Roma Construction Company and Peter Zanni v. Ralph R. Arusso

96 F.3d 566, 1996 U.S. App. LEXIS 25442, 1996 WL 539224
CourtCourt of Appeals for the First Circuit
DecidedSeptember 27, 1996
Docket95-2107
StatusPublished
Cited by120 cases

This text of 96 F.3d 566 (Roma Construction Company and Peter Zanni v. Ralph R. Arusso) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roma Construction Company and Peter Zanni v. Ralph R. Arusso, 96 F.3d 566, 1996 U.S. App. LEXIS 25442, 1996 WL 539224 (1st Cir. 1996).

Opinions

TORRUELLA, Chief Judge.

Plaintiffs-Appellants Roma Construction Co, Inc. (“Roma”) and Peter Zanni (“Peter Zanni”) (collectively, “the plaintiffs”), challenge the district court’s dismissal of their claims against Defendants-Appellees Mayor Ralph R. aRusso (“aRusso”), Councilman Benjamin Zanni (“Benjamin Zanni”), Dómen-te DeConte, Vincent Iannazi, Anthony Izzo, et al. (collectively, “the individual defendants”), and the Town of Johnston, Rhode Island (“the Town”) (together with the individual defendants, “the defendants”). Specifically, the district court granted judgment on the pleadings regarding: (1) Roma’s racketeering claims against the individual defendants and the Town under the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1964(a), and R.I. Gen. Laws § 7-15-1 et seq. (“state RICO”); and (2) Roma’s civil rights claims against the individual defendants and the Town under 42 U.S.C. § 1983. Roma also challenges the district court’s decision to deny the pro hac vice admission of attorney G. Robert Blakey (“Blakey”). For the following reasons, we reverse the dismissal of the RICO, state RICO and civil rights claims, reverse the district court’s decision not to admit Blakey, and we remand for further proceedings in accordance with this opinion.

I. BACKGROUND

We review dismissals pursuant to Fed.R.Civ.P. 12(b)(6) under the rubric that all reasonable inferences from properly pleaded facts are to be drawn in the plaintiffs’ favor. Pérez-Ruiz v. Crespo-Guillén, 25 F.3d 40, 42 (1st Cir.1994); Dartmouth Review v. Dartmouth College, 889 F.2d 13, 16 (1st Cir.1989).

Drawing all reasonable inferences for the plaintiffs, the tale proceeds as follows. The plaintiffs Peter Zanni and Roma entered into a real estate development venture with Harry and Russell DePetriUo (“the DePetrillos”). Unknown to the plaintiffs, the DePetrillos had entered into an arrangement with the alleged de facto government of the Town, with aRusso as “the Boss,” under which payments would be made to this enterprise in order to obtain necessary approvals. After the DePetrillos sold their share, Peter Zanni was informed of this preexisting deal, and was warned that his project was “dead” if he did not make payments. Having invested heavily in the project, and reasonably believing that he was dealing with a racketeering enterprise that had extorted and stolen for years during its control of the Town, Peter Zanni paid up. He continued paying for three years, until he was able to sell his share of the development. He then informed the FBI, and cooperated with its investigation and later with prosecutions of official corruption in the Town.

Peter Zanni and Roma brought federal and state civil racketeering claims and federal civil rights claims, charging that they were injured by the conduct of aRusso and his fellow individual defendants, as well as the Town. The district court dismissed these charges on the grounds that the plaintiffs’ own conduct rendered them unable to maintain standing to press their claims. The plaintiffs appeal the dismissals of their racke[569]*569teering1 and civil rights claims, as well as the district court’s decision to deny the pro hoc vice admission of their desired counsel, G. Robert Blakey (“Blakey”).

II. DISCUSSION

We address first the plaintiffs’ challenge to the dismissals of their causes of action, and then confront their appeal of the district court’s decision to deny admission to Blakey.

A. Causes of Action

After setting forth the applicable standard of review, we turn first to the plaintiffs’ challenge to the district court’s dismissal of their racketeering claims. We then shift to the issue of the plaintiffs’ section 1983 claims.

1. Standard of Review

Upon considering a motion to dismiss for failure to state a claim under Fed.R.Civ.P. 12(b)(6), the district court should not grant the motion unless it appears to a certainty that the plaintiff would be unable to recover under any set of facts. Hospital Bldg. Co. v. Trustees of Rex Hosp., 425 U.S. 738, 746, 96 S.Ct. 1848, 1853, 48 L.Ed.2d 388 (1976); González-Bernal v. United States, 907 F.2d 246, 248 (1st Cir.1990). We review under the same standard, Holt Civic Club v. City of Tuscaloosa, 439 U.S. 60, 66, 99 S.Ct. 383, 387-88, 58 L.Ed.2d 292 (1978).

2. The Racketeering Claims

RICO creates a civil remedy for “[a]ny person injured in his business or property by reason of a violation of section 1962 of this chapter.” 18 U.S.C. § 1964(c). Subsection (c) of section 1962, in turn, declares that it is unlawful “for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity or collection of unlawful debt.” Id. § 1962(e). An “enterprise” is defined to include “any individual, partnership, corporation, association or other legal entity, and any union or group of individuals associated in fact although not a legal entity.” Id. § 1961(4). “Racketeering activity” includes any one of a number of enumerated criminal acts indictable under federal or state law. See id. § 1961(1). A “ ‘pattern of racketeering activity’ requires at least two acts of racketeering activity ... the last of which occurred within ten years ... after the commission of a prior act of racketeering activity.” Id. § 1961(5).

The district court dismissed the plaintiffs’ civil RICO claims on the ground that, by their own pleadings, plaintiffs were not innocent victims and therefore could not maintain civil RICO standing. The district court found support for the proposition that only innocent victims could collect damages via civil RICO in the legislative history of the provision. See Organized Crime Control: Hearings on S. 30 Before the Subcomm. No. 5 of the House Committee on the Judiciary, 91st Cong., 2d. Sess. (1970) (stating, in the Act’s “Findings and Purpose,” that “Congress finds that ... organized crime activity in the United States harms innocent investors and competing organizations”); 116 Cong. Rec. H35,346-47 (Oct. 7, 1970) (statement of Rep. Steiger, the private civñ remedy provision’s sponsor) (“It is the intent of this body, I am certain, to see that innocent parties who are the victims of organized crime have a right to obtain proper redress.”). The district court’s reasoning can be better delineated in conjunction with a recitation of plaintiffs’ claims. Drawing inferences in favor of the plaintiffs, their pleadings suggest the following situation.

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Bluebook (online)
96 F.3d 566, 1996 U.S. App. LEXIS 25442, 1996 WL 539224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roma-construction-company-and-peter-zanni-v-ralph-r-arusso-ca1-1996.