Ruth E. Oscar Charles Spinosa v. University Students Co-Operative Association, George Proper

939 F.2d 808, 91 Daily Journal DAR 13289, 1991 U.S. App. LEXIS 25120
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 29, 1991
Docket90-15750
StatusPublished
Cited by14 cases

This text of 939 F.2d 808 (Ruth E. Oscar Charles Spinosa v. University Students Co-Operative Association, George Proper) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruth E. Oscar Charles Spinosa v. University Students Co-Operative Association, George Proper, 939 F.2d 808, 91 Daily Journal DAR 13289, 1991 U.S. App. LEXIS 25120 (9th Cir. 1991).

Opinions

KOZINSKI, Circuit Judge.

If Berkeley, California, was the last bastion of sixties counterculture, Barrington Hall, the city’s oldest and largest student housing co-operative, was surely the last rampart. While much of Berkeley became stuffy and conventional, the residents of Barrington Hall clung to their freewheeling ways. A bit too freewheeling, according to two of Barrington’s neighbors. They claim that the co-op’s denizens engaged in massive drug-law violations, turning the neighborhood into a drug-enterprise zone. This, they allege, interfered with the use and enjoyment of their property. We consider whether they state a claim under RICO, 18 U.S.C. §§ 1961-1968.1

Facts

Barrington Hall’s reputation was larger than life, even by California standards. Known across the country as a “drug den and anarchist household,” Barrington Hall prided itself on fostering alternative lifestyles. S.F. Chronicle, April 9, 1990, at [810]*810B3, col. 1. Its bizarre and irreverent rituals included nude dinners with themes like Satan’s Village Wine Dinner and the Cannibal Wine Dinner — the latter complete with body-part shaped food. “It was hard on us vegetarians,” sniffed one former resident. Id. at B4, col. 1.

These bacchanalian festivals often turned riotous. Objects, ranging from bottles to clothes dryers, were thrown out of the building into the yards and homes of neighbors. And in keeping with the counterculture motif, drug use and distribution were common: Plaintiffs allege that no fewer than 19 different enterprises and individuals — with colorful names like “Mushroom Dave,” “Icepick Al,” “Onngh Yanngh,” and “Marybeth (a.k.a. Scarymeth)” — used Barrington Hall as a base for dealing drugs such as LSD, heroin and methamphetamine. Third Amended Complaint ¶¶ 21-39, ER 7-11; see also S.F. Chronicle, April 9, 1990, at B4, cols. 1-3 (mentioning the presence of drugs at Barrington Hall).

Even as Berkeley gentrified and grew more conservative, Barrington Hall remained “a place where revolutionary expression was encouraged and often taken to the extreme.” Id. at B3, col. 1. Barrington Hall was, according to the graffiti on its walls, “An Oasis of Madness in a World Gone Sane.” Id. at col. 2-3 (photo).

The neighbors were not amused. They blame Barrington Hall for all sorts of social problems, including crime and litter. They also claim that the co-op’s residents conducted drug deals and posted look-outs in front of plaintiffs’ apartments, bothering them and making it look like they, too, were dealing drugs; and that Barrington’s residents, to avoid publicity and conceal their illegal activity, regularly dumped the bodies of persons suffering drug overdoses onto the sidewalks near neighboring apartments.

Two neighbors, plaintiffs Ruth Oscar and Charles Spinosa, filed this suit, charging that the drug-dealing constituted a racketeering enterprise which injured their property. They asked for triple damages under RICO plus recovery on an assortment of pendent state claims. Barrington Hall itself has since gone the way of love-ins and strawberry wine: Defendant University Students Co-operative Association, which owned and operated Barrington Hall, closed the co-op’s doors in December of 1989. S.F. Chronicle, July 10, 1990, at A3, col. 1. But this suit remains, proving once again that there is strife after death.

Discussion

Under civil RICO, persons injured in their “business or property” by a pattern of racketeering activity can recover treble damages and the cost of suit, including attorney’s fees. 18 U.S.C. §§ 1962(c), 1964(c). Everyone agrees that the repeated sales of narcotics alleged by plaintiffs amounts to a “pattern of racketeering activity.” See 18 U.S.C. § 1961(1)(D), (5). Defendants dispute, however, whether plaintiffs adequately pleaded an injury to business or property, and whether their injury was caused by the racketeering activity. The district court agreed with defendants that causation was not sufficiently pleaded and dismissed the complaint. Plaintiffs declined the opportunity to amend and brought this appeal instead.

I

The first question is whether plaintiffs have alleged an injury to “business or property” that will support a RICO claim. 18 U.S.C. § 1964(c); see Sedima, S.P.R.L. v. Imrex Co., 473 U.S. 479, 495, 105 S.Ct. 3275, 3284, 87 L.Ed.2d 346 (1985).

A. Defendants claim that plaintiffs had no property interest at all, much less one that was injured. They point out that plaintiffs didn’t own their apartments; they merely rented them. See Third Amended Complaint ¶¶ 51-55, ER 14-15 (alleging that plaintiffs have leasehold interest in their apartments and parking spaces). According to defendants, this means that plaintiffs had no property interest that could have been harmed.

While federal law controls most questions under RICO, whether a particu[811]*811lar interest amounts to property is quintessentially a question of state law. See Logan v. Zimmerman Brush Co., 455 U.S. 422, 430, 102 S.Ct. 1148, 1154, 71 L.Ed.2d 265 (1982) (“The hallmark of property ... is an individual entitlement grounded in state law....”); Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972) (property interests “are created and their dimensions are defined by” sources “such as state law.”); Milens v. Richmond Redev. Agency, 665 F.2d 906, 909 (9th Cir.1982) (“We look to local state law to determine what property rights exist_”). Under California law, lessees such as plaintiffs do have a property interest in their apartments. Venuto v. Owens-Corning Fiberglass Corp., 22 Cal.App.3d 116, 125, 99 Cal.Rptr. 350, 356 (1971); see W.P. Keeton, et al., Prosser and Keeton on the Law of Torts § 87, at 621 (5th ed. 1984) (any interest sufficient to be dignified as a property right — including a tenancy for a term or a week-to-week tenancy — will support action for interference with its enjoyment). Not even the landlord may lawfully interfere with that property right. See Brown Derby Hollywood Corp. v. Hatton, 61 Cal.2d 855, 858, 395 P.2d 896, 898, 40 Cal.Rptr. 848, 850 (1964) (tenant right to possession and enjoyment). This makes sense. One who has paid to use and possess property — even if only for a limited time — is entitled to it for that period and state law protects that right from unjustified interference.2

Of course, the limited nature of plaintiffs’ property right will affect the amount of their recovery; they are entitled to compensation only for the loss of “market value of [their] term, but not for that of the reversion, in which [they had] no interest.” W.P. Keeton, supra § 87, at 621 (footnotes omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lew v. SUPERIOR COURT OF ALAMEDA CTY.
20 Cal. App. 4th 866 (California Court of Appeal, 1993)
Bieter Co. v. Blomquist
987 F.2d 1319 (Eighth Circuit, 1993)
Kingston Square Tenants Ass'n v. Tuskegee Gardens, Ltd.
792 F. Supp. 1566 (S.D. Florida, 1992)
Shields v. Keating
782 F. Supp. 1382 (D. Arizona, 1991)
In Re American Continental/Lincoln S & L SEC. Lit.
782 F. Supp. 1382 (D. Arizona, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
939 F.2d 808, 91 Daily Journal DAR 13289, 1991 U.S. App. LEXIS 25120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruth-e-oscar-charles-spinosa-v-university-students-co-operative-ca9-1991.