anza et al ideal steel supply argued march decided june racketeer influenced corrupt organizations act rico prohibits certain conduct involving pattern racketeering activity makes private right action available ny person injured business property reason violation rico substantive restrictions provided alleged violation proximate cause injury holmes securities investor protection corporation respondent ideal steel supply corporation ideal stores queens bronx petitioner national steel supply national owned petitioners joseph vincent anza stores locations ideal principal competitor ideal filed suit district claiming national failed charge new york sales tax customers allowing reduce prices without affecting profit margin submitted fraudulent state tax returns conceal conduct involved committing mail wire fraud forms racketeering activity rico ideal alleged anzas violated forbids conducting participating conduct enterprise affairs pattern racketeering activity also claimed petitioners violated makes unlawful person use invest income derived pattern racketeering activity enterprise engaged affecting interstate foreign commerce used funds generated fraudulent tax scheme open national bronx location causing ideal lose business market share district granted petitioners motion dismiss federal rule civil procedure concluding ideal shown reliance petitioners misrepresentations required rico mail wire fraud claims vacating second circuit held regard claim complaint alleging pattern racketeering activity designed give defendant competitive advantage adequately pleaded probable cause even scheme depended fraudulent communications made third party held ideal adequately pleaded claim alleging injury resulting petitioners use investment racketeering proceeds held ideal maintain claim holmes proximate cause purposes requires direct relation injury asserted injurious conduct alleged direct victim alleged rico violation state new york ideal ideal claim attenuated satisfy holmes requirement directness result confirmed directness requirement underlying premises one difficulty arise attempts ascertain damages caused remote action ideal claims lost sales national decreased prices national lowered prices reasons unrelated asserted tax fraud ideal lost sales resulted factors well attenuated connection ideal injury anzas injurious conduct thus implicates fundamental concerns expressed holmes illustrating absence proximate cause speculative nature proceedings follow ideal permitted maintain claim calculate portion national price drop attributable pattern racketeering activity calculate portion lost sales attributable relevant part price drop holmes proximate causation element meant prevent intricate uncertain inquiries overrunning rico litigation direct causal connection especially warranted immediate victims expected vindicate laws pursuing claims contrary second circuit rationale rico plaintiff circumvent requirement simply claiming defendant aim increase market share competitor expense ideal satisfied requirement occasion address substantial question whether plaintiff asserting rico claim predicated mail wire fraud must show relied defendant misrepresentations pp second circuit judgment respect ideal claim vacated determine remand whether petitioners alleged violation proximately caused ideal asserted injuries pp reversed part vacated part remanded kennedy delivered opinion roberts stevens scalia souter ginsburg alito joined thomas joined part iii scalia filed concurring opinion thomas breyer filed opinions concurring part dissenting part joseph anza et petitioners ideal steel supply writ certiorari appeals second circuit june justice kennedy delivered opinion racketeer influenced corrupt organizations act rico ed supp iii prohibits certain conduct involving pattern racketeering activity one rico enforcement mechanisms private right action available ny person injured business property reason violation act substantive restrictions holmes securities investor protection corporation held plaintiff may sue alleged rico violation proximate cause plaintiff injury instant case requires us apply principles discussed holmes dispute two competing businesses case arises motion dismiss accept true factual allegations amended complaint see leatherman tarrant county narcotics intelligence coordination unit respondent ideal steel supply corporation ideal sells steel mill products along related supplies services operates two store locations new york one queens bronx petitioner national steel supply national owned petitioners joseph vincent anza ideal principal competitor national offers similar array products services operates one store queens one bronx ideal sued petitioners district southern district new york claimed petitioners engaged unlawful racketeering scheme aimed gain ing sales market share ideal expense app according ideal national adopted practice failing charge requisite new york sales tax customers even conducting transactions exempt sales tax state law practice allowed national reduce prices without affecting profit margin petitioners allegedly submitted fraudulent tax returns new york state department taxation finance effort conceal conduct ideal amended complaint contains relevant two rico claims claims assert petitioners submitting fraudulent tax returns committed various acts mail fraud sent returns mail wire fraud sent electronically see supp iii mail fraud wire fraud forms racketeering activity purposes rico petitioners conduct allegedly constituted pattern racketeering activity see ed fraudulent returns submitted ongoing regular basis ideal asserts first cause action joseph vincent anza violated makes unlawful person employed associated enterprise engaged activities affect interstate foreign commerce conduct participate directly indirectly conduct enterprise affairs pattern racketeering activity collection unlawful debt complaint anzas goal achieved give national competitive advantage ideal second cause action asserted three petitioners alleges violation makes unlawful person received income derived pattern racketeering activity use invest income acquisition interest establishment operation enterprise engaged affecting interstate foreign commerce described complaint petitioners used funds generated fraudulent tax scheme open national bronx location opening new facility caused ideal lose significant business market share app petitioners moved dismiss ideal complaint federal rules civil procedure district granted rule motion holding complaint failed state claim upon relief granted began proposition assert rico claim predicated mail fraud wire fraud plaintiff must relied defendant misrepresentations ideal alleged relied petitioners false tax returns concluded ideal go forward rico claims ideal appealed appeals second circuit vacated district judgment addressing ideal claim held complaint alleges pattern racketeering activity intended give defendant competitive advantage plaintiff complaint adequately pleads proximate cause plaintiff standing pursue civil rico claim case explained even scheme depended fraudulent communications directed relied third party rather plaintiff ibid reached conclusion respect ideal claim reasoned ideal adequately pleaded claim alleged injury reason petitioners use investment racketeering proceeds distinct injury traceable simply predicate acts racketeering alone conduct business enterprise granted certiorari ii analysis begins become evident largely ends holmes case arose complaint filed securities investor protection corporation sipc private corporation duty reimburse customers registered became unable meet financial obligations sipc claimed petitioner robert holmes conspired others manipulate stock prices market detected fraud share prices plummeted decline caused two financial difficulties resulting eventual liquidation sipc advance nearly million cover customers claims sipc sued several theories including holmes participated conduct enterprise affairs pattern racketeering activity violation conspired violation held sipc maintain rico claims holmes alleged role scheme decision relied careful interpretation provides civil cause action persons injured reason defendant rico violation recognized phrase reason read broadly require merely claimed violation cause plaintiff injury rejected reading however noting unlikelihood congress meant allow factually injured plaintiffs recover proper interpretation required consideration statutory history revealed congress modeled provision federal antitrust laws clayton act associated gen contractors carpenters held plaintiff right sue required showing defendant violation cause injury proximate cause well holmes supra citing associated gen contractors supra reasoning noted holmes applies readily holmes turned foundations requirement specifically demand direct relation injury asserted injurious conduct alleged ibid concluded even sipc subrogated rights certain aggrieved customers rico claims satisfy requirement directness deficiency explained link remote stock manipulation alleged customers harm purely contingent harm suffered applying principles holmes present case conclude ideal maintain claim based section noted forbids conducting participating conduct enterprise affairs pattern racketeering activity indicated compensable injury flowing violation provision necessarily harm caused predicate acts sufficiently related constitute pattern essence violation commission acts connection conduct enterprise sedima imrex ideal theory joseph vincent anza harmed defrauding new york tax authority using proceeds fraud offer lower prices designed attract customers rico violation alleged ideal anzas conducted national affairs pattern mail fraud wire fraud direct victim conduct state new york ideal state defrauded state lost tax revenue result proper referent analysis alleged practice conducting national business pattern defrauding state sure ideal asserts suffered harms anzas failed charge customers applicable sales tax cause ideal asserted harms however set actions offering lower prices entirely distinct alleged rico violation defrauding state attenuation plaintiff harms claimed rico violation arises different source case holmes alleged violations linked asserted harms inability meet financial obligations nevertheless absence proximate causation equally clear cases conclusion confirmed considering directness requirement underlying premises see one motivating principle difficulty arise attempts ascertain damages caused remote action see less direct injury difficult becomes ascertain amount plaintiff damages attributable violation distinct independent factors instant case illustrative injury ideal alleges loss sales resulting national decreased prices customers national however lowered prices number reasons unconnected asserted pattern fraud may received cash inflow source concluded additional sales justify smaller profit margin lowering prices sense required defraud state tax authority likewise fact company commits tax fraud mean company lower prices additional cash go anywhere asset acquisition research development dividend payouts cf simply pay bills intervening insolvency connects conspirators acts losses suffered nonpurchasing customers general creditors addition second discontinuity rico violation asserted injury ideal lost sales resulted factors petitioners alleged acts fraud businesses lose gain customers many reasons require complex assessment establish portion ideal lost sales product national decreased prices cf nonpurchasing customers allowed sue district first need determine extent inability collect result alleged conspiracy manipulate opposed say poor business practices failures anticipate developments financial markets attenuated connection ideal injury anzas injurious conduct thus implicates fundamental concerns expressed holmes notwithstanding lack appreciable risk duplicative recoveries another consideration relevant inquiry see concerns help illustrate ideal alleged injury direct result rico violation illustrating point speculative nature proceedings follow ideal permitted maintain claim considering claim need begin calculating portion national price drop attributable alleged pattern racketeering activity next calculate portion ideal lost sales attributable relevant part price drop element proximate causation recognized holmes meant prevent types intricate uncertain inquiries overrunning rico litigation particular resonance applied claims brought economic competitors left unchecked blur line rico antitrust laws requirement direct causal connection especially warranted immediate victims alleged rico violation expected vindicate laws pursuing claims see irectly injured victims generally counted vindicate law private attorneys general without problems attendant upon suits plaintiffs injured remotely instant case instructive ideal accuses anzas defrauding state new york substantial amount money allegations true state expected pursue appropriate remedies adjudication state claims moreover relatively straightforward may difficult determine facts number sales ideal lost due national tax practices considerably easier make initial calculation much tax revenue anzas withheld state need broaden universe actionable harms permit rico suits parties injured indirectly appeals reached contrary conclusion apparently reasoning anzas allegedly sought gain competitive advantage ideal immaterial whether took indirect route accomplish goal see rationale accord holmes rico plaintiff circumvent requirement simply claiming defendant aim increase market share competitor expense see associated gen contractors also satisfied allegation improper motive panacea enable complaint withstand motion dismiss evaluates rico claim proximate causation central question must ask whether alleged violation led directly plaintiff injuries instant case answer hold ideal claim satisfy requirement proximate causation petitioners alternatively ask us hold line district decision granting petitioners motion dismiss plaintiff may assert rico claim predicated mail fraud wire fraud unless demonstrates relied defendant misrepresentations argue rico private right action must interpreted light principles common law fraud action requires plaintiff prove reliance ideal satisfied requirement articulated holmes occasion address substantial question whether showing reliance required cf iii amended complaint also asserts rico claim based violation claim alleges petitioners tax scheme provided funds open new store bronx attracted customers otherwise purchased ideal petitioners contend analysis function identically purposes ideal claim claim petitioners also contend civil rico plaintiff plead injury proximately caused violation merely alleging corporate defendant reinvested profits back brief petitioners argument developed decline address true private actions violations like actions violations must asserted likewise true claim cognizable defendant alleged violation proximately caused plaintiff injury inquiry however requires careful consideration relation injury asserted injurious conduct alleged holmes supra set forth distinct prohibitions least debatable whether ideal two claims analyzed identical fashion purposes appeals held ideal adequately pleaded claim see address proximate causation decline consider ideal claim without benefit appeals analysis particularly given parties devoted nearly attention claim therefore vacate appeals judgment respect ideal claim remand determine whether petitioners alleged violation proximately caused injuries ideal asserts judgment appeals reversed part vacated part case remanded proceedings consistent opinion ordered joseph anza et petitioners ideal steel supply writ certiorari appeals second circuit june justice scalia concurring join opinion also note inconceivable injury alleged claim issue within zone interests protected rico cause action fraud perpetrated upon new york state see holmes securities investor protection corporation scalia concurring judgment joseph anza et petitioners ideal steel supply writ certiorari appeals second circuit june justice thomas concurring part dissenting part today limits lawsuits may brought civil enforcement provision racketeer influenced corrupt organizations act rico act et seq ed supp iii adopting theory proximate causation supported neither act decision holmes securities investor protection corporation principally relies stringent requirement succeeds precluding recovery cases alleging violation like present one nothing organized crime target rico statute however approach also eliminates recovery plaintiffs whose injuries precisely congress aimed remedy authorization civil rico suits frustration congressional intent directly contrary broad language congress employed confer rico cause action respectfully dissent part ii opinion language civil rico provision broadly permits recovery ny person injured business property reason violation act substantive restrictions ed plainly covers lawsuit brought respondent respondent alleges injured business injury direct result petitioners violation app holmes however held rico plaintiff required show rico violation cause injury proximate cause well employed term cause label generically judicial tools used limit person responsibility consequences person acts ibid tools reflect justice demands administratively possible convenient ibid quoting keeton dobbs keeton owen prosser keeton law torts ed hereinafter prosser keeton invoking one considerations held rico plaintiff must prove direct relation injury asserted injurious conduct alleged today applies formulation proximate causation conclude attenuated uncertain relationship violation ideal injury consistent holmes demand directness sustain ideal claim ante determination relies theory directness distinct adopted holmes holmes explained plaintiff complained harm flowing merely misfortunes visited upon third person defendant acts generally said stand remote distance recover plaintiff holmes indirect precisely sense defendant alleged participated stock manipulation scheme disabled two meeting obligations customers accordingly plaintiff securities investor protection corporation sipc advance nearly million cover claims customers sipc attempted sue based claim subrogated rights customers purchase manipulated securities held nonpurchasing customers injury proximately caused defendant conduct conspirators allegedly injured customers insofar stock manipulation first injured left without wherewithal pay customers claims contrast new york injury caused respondent damages rather petitioners conduct namely underpayment tax permitted undercut respondent prices thereby take away business indeed acknowledgment appreciable risk duplicative recovery contrast holmes ante effectively concession petitioners damages indirect term used holmes see ecognizing claims indirectly injured force courts adopt complicated rules apportioning damages among plaintiffs removed different levels injury violative acts obviate risk multiple recoveries mere fact new york direct victim petitioners rico violation preclude ideal claim direct victim petitioners tax underpayment directly caused respondent injury holmes bar respondent recovery nonetheless contends respondent failed demonstrate proximate cause relying observation holmes directness requirement appropriate less direct injury difficult becomes ascertain amount plaintiff damages attributable violation distinct independent factors ante quoting holmes supra turn citing associated gen contractors carpenters holmes noted hard district determine much failure pay customers due fraud much due factors affecting business success contends holmes difficult ascertain damages caused remote action ante reliance difficulty ascertaining amount ideal damages caused petitioners unlawful acts label damages indirect misguided holmes associated general contractors simply held one reason indirect injuries compensable injuries difficult ascertain holmes supra associated general contractors supra adopt converse proposition injuries difficult ascertain must classified indirect purposes determining proximate proximate cause certainty damages related plaintiff responsibility prove amount damages seeks fairly attributable defendant distinct requirements recovery see restatement second torts certainty damages proximate causation recover plaintiff must show injury sufficiently connected tort moral judgment practical sense mankind recognize responsibility domain morals sutherland specific pecuniary advantages loss alleged damages resulted therefore act complained prevented holmes associated general contractors dealt primarily former showing discussion union highly speculative damages associated general contractors focused difficulty proving precise amount damages tenuous speculative character relationship alleged antitrust violation union alleged injury relationship alleged rico violation alleged injury clear petitioners underpaid sales tax permitting undercharge sales tax inflicting competitive injury respondent question expresses concern whether ideal prove amount actual damages sufficient certainty sutherland permit recovery simply nonetheless worth noting overstates difficulties proof faced respondent case certainly plaintiff case tort cases involving damage business must demonstrate suffered harm caused tort merely external market conditions see generally prosser keeton nn gathering cases authorizing liability torts depriv plaintiff customers prospects cf dura pharmaceuticals broudo inflated purchase price constitute proximately cause relevant economic loss absent evidence inflated price actually caused harm facts alleged ideal national generally lower prices need inquire number reasons ante might done instead simply ceased charging tax cash sales allegedly logically ceased reporting sales accordingly paying sales tax app fatal ideal proof damages national continued charge taxes customers invested additional money elsewhere ante national actually done might difficult ascertain damages suffered ideal result investment mere fact national committed tax fraud without readily ascertainable injury ideal mean tax fraud necessarily caused readily ascertainable injury case likewise undoubtedly correct ideal lost sales resulted factors petitioners alleged tax frauds ibid however means fraudulent scheme carried sales tax charged noncash sales tax charged cash sales renders damages ascertainable typical case lost business event well within expertise district evaluate testimony evidence determine portion ideal lost sales attributable national lower prices portion factors also relies additional reason holmes gave limiting recovery direct victims namely requirement direct causal connection especially warranted immediate victims alleged rico violation expected vindicate laws pursuing claims ante citing holmes certainly new york sue vindicate law rendering respondent enforcement law less necessary respondent direct victim illegal activity recognition holmes limiting recovery direct victims undermine deterrence support conclusion victim whose lawsuit unnecessary deterrence indirect victim indeed tort case multiple possible plaintiffs single plaintiff lawsuit suffice vindicate law multiple plaintiffs direct victims tort unjust declare lawsuits unnecessary deterrence absent basis relevant statute respondent injuries result petitioners fraud new york injuries respondent right recover equal new york application principles proximate causation beyond directness requirement likewise supports finding causation sufficiently pleaded case though holmes noted directness one central elements considered evaluating causation recognized proximate causation took many shapes common law cf prosser keeton noting two contrasting theories legal cause one extending liability beyond scope risks extending liability beyond consequences indirect consequences foreseeable limitation serves ensure defendant answerable anything beyond natural ordinary reasonable consequences conduct sutherland one fault happens concur something extraordinary therefore likely foreseen answerable unexpected result ibid based principle courts historically found proximate causation injuries natural causes wrongful act rendered probable injury occur injuries plaintiff reliance immediate cause action fraud long reliance reasonably induced prior misconduct defendant injuries innocent third party intervenes tortfeasor victim innocent third party immediate cause injury long tortfeasor contributed effectually injury regarded efficient least concurrent responsible cause emphasis deleted appeals limiting rico plaintiffs targets competitors intended victims racketeering enterprise quoting lerner fleet bank outlined standard falls well line reasoning behind requirement traditional applications standard tortfeasors caused injury process contrast permits defendant evade liability harms foreseeable intended consequences defendant unlawful behavior defendant may simply concocting scheme lawful intentional step defendant required inflict injury rule precludes recovery injuries defendant plainly morally responsible suffered easily identifiable plaintiffs basis rico statute tort holmes reaching result ii neither plain language civil rico provision precedent supports holding must rejected worth noting however holding present case may prevent litigation area far removed concerns organized crime led rico enactment holding also precludes civil recovery losses sustained business competitors result quintessential organized criminal activity cases congress indisputably intended broad language reach congress plainly enacted rico address problem organized crime remedy general criminal violations see northwestern bell telephone evidence sure drafters knew rico potential sweep broadly organized crime find problematic nevertheless recognized private civil version rico evolving something quite different original conception enactors sedima imrex judicial sentiment civil rico evolution undesirable numerous justices expressed dissatisfaction either breadth rico application marshall joined brennan blackmun powell dissenting interpretation civil rico statute quite simply revolutionizes private litigation validates federalization broad areas state common law frauds approves displacement federal remedial provisions indication congress even considered much less approved scheme today defines general vagueness outlining conduct intended prohibit supra scalia joined rehnquist kennedy concurring judgment constitutional challenge law raised present case highest land unable derive statute anything today meager guidance bodes ill day challenge presented indeed proposals curtailing civil rico introduced congress example private securities litigation reform act enacted removed securities fraud predicate act rico pub stat amending see also abrams crime legislation public interest lessons civil rico smu rev case like majority civil rico cases apparent connection organized crime see sedima quoting aba task force determination period reviewed civil rico cases trial level involved criminal activity type generally associated professional given distance facts case lie prototypical organized criminal activity led rico enactment tempting find act limitation keep least similar cases attempt exclude case reach civil rico however succeeds eliminating cases lie far outside harm rico intended correct also core congress concern enacting statute unanimously recognized sedima one reason dissent principal reason congress enacted rico protect businesses competitive injury organized crime see marshall dissenting concluding provision conferring right action individual plaintiffs principal target economic power racketeers toll legitimate businessmen unanimous view sedima correct sponsor senate precursor rico noted evil curbed unfair competitive advantage inherent large amount illicit income available organized crime marshall dissenting quoting cong rec remarks senator hruska emphasis deleted see also marshall dissenting organized crime moves business brings techniques violence intimidation used illegal businesses competitors eliminated customers confined sponsored upon adding provision civil remedy subsequently proposed bill senator hruska noted bill also creates civil remedies honest businessman damaged unfair competition racketeer businessman despite willingness courts apply sherman act organized crime activities practical matter legitimate businessman adequate civil remedies available act bill fills gap marshall dissenting quoting cong rec emphasis deleted portion bills ultimately included rico attached title ix organized crime control act committee report noted title purpose elimination infiltration organized crime racketeering legitimate organizations operating interstate commerce observations president commission law enforcement administration justice source much congressional concern organized crime consistent statements chapter organized crime noted organized crime also extensively deeply involved legitimate business employs illegitimate methods monopolization terrorism extortion tax evasion drive control lawful ownership leadership exact illegal profits public challenge crime free society report noted millions dollars organized crime throw legitimate economic system gives power manipulate price shares stock market raise lower price retail merchandise determine whether entire industries union nonunion make easier harder businessmen continue business ibid difficult imagine competitive injury business result kind organized crime sedima congress commission recognized principal concern rico yet fail restrictive test example organized crime group running legitimate business threats violence persuade supplier sell goods cost resell goods lower price drive competitor business honest businessmen unable compete engage threats violence lower costs civil rico intended anything intended give businessmen cause action cf sedima marshall dissenting yet like respondent businessmen immediate target threats target supplier like respondent injury injury immediately caused lawful activity price competition unlawful activity threatening supplier accordingly view honest businessman competitor indirect victim whose injury proximately caused rico civil rico thus confer right sue individual suffer threats violence even threats caused harm result today civil rico plaintiffs suffer precisely kind injury motivated adoption civil rico provision unable obtain relief result compelled text statute interference congressional intent unavoidable given language even fairly susceptible reading however agree frustration congressional intent iii conclude ideal sufficiently pleaded proximate cause must proceed question reach whether reliance required element rico claim predicated mail wire fraud whether reliance must plaintiff appeals held reliance required rico claim based mail fraud may proven misrepresentations relied third person rather plaintiff disagree conclusion reliance required view mere fact predicate acts underlying particular rico violation happen fraud offenses mean reliance element fraud also incorporated element civil rico claim petitioners correct common law generally required showing justifiable reliance plaintiff recover damages caused fraud see neder prosser keeton rico confer private plaintiffs right sue defendants engage act fraud instead racketeering activity includes relevant case act indictable relating mail fraud relating wire fraud supp iii recognized criminal fraud statutes incorporate elements fraud neder instead criminal mail fraud statute applies anyone devised intending devise scheme artifice defraud purpose executing scheme artifice attempting places post office matter thing whatever sent delivered postal service see similar language wire fraud specifically noted prohibiting defraud rather completed fraud element reliance clearly inconsistent statutes congress enacted individual commit indictable act mail wire fraud even one relies fraud engage pattern racketeering activity violation without proof reliance accordingly disputed government prosecute person behavior terms ed broadly authorize suit ny person injured business property reason violation section permit different conclusion individual brings civil action rico violator true decision holmes apply proximate cause requirement likewise compelled broad language statute decision case justified unlikelihood congress meant allow factually injured plaintiffs recover unlikelihood stems part nature proximate cause general condition civil liability common law almost essential shape delimit rational remedy systems management loiselle also decided holmes light congress decision use words impose civil liability rico sherman act stat federal courts implied limitation accordingly fair interpret broad language reason meaning civil rico cases violation must proximate cause plaintiff injury contrast civil action provision read always require plaintiff relied defendant action reliance general limitation civil recovery tort specialized condition happens grown common law fraud loiselle supra predicate acts underlying rico violations argued common law even recognized acts civilly actionable required proof reliance see supp iii words language fairly read add reliance requirement fraud cases reason believe congress defined racketeering activity include acts indictable mail wire fraud statutes intended acts predicate acts rico acts actionable common law reliance read rico element civil rico claim say general case plaintiff prove someone relied predicate act fraud part case example new york believed petitioners misrepresentation respect sales ideal may well injured petitioners scheme faltered first step indeed petitioners recognize ordinary misrepresentation case reliance requirement simply functions necessary prerequisite establishing causation required language brief petitioners fact proof reliance often used prove element plaintiff cause action element causation transform reliance element cause action see loiselle supra reliance doubtless obvious way fraud cause harm way respondent need allege reliance complaint alleges new york relied petitioners misrepresentations app sufficient congress enacted rico may never intended reach cases like one us may federalize great deal state common law without intention produc ing results sedima marshall dissenting always refused ignore language statute limit archetypal intimidating mobster instead recognized judiciary eliminate private action situations congress provided simply plaintiffs taking advantage difficult applications today however eliminates private rico actions situations congress may inadvertently regulated substantially limits ability civil rico reach even cases motivated congress enactment provision first place respectfully dissent joseph anza et petitioners ideal steel supply writ certiorari appeals second circuit june justice breyer concurring part dissenting part view civil damages remedy racketeer influenced corrupt organizations act rico ed supp iii cover claims injury one competitor legitimate activity another competitor immediately causes injury believe case consequently hold rico authorize private action issue rico essentially seeks prevent organized criminals taking operating legitimate businesses language however extends scope well beyond central purposes rico begins listing certain predicate acts called activity consist crimes ranging criminal copyright activities facilitation gambling mail fraud arson kidnapping murder defines racketeering include engaging least two predicate acts period forbids certain activities involving pattern enterprise forbidden activities include using funds derived pattern racketeering activity acquiring establishing operating enterprise conducting affairs enterprise pattern rico federal criminal statute foresees criminal law enforcement federal government supp iii also sets forth civil remedies district courts jurisdiction prevent restrain rico violations person injured business property reason rico violation may seek treble damages attorney fees present case private rico action steel supply company ideal steel sued competing steel supply company national steel owners joseph vincent anza shall refer collectively national ideal says national committed mail fraud regularly filing false new york state sales tax returns order avoid paying sales tax owed activity amounts pattern racketeering activity activity enabled national charge lower prices without reducing profit margins ideal says national used excess profits fund building new store lower prices new outlet attracted ideal customers thereby injuring ideal hence says ideal injured business reason violations two rico provisions provision forbids conducting enterprise affairs pattern racketeering activity provision forbids investing funds derived pattern enterprise question us whether rico permits ideal bring private claim ii holmes securities investor protection corporation held rico private provision demand ed direct relation injury asserted injurious conduct alleged determined injury alleged plaintiff case remote injurious conduct satisfy requirement agree majority insofar believes holmes holding respect fact pattern issue virtually dictates answer question view causal connection forbidden conduct plaintiff harm certain key ways direct holmes holmes rico plaintiff surrogate creditors went bankrupt losing money stocks overvalued due fraudulent statements made rico defendant others put terms proximate cause plaintiff harm ordinary creditor loss differed kind harm predicate acts securities fraud ordinarily cause monetary losses harm indirect sense entirely derivative direct harm defendant actions caused several steps violation harm misrepresentation losses business failure ordinary creditor loss however plaintiff alleges harm lost customers flows directly lower prices opening new outlet actions allegedly caused activity congress designed rico forbid conducting business pattern predicate acts investing business funds derived pattern sense causal links us direct holmes see ante thomas concurring part dissenting part nonetheless agree majority holmes points way case makes clear rico contains important limitations scope private rights action specifies rico provide private right action simply showing defendant violated plaintiff injured defendant violation cause plaintiff injury omitted pointing unlikelihood congress meant allow factually injured plaintiffs recover emphasis added holmes concludes rico imposes requirement proximate cause phrase label generically judicial tools used limit person responsibility consequences person acts recognizes tools seek discern justice demands administratively possible convenient ibid quoting keeton dobbs keeton owen prosser keeton law torts ed also explains proximate cause demands directness specifying directness one many shapes concept took common law points antitrust law source rico provisions aid interpretation ibid view antitrust nature provision source taken together rico basic objectives important administrative concerns implies cause indirect proximate cause causal chain forbidden act injury caused competitor proceeds legitimate business ordinary competitive activity use physical metaphor ordinary competitive actions undertaken defendant competitor cut direct causal link plaintiff competitor injuries forbidden acts basic objective antitrust law encourage competitive process particular law encourages businesses compete offering lower prices better products better methods production better systems distribution see areeda hovenkamp antitrust law analysis antitrust principles application pp ed shall explain principles suggest rico permit private action based solely upon competitive type harm harm plaintiff suffers defendant able attract customers normal competitive methods lower prices better products better methods production better systems distribution cases harm falls outside limits rico private provision requirement imposes cases distance harm predicate acts funded otherwise enabled ordinary competitive activity distant harm direct time principles suggest types competitive injuries within protective ambit lie within outside limits example rico defendant attracts customers ways involve illegitimate competitive means threatening violence claim may still lie claims involving rico violations objectively target particular competitor bribing official harass competitor also actionable several considerations lead conclusion first found case outside second circuit case arose authorized private suit based upon legitimate business ordinary activity even financed proceeds rico predicate act second effort bring harm caused ordinary competitive activity within scope rico private action provision raise serious problems administrability ante majority opinion see also holmes supra demonstrate defendant lower price caused plaintiff lose customers profits requires plaintiff show happened absence customers changed suppliers irrespective price change differences suppliers competing firms lowered prices higher prices attracted new entry demand industry product geographic scope relevant market changed answer questions based upon actual market circumstances apportion damages among various competitors harmed difficult even plaintiffs trying trace harm caused defendants behavior associated gen contractors carpenters possibility harm may produced independent factors danger complex apportionment damages weigh finding requisite causal connection antitrust case answer questions context better functioning markets prices typically reflect competitive conditions likely prove yet difficult third victims say victims underlying rico predicate acts present pressing need provide action alternative victims state new york typically counted bring suit law vindication holmes supra thus fulfill congress aim adopting civil remedy turn ing victims prosecutors attorneys general dedicated eliminating racketeering activity rotella wood quoting klehr smith fourth approach proximate cause retain private actions aimed heart congress relevant rico concerns rico sponsors reporting underlying reasons supporting rico emphasized fair ordinary competition infiltrated business might offer competitors risk business act corruptly exercising unfair methods competition pp see also cedric kushner promotions king rico focuses upon infiltration legitimate business organized crime significant part crime moves business brings techniques violence intimidation used illegal businesses sedima imrex marshall dissenting quoting cong rec approach rule private actions cases rule three four suits mentioned justice marshall dissenting sedima describes rico objectives rule lawsuits injured competitors legitimate investors racketeer uses hreats arson assault force competitors uses arson threats induce honest businessmen pay protection money purchase certain goods hire certain workers displace honest investor infiltrates obtains control legitimate business fraud like concede approach rule competitor lawsuit based infiltrated enterprise operating legitimate business businessman competitive disadvantage unlawful predicate acts helped legitimate business build strong economic base recognize latter kind suit least arguably provided helpful deterrence view sedima dissenting justices prevailed marshall dissenting arguing rico private action provision authorize suits based harm flowing directly predicate acts powell dissenting dissent prevail need deterrence consequently offers weakened support reading rico authorizes private suits category fifth without limitation rico enforcement basic antitrust policy well collide firms losing competitive battle might find bases rico attack successful competitors claimed misrepresentations even comparatively minor misdeeds competitor firms fear suits might hesitate compete vigorously particularly concentrated industries harm competitor easily traced consumer need vigorous competition particularly strong ultimate victim tendency pull ordinary competitive punches course competing business consumer although congress intend rico provision simple copy antitrust laws similar remedies see sedima supra sound reason interpret rico provision congress intended set antitrust counterpart reasons read private provision limitation places outside provision harms traceable unlawful act form legitimate competitive activity iii applying approach present case hold neither ideal counts rico private claim national legitimate business another private plaintiff state new york available question whether ideal asserts harm caused directly something ordinary competitive activity lower prices better product better distribution system better production method ideal second count claims injury caused national taken customers attracted new store financed part profits generated tax fraud scheme financing relevant violation opening distribution outlet legitimate competitive activity benefits firm opens making convenient customers purchase supplier ordinary competitive process complaint describes reasons given part ii supra believe financing new store even funds generated unlawful activities sufficient create private cause action long activity funded amounts legitimate competitive activity ideal must look remedies bringing facts attention attorney state new york ideal first count presents difficult question alleges national filed false sales tax returns state new york action indictable federal mail fraud statute action predicate act rico see supp iii national passed savings cash customers charging sales tax thereby attracting cash customers without scheme form injury caused ordinary competitive activity simply predicate act view answer question complaint alleges predicate acts amount simply facts national charge pay sales taxes accurately report sales figures state national tell customers shall pay sales taxes rather simply charged customer lower price say rather plus tax consider retailer advertises customer table adds pay sales taxes retailer telling customer charge customer lower price amount tax retailer implies retailer pay tax state taking requisite amount owed state customer paid item defendants done effect cut price item amount sales tax kept money instead passing state funded price cut savings source savings view beside point long price cut legitimate find nothing complaint suggests reasons reverse decision appeals counts footnotes respondent also alleges petitioners injured business violation although parties dedicate little attention issue light disposition claim limited discussion parties agree give appeals first opportunity reconsider claim accordingly join part iii opinion sutherland treatise damages relied holmes labels type claims indirect one party injured injury wrongful behavior tortfeasor causes injury plaintiff see sutherland law damages hereinafter sutherland indeed every example cited sutherland illustration principle parallels holmes plaintiff injured absent injury another victim see sutherland indeed associated general contractors even squarely hold reason indirect damages compensable damages easily ascertainable instead merely recognized empirical fact artly indirect partly alleged effects union may produced independent factors union damages claim also highly speculative sutherland described interrelation two concepts fatal uncertainty may infect case injury easily provable alleged responsible cause sufficiently established whole part injury may exist known provable wrong violation contract appears alleged loss injury result certainly shown sutherland fair require plaintiff prove tort caused lowering prices motion dismiss stage ideal complaint alleges petitioners pass national customers sales tax national realizes result false returns app allegation factual matter national able charge lower price tax fraud suffices permit ideal survive motion dismiss question whether prices lowered due fraud opposed factors prosser keeton appear use direct broader sense adopted holmes see prosser keeton see rehnquist remarks chief justice mary think time arrived congress enact amendments civil rico limit scope sort wrongs connected organized crime reason federal sentelle civil rico judges perspective notes practice north carolina lawyers campbell rev single district judge discussed subject talking dozens district judges across country echoes entreaty expressed chief justice title wall street journal get rico cases courtroom may honest businessman likewise fail justice scalia theory proximate causation laws threats violence intended protect threatened parties might suffer consequence ante concurring opinion