Report Alarms Over Use of RICO Act in New York Civil Litigation
What happened
The American Tort Reform Association released a report titled “Turning the Tables?” which highlights a trend of businesses and insurers using the federal Racketeer Influenced and Corrupt Organizations (RICO) Act to challenge alleged litigation fraud and coordinated personal injury schemes. The report claims that New York is an epicenter for this practice, citing cases involving staged construction accidents, auto accidents, and fraud-driven class actions. The report specifically points to the city’s “Scaffold Law” as a key area of conflict between defense and plaintiff attorneys.
From amny.com
Why it matters
The increased invocation of the RICO statute in civil cases raises concerns about legal liability and insurance practices within New York. This trend affects the legal battleground surrounding statutes like the Scaffold Law, which holds property owners and contractors liable for construction injuries.
From amny.com
Who's involved
- New York Committee for Occupational Safety and HealthWorker advocacy organization mentioned in the context of the Scaffold Law
- New YorkState where the report claims the use of RICO in civil litigation is concentrated
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Misuse of federal RICO statute may increase federal oversightIncreased federal oversight may follow the misuse of the federal RICO statutePossible
- New RICO trend may pressure Hochul on worker safety lawsIncreased pressure on state policy and legal framework as the state grapples with the rise of civil racketeering actions.Possible
- How could the rise of civil racketeering actions affect Letitia James?New RICO trend may increase legal challenges for New York AGPossible
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The entities involved
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New York
state of the United States of America