Bob Reves, et al. v. Ernst & Young (507 U.S. 170)
U.S. Supreme Court · decided March 3, 1993 · Supreme Court Database (Spaeth)
- Citation
- 507 U.S. 170 · 113 S. Ct. 1163
- Decided
- March 3, 1993
- Term
- October Term 1992
- Vote
- 7–2
- Majority author
- Justice Blackmun
- Issue area
- Economic Activity
- Disposition
- Affirmed
- Outcome
- Petitioning party lost
- Ideological direction
- Conservative
Opinion excerpt
Justice Blackmun delivered the opinion of the Court. This case requires us once again to interpret the provisions of the Racketeer Influenced and Corrupt Organizations (RICO) chapter of the Organized Crime Control Act of 1970, Pub. L. 91-452, Title IX, 84 Stat. 941, as amended, 18 U. S. C. §§ 1961-1968 (1988 ed. and Supp. II). Section 1962(e) makes it unlawful “for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity .. ..” The question presented is whether one must participate in the operation or management of the enterprise itself to be subject to liability under this provision. h — I The Farmer’s Cooperative of Arkansas and Oklahoma, Inc. (Co-Op), began operating in western Arkansas and eastern Oklahoma in 1946. To raise money for operating expenses, the Co-Op sold promissory notes payable to the holder on demand. Each year, Co-Op members were elected to serve on its board. The board met monthly but delegated actual management of the Co-Op to a general manager. In 1952, the board appointed Jack White as general manager. In January 1980, White began taking loans from the Co-Op to finance the construction of a gasohol plant by his company, White Flame Fuels,…
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