Antitrust Law Daily Wrap Up, RICO NEWS: Chair maker denied Supreme Court review on scope of standing, (Jan 12, 2015)
Law Firms Mentioned:Brownstone, P.A.
By Greg Hammond, J.D.
Vittorio Infanti, the former President and CEO of a chair manufacturing company, was denied U.S. Supreme Court review today of a decision by the U.S. Court of Appeals in New York, which held that Infanti lacked standing to bring a civil Racketeer Influenced and Corrupt Organizations Act (RICO) suit. He was seeking guidance on the proper scope of standing under RICO (Infanti v. Scharpf, Dkt. 14-529).
Infanti previously owned a chair manufacturing company that went bankrupt after a trade dress infringement suit resulted in a $15 million judgment against the company and Infanti personally. He alleged that banker George Scharpf induced him to return to New York and rebuild his business. Infanti personally guaranteed a loan to the new corporation of $1.355 million, and was elected President and CEO of the company. He alleged, however, that Scharpf secretly set up a competing company, took control of Infanti’s corporation, diverted its income, and invested the diverted funds in the competing company.
Infanti filed a RICO suit against Scharpf, alleging that he personally suffered over $1.5 million in lost compensation. The district court ruled that Infanti lacked standing under RICO because he was not a director or shareholder of the corporation and the loss he suffered by guaranteeing the loan was insufficient to confer standing. The appellate court affirmed, holding that Infanti lacked standing because the harm did not affect him directly, even though he lost compensation and became personally responsible for the $1.355 million loan.
In his petition for certiorari, Infanti asked the Supreme Court whether lost compensation, lost opportunity to consummate the settlement of a dispute that would have resolved a $15 million judgment, and the pecuniary loss associated with the repayment of a loan that petitioner personally guaranteed constituted injury to “business or property” by reason of a violation of RICO, such that the petitioner would have standing to bring suit under 18 U.S.C. § 1964(c).
Attorneys: Robert L. Sirianni Jr. (Brownstone, P.A.) for Vittorio Infanti.
News: RICO