Decrease Injury Property III. interest, turn out to hold whatever be, property, like the decrease allege must Oscar and Genty. value of the house in damages, because these elements of their RICO claim. two Services, Ltd,., Beaton Rylewicz v. property alleged by the kind of (7th Cir.1989), stands for F.2d plaintiffs controls what kind here, that propositions, not at issue to their claim. are material recovery is not available injuries or for a shareholder’s derivative Platt, F.2d Grogan claim. In Unnecessary A. Loss Commercial denied, (11th Cir.), cert. of a com- argues that losses USCA *9 nature are recoverable mercial or business mur of the RICO conduct was

the victim 1964(c). majori- Though the section dered; inju personal injury, murder is proposition, adopt that ty opinion does not property, pecuniary and losses flow ry to why it is incor- showing in there is value could not ing wrongful from the death rect, reasoning the cases the to personal injury injury into transform the compels rejection of rejecting it also pecuni presence of property. Just as the realized financial majority’s requirement of injury personal cannot make ary losses sug- I loss. compensable Grogan, under RICO

792 Thus, meanings. Investor Protec rate while the Court not- In Holmes v. Securities — 1311, U.S. -, personal injury 112 S.Ct. ed that would not fall Corp.,

tion with- statute, 339, Supreme purview the in the of the Court id. at 99 2331, proximate “property” ele at the term incorporated the causation S.Ct. given unmistakably Clayton meaning. Act into section broad ment the 1964(c). observed that “Con The Court Reiter, After Holmes cannot be 1964(c) the gress modeled on civil-action § disputed injury that to a noncommercial laws, antitrust 4 provision of the federal § possessory injury in real estate is Act,” Clayton and that the federal of the property. majority correctly to con 4 had construed section and its courts Spinosa’s cedes that Oscar and interests Act, of the predecessor, section 7 Sherman apartments, even if month-to-month principles incorporating common law lease, long-term and without a written are 112 proximate causation. Id. S.Ct. at 1317. “property.” Kelly, also v. 208 See Jones underlying. the decidendi ratio 251, 942, (1929); Cal. 280 P. v. Stoiber Holmes decision was that 903, Honeychuck, Cal.App.3d 162 Cal. RICO, Congress, the 91st which enacted 194, (1980). Rptr. interpretation federal courts [knew] n Congresses given the words earlier had Alleged B. The Harm is Act, in 7 of the Sherman had used first § Injury Property Clayton Act’s 4. It and later § phrase reads into the “in words, the same and we can used jured property” qualification in his ... them to have the assume it intended consequence injury of the to the meaning already same that courts had annoy discomfort and given them. loss, ance without (citations omitted). at 1317-18 S.Ct. injury categorized personal inju must be Although involved the issue of Holmes ry injury rather than That proximate causation rather than construction cannot established withstand employed by reasoning the Clayton authority. Act and Act Sherman compels Clayton use Act and Court us to catego- We must look to the common law construe the words Sherman Act cases to person ries of property.” “injured in his ... erty in order to determine claims are leading Clayton Act case on under RICO. Corp., v. is Reiter Sonotone that the words and con- Holmes establishes 2326, 60 L.Ed.2d 931 cepts Clayton between transitive firmly rejected pos- The Court Act, Act, 1964(c) the Sherman section gloss sibility sociis noscitur a RICO, so we must look Sherman meaning Clay- “property” within the Clayton Act Act authorities. It is well ton Act’s section 4. Reiter teaches that “Congress established that intended the pos- anything value owned or of material light in the Act to be construed [Sherman] though it is of “property,” sessed is even background.” of its common-law Associat- significance: no commercial ed General Contractors California naturally “property” has a word [T]he Carpenters, 459 U.S. State Council of meaning. In its dic- and inclusive broad (1983) L.Ed.2d 723 usage tionary definitions and common (holding proximate in the causation comprehends anything “property” of ma- required under sec- common law sense was possessed. owned terial value Act). Clayton deline- tion of Holmes parameters proximate 2330. The ated the cau- 99 S.Ct. at Court Id. at 1964(c) adjacent refer- sation element section rejected the contention many concept took shapes modified the mean- ence to “the this reference to “business” Holmes, “property,” stating that common 112 S.Ct. at term law.” ing of the copied The words into RICO Congress’ disjunctive “or” indi- 1318. use of *10 incorpo- Clayton Act given sepa- the Sherman Act and that the terms were to be cated

793 concepts lawyers de- rate the ancient is a matter of history that has forgot- not veloped centuries in the common over the ten Lord Coke.” Gardiner v. William S. princi- We must look to common law. law Butler 603, 605, & ples determining in whether the kinds of 214, (1918)(Holmes, 62 L.Ed. J.). “The injuries claimed Oscar and ownership rightful or possession of land categorized injury property injury to necessarily right involves the only to person, in order to to determine whether unimpaired condition of property injured property were in their within itself, but also to some reasonable comfort 1964(c). meaning of section occupation.” convenience in its Kee- ton, 87, supra, at 619. alleged by plaintiffs § The harm was to the apartments. value of their in interests We are seven centuries too late to char- tenancy of a creation residential acterize nuisance as person to rather property merely does establish a con than to property. The complaint alleges relationship tractual between the landlord facts sufficient support to a claim that the tenancy, peri and the tenant. A whether racketeering defendant’s activity interfered term, conveys odic or for a definite to the plaintiffs’ with the right to the use and possessory property tenant interest in the enjoyment apartments. of their At com- which is characterized as an estate in land. law, mon allegation an that the defendant 251, 942, Kelly, Jones Cal. 280 P. 943 has plaintiff’s invaded the interest in the (1929); Property Restatement of §§ enjoyment use and sounds in (1936). Although a is leasehold founded tort and states a claim for nuisance. This agreement tenant, an between landlord and tort arose in century the thirteenth to vindi- merely it right, is not a contract as in Berg, cate “interferences with servitudes or oth- but also “an estate land in the strictest rights er Keeton, to the free use of land.” al., Roger Cunningham, sense.” A. et supra, at 617. Blackstone described § 6.11, (1984). Property Law 6.13 §§ nuisance as a and so it right tenant has a to sue directly third always species has been: “A third of real persons trespass pos who on the tenant’s injuries to a man’s lands and tenements is session “or whose conduct constitutes a Ehrlich, by nuisance.” J.W. Ehrlich’s nuisance, decreasing enjoyment the lessee’s (1959). says Blackstone 581 Blackstone of his term.” Richard R. Powell & Patrick the ancient writ for for nuisance Rohan, Property J. Powell on Real available lessees as well as to hold- 225(4) (1968); Honeychuck, Stoiber v. § ers of the fee. Id. at 584. Since this Cal.App.3d Cal.Rptr. 201- “inseparable ownership is of the erty,” conduct that interferes with the The connection between the tort of nui- “right enjoyment undisturbed of the enjoyment peace sance and the of mind premises” constitutes possessor of land does not make meaning 1964(c). within of section plaintiffs’ personal injury, claim one for as Keeton, supra, at 619. § majority opinion suggests. The word classification of nuisance as “enjoyment” just the ancient common anomaly real estate is not a mere historical describing law term of art one of the ten- to be filtered out of the common on the law rights inhering ant’s in the nature way Though consequences to RICO. of his private estate. “The essence of a annoyance persons of nuisance be nuisance an interference with the use land, physical per- rather than harm to Keeton, enjoyment Page of land.” W. sons are harmed because of their con- al., et Prosser and Keeton on the Law nection to the land. 1984). Though Torts ed. § Thus, many description interferences with the interest harmed as comfort, dog enjoyment” might such as a next door which imply “use seem to howls, night makes hideous his disturbance interest would be with person, glance appear to be “the law as to which at first vacuo; logic wrongs purely personal leases is not a matter of landhold- *11 er, they prove damages, are treated as nuisances because cient to even without ex- pert testimony that pecuniary interfere with undis- loss. premises enjoyment turbed of the which ownership inseparable Damages IV. property. nuisance, Once is classified as

Id. which is an to real property, Spinosa suggest Oscar do not that damages compels measure of for that tort any special the narcotics dealers them bóre a determination complaint that the states animus, just drug dealing that the adverse- claim. ly nearby apartments in affected the they had the misfortune to live. harm The A. Financial Loss imposed anyone on had the would be who majority The path slides off the did, connection to the real estate that conceptual relating of a error to the valua- imposed and would not have been damages tion in rental Spinosa Oscar and but for their connection Although might one measure an owner’s majority opinion to the land. The concedes by the diminution in fair market that state a for claim nuisance. value, the same cannot be said for a majority Ingram City cites renter. If the proper- resale value of the Cal.App.2d Gridley, 100 224 P.2d 798 ty goes down, nothing. Oscar has lost (1950); proposition plaintiffs’ for the that Indeed, if the property drops value of the “ personal claims are ‘for discomfort and enough, far go Oscar’s rent should down. ” annoyance.’ Maj. op. (quoting at 787 In- She would incur a gain, not a 803). gram, P.2d at in- loss. classify fers we must the claims as renter, aAs Oscar could suffer finan- personal injury injury “ prop- rather than cial loss in this situation if she had erty, because the ‘is like that an interest she could sublet and the rack- by plaintiff claimed in personal injury eteering enterprise reduced the rent she ” However, Ingram explicitly action.’ Id. charge apartment.... could to sublet her classifies the tort of nuisance in California therefore, injury, To show would Oscar “injury property.” as to real Ingram, allege racketeering have to that the ac- P.2d at 801. The nuisance at issue in In- tivity caused the market value of her gram discharge sewage into a apartment (artificial- to decline below the slough flowing through plaintiffs’ low) ly price, rent control and that she dairy. The court stated that the measure simply hap- could not move out damages “usually held to the de- be pened. preciation in the market or usable or rental Maj. op. at 787. property, together value of the with such special damages proved.” held, plaintiffs’ property be is not like instruments, Ingram says damages “annoy- negotiable that the for merely pur- for the ance, discomfort, and pose exchange. People apartments inconvenience-caused rent by deprivation a nuisance of the com- in order to live in them. If the of an [and] enjoyment property,” tangible personal proper- fortable id. real or tort, ty are “like claimed is reduced then the owner of action,” interest, in a id. at 803 the whether it is a chattel real added), (emphasis plaintiffs own, not that that such as the an automobile damages personal injury. point collision, damaged in a or a house burned explain down, comparison why was to has intangible nonpecuni- damaged they exchange evidence of such whether ary damages impairment erty Although they of the flavor of money or not. “guests pock- produced might money milk and the fact that left in their more away impaired remain rather than suffer ets if that their ... would the value was so stench,” declined, id. at was suffi- the noisome rent Oscar and *12 possessory way off injury have to the value of their no worse because of the tres- rights apartments. in their pass. Dobbs, Dan B. Handbook allege need not that on the

Oscar and Law of premises intended to sublet their or Remedies 140 The majority’s they re- any out-of-pocket they have suffered quirement tangible that of financial loss as a loss, tangible because realization of finan consequence injury is analogous to through exchange cial loss a market argument the person that a is not damaged damages injury to required to establish by the conversion of his umbrella because property. damages of real measure it did not rain. If what he owned was not private a nuisance case is “dimi California umbrella, promise by but rather a some- property’s nution of the value and for an one that he dry, should remain then the noyance flowing and discomfort from loss majority’s requirement loss Cal.App.3d Moylan Dykes, of use.” v. correct, would be and he would have no (1986). In Cal.Rptr. Moy damages if it did not rain. That would be lan, during the evidence established that Berg, like where the directors owned a prop the time could not use their promise that would be defended and through erty planned and a sale fell be would not suffer financial loss in lawsuits. interference, property ap the cause the person umbrella, But if a owns an preciated, tangible pecuni had so no itself, physical thing he then is entitled to ary loss. Yet the court held that “even if it, keep damages and he has from to real,” intangible, damages are no less property damages his if a tortfeasor or id,., upheld apparently an award based Suppose steals it. a merchant’s windows daily on a fair rental value. To measure by are smashed hoodlums because he re- property, injury to we must look what pay protection money. fuses to He has happened property, to the value of the not damages property when the happened pecuniary what condition breaks, glass though may he even not have owner, except insofar as pecuniary together loss until he scrapes happened bear on the truth of what glazier replace enough money pay a property. it. Taking majority’s hypothetical cases Roe, majority cites Doe 5, suppose person’s at footnote car is Cir.1992), which holds that no wrecked, down, or his house burned but RICO claim lies for fraudulent inducement pays majority insurance full cost. The consequential mis- of “sexual services” perceives expenses. The ease holds that cellaneous owner has suffered no net financial loss. losses are “derivatives where financial accurate, view, my say It is more distress,” they plaintiff’s] emotional [the injured, and has been treat personal injury claim into cannot convert a consequences to the the financial insured damage 958 F.2d at 770. claim. an insurer owner as relevant to whether financial she can show a “[W]hether subrogated part might be of the RICO definition, not, establish that she does pecuniary recovery. While realization of property injury or has suffered a business required loss is sometimes for tax deduc- 1964(c).” meaning of within the § tions, required generally it is for recov- holding the irrelevance This establishes ery to real categorizing the loss for required to injured plaintiff] is not [An not that finan- person or one to damaged automo- prove that he sold his required element. cial loss is a loss, example, or that it was bile at a damage. to him after the less useful B. Rent Control land is used a tres- A whose professes to majority ab- Although the general is entitled to recover dam- passer I think speculation,” jure “metaphysical the land. probably rental value of ages, speculation just such engages though implicitly he is true even would not This control. The of rent anyone regarding and is in the effect leased the land to might the rent burden. has not mate who share suggests since Oscar sublet, circumscribed a desire to The tenant’s freedom will be alleged either apartment be- over for dinner money her if she cannot attract friends and loses no desirable, nothing. sewage in the (as stinking she loses Ingram, less comes *13 metaphysics. case), of is chock full cannot walk to a slough This she is that presupposition implicit philosophical evening her in the or let convenience store the market only insofar as school, exists tripping value fear of for children walk It does not recognizes it in transactions. stepping on nee- overdose victims or over to articulate this to the occur parking parts in dles the common general- truth is so proposition, because its spaces. it. rarely think about ly accepted that we apart- person value an No sensible only upon the condition of But it is true the com- highly if maintenance of ment as market, price market. Without a free free deteriorated, roommates were parts mon value, so cannot as- not measure we does attract, friends scared to hard to were changes in be re- value will sume over, were scared come and the residents price. price If is set changes in flected in freely. apartment An to live their lives than by government rather command exchanged on which would have $800 of exchange, then it is bad evidence free it not for the narcotics a free market were de- generated human value. Value door, which was obtained activity next sire, thing at issue be- so declines as the $440, might now rent control for is the effect comes less desirable. “Value only have a free market value $500 relative social desire exchange in activity continuing criminal because of the of a objects expressed terms compared owns next door. tenant International common denominator.” worth a month right $800 which would be Kentucky, 234 U.S. Harvester Co. neighbor’s narcotics the next door without (1914) 853, 855, 58 L.Ed. long dealership, only a month so but $500 (Holmes, J.). continues, which she is the nuisance freely apartment, Suppose an were possess for She legally entitled to $440. marketable, per would be worth $800 damages, because has suffered month, ceiling price of the unit but estate, lease- per month. Her her of $300 per control is regime $440 under a of rent per more previously $360 hold worth raise the month. Since the landlord cannot it, just as she was paying month than market appreciation reflect rent to bought in- houses before many of us own occupy premises, value of the much more than which are worth flation he can sell price and the at which make. mortgage payments we monthly reduc- depressed by the underlying fee is more per month it is worth $60 Now of income which can be tion in the stream it, of the racke- pays for than she typically he apartments, drawn from teering. preserve net skimp on maintenance will Navarro, income. Peter Rent operating testify in condem- frequently Appraisers Mass., The Public Cambridge, Control in to reduction val- and other nation cases If Interest, 92. Winter They ue, price. call distinguished by crime fee is reduced value of the further figure may be rent.” This “economic value neighborhood, then the resale in the comparables, re- comparisons of based continuing preserves by the landlord which cap- depreciation, and minus placement cost reduced, so maintenance is also further They distinguish income. italization be- maintenance point at which additional lease, rent,” for in a provided “contract the tenant comes uneconomic declines pay to ob- must is what the tenant mainte- expect can further deterioration higher or value, may be and which tain the nance. American In- rent.” “economic lower than Ap- Appraisers, The Estate of Real stitute property of the consequences to the (6th ed. Real praisal Estate also make it activity door will criminal next contract 1973). between The difference a room- to attract harder for the tenant A pub- measures the value few decades Adam economic rent Smith rent and [after higher Nations, 464. The leasehold. Id. at lished The Wealth of 1776] to the economic Colquhoun reported rent relative Patrick agri- the contract rent, reversion is the more the landlord’s cultural near lands London were worth rent rela- higher the economic worth. less than those farther out. That is ex- rent, the more the to the contract tive actly opposite of what one would at 448. leasehold is worth. tenant’s produce expect because from more dis- apartment has Tenancy in a rent controlled higher transporta- tant farms had to bear of a of the economic characteristics some brought city tion costs when it was gen- long-term lease entered into before explanation market. His was that apartments; price in the eral increase London, closer a farm was to the more of *14 is trans- part the of the reversion of value crop Nowadays its was stolen! it is stan- by the rent control law the ferred procedure dard to measure the cost of City to the tenant. Yee v. landlord of Cf. by crime to an area its effect on — -, 1522, Escondido, S.Ct. values. (1992). 1529, The tenant 118 L.Ed.2d George Stigler, Unregu J. Memoirs anof bargain price, pays less than the gets a (1988). possesso lated Economist is apartment worth. ry interests of tenants as well as the rever typically determine the value Appraisers sionary by interests owned landlords are by locating comparable real of real estate less, appraisal worth traditional differences, estate, adjusting quality for methods, regardless they pay of whether converting prices comparables less, drug dealing directly affects the values, multiplying foot then this square footage proper- the figure by square the of is troubled because the ten- Using this ty at issue. Id. at 321-22. rights, ant cannot sell her so these values method, value, purchase for a whether or changes and the in value cannot be realized rental, found, entirely reference without a stan- money. But market value “is price. rental The value deter- to the sale or dard, not a shackle.” Charles T. McCor- person, typically tells the interested mined mick, Damages on the Law McCormick lender, price high or a whether the low of traditionally 45, The law at 170 bank, example, A for § relative to value. damages, con- value, recognizes and awards willing to lend of but may be 75% damages, even purely excessively high price. Thus sidered of an 75% realized on a rent are inde- the amounts cannot be economic rent and contract where market, 388. The or another pendent of each other. Id. at where for one reason price Spinosa pay would not of “value Oscar and is not a fair measure the market equation. go appraiser’s into the even at 171. A common to the owner.” Id. Therefore, of the ten- injury to the value measuring example of a award independently what ant’s interest exists treating the property, value injury to pays the tenant as rent. To find damage property, even amount as nuisance, the rental value on account on a mar- though can be realized never in rental value with and without difference ket, personalty for which occurs when racketeering multi- the would have be destroyed. market is there is no suitable months, re- plied by some number of but example is The classic destruction the gardless might of what turn out to be market Though there is a clothes a fire. months, regarding future Oscar facts both price in that market clothing, for used elapsed pleaded a finite loss, measure of the because is not a fair multiplier. supply time which people value used clothes which most use had the exclusive they have themselves neighborhood of crime in The amount used clothes much more than value con- appraisers of the factors which is one dam- strangers. measure of worn determining 91. Nor value. Id. at sider price not the ages depreciation, less considering is cost anything is there new in clothing clothes in used comparable used estate. of crime on the of real effect (1902) Dobbs, 5.12, recovery n. supra, at 390 allows the tenant who stores. § (“real nuisance, value to the owner and not 396 n. 39 comes to the because alterna- value.”). There is no market market person tive “would soon make a who erects assign a dollar amount to this can all a nuisance master of owners realized, loss, be and it can never him.” lessees who surround his or her own used person if a sells Court, Supreme The California N.E. 745. clothes, buy largest buyer cannot Sons, v. N. Clark & 216 Cal. Vowinckel value, having that of element of (1932), rejected 13 P.2d treats this wearer. Yet the law exclusive proposition that the who comes to proper portion of the dam- increment as a the nuisance cannot recover. See also Kee- despite its un- ages 88B, ton, supra, at 635. Where the nui- § any market. realizability on lawful, sance is considerations of fairness may outweigh in some circumstances those apprais- may complicate the Rent control efficiency, go of when suit tenant appraiser have to process. al nuisance seeks to transfer the comparables, outside burden farther afield controls, depressed by producer. rents are external diseconomies to their area where McCormick, uncontrolled area where supra, and outside the at 517-18. § by immobility of ten- rents are increased racketeering But where the nuisance is *15 benefitting rent controls. Na- ants from activity, a delicate concern the economic varro, Possibly appraiser the supra, at 93. interests of the criminals would be mis- rents, adjust pre-control them will use placed. compensatory RICO is not a stat- general fluctuations in real according to federalizing explicitly ute nuisance law. It region, or use rentals in the else will estate goes beyond damages the level at which applied empirically formula based compensatory, by its dam- would be treble depreciation. Expert replacement cost less ages provision. they if Even have not been customarily make these kinds of witnesses neighbor- enough fortunate to have had persuade the trier judgments and seek previously drug dealerships, free of hoods judgments are well found- of fact that their empowered by tenants are RICO to make ed, anticipate the method- need not and we money by acting private attorneys gen- to us is that ology. important isWhat suing eral and the racketeers for treble by ex- customary the methods used rewards, damages. enhancement tangi- perts injury to value neighborhoods property values in liberated pecuniary loss to the tenants will be ble beyond criminals what were needed, no effect control will have and rent in, plaintiffs money when the moved the except increase the amount of loss. pur- lawyers and their who for the tenants worthy objective, are incentives sue this Racketeering the C. Preexistence of precisely statutory purpose. the within footnote, majority correctly In the may not have lost points out that Oscar Causation V. Proximate in, value, compared to when she moved majority expresses no view on the dealership alleged drug was because the by the Dis ground for dismissal articulated moved in. This would operating when she causation, Judge, proximate but under trict grandfa- only Congress meant to matter decision, Supreme affirm a recent Court racketeering enterprises, a existing ther ground be erroneous. ance on this The authorities unlikely proposition. most Protec In Holmes v. Investor Securities complex questions of on the are divided — 1311, U.S. -, Corp., S.Ct. tion damages for nuisance be- apportionment (1992), Supreme the Court landlord, and on tenant and the tween the held must show that a RICO to an ex- recovery the tenant comes when by the proximately caused nuisance, his damages are isting where wrong. The Court looked defendant’s compensation and the nuisance is limited to applied Clayton Acts and and Sherman activity. Bly Edison Electric a lawful v. proximate cau- Co., 1, principles of 64 N.E. 745 “common-law Illuminating 172 N.Y. includes, among factors, sation,” require other 112 S.Ct. at whether the id. persons that “class of direct relation between “some normally al- whose self-interest would moti injurious conduct asserted and public them Holmes, vate to vindicate the interest plain- In leged.” Id. at 1318. [by performing] private ... the office of a racketeer- alleged that the defendants’ tiffs attorney general.” Id. at S.Ct. ing activity liquidation caused the of two 910-11. There are no links in the chain broker-dealers, who were rendered unable causation between the narcotics sales and obligations to customers. to meet Spinosa except harms to Oscar and for the too held that was. Court purchasers of narcotics. The narcotics remote, customers were because unlikely users are to act as private, attor by consequence indirect harmed neys general public to vindicate the could not afford to that the broker-dealers eliminating the dealers’ activities. Oscar at 1319. pay their bills. are the most affected directly together with Holmes must be read Sedi parties likely statutory pur to fulfill the ma v. Imrex pose. complaint alleged sufficiently 87 L.Ed.2d which estab precedents. direct under our In re “racketeering injury” re lishes that no' Litigation, Insurance Antitrust 938 F.2 from the statu quirement can be inferred (9th Cir.1991), d petition filed, cert. tory language, nothing more is needed (Jan. 9-10, 13, 60 U.S.L.W. racketeering a direct link between the than 1992); Corp. R.C. Dick Geothermal prop activity and the to business or Inc., Thermogenics, F.2d 139 Cir. Spinosa allege erty. Oscar and banc). 1989) (en say This is that all directly harmed the defendant’s were claimed will turn out to have sales, the ac pattern of narcotics proximately caused conduct. *16 necessarily affected immediate tivities All need to defeat- a Rule neighbors. 12(b)(6) allegation is an some motion of complaint suggests that the defen- Their proximately damages, they caused and drug intentions were to facilitate that, dant’s with the reduced value of their sales, neighboring interfere real with apartments.

estate, that does not eliminate causa- but Consequences Practical VI. Act, construing Clayton the tion. In the Supreme has held that the availabili- Court My analysis upon transitivity the of rests question the ty remedy of the “is not a of 1964(c) language employed the section conspirators.” Blue specific intent of the Acts, the Clayton and Sherman and McCready, 457 U.S. Virginia v. Shield Clay- property in the meaning of of 465, 479, 102 S.Ct. Act, of the tenants’ ton the classification though the defendants in Even the ancient clas- interests as and themselves, sought that case benefit of nuisance as of the tort sification (cid:127) plain- in mind to harm and did not have it excursion into the Is this tiff, McCready nevertheless harm to law, exegesis and “[t]he technicalities of common clearly and and her class was foreseeable” value, A fair test concepts practical? of of “necessary step effecting ends of reasoning to com- this formal would be of alleged illegal conspiracy.” Id. It is rea- majority’s to see pare its result with the defendant, suppose if it sonable to that the purposes under- better achieves which plaintiffs allege, did what could foresee analyses yield If different lying RICO. our plaintiffs’ apart- do, determining in their answers, harm to interests they then any practical ments. make whether answers solu- help which sense can us to. determine Under Associated General Contractors likely tion is more correct. Carpen State Council of California of inter- ters, 519, 103 majority’s 74 L.Ed.2d characterization S.Ct. enjoy- and proximate ference with the to use analysis injury rather property Clayton Act ment of requirement causation precludes anyone Many people poor away are too to move than bringing when narcotics dealers move into their likely an interest suit to have neighborhood. Their are diminished suing lives under the owners of statute possessory their other established narcot- crack houses and rights dwellings, they in their whether own blight neighbor- their dealerships ics They liberty or rent. lose because of fear says that Oscar and hoods.. USCA’s'brief move, Often cannot even crime. directly by drug Spinosa are not affected comparably priced into other rental dwell- parties, sales to are not and ings, because their financial circumstances plaintiff bring a “rarely if ever a civil moving do not enable them to advance ex- alleged upon narcotic RICO suit based penses, and the first and last rent months’ Appellee’s Brief at 15 n. 11. transactions.” security deposit apartment. new majority’s analysis, sug- Under the USCA’s They buy way cannot their into suburbs gestion But that does not is correct. compounds, secured residential af- .as more my Under square with common sense. people escape They fluent do to crime. operate analysis, those crack houses who rely upon protect law to dealerships expect and narcotics can possessory rights apartments. their in their neighbors away their mon- have their take The value of this real ey by means of suits. RICO quality reflects the of life available to those primary purposes underlying One of the apartments. who live in the Organized Act of Crime Control operation drug of a massive distribu- part, of which formed a was combat- enterprise exactly tion the kind of harm ting in narcotics” that “causes the “trade RICO, against which its with breadth virtually trapped in whole cities to be their penalties, Applied draconian can be useful. of” the maladies associated homes fear against neighboring in favor of tenants drug Organized with use. Crime Control: dealers, drug enabling RICO is a device for Proposals Hearings on S. SOand Related people including people may be too who — No. 5 the House Subcomm. Before poor fight de- own homes—to Comm, Judiciary, Cong., on the 91st 2d stroy pathologies deprive the social (1970) (statement of Senator Sess. 86-87 liberty quality them of and diminish the McClellan, 30). Improv- sponsor of S. their lives. ing quality neigh- life in residential *17 borhoods afflicted with narcotics commerce statutory purpose, so an accurate con-

is a the statute should serve that

struction of

purpose. ancient It is no accident that the words America, UNITED STATES according to their well established taken Plaintiff-Appellee, meanings Congress do what the law copied The words were intended. GUTIERREZ-MEDEROS, Faustino statutes, and carried extensive much older Defendant-Appellant. meanings. law In accretions of common meanings, terpreted according to those No. 91-30128. statutory purpose. words effect Appeals, United States Court of applied Though has been to conduct Ninth Circuit. ordinary not fall within the which does “racketeering,” English meaning Sedi Argued 1992. and Submitted Jan. 479, 499, Co., 473 U.S. ma v. Imrex Decided June 1992. 3275, 87 L.Ed.2d 346 here we S.Ct. luxury where the “rack case alleged exactly Congress eteering” what scourge. the statute to

intended