Case 2:16-mj-01061-TJR Document 13 Filed 02/03/17 Page 14 of 29
(2016), the Court considered the extraterritorial application of two separate sections of the
Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961
et~
("RICO"), and
applied the principles of Morrison to its analysis. In RJR Nabisco, the Court considered whether
RICO's substantive prohibitions, contained in§ 1962, apply to conduct that occurs in foreign
countries and whether RICO's private right of action, contained in§ 1964(c), applies to injuries
that are suffered in foreign countries. In its analysis, the Court reiterated that the first step of the
Morrison framework asks "whether the presumption against extraterritoriality has been rebutted
- that is, whether the statute gives a clear, affirmative indication that it applies extraterritorially."
Id. at 2101. When describing the second step of the Morrison analysis, the Court again indicated
that it requires the reviewing court to look at the statute's "focus" to determine whether the case
involves a domestic application of the statute. Id. The Court further elaborated, stating:
If the conduct relevant to the statute's focus occurred in the United States, then the
case involves a permissible domestic application even if other conduct occurred
abroad; but if the conduct relevant to the focus occurred in a foreign country, then
the case involves an impermissible extraterritorial application regardless of any
other conduct that occurred in U.S. territory.
Id. Given the facts of the case before it, and in light of the statutory provisions at issue, the Court
did not employ the second step of the Morrison analysis as it described. Ultimately, the Court
determined that the substantive prohibitions of§ 1962 of RICO may apply to foreign conduct and
concluded that the presumption against extraterritoriality was rebutted but only with respect to
certain applications of the statute. Id. at 2101-06. The Court also held that § 1964(c) requires a
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