Medical Marijuana, Inc. v. Horn

604 U.S. 593, 145 S. Ct. 931
Supreme Court of the United States·Decided April 2, 2025·No. 23-365·Published·Cited by 19 cases

Opinions

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

Syllabus

MEDICAL MARIJUANA, INC., ET AL. v. HORN

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT

No. 23–365. Argued October 15, 2024—Decided April 2, 2025

Seeking relief from his accident-related chronic pain, Douglas Horn purchased and began taking “Dixie X,” a purportedly THC-free, non-psychoactive CBD tincture produced by Medical Marijuana, Inc. A few weeks later, however, Horn’s employer selected him for random drug screening, and Horn tested positive for THC. After he refused to participate in a substance abuse program, his employer fired him. Horn then sued Medical Marijuana under the Racketeer Influenced and Corrupt Organizations Act (RICO), which creates a cause of action for “[a]ny person injured in his business or property” by reason of a criminal RICO violation. 18 U. S. C. §1964(c). The District Court granted summary judgment to Medical Marijuana. Horn’s lost employment derived from a personal injury (ingesting THC), the court reasoned. And in the court’s view, §1964(c) forecloses recovery not only for personal injuries, but also for business or property harms that result from such injuries. The Second Circuit reversed, concluding that Horn had been “injured in his business” when he lost his job. In so holding, the Second Circuit rejected the “antecedent-personal-injury bar,” a rule adopted by several circuits that precludes recovery for business or property losses that derive from a personal injury. Held: Under civil RICO, §1964(c), a plaintiff may seek treble damages for business or property loss even if the loss resulted from a personal injury. Pp. 4–19.

(a) The sole question before the Court is whether civil RICO categorically bars recovery for business or property losses that derive from a personal injury. The Court does not address issues implicated by this case but outside the scope of the question presented, i.e., whether Horn suffered a personal injury when he consumed THC, whether the term

“business” encompasses all aspects of “employment,” and what “injured in his . . . property” means for purposes of §1964(c). Pp. 4–5.

(b) Section 1964(c) provides that “[a]ny person injured in his business or property by reason of a violation of [RICO] may sue . . . .” The ordinary meaning of “injure” is to “cause harm or damage to” or to “hurt.” American Heritage Dictionary 676. So the meaning of §1964(c) is straightforward: A plaintiff has been “injured in his business or property” if his business or property has been harmed or damaged.

Even so, §1964(c) does not allow recovery for all harms. By explicitly permitting recovery for harms to business and property, §1964(c) implicitly excludes recovery for harm to one’s person. But the business or property requirement operates with respect to the kinds of harm for which the plaintiff can recover, not the cause of the harm for which he seeks relief. For example, a gas station owner beaten in a robbery cannot recover for his pain and suffering. But if injuries from the robbery force him to shut his doors, he can recover for the loss of his business . A plaintiff can seek damages for business or property loss, in other words, regardless of whether the loss resulted from a personal injury. Pp. 5–6.

(c) Medical Marijuana argues that while “injury” ordinarily means harm, it can also refer to the “invasion of a legal right.” Ballentine’s Law Dictionary 627. Seizing on the latter definition, Medical Marijuana asserts that “injured in his business or property” means “suffered an invasion of a business or property right”—i.e., a business or property tort. And Medical Marijuana contends that the invasion of a personal right never gives rise to a RICO claim. So if a personal-injury tort causes a business or property harm, the plaintiff “cannot recast” his harm “as the basis for a RICO suit.”

Medical Marijuana in effect tries to make a term-of-art argument without the term of art. True, “injury” can mean the “invasion of a legal right,” but even legal dictionaries confirm that “injury” often means “harm” or “damage.” In any event, when a word carries both an ordinary and specialized meaning, context determines the choice between them. Here, context favors ordinary meaning. The statute uses “injured,” not “injury,” and the dictionary Medical Marijuana relies on defines “injured” only according to its ordinary meaning. And Medical Marijuana’s argument based on the presence of the word “damages” in §1964(c) is untenable. The phrase “threefold the damages he sustains” refers to monetary redress—i.e., a plaintiff may recover triple the amount that makes him whole. Pp. 6–9.

(d) Medical Marijuana ignores the many cases in which the Court has used the words “injury,” “harm,” and other terms connoting loss interchangeably. See, e.g., Sedima, S. P. R. L. v. Imrex Co., 473 U. S. 479, 497 (“[T]he compensable injury necessarily is the harm caused by

predicate acts sufficiently related to constitute a pattern”); Anza v. Ideal Steel Supply Corp., 547 U. S. 451, 457; Hemi Group, LLC v. City of New York, 559 U. S. 1, 12. Medical Marijuana’s tort-centric definition of “injured” also stands in significant tension with the Court’s holding in Yegiazaryan v. Smagin, 599 U. S. 533. In Yegiazaryan the Court addressed the circumstances in which injuries to property qualify as “domestic” and thus provide a basis for recovery under §1964(c). Yegiazaryan urged the Court to rely on common-law principles governing “ ‘the situs’ ” of economic and property injuries. Id., at 546–547. After questioning whether such common-law principles were even “germane” to §1964(c), the Court rejected their application and instead adopted a contextual inquiry. Id., at 544. In other words, the Court rejected an appeal to rely on the common law, deeming that approach inconsistent with “the thrust of §1964(c).” Id., at 548. The Court reaches the same conclusion here. Pp. 9–11.

(e) While Medical Marijuana insists that the Court’s antitrust precedent settles the question, its reliance on antitrust law is misplaced. For one, antitrust law does not require plaintiffs to allege business or property injuries that track common-law torts. And for another, the Court has long recognized that the Clayton Act’s and §1964(c)’s injury requirements are not “interchangeable.” RJR Nabisco, Inc. v. European Community, 579 U. S. 325, 352. Pp. 11–13.

(f) Medical Marijuana offers little guidance about how courts should assess whether a plaintiff has suffered a qualifying legal injury. In fact, the conclusions Medical Marijuana draws from its own hypotheticals rely on pure ipse dixit. It admits, for example, that draining a bank account using a computer password obtained by violence injures the account holder’s property; it concedes that §1964(c) allows recovery for a ransom payment despite the antecedent kidnapping; and it insists that a human-trafficking victim can sue for her business or property harm despite it resulting from her captivity. But if an antecedent- personal-injury bar exists, it is unclear why any of these plaintiffs can recover for their losses.

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Medical Marijuana, Inc. v. Horn, 604 U.S. 593, 145 S. Ct. 931 (2025).

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