Yegiazaryan v Smagin

Fourth Circuit Applies Recent Supreme Court Decision on RICO Injuries

In Percival Partners Ltd. v. Nduom, the Fourth Circuit (Judge Harris, joined by Judge Thacker and Judge Richardson) applied last Term’s decision in Yegiazaryan v. Smagin (2023) to conclude that the plaintiffs’ alleged RICO injury was impermissibly extraterritorial. In an analysis that embraced Yegiazaryan’s contextual approach to siting RICO injuries, the Fourth Circuit held that…

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Supreme Court Denies Cert in Extraterritorial Wire Fraud Case

The Supreme Court denied cert this morning in Elbaz v. United States, a case involving the extraterritorial reach of the federal wire fraud statute. The order lets stand a decision of the Fourth Circuit holding that the wire fraud statute could be applied to a scheme to defraud investors centered in Israel based on two…

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Ninth Circuit Applies New Supreme Court Interpretation of RICO’s Geographic Scope

On August 11, 2023, the Ninth Circuit became the first lower court to apply the new test for “domestic injury” under RICO that the Supreme Court announced in Yegiazaryan v. Smagin (2023). In Global Master International Group, Inc. v. Esmond Natural, Inc., the Ninth Circuit held that a Chinese company stated a valid civil RICO…

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Supreme Court Roundup (October Term 2022)

During its 2022 Term, which ended four weeks ago, the Supreme Court decided five cases with important implications for transnational litigation. The questions included whether the Foreign Sovereign Immunities Act (FSIA) applies to criminal proceedings; the standard for aiding and abetting under the Anti-Terrorism Act (ATA); whether states may exercise general personal jurisdiction over foreign…

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Smagin‘s Surprises

Last week’s decision in Yegiazaryan v. Smagin was surprising in a number of respects, from the line-up of the Justices to the possible shift it signals in the presumption against extraterritoriality.

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Supreme Court Approves Using Civil RICO to Help Enforce Arbitral Awards

Last week, the Supreme Court held in Yegiazaryan v. Smagin that civil RICO can be used to help enforce foreign arbitral awards. Specifically, the Court held that concealing assets to avoid paying a U.S. judgment that confirmed a foreign arbitral award could satisfy civil RICO’s “domestic injury” requirement, allowing the award-creditor to pursue a claim…

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Supreme Court Oral Argument in Extraterritorial RICO Case Marked by Confusion

The Supreme Court heard oral argument last week in Yegiazaryan v. Smagin and CMB Monaco v. Smagin, two cases testing when civil RICO can be used to help enforce a foreign arbitration award. Because I have described the facts in a previous post, I will be brief here. Smagin and Yegiazaryan are Russian citizens who…

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Preview of Supreme Court Argument in Civil RICO Extraterritoriality Case

On April 25, the U.S. Supreme Court will hear oral argument in Yegiazaryan v. Smagin and CMB Monaco v. Smagin, which ask how RICO’s private right of action applies to intangible property, in this case a California judgment confirming a foreign arbitral award. The cases have important implications not just for civil RICO but also for international arbitration….

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Paper Tiger, Hidden Dragon?: Some Thoughts on Smagin v. Yegiazaryan

This Term, the Supreme Court will hear a dispute between two wealthy Russians relating to an international arbitration award in London arising out of a failed real estate venture in Moscow. The case pits two competing tendencies of the Justices against one another: (a) their penchant for preventing such seemingly foreign litigation from proceeding in U.S….

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Supreme Court Grants Cert to Resolve Split Over Extraterritoriality of Civil RICO

Earlier today, the Supreme Court granted cert in Yegiazaryan v. Smagin and CMB Monaco v. Smagin and consolidated the cases for oral argument. The question in both cases is how RICO’s private right of action applies to intangible property, in this case a California judgment confirming a foreign arbitral award. As I previously noted on…

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