VITALY SMAGIN V. COMPAGNIE MONEGASQUE DE BANQUE, No. 21-55537 (9th Cir. 2022)
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Plaintiff, a Russian citizen who resides in Russia, filed a civil RICO suit against Defendant Russian citizen who resides in California, and eleven other defendants. After securing a foreign arbitration award against Defendant. Plaintiff obtained a judgment from a United States district court confirming the award and giving Plaintiff the rights to execute that judgment in California and to pursue discovery. Plaintiff alleged that Defendants engaged in illegal activity, in violation of RICO, to thwart the execution of that California judgment.
Consistent with the Second and Third Circuits, but disagreeing with the Seventh Circuit’s residency-based test for domestic injuries involving intangible property, the court held that the alleged injuries to a judgment obtained by Plaintiff from a United States district court in California were domestic injuries to property such that Plaintiff had statutory standing under RICO. The court concluded that, for purposes of standing under RICO, the California judgment existed as property in California because the rights that it provided to Plaintiff existed only in California. In addition, much of the conduct underlying the alleged injury occurred in or was targeted at California.
Court Description: RICO The panel reversed the district court’s dismissal, for lack of statutory standing, of a civil action under the Racketeer Influenced and Corrupt Organizations Act and remanded for further proceedings. Plaintiff Vitaly Smagin, a Russian citizen who resides in Russia, filed a civil RICO suit against Ashot Yegiazaryan, a Russian citizen who resides in California, and eleven other defendants. After securing a foreign arbitration award against Ashot, Smagin obtained a judgment from a United States district court confirming the award and giving Smagin the rights to execute on that judgment in California and to pursue discovery. Smagin alleged that defendants engaged * The Honorable Stephen M. McNamee, United States District Judge for the District of Arizona, sitting by designation. SMAGIN V. YEGIAZARYAN 3 in illegal activity, in violation of RICO, to thwart the execution of that California judgment. Consistent with the Second and Third Circuits, but disagreeing with the Seventh Circuit’s residency-based test for domestic injuries involving intangible property, the panel held that the alleged injuries to a judgment obtained by Smagin from a United States district court in California were domestic injuries to property such that Smagin had statutory standing under RICO. The panel concluded that, for purposes of standing under RICO, the California judgment existed as property in California because the rights that it provided to Smagin existed only in California. In addition, much of the conduct underlying the alleged injury occurred in, or was targeted at, California.