Federal Circuits, 3rd Cir. (June 08, 1993)
Docket number: 92-5344
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U.S. Code - Title 18: Crimes and Criminal Procedure - 18 USC 1962 - Sec. 1962. Prohibited activities
U.S. Code - Title 18: Crimes and Criminal Procedure - 18 USC 1961 - Sec. 1961. Definitions
U.S. Supreme Court - Malley v. Briggs, 475 U.S. 335 (1986)
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U.S. Court of Appeals for the 2nd Cir. - Diane Hill, Plaintiff-Appellee, v. City of New York; Richard Dixon, Individually and as Detective, New York City Housing Authority Police Department; Bruce Clark, Individually and as Police Officer With New York City Housing Authority Police Department, Defendants, Richard Adago, Individually and as Assistant District Attorney of New York County; Awilda Rialano, Individually and as Employee of the Child Abuse Bureau, District Attorney, New York County; Michael Mannion, Individually and as Supervisor of the Video Unit, District Attorney, New York County; Clayton Frazier, Individually and as Video Technician, District Attorney, New York County, Defendants-Appellants., 45 F.3d 653 (2nd Cir. 1995) Plaintiff-Appellee, v. City of New York; Richard Dixon, Individually and as Detective, New York City Housing Authority Police Department; Bruce Clark, Individually and as Police Officer With New York City Housing Authority Police Department, Defendants, Richard Adago, Individually and as Assistant District Attorney of New York County; Awilda Rialano, Individually and as Employee of the Child Abuse Bureau, District Attorney, New York County; Michael Mannion, Individually and as Supervisor of the Video Unit, District Attorney, New York County; Clayton Frazier, Individually and as Video Technician, District Attorney, New York County, Defendants-Appellants.
U.S. Court of Appeals for the 3rd Cir. - David S. Forbes; Richard D. Middleton; D. Bradford Park; Ulf Nilsson; Douglas D. Smail, Suing Individually and on Behalf of a Class of Similarly Situated Individuals, To Wit, all Persons Employed as Professional Hockey Players By Any of the Defendant Professional Hockey Teams During the Time Period in Which Defendant R. Alan Eagleson Served as Executive Director of the National Hockey League Players Association v. R. Alan Eagleson; the National Hockey League; Philadelphia Flyers Limited Partnership; Boston Professional Hockey Association, Inc.; Niagara Frontier Hockey, L.P.; Calgary Flames Limited Partnership; Chicago Blackhawk Hockey Team, Inc.; Dallas Hockey Club, Inc.; Detroit Red Wings, Inc.; Edmonton Oilers Hockey Corp.; Ktr Hockey Limited Partnership; Lak Acquisition Corp.; Le Club de Hockey Canadien, Inc.; Meadowlanders, Inc.; New York Islanders Hockey Club, L.P.; Rangers Hockey Club, a Division of Madison Square Garden Center, Inc.; Pittsburgh Hockey Associates; Comsat Entertainment Group, Inc.; A..., 228 F.3d 471 (3rd Cir. 2000) Suing Individually and on Behalf of a Class of Similarly Situated Individuals, To Wit, all Persons Employed as Professional Hockey Players By Any of the Defendant Professional Hockey Teams During the Time Period in Which Defendant R. Alan Eagleson Served as Executive Director of the National Hockey League Players Association v. R. Alan Eagleson; the National Hockey League; Philadelphia Flyers Limited Partnership; Boston Professional Hockey Association, Inc.; Niagara Frontier Hockey, L.P.; Calgary Flames Limited Partnership; Chicago Blackhawk Hockey Team, Inc.; Dallas Hockey Club, Inc.; Detroit Red Wings, Inc.; Edmonton Oilers Hockey Corp.; Ktr Hockey Limited Partnership; Lak Acquisition Corp.; Le Club de Hockey Canadien, Inc.; Meadowlanders, Inc.; New York Islanders Hockey Club, L.P.; Rangers Hockey Club, a Division of Madison Square Garden Center, Inc.; Pittsburgh Hockey Associates; Comsat Entertainment Group, Inc.; A...
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U.S. Court of Appeals for the 3rd Cir. - John W. Mathews; Carole Ann Nuckton; Patricia J. Lester; Jordan Brodsky; Thomas C. Chestney; Deborah W. Troemner; William J. Waterman, Jr.; Vernon L. Schatz; Susanne Diane Anderson; Larry C. Anderson; George P. Arnold; Ann M. Arnold, Appellants v. Kidder, Peabody & Co., Inc., a Delaware Corporation; Kp Realty Advisers, Inc., a Delaware Corporation; Hsm, Inc., a Texas Corporation; Henry S. Miller Co; Henry S. Miller Management Corporation; Henry S. Miller Appraisal Corporation; Hsm Real Estate Securities Corporation; Miller Real Estate Services Corporation, a Texas Corporation, 260 F.3d 239 (3rd Cir. 2001) Jr.; Vernon L. Schatz; Susanne Diane Anderson; Larry C. Anderson; George P. Arnold; Ann M. Arnold, Appellants v. Kidder, Peabody & Co., Inc., a Delaware Corporation; Kp Realty Advisers, Inc., a Delaware Corporation; Hsm, Inc., a Texas Corporation; Henry S. Miller Co; Henry S. Miller Management Corporation; Henry S. Miller Appraisal Corporation; Hsm Real Estate Securities Corporation; Miller Real Estate Services Corporation, a Texas Corporation
U.S. Court of Appeals for the 3rd Cir. - Robinson v. Johnson (3rd Cir. 2002)
Dennis T. Kearney (argued), Elizabeth J. Sher, Loryn P. Riggiola, Pitney, Hardin, Kipp & Szuch, Morristown, NJ, for appellant.
Stuart M. Gerson, Asst. Atty. Gen., Michael Chertoff, U.S. Atty., Margaret S. Hewing (argued), Civ. Div., Dept. of Justice, Washington, DC, for appellee Yingling.Robert J. Del Tufo, Atty. Gen., James D. Harris (argued), Deputy Atty. Gen., Dept. of Law and Public Safety, Trenton, NJ, for appellees Grusemeyer, Gurak, Brody and Waldron.Before: HUTCHINSON and NYGAARD, Circuit Judges and POLLAK, District Judge.*OPINION OF THE COURTLOUIS H. POLLAK, District Judge.Plaintiff Robert F. Davis--tripped up by a joint state-federal undercover law enforcement operation in 1985 and then, for nearly five years, entangled in the New Jersey criminal courts--filed this action in the United States District Court for the District of New Jersey, challenging conduct involved in the government sting and his subsequent prosecution. This appeal from the district court's dismissal of plaintiff's case pursuant to Fed.R.Civ.P. 12(b)(6) raises two issues: (1) whether plaintiff's claims under the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. 1961 et seq. (1988 and Supp. II), are barred by the applicable four-year statute of limitations; and (2) whether state prosecutors, and a police investigator working at the behest of those prosecutors, are absolutely immune from liability for their involvement in plaintiff's odyssey through the New Jersey criminal system.I.Factual and Procedural HistoryFor purposes of reviewing a dismissal pursuant to Fed.R.Civ.P. 12(b)(6), all factual allegations of the complaint are taken as true and liberally construed. Wisniewski v. Johns-Manville Corp., 759 F.2d 271, 273 (3d Cir.1985). Viewed through this prism, a story of some intrigue takes shape.Sometime in March of 1985, law enforcement officials of the New Jersey State Police, the New Jersey Division of Criminal Justice (a branch of the Office of the Attorney General), and the Federal Bureau of Investigation ("FBI") jointly commenced an undercover operation in an effort to identify and break up automobile theft rings in the Southern New Jersey and Philadelphia areas. Under the plan, known as "Operation Carrus," the officials opened a "chop shop"--a business that dismantles and resells stolen vehicles--to cater to persons trafficking in stolen automobiles and parts. To operate the shop--which was set up in Winslow Township, New Jersey, under the name "JJD Enterprises"--the various officials received, transported and dismantled a number of stolen automobiles, without notifying the owners of these vehicles of these events, and resold their parts. Employed in Operation Carrus were, among others, defendants Donald Yingling, then a special agent of the FBI, James Grusemeyer, a Detective-Sergeant for the New Jersey State Police, and David Brody, Esq., a Deputy Attorney General for the New Jersey Division of Criminal Justice.1On June 17, 1985, plaintiff Davis, owner of an auto body shop in North Wildwood, New Jersey, delivered to JJD Enterprises a 1984 Cadillac Seville owned by a third party (Robert Churchill). Davis, who conveyed the automobile to JJD Enterprises at Churchill's request, was unaware that JJD Enterprises was an undercover operation. Upon receipt of the 1984 Seville, JJD Enterprises reconstructed that vehicle with parts from a stolen 1985 Seville that earlier had been recovered and dismantled by JJD Enterprises. According to the complaint, this conversion was merely one of a number performed by JJD Enterprises in a period extending from May through July of 1985.As a consequence of Davis' delivery of the vehicle to the chop shop, the New Jersey State Police came to suspect that Davis was involved in the redistribution of stolen automobile parts. On March 26, 1986, a state grand jury in Camden, New Jersey indicted him for offenses related to the delivery of the 1984 Seville, including alteration of a vehicle identification number and participation in a conspiracy to reconstruct the 1984 Seville with stolen parts. After the indictment was issued, the police obtained a search warrant for Davis' auto body business, and, on April 8, 1986, seized three tow trucks which they believed to be composed of stolen parts.On June 9, 1986, Davis applied for admission to Camden County's Pretrial Intervention Program (PTI). PTI, a New Jersey-wide program, is an alternative to criminal prosecution wherein, upon recommendation of the director of the county's PTI program and with the consent of the prosecutor, proceedings against the indictee may be postponed for up to three years during which time the indictee participates in a rehabilitation program. See N.J.Stat.Ann. §§ 2C:43-12, 2C:43-13 (West 1992). At the conclusion of the supervisory treatment, and with the consent of the prosecutor, the judge designated to act on matters relating to PTI may dismiss the participant's indictment or, if the conditions of intervention have been breached, allow the prosecution to go forward. Id. at § 2C:43-13. The Camden County PTI program denied Davis' PTI application on July 24, 1986; a letter forwarded to Davis by the PTI program explained that (defendant) Charles E. Waldron, Esq., a Supervising Deputy Attorney General who was the official in the Attorney General's office principally overseeing Davis' case, believed that Davis should not be admitted to PTI due to his participation in an ongoing car theft enterprise.2On August 11, 1986, a second state grand jury--this time in Cape May, New Jersey--indicted Davis for various offenses (including conspiracy, receipt of stolen property, possession of vehicles with removed or altered identification, and unlawful purchase of a firearm) arising from the search of his premises and recovery of the tow trucks. Davis applied again for admission to PTI, and, on December 2, 1986, his application was also rejected for this second indictment due to the perceived ongoing nature of his offenses. One week later--on December 9, 1986--Davis sent a letter to the insurance carrier for the 1985 Seville (the automobile that had been used to reconstruct the 1984 Seville that Davis had delivered to JJD Enterprises). In that letter, he advised the carrier that the 1985 Seville had been stolen, recovered and dismantled by certain of the defendants and then used to reconstruct another car. As a result of this letter, the insurance carrier sought reimbursement from those defendants.In June 1987, the Division of Criminal Justice reversed its position on Davis' admission to PTI. Now acknowledging that the evidence did not suggest that Davis was part of organized criminal activity or an ongoing criminal business, the Division advised the Cape May PTI coordinator that Davis should be allowed to enter the PTI program with respect to both the Camden and Cape May indictments, provided that Davis would agree to sign over title to one of the seized tow trucks and indemnify the appropriate parties for stolen parts contained in the other two trucks. Davis agreed to these terms.3On October 14, 1987, defendant Waldron and defendant Raymond E. Gurak, Esq. (a lawyer who worked under Waldron's supervision at the New Jersey Criminal Justice Division and had been recently assigned to the Davis case4) took steps to have the Division of Criminal Justice change course once again. Specifically, Waldron and Gurak recommended that Davis' participation in PTI be revoked and that both the Camden and Cape May indictments be restored to active prosecution; in support of the recommendation, they represented that Davis' offenses were serious and that he was involved in an ongoing criminal enterprise. As a result, Davis' participation in PTI was revoked.On June 1, 1988, the Cape May grand jury issued an indictment that superseded the first Cape May indictment; the superseding indictment removed the conspiracy and firearm counts and retained one count of possession of a motor vehicle or part thereof with altered identification numbers and three counts of receiving stolen property (a tow truck and tow truck parts). Two days later, Gurak and Waldron moved to dismiss the original Camden indictment indicating that there was a lack of sufficient evidence that Davis knew that the vehicle in question (the 1985 Seville) was stolen and, therefore, lack of evidence of participation in a conspiracy. Davis renewed his application for admission to PTI with respect to the second Cape May indictment. Although the Cape May PTI coordinator recommended approval of Davis' renewed application, Gurak and Waldron continued to oppose Davis' admission, representing that Davis was involved in continuing criminal dealings.Ultimately, Davis' PTI application was denied, and, on September 13, 1988, he went to trial on the second Cape May indictment. The jury acquitted Davis of two counts of receiving stolen property and convicted him of one count of receiving stolen property and one count of possession of a vehicle or vehicle part with altered identification numbers. However, in October 1990, the New Jersey Superior Court vacated the conviction on both counts: finding that the State had created a legitimate expectation that Davis would be admitted to PTI, the Superior Court ordered Davis' admission to PTI. See State v. Davis, 244 N.J.Super. 180, 581 A.2d 1333 (1990). In February 1991, Davis was simultaneously admitted to and discharged from PTI, and the two counts of the second Cape May indictment on which he had been convicted were dismissed.Davis filed the instant complaint on February 22, 1991 against the four state defendants--Grusemeyer, Brody, Gurak and Waldron--and the federal defendant, Yingling. The complaint includes claims founded on three sources: RICO, 42 U.S.C. 1983, and state law. In the RICO counts, defendants Yingling and Grusemeyer are charged with participating in "racketeering activity" on behalf of JJD Enterprises through receipt and transportation of several stolen automobiles, and investing money received from Operation Carrus in JJD Enterprises (the RICO "enterprise"). Additionally, defendants Brody, Yingling, and Grusemeyer are claimed to have conspired to commit those offenses. Under section 1983, Davis asserted various claims directed at defendants' investigative activities and the seizure and disposal of his property. Davis also challenged his prosecution in several section 1983 allegations that the district court grouped together as "malicious prosecution" claims; specifically, Davis claimed that all of the defendants--that is Yingling, Grusemeyer, Brody, Gurak and Waldron--maliciously prosecuted and conspired to maliciously prosecute him,5 and that Gurak, Waldron and Grusemeyer intentionally and maliciously revoked Davis' participation in PTI. Finally, Davis included state law claims of intentional and negligent infliction of emotional distress against all five defendants.On May 1, 1991, the state defendants moved to dismiss the complaint for failure to state a claim,6 and, after hearing oral argument, the district court granted that motion in its entirety on March 23, 1992. The district court found that the RICO claims were time-barred. Turning to the section 1983 allegations, the court found that most of these claims were also untimely; however, the malicious prosecution claims survived the district court's statute of limitations analysis.7 Nevertheless, the district court dismissed the several malicious prosecution claims on the basis of absolute immunity.8 Because no federal claim remained, the district court dismissed the pendent state law claims for lack of subject matter jurisdiction, thereby dismissing Davis' entire complaint. Thereafter, Davis filed a motion to reconsider, which the district court denied on May 21, 1992. On June 19, 1992, Davis filed a notice of appeal from the May 21, 1992 order.Davis places two questions before us for review: (1) whether the district court erred in dismissing his RICO claims as time-barred;9 and (2) whether, particularly with respect to Davis' claim that the various defendants maliciously interfered with his admission to PTI, the district court misapplied the doctrine of absolute prosecutorial immunity. Exercising plenary review over the Rule 12(b)(6) dismissal, see Scattergood v. Perelman, 945 F.2d 618, 621 (3d Cir.1991), we affirm the district court in all respects.II.Accrual of the RICO ClaimsRICO does not contain an express statute of limitations for civil actions; accordingly, the Supreme Court has fashioned one--a limitations period of four years. See Agency Holding Corp. v. Malley-Duff & Assocs., Inc., 483 U.S. 143, 152-56, 107 S.Ct. 2759, 2765-67, 97 L.Ed.2d 121 (1987) (drawing upon the Clayton Act's four-year statute of limitations). Because the complaint was filed on February 22, 1991, any claims determined to have accrued prior to February 22, 1987 would be barred. Civil RICO claims accrue at the time when the plaintiff knew or should have known that the elements of a civil RICO action existed. Keystone Ins. Co. v. Houghton, 863 F.2d 1125, 1126 (3d Cir.1988). However, if further predicate acts occur that are part of the same pattern of racketeering, regardless of whether they injure the plaintiff, or if the plaintiff suffers further injury from a predicate act that is part of the same pattern of racketeering, even if that predicate act occurred outside the limitations period, the statute of limitations begins to run from the date that the plaintiff knew or should have known of the last such act or the last such injury. Id. "When reviewing a Rule 12(b)(6) dismissal on statute of limitations grounds, we must determine whether 'the time alleged in the statement of a claim shows that the cause of action has not been brought within the statute of limitations.' " Cito v. Bridgewater Township Police Dept., 892 F.2d 23, 25 (3d Cir.1989) (emphasis in original) (quoting Bethel v. Jendoco Constr. Corp., 570 F.2d 1168, 1174 (3d Cir.1978)).10 The complaint alleges that defendants Grusemeyer and Yingling, by receiving, transporting, and selling stolen property, conducted the affairs of JJD Enterprises through a pattern of racketeering in violation of 18 U.S.C. 1962(c), invested the proceeds of that racketeering in violation of section 1962(a), and, along with defendant Brody, conspired to breach sections 1962(a) & (c) in violation of section 1962(d). The district court concluded that because the last predicate act of automobile theft alleged to have been committed by Operation Carrus occurred on July 29, 1985, and because Davis knew or should have known that each element of his RICO cause of action existed by December 9, 1986 (when Davis advised the 1985 Seville's insurance carrier by letter that law enforcement officials had dismantled the 1985 Seville), his RICO claims (filed on February 22, 1991, more than four years after Davis wrote the letter) were untimely.11 Davis argues that the district court erred in two ways: (1) by deciding that the statute of limitations began to run on December 9, 1986, notwithstanding that, as Davis sees the matter, a conspiracy to manipulate the prosecution of Davis in order to cover up Operation Carrus' racketeering activity continued at least until February 1991; and (2) by overlooking what Davis perceives as his "last injury"--the State's disposal of his property (the tow trucks) sometime after December 1988.1. The Alleged Cover-upParagraph 83 of the complaint alleges that, in June 1988, Gurak--who was not named as a defendant in the RICO counts--"obtained the Second Cape May Indictment in a deliberate effort to undermine the preemptory trial date which had been set for four months, and in a deliberate effort to cover up defendants' criminal conduct in Operation Carrus." App. at 22. Davis argues that this conduct, along with other acts of manipulation by the state prosecutors and the self-concealing nature of Operation Carrus, constituted "fraudulent concealment" and tolled the RICO statute of limitations. Davis also asserts that this prosecutorial conduct was additional RICO activity that, of its own force, extended the RICO limitations period. We address these arguments in turn.A. The Fraudulent Concealment Tolling DoctrineFraudulent concealment is an "equitable doctrine [that] is read into every federal statute of limitations." Holmberg v. Armbrecht, 327 U.S. 392, 397, 66 S.Ct. 582, 585, 90 L.Ed. 743 (1946); see Bath v. Bushkin, Gaims, Gaines and Jonas, 913 F.2d 817, 821 (10th Cir.1990) (per curiam) (standard tolling exceptions, such as fraudulent concealment, apply to civil RICO causes of action); Bankers Trust Co. v. Rhoades, 859 F.2d 1096, 1105 (2d Cir.1988) (same), cert. denied,Try vLex for FREE for 3 days
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