Edward A. Chappell v. Alan Robbins

In passing the Racketeering Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1961 et seq., Congress created a wide array of novel civil and criminal weapons to use against crime and corruption. We must decide whether in doing so, Congress expressed a clear intent to abrogate legislators’ common-law immunity. We hold that it did not.

I

This appeal involves a civil RICO suit by an aggrieved citizen, Edward Chappell, against a former California State Senator, Alan Robbins. Because this is an appeal from a Rule 12(b)(6) dismissal, we take as true all material allegations in Chappell's complaint. Everest and Jennings, Inc. v. American Motorists Ins. Co., 23 F.3d 226, 229 (9th Cir.1994).

The suit arises from a scheme to allow increases in premium rates and commissions garnered from the sale of credit life and credit disability insurance. In California, prior to 1985, such rates and commissions were subject to regulation by the California Insurance Commissioner.

From 1978 to 1985, Robbins was the Chairman of the Senate Insurance Committee. During that time, he admits that he took bribes from the president of a credit life and disability insurance company in exchange for…