9th Circuit Allows Felons To Pursue RICO Claim Against Los Angeles Police

Crime Control Digest, Apr 28, 2006

The 9th Circuit Court of Appeals has allowed a second felon to pursue a racketeering lawsuit against hundreds of Los Angeles officials and police in connection with violations of the Police Department's Ramparts anti-gang unit.

Although Louis Guerrero pleaded guilty to possession of narcotics in 1995 and 1997, the 9th circuit allowed him to pursue the same course as David Diaz who was convicted of attempted murder and malicious mayhem with a weapon.

Both Guerrero and Diaz allege Rampart officers illegally planted evidence.

The appellate circuit in at least two rulings since August has cleared the way for RICO trials against former Los Angeles Police Chiefs Darryl Gates and Bernard Parks, and more than 200 officers and officials.

While the 9th Circuit hasn't ruled on the merit of the felons' allegations, the decisions reverse district court judges and allow the felons to pursue their claims for treble monetary damages in district courts.

The Supreme Court in February denied certiorari and let stand the 9th Circuit order remanding the Diaz lawsuit to the District Court for a trial on the issues.

False arrests, excessive force and unreasonable searches and seizures were the causes of the Ramparts scandal that led to a federal consent decree in June 2001. A federal monitor is continuing to oversee the Los Angeles Police Department.

The 9th circuit has decided the felons have standing to go to trial on the alleged grounds that police in the Los Angeles anti-gang unit violated the Racketeer Influenced and Corrupt Organizations Act (RICO).

The 9th circuit agreed with the felons' arguments that they were unable to work and to earn income while incarcerated, and, thus, sustained "damages" compatible with protections to victims that RICO affords.

"The harms he alleges amount to intentional interference with contract and interference with prospective business relations, both of which are established torts under California law," the 9th circuit panel said in Diaz.

"And his claimed financial loss? He could not fulfill his employment contract or pursue valuable employment opportunities because he was in jail."

In a concurring opinion, Circuit Judge Stephen Reinhardt said RICO 'lias been stretched both in scope and meaning far beyond that which Congress originally intended and has become, through judicial construction, a wide ranging act that provides treble damages for all kinds of conduct unrelated to the racketeering activity that Congress sought to control."

The appellate panel dismissed most of Guerrero's claims under federal habeas corpus law that alleged "bad behavior'" among Los Angeles officials in connection with Guerrero's arrests, prosecutions and incarceration.

"Guerrero's complaint mirrors that of the complaint in Diaz," said the 9th circuit. "... Therefore, Guerrero adequately pleaded the injury to business or property required to establish standing under RICO. Thus, we reverse and remand the district court's dismissal of Guerrero's RICO claims for lack of standing."

In the case of Diaz, the circuit said his "complaint tracks the language of section 1962, which makes it illegal to, among other things, acquire or maintain control of an 'enterprise,' or conduct or participate in its affairs, through a 'pattern of racketeering activity.' ... Diaz alleges that the LAPD and various subdivisions are 'enterprises' within the meaning of [RICO]. Whether these allegations of section 1962 violations are adequate is a matter on which we express no view."

Inf.: Guerrero v. Gates, 02-56017, 9th Giro., March 27, Diaz v. Parks, 02-56818; Aug. 16. The circuit consists of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington.