On October 30, 2017, in a matter of first impression in any Court of Appeals, the Second Circuit held in Bascuñán v. Elsaca that plaintiffs who allege injuries to tangible property located within the United States can satisfy the domestic injury requirement for claims brought under Section 1964(c) of the Racketeer Influenced and Corrupt Organizations Act (“RICO”).
The decision was the first time that a Court of Appeals identified what constitutes a “domestic injury” after the Supreme Court’s June 20, 2016 decision in RJR Nabisco, Inc. v. European Community, which held that “Section 1964(c) requires a civil RICO plaintiff to allege and prove a domestic injury to business or property and does not allow recovery for foreign injuries.” The Second Circuit’s decision brings more clarity to the domesticity standards that plaintiffs must meet in order to assert a RICO claim against individuals or corporations, although certain questions still remain open.