Fort Wayne Books, Inc. v. Indiana

489 U.S. 46, 109 S. Ct. 916, 103 L. Ed. 2d 34, 1989 U.S. LEXIS 648, 57 U.S.L.W. 4180, 16 Media L. Rep. (BNA) 1337
Supreme Court of the United States·Decided February 21, 1989·No. 87-470·Published·Cited by 178 cases

Opinions

[50] Justice White

delivered the opinion of the Court.

We have before us two decisions of the Indiana courts, involving the application of that State’s Racketeer Influenced and Corrupt Organizations (RICO) and Civil Remedies for Racketeering Activity (CRRA) Acts to cases involving bookstores containing allegedly obscene materials.

I

The two causes before us arise from wholly unrelated incidents.

A

Petitioner in No. 87-470, Fort Wayne Books, Inc., and two other corporations1 each operated an “adult bookstore” in Fort Wayne, Indiana. On March 19, 1984, the State of Indiana and a local prosecutor, respondents here, filed a civil action against the three corporations and certain of their em[51] ployees alleging that defendants had engaged in a pattern of racketeering activity by repeatedly violating the state laws barring the distribution of obscene books and films, thereby violating the State’s RICO law.2 The complaint recited 39 criminal convictions for selling obscene publications from the three stores. App. 9-37. It was also alleged that there were currently other obscene materials available for sale in the stores. Id., at 37-44. The proceeds from the sales of obscene materials, it was alleged, were being used to operate and maintain the bookstores. Respondents sought civil in-junctive relief to bar further racketeering violations, invoking the State’s CRRA statute, Ind. Code § 34-4-30.5-1 et seq. (1988). Among the remedies requested in the complaint was forfeiture of all of Fort Wayne Books’ property, real and personal, that “was used in the course of, intended for use in the course of, derived from, or realized through” petitioner’s “racketeering activity.” App. 47. Such forfeiture is authorized by the CRRA statute. Ind. Code § 34-4-30.5-3(a) (1988).

Respondents also moved, in a separate “Verified Petition for Seizure of Property Subject to Forfeiture,” for the particular judicial order that is the subject of our consideration here. Specifically, respondents asked the Allen County Circuit Court “to immediately seize ... all property ‘subject to forfeiture’ as set forth in [the CRRA] complaint.” App. 51. Such pretrial seizures are authorized under Ind. Code § 34-4-30.5-3(b) (1988), which empowers prosecutors bringing CRRA actions to move for immediate seizure of the property subject to forfeiture, and permits courts to issue seizure orders “upon a showing of probable cause to believe that a violation of [the State’s RICO law] involving the property in question has occurred.” The seizure petition was supported [52] by an affidavit executed by a local police officer, recounting the 89 criminal convictions involving the defendants, further describing various other books and films available for sale at petitioner’s bookstores and believed by affiant to be obscene, and alleging a conspiracy among several of petitioner’s employees and officers who had previous convictions for obscenity offenses. App. 55-78.

The trial court, ex part-e, heard testimony in support of the petition and had supporting exhibits before it. On the same day, the court entered an order finding that probable cause existed to conclude that Fort Wayne Books was violating the State RICO law, and directing the immediate seizure of the real estate, publications, and other personal property comprising each of the three bookstores operated by the corporate defendants. Id., at 81-83. The court’s order authorized the county sheriff to padlock the stores. This was done, and a few days later, the contents of the stores were hauled away by law enforcement officials. No trial date on the CRRA complaint was ever set.

Following the March 1984 seizure of the bookstores, Fort Wayne Books sought to vacate the ex parte seizure order. An adversarial hearing on a motion to vacate the order based on federal constitutional grounds failed to yield relief. Other efforts to obtain some measure of relief also failed. The trial court did, however, certify the constitutional issues to the Indiana Court of Appeals. In June 1985, that court held that the relevant RICO/CRRA provisions were violative of the United States Constitution. 4447 Corp. v. Goldsmith, 479 N. E. 2d 578 (Ind. App.).3 The Indiana Supreme Court re[53] versed, upholding the constitutionality of the CRRA statute as a general proposition and the pretrial seizure of Fort Wayne Books’ store as a specific matter. 4447 Corp. v. Goldsmith, 504 N. E. 2d 559 (1987).

We granted Fort Wayne’s petition for certiorari, 485 U. S. 938 (1988), for the purpose of considering the substantial constitutional issues raised by the pretrial seizure.

B

In No. 87-614, an investigation of adult bookstores in Howard County, Indiana, led prosecutors there, in April 1985, to charge petitioner Sappenfield with six counts of distribution of obscene matter, in violation of Ind. Code § 35-49-3-1 (1988). In addition, employing the 1984 amendments to the Indiana RICO statute discussed above, prosecutors used these alleged predicate acts of obscenity as a basis for filing two charges of RICO violations against petitioner. App. 142-143,148-149. The obscenity charges were Class A misdemeanors under Indiana law, the racketeering offenses Class C felonies.

The trial court dismissed the two RICO counts on the ground that the RICO statute was unconstitutionally vague as applied to obscenity predicate offenses. The Indiana Court of Appeals reversed and reinstated the charges against petitioner. Relying on the Indiana Supreme Court’s opinion under review here in No. 87-470, 4447 Corp. v. Goldsmith, supra, the Court of Appeals held that “Indiana’s RICO statute is not unconstitutional as applied to the State’s obscenity statute.” 505 N. E. 2d 504, 506 (1987). The Indiana Supreme Court declined to review this holding of the Indiana Court of Appeals.

[54] We granted certiorari, 485 U. S. 933 (1988), and consolidated this case with No. 87-470, to consider the common and separate issues presented by both cases.

II

Since it involves challenges to the constitutionality of the Indiana RICO statute, we deal first with No. 87-614.

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Fort Wayne Books, Inc. v. Indiana, 489 U.S. 46, 109 S. Ct. 916, 103 L. Ed. 2d 34, 1989 U.S. LEXIS 648, 57 U.S.L.W. 4180, 16 Media L. Rep. (BNA) 1337 (1989).

489 U.S. 46 (Fort Wayne Books, Inc. v. Indiana) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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