Hecht
Allwaste, Inc. v. Hecht
Opinion
Lead Opinion
Pregerson, J.
Plaintiffs-Appellants Allwaste, Inc., All-waste Recycling, Inc., Golden State Glass Recycling, L.P., Circo Glass Company, Inc., and Bassichis Company, Inc. (“Allwaste”), sued Defendants-Appellees Roger D. Hecht, George T. Henebury, Michael G. Henebury, Peter Henebury, John T. Henebury, Michael D. Hinson, Roy Dennis Hinson, Robert V. Hinson, Irving Stern, G & M Enterprises, Cull Trucking, and Nationwide Recycling, Inc. (“Defendants”), for violating the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1961 et seq. (1970). The district court dismissed the complaint under Federal Rule of Civil Procedure 12(b)(6). The court reasoned that the alleged predicate acts were not sufficiently prolonged to satisfy the “pattern of racketeering activity” under RICO, 18 U.S.C. § 1962 .
To prevail under RICO, plaintiffs must establish that the predicate acts were continuous. This can be done either by pleading “closed-ended continuity” or by pleading “open-ended continuity.” Closed-ended continuity refers to a closed period of repeated conduct. It is established by showing that the predicate acts occurred over a substantial period of time. If closed-ended continuity cannot…