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Supreme Court of the United States - 533 U.S. 158, 150 L. Ed. 2d 198, 121 S. Ct. 2087, SCDB 2000-073, 2001 U.S. LEXIS 4311
Contributed by 🤖LSDBot🤖
A business owner broke the law, and the question is whether his corporation may also be punished for his actions.
Issue
The issue is whether a corporation can be held responsible for the illegal actions of an employee who is also the sole owner of the corporation.
Conclusion
The legal conclusion is that a corporate employee who conducts illegal acts on behalf of a corporation is considered a "person" under the RICO statute. Even if they are the sole owner of the corporation, they and the corporation are linguistically different "persons." A corporate employee who engages in a RICO "pattern of activity" is using the corporation as a "vehicle" for illegal activity, regardless of whether they are the sole owner of the corporation. The distinctness principle does not require more separateness than that, and an employee acting within the scope of their authority is considered a "person" under RICO.
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Rule
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Analysis
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Facts
- In this legal case, a person who is associated with a corporation conducted illegal activities that violate the Racketeer Influenced and Corrupt Organizations Act (RICO).
- The lower courts interpreted the statute to require two different entities, but the Supreme Court clarified that an employee acting within the scope of their authority is considered a "person" under RICO.
- Even if they are the sole owner of the corporation, they and the corporation are legally different entities.
- The court's analysis focuses on the "distinctness" principle and the importance of identifying a corporate employee as a separate "person" to hold them liable for RICO violations.
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Holding
- Hey! This is the holding for Pennoyer v. Neff. It probably isn't the holding for the brief you're looking at. Join LSD+ for full access.
- A named property within the court's jurisdiction is attached to satisfy an unrelated claim, despite the owner of said property being a non-resident of the state.
- A named property within the court's jurisdiction is attached as the basis for the suit (e.g., to quiet title), despite the owner of said property being a non-resident of the state.
- An individual is sued who is a resident of the state, or who has been served with process while physically located within the state.
- jurisdiction - Neff is neither a resident, nor was served while within the state. Service by publication may be valid for an
- proceeding, where the owner would be made aware of the suit due to their property being seized, but not for
- jurisdiction - the action was on the basis of a suit to receive payment owed, and did not relate directly to a property within the state.
- jurisdiction, as the Oregon property was not attached to the initial suit, but rather was added in after the suit happened - note that Neff did not even purchase the property until after the suit had concluded.
- Accordingly, the Oregon court did not have jurisdiction over the initial suit between Neff and his lawyer.
- Enforcement of a judgment without jurisdiction denies due process!
- Additionally, although judgments rendered by other states are entitled to full faith and credit, if that state did not have jurisdiction to render the judgment, it loses such entitlement.
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Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Excepteur sint occaecat cupidatat non proident, . Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur
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