Legal Memorandum: RICO Claim and an Intangible Injury

Issue: For proximate cause, can an intangible injury qualify as a direct injury to pursue a RICO claim?

For proximate cause purposes and assessing direct injury, an intangible injury is regarded as one that is very indirect.  BCS Servs., Inc. v. Heartwood, 88, LLC, 637 F.3d 750, 756 (7^th Cir. 2011) (county bidding rules were for primary benefit of competing bidders and for the benefit of the county only “very indirectly insofar as the rule encouraged bidding”).  In any case, a person or entity that suffers no concrete, financial loss has no cognizable cause of action under RICO.  “[M]ere injury to a valuable intangible property interest” is not a RICO injury.  Chaset v. Fleer/Skybox Int’l, LP, 300 F.3d 1083, 1086–87 (9th Cir.2002) TA l "Chaset v. Fleer/Skybox Int’l, LP, 300 F.3d 1083 (9th Cir.2002)" s "Chaset v. Fleer/Skybox Int’l, LP (9th Cir.2002)" c 1 .  Rather, “[t]o demonstrate injury for RICO purposes, plaintiffs must show proof of concrete financial loss.”  Id. TA s "Chaset v. Fleer/Skybox Int’l, LP (9th Cir.2002)" ; Regions Bank v. J.R. Oil Co., 387 F.3d 721, 728–29 (8^th Cir.2004) TA l "Regions Bank v. J.R. Oil Co., 387 F.3d 721 (8th Cir.2004)" s "Regions Bank v. J.R. Oil Co. (8th Cir.2004)" c 1  (same); Patterson v. Mobil Oil Corp., 335 F.3d 476, 492 n. 16 (5th Cir.2003) TA l "Patterson v. Mobil Oil Corp., 335 F.3d 476 (5th Cir.2003)" s "Patterson v. Mobil Oil Corp. (5th Cir.2003)" c 1  (A plaintiff lacks RICO standing “unless he can show concrete financial loss.”); […]