Jerry Kubecka, Inc. v. Avellino

898 F. Supp. 963, 1995 WL 540055
CourtDistrict Court, E.D. New York
DecidedAugust 30, 1995
DocketCV 94-3022
StatusPublished
Cited by12 cases

This text of 898 F. Supp. 963 (Jerry Kubecka, Inc. v. Avellino) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jerry Kubecka, Inc. v. Avellino, 898 F. Supp. 963, 1995 WL 540055 (E.D.N.Y. 1995).

Opinion

AMENDED MEMORANDUM AND ORDER

NICKERSON, District Judge:

Plaintiffs brought this action against defendants alleging four claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. §§ 1961-1968, and five New York state law claims.

The plaintiffs consist of two New York corporations and three individuals. Plaintiff Jerry Kubecka is the sole shareholder of the two corporations, Jerry Kubecka, Inc. and Robert M. Kubecka, Inc., referred to hereafter as the Kubecka Corporations. The other two individual plaintiffs are Nina S. Kubecka and Cathy Lynn Kubecka-Barstow. Each sues both individually and as the personal representative of her deceased husband and administratrix of his estate.

The defendants are two individuals, Salvatore Avellino and Anthony Casso, high ranking members of the Lucchese Organized Crime Family (the Lucchese Family), and two New York corporations, SSC Corporation and Salem Sanitary Carting Corporation (Salem Corporation), both allegedly operated and controlled by Avellino.

The complaint alleges, in substance, the following.

Avellino, acting for himself and SSC Corporation and Salem Corporation, and Casso ordered or approved the murders on August 10,1989 of the two decedents, Robert Kubec-ka and Donald Barstow. These murders were charged as predicate acts in a sealed 1990 indictment of Avellino, Casso, and others, asserting violations of RICO. On February 17, 1994, Avellino pleaded guilty to conspiring to commit the murders. Avellino also committed various other RICO predicate acts, including the extortion of the Kubeckas, Barstow, and the Kubecka Corporations.

SSC Corporation and Salem Corporation, both controlled by Avellino, and the Kubecka Corporations were engaged in the Long Island carting industry, which Avellino allegedly controlled. Avellino, Casso and others sought to stop the Kubeckas and the Kubec-ka Corporations from soliciting garbage disposal contracts at stops historically “belonging” to other carters. As retribution for the assistance given by Robert Kubecka and Barstow to prosecuting officials investigating organized crime’s control of the Long Island carting industry, Avellino and Casso arranged and directed the murders. *967 The defendants and others comprise a group of individuals and entities associated in fact and constitute a RICO “enterprise,” characterized in the complaint as the Cartel Enterprise. Avellino and Casso conducted and participated in the conduct of the enterprise, which had as its purposes the control of the Long Island carting industry and the obstruction of law enforcement efforts to uncover and prosecute the crimes of the members of the Cartel Enterprise. The crimes described in the complaint constituted a RICO “pattern of racketeering activity.” Avellino and Casso directed all of these criminal activities.

The murders injured the Kubecka Corporations by eliminating the executives conducting and supervising their business and by compelling the corporations to cease their business operations and sell their assets at a distress price.

The murders injured the business and property of the individual plaintiffs because they lost the decedents’ future earnings, as well as the profits and dividends from the Kubecka Corporations, lost the value of the assets of the Kubecka Corporations sold at a distress price, and lost the funds expended for security measures to protect the individual plaintiffs and their families from Avellino, Casso and their associates.

The Lucchese Family is also a RICO “enterprise.” Avellino and Casso conducted and participated in the conduct of the Lucchese Family through the foregoing alleged pattern of racketeering activity.

Each of the widows in her capacity as personal representative and administratrix asserts New. York state law claims for battery of her husband and for his wrongful death. Jerry Kubecka brings a claim for loss of the services of his son Robert M. Kubecka.

The complaint also alleges under the heading of “statute of limitations avoided” that Avellino and Casso used fraudulent and violent means to conceal their involvement in the murders so that plaintiffs were unable to learn the facts of their claims against the defendants until Avellino and Casso were indicted, the public media reported testimony of a witness who had withdrawn from the Lucchese Family, and Avellino had pleaded guilty to the murders.

Plaintiffs seek .treble damages on the RICO claims and actual damages plus $10,-000,000 punitive damages on the state law claims.

The defendants Avellino, SSC Corporation, and Salem Corporation have moved to dismiss the complaint as insufficient on its face and barred by the applicable statutes of limitations. The plaintiffs have moved for a default judgment against Casso and for summary judgment on the RICO claims.

STANDING OF INDIVIDUAL PLAINTIFFS TO BRING RICO CLAIMS

The RICO claims of the individual plaintiffs, the two administratrices and Jerry Kubecka, assert that they have been injured in their business and property by the murders, the administratrices because they lost the decedents’ future earnings, and Jerry Kubecka because he has had a loss of profits and dividends from the Kubecka Corporations, and a loss due to the sale of the assets of those corporations at a distress price. All the individual plaintiffs claim a loss because they incurred expenses to protect themselves and their families against Avellino and Casso.

The RICO statute provides, in pertinent part, 18 U.S.C. § 1964(c), that any person “injured in his business or property by reason of a violation” of RICO “may sue therefor” and recover threefold the damages sustained, plus costs and a reasonable attorney’s fee.

The moving defendants say that the individual plaintiffs lack standing to bring the RICO claims.

The analysis of § 1964(c) by the Supreme Court in Holmes v. Securities Investor Protection Corp., 503 U.S. 258, 112 S.Ct. 1311, 117 L.Ed.2d 532 (1992), makes it clear .that Jerry Kubecka may not recover under that section. As Justice Souter’s opinion states, one could read the section to mean that a plaintiff who sustains an injury to his property may recover simply on a showing that the defendant violated RICO, the plaintiff was injured, and the defendant’s violation was a *968 “but for” cause of the injury. Id. at 264-66, 112 S.Ct. at 1316. Jerry Kubecka, as sole shareholder of both the Kubecka Corporations, would presumably have a RICO claim under such a reading. His corporations were injured by elimination of their two key executives, and, according to the complaint, his property interest in the value of the corporations whose stock he owned was thereby diminished.

The Holmes decision rejects such an expansive reading.

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Bluebook (online)
898 F. Supp. 963, 1995 WL 540055, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jerry-kubecka-inc-v-avellino-nyed-1995.