Yegiazaryan v. Smagin
Issues
Can a foreign plaintiff sue under the Racketeer Influenced and Corrupt Organizations Act for injury to intangible property?
This case asks the Supreme Court to determine whether a foreign party can file a claim under the Racketeer Influenced and Corrupt Organizations Act (“RICO”) when they suffer injury to their intangible property. Respondent Vitaly Smagin alleges that Petitioner Ashot Yegiazaryan violated RICO by injuring his intangible property: a judgment Smagin previously secured against Yegiazaryan in the United States. Yegiazaryan argues that plaintiffs can only bring a RICO claim if the injury underlying such a claim has a domestic, and not foreign, locus. Accordingly, Yegiazaryan contends that the alleged injury to the judgment occurred outside of the United States and therefore is not cognizable under RICO. In contrast, Smagin argues that the injury occurred in the United States and consequently falls under RICO. The Court’s decision will impact the scope of RICO, as well as relations between the United States and other sovereigns.
Questions as Framed for the Court by the Parties
Whether a foreign plaintiff states a cognizable civil claim under the Racketeer Influenced and Corrupt Organizations Act when it suffers an injury to intangible property, and if so, under what circumstances.
In 2010, Respondent Vitaly Smagin, a Russian citizen residing in Russia, obtained an $84 million judgment against Petitioner Ashot Yegiazaryan in an arbitration proceeding in London. Smagin v. Yegiazaryan at 565. Smagin had alleged that Ashot committed fraud against him in relation to a joint real estate investment in Moscow. Id.
Additional Resources
- Max B. Chester and Gerald S. Kerska, Availability of RICO Claims to Foreign Holders of Arbitral Awards, Foley & Lardner (Feb. 10, 2023).
- Mark Kantor, Supreme Court Grants Cert in Case Involving International Arbitration and RICO, American Bar Association (Feb. 21, 2023).
- Charles Kotuby, Yegiazaryan v. Smagin, Civil RICO, and the Enforcement of Foreign Awards in the United States, Conflict of Laws (Jan. 18, 2023).