Yegiazaryan v. Smagin

P R E L I M I N A R Y P R I N T
Volume 599 U. S. Part 1
Pages 533–554
OFFICIAL REPORTS
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T H E S U P R E M E C O U R T
June 22, 2023
REBECCA A. WOMELDORF
reporter of decisions
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533
Syllabus
YEGIAZARYAN, aka EGIAZARYAN v. SMAGIN
et
al.
certiorari to the united states court of appeals for
the ninth circuit
No. 22–381. Argued April 25, 2023—Decided June 22, 2023*
Respondent Vitaly Smagin won a multimillion dollar arbitration award in
2014 against petitioner Ashot Yegiazaryan stemming from the misappro-
priation of investment funds in a joint real estate venture in Moscow.
Because Yegiazaryan has lived in California since 2010, Smagin, who
lives in Russia, fled suit to confrm and enforce the award in the Central
District of California pursuant to the Convention on the Recognition
and Enforcement of Foreign Arbitral Awards. The District Court ini-
tially froze Yegiazaryan's California assets before fnally entering judg-
ment against him. The District Court also entered several post judg-
ment orders barring Yegiazaryan and those acting at his direction from
preventing collection on the judgment. While the action was ongoing,
Yegiazaryan himself was awarded a multimillion dollar arbitration
award in an unrelated matter and sought to avoid the District Court's
asset freeze by concealing the funds, which were ultimately transferred
to a bank account with petitioner CMB Monaco.
In 2020, Smagin fled this civil suit under the Racketeer Infuenced
and Corrupt Organizations Act (RICO), which provides a private right
of action to “[a]ny person injured in his business or property by reason
of a violation of ” RICO's substantive provisions. 18 U. S. C. § 1964(c).
As relevant, Smagin alleges Yegiazaryan and others worked together to
frustrate Smagin's collection on the California judgment through a pat-
tern of wire fraud and other RICO predicate racketeering acts, includ-
ing witness tampering and obstruction of justice. The District Court
dismissed the complaint on the ground that Smagin had failed to plead
a “domestic injury” as required by RJR Nabisco, Inc. v. European Com-
munity, 579 U. S. 325, 346. Smagin's Russian residency weighed heav-
ily in the District Court's decision. The Ninth Circuit reversed. Re-
jecting the District Court's rigid, residency-based approach to the
domestic-injury inquiry, the Ninth Circuit instead applied a context-
specifc approach and concluded that Smagin had pleaded a domestic
injury because he had alleged that his efforts to execute on a California
*Together with No. 22–383, CMB Monaco, fka Compagnie Mone
́
gas-
quede Banque v. Smagin et al., also on certiorari to the same court.

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534 YEGIAZAR
YAN v. SMAGIN
Syllabus
judgment in California against a California resident were foiled by a
patter
n of racketeering activity that largely occurred in California and
was designed to subvert enforcement of the judgment there.
Held: A plaintiff alleges a domestic injury for purposes of § 1964(c) when
the circumstances surrounding the injury indicate it arose in the United
States. Pp. 541–549.
(a) The “domestic-injury” requirement for private civil RICO suits
stems from RJR Nabisco, a case in which the Court was asked whether
RICO applies extraterritorially. To answer the question, the Court ap-
plied the presumption against extraterritoriality, a canon of construction
that provides: “[A]bsent clearly expressed congressional intent to the
contrary, federal laws will be construed to have only domestic applica-
tion.” 579 U. S., at 335. Guided by concerns of international comity
and the reasonable discernment of congressional intent, the Court dis-
tilled the presumption against extraterritoriality into two steps. The
frst asks “whether the statute gives a clear, affrmative indication that
it applies extraterritorially.” Id., at 337. If the answer is “yes,” the
presumption is rebutted, and the test ends. If the answer is “no,” the
inquiry proceeds, and step two asks whether the case involves a domes-
tic application of the statute, which is assessed “by looking to the stat-
ute's `focus.' ” Ibid. Applying this framework, the Court assessed the
extraterritoriality of RICO's private right of action, § 1964(c), and deter-
mined that it does not overcome the presumption at step one. Proceed-
ing to step two, the Court held that “[a] private RICO plaintiff . . . must
allege and prove a domestic injury to its business or property.” Id., at
346. Because the RJR Nabisco plaintiffs were not seeking redress for
domestic injuries, the Court did not have occasion to explain what con-
stitutes a “domestic injury.” Pp. 541–542.
(b) The parties advance competing approaches to the domestic-injury
inquiry. Petitioners urge a bright-line rule that locates a plaintiff 's in-
jury at the plaintiff 's residence. They argue that because a private
RICO action remedies only economic injuries and a plaintiff necessarily
suffers that injury at its residence where the economic injury is felt,
any cognizable § 1964(c) injury is necessarily suffered at the plaintiff 's
residence. Alternatively, petitioners argue that at least when intangi-
ble property is concerned, common-law principles locate the intangible
property at the plaintiff 's residence, such that the injury is also located
there. Smagin defends a contextual approach that considers all case-
specifc facts bearing on where the injury arises. P. 543.
(c) The Court agrees with Smagin and the Ninth Circuit that the
domestic-injury inquiry is context specifc and turns largely on the facts
alleged in the complaint. Specifcally, courts should look to the circum-
stances surrounding the alleged injury to assess whether it arose in the
United States. Here, that means looking to the nature of the alleged

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535
Syllabus
injury, the racketeering activity that directly caused it, and the injuri-
ous
aims and effects of that activity.
The context-specifc approach is most consistent with RJR Nabisco.
The Court's statements in RJR Nabisco that the domestic-injury re-
quirement “does not mean that foreign plaintiffs may not sue under
RICO,” 579 U. S., at 353, n. 12, and that “application of [the] rule in any
given case will not always be self-evident,” id.. at 354, point toward a
case-specifc inquiry that considers the particular facts surrounding the
alleged injury. That approach also better refects the requirement's or-
igin in step two, which assesses whether there is a domestic application
of a statute by looking to the statute's focus. RJR Nabisco implied
that § 1964(c)'s focus is injuries in “business or property by reason of a
violation of ” RICO's substantive provisions. So understood, § 1964(c)'s
focus is not on the isolated injury but on the injury as a product of
racketeering activity. This requires courts to look to the circumstances
surrounding the injury to see if those circumstances suffciently ground
the injury in the United States. Pp. 543–545.
(d) The circumstances surrounding Smagin's injury make clear that
the injury arose in the United States. Smagin's alleged injury is his
inability to collect his judgment. Much of the alleged racketeering ac-
tivity that caused that injury occurred in the United States. And while
some of Yegiazaryan's scheme to avoid collection occurred abroad, the
scheme was directed toward frustrating the California judgment. Fur-
ther, the injurious effects of the racketeering activity largely manifested
in California. Smagin obtained a judgment in California where Yegia-
zaryan lives, and the rights provided by that judgment exist only in
California. The alleged RICO scheme thwarted those rights, thereby
undercutting the orders of the California District Court and Smagin's
efforts to collect on Yegiazaryan's assets in California. Under a contex-
tual approach, Smagin's allegations suffce to state a domestic injury.
Pp. 545–546.
(e) Petitioners argue that a contextual approach is inconsistent with
certain common-law principles governing “the situs” of injuries to in-
tangible property. Specifcally, petitioners point to the Restatement
(First) of Confict of Laws—under which fraud is typically deemed felt
at the plaintiff 's residence—and to the principle of mobilia sequuntur
personam—which generally locates intangible property at the domicile
of its owner—and argue that both principles locate Smagin's alleged
injury at his residence. Petitioners fail both to explain the relevance
of these principles and to show that they were principles settled at com-
mon law at the time of RICO's enactment. The core problem with peti-
tioners' reliance on legal fctions concerning the situs of injuries in other
areas of the law is that the justifcations of that approach do not neces-
sarily translate to the presumption against extraterritoriality, with its

536 YEGIAZAR
YAN v. SMAGIN
Opinion of the Court
distinctive concerns for comity and discerning congressional meaning.
Indeed,
petitioners' approach generates results counter to comity and
far afeld from any reasonable interpretation of what qualifes as a do-
mestic application of § 1964(c). Consider two U. S. businesses targeted
by racketeering activity, one owned by a U. S. resident and one owned
by someone living abroad. There is no evidence that Congress in-
tended that only the former business owner can bring a § 1964(c) suit,
especially since doing so runs the risk of generating international dis-
cord. Finally, petitioners argue that a contextual approach is unwork-
able because it does not provide a bright-line rule. Such concerns about
a fact-intensive test cannot displace congressional policy choices, where
a more nuanced test is true to the statute's meaning. Pp. 546–548.
37 F. 4th 562, affrmed and remanded.
Sotomayor, J., delivered the opinion of the Court, in which Roberts,
C. J., and Kagan, Kavanaugh, Barrett, and Jackson, JJ., joined.
Alito, J., fled a dissenting opinion, in which Thomas, J., joined, and in
which Gorsuch, J., joined as to Part I, post, p. 549.
Vincent Levy argued the cause for petitioners in both
cases. With him on the briefs were Gregory Dubinsky,
Kevin D. Benish, Brian T. Goldman, Michael C. Tu, and
Peter J. Brody.
Nicholas O. Kennedy argued the cause for respondent in
both cases. With h i m on the br ief was Al exande r D.
Burch.†
Justice Sotomayor delivered the opinion of the Court.
Respondent Vitaly Smagin holds a multimillion dollar Cal-
ifornia judgment against petitioner Ashot Yegiazaryan, who
lives in California. Smagin, who resides in Russia, fled suit
in the Central District of California alleging that Yegiazar-
yan, with the assistance of petitioner CMB Monaco (formerly
Compagnie Monégasque de Banque), engaged in a pattern of
†Cory L. Andrews and John M. Masslon II fled a brief for the Washing-
ton Legal Foundation as amicus curiae urging reversal.
Andreas Frischknecht fled a brief for George A. Bermann as amicus
curiae urging affrmance.
Margaret B. Hoppin fled a brief for Private International Law Scholars
as amici curiae.
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537
Opinion of the Court
criminal activity, predominantly in and targeted at Califor-
nia,
to prevent him from collecting on his California judg-
ment, in violation of the Racketeer Infuenced and Corrupt
Organizations Act (RICO), 18 U. S. C. §§ 1961–1968. The
District Court dismissed the complaint after concluding that
Smagin had failed to allege a “domestic injury,” as required
by RJR Nabisco, Inc. v. European Community, 579 U. S.
325, 334 (2016). The Ninth Circuit reversed, concluding that
Smagin had alleged a domestic injury. This Court agrees
with the Ninth Circuit.
I
A
The essential facts as alleged by Smagin are as follows.
From 2003 to 2009, Yegiazaryan committed fraud against
Smagin, stealing his shares in a joint real estate venture in
Moscow. To avoid a Russian criminal indictment for that
fraud, Yegiazaryan fed to a mansion in Beverly Hills in 2010,
where he has lived ever since. In 2014, Smagin, who lives
in Russia, won an arbitration award in London against Yegi-
azaryan for the misappropriation of his real estate invest-
ment (London Award). Yegiazaryan refused to pay that
award, which is over $84 million.
Seeking to collect, Smagin fled an enforcement action in
the Central District of California to confrm and enforce the
London Award under the Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, June 10, 1958, 21
U. S. T. 2517, T. I. A. S. No. 6997, as implemented by 9
U. S. C. §§ 201–208. The District Court issued a temporary
protective order, followed by a preliminary injunction, freez-
ing Yegiazaryan's California assets.
In his application for injunctive relief, Smagin informed
the District Court that Yegiazaryan had been granted a sub-
stantial arbitration award in an unrelated proceeding involv-
ing Yegiazaryan and yet another Russian businessman, Su-
leymon Kerimov (Kerimov Award). At the time, no funds
had yet been paid to Yegiazaryan in satisfaction of that
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538 YEGIAZAR
YAN v. SMAGIN
Opinion of the Court
award, but Smagin was concerned that when they were paid,
Y
egiazaryan would take steps to transfer the money out of
Smagin's reach.
Smagin's concerns were justifed. In May 2015, Yegiazar-
yan received a $198 million settlement in satisfaction of the
Kerimov Award. To avoid the District Court's asset freeze,
Yegiazaryan accepted the money through the London offce
of an American law frm headquartered in Los Angeles. Ye-
giazaryan then created “a complex web of offshore entities
to conceal the funds,” App. 56a, and ultimately transferred
the funds to a bank account with petitioner CMB Monaco.
Yegiazaryan also directed those in his inner circle to fle
fraudulent claims against him in foreign jurisdictions, which
he would not oppose, in an attempt to obtain sham judg-
ments that would encumber the $198 million, thereby block-
ing Smagin's access to it.
Around the same time, Yegiazaryan was hiding his assets
in the United States through a system of “shell companies”
owned by family members. Id., at 61a. This included a Ne-
vada company, which was owned by his brother and created
“for the purpose of sheltering [Yegiazaryan's] U. S. assets
from his creditors,” including Smagin. Id., at 44a.
Smagin did not learn about the $198 million settlement,
Yegiazaryan's efforts to hide it, or the U. S. shell companies
until February 2016, when Smagin was granted leave to in-
tervene in Yegiazaryan's California divorce proceedings.
The next month, the California District Court in the London
Award enforcement action granted Smagin's motion for sum-
mary judgment on his petition for confrmation of the Award
and entered judgment against Yegiazaryan for $92 million,
including interest. The court also issued several postjudg-
ment orders barring Yegiazaryan and those acting at his di-
rection from preventing collection on the judgment.
For failing to comply with those orders, the District Court
subsequently found Yegiazaryan in contempt of court. To
avoid having to comply with the contempt order, however,
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Yegiazaryan falsely claimed he was too ill, and submitted a
forged
doctor's note to the District Court. When Smagin
notifed Yegiazaryan that he would be seeking to depose the
doctor in question, who resides in California, Yegiazaryan
used “intimidation, threats, or corrupt persuasion,” id., at
82a, to get the doctor to avoid service of the subpoena.
B
At issue here is a civil RICO suit that Smagin brought in
2020 based on the allegations just described. RICO pro-
vides a private right of action to “[a]ny person injured in
his business or property by reason of a violation of ” RICO's
substantive provisions. 18 U. S. C. § 1964(c). Invoking that
cause of action, Smagin sued Yegiazaryan and CMB Bank
(the two petitioners here), as well as 10 other defendants,
in the Central District of California.
1
The complaint as-
serts two claims against each: a substantive RICO viola-
tion, § 1962(c), and a RICO conspiracy claim, § 1962(d). The
thrust of Smagin's allegations is that the defendants worked
together under Yegiazaryan's direction to frustrate Smagin's
collection on the California judgment through a pattern of
wire fraud and other RICO predicate racketeering acts, in-
cluding witness tampering and obstruction of justice. For
these violations, Smagin seeks not only actual damages “no
less than $130 million,” App. 100a, but also attorney's fees
and treble damages as author i zed under RICO. See
§ 1964(c).
1
Only Yegiazaryan and CMB Bank petitioned for this Court's review.
The other defendants include three family members (Suren Yegiazaryan,
Artem Yegiazaryan, and Stephan Yegiazaryan); an alleged Russian accom-
plice (Vitaly Gogokhia); French, Russian, and Luxembourger individuals
who have been administrators of the trust holding the $198 million (Na-
talia Dozortseva, Murielle Jouniaux, and Alexis Gaston Thielen); an alleg-
edly corrupt Russian bankruptcy offcer (Ratnikov Evgeny Nikolaevich);
and a registered company hired by Yegiazaryan (Prestige Trust Company,
Ltd.) and its U. S. lawyer (H. Edward Ryals).
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YAN v. SMAGIN
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The District Court dismissed the complaint on the ground
that
Smagin had “fail[ed] to adequately plead a domestic in-
jury,” id., at 31a, as required by this Court's decision in RJR
Nabisco. See 579 U. S., at 346 (“A private RICO plaintiff
therefore must allege and prove a domestic injury to its busi-
ness or property”). The District Court “place[d] great
weight on the fact that Smagin is a resident and citizen of
Russia and therefore experiences the loss from his inability
to collect on his judgment in Russia.” App. 27a (internal quo-
tation marks and alterations omitted).
The Ninth Circuit reversed. It rejected petitioners' invi-
tation to follow the domestic-injury approach of the Seventh
Circuit, “which has adopted a rigid, residency-based test for
domestic injuries involving intangible property,” such as a
judgment. 37 F. 4th 562, 568, 570 (2022) (citing Armada
(Sing.) PTE Ltd. v. Amcol Int'l Corp., 885 F. 3d 1090 (2018)).
Under the Seventh Circuit's rule, which locates an injury to
intangible property at the plaintiff 's residence, Smagin could
not allege a domestic injury because he resides in Russia.
See Armada, 885 F. 3d, at 1094. The Ninth Circuit instead
adopted a “context-specifc” approach to the domestic-injury
inquiry, which it found consistent with the approaches of the
Second and Third Circuits. 37 F. 4th, at 568–570; see Bas-
cuñán v. Elsaca, 874 F. 3d 806, 809 (CA2 2017); Humphrey
v. GlaxoSmithKline PLC, 905 F. 3d 694, 696 (CA3 2018).
Applying that approach, the Ninth Circuit concluded that
Smagin had pleaded a domestic injury because he had al-
leged that his efforts to execute on a California judgment in
California against a California resident were foiled by a
pattern of racketeering activity that largely “occurred in, or
was targeted at, California” and was “designed to subvert”
enforcement of the judgment in California. 37 F. 4th, at
567–568.
This Court granted certiorari to resolve the Circuit split.
598 U. S. ––– (2023). Because a context-specifc inquiry is
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Opinion of the Court
most consistent with this Court's decision in RJR Nabisco,
and
because the context here makes clear Smagin has al-
leged a domestic injury, the Court affrms.
II
A
The “domestic-injury” requirement for private civil RICO
suits stems from this Court's decision in RJR Nabisco.
There, the question before the Court was whether RICO
applies extraterritorially. To answer that question, the
Court employed the presumption against extraterritoriality,
which “represents a canon of construction, or a presumption
about a statute's meaning, rather than a limit upon Con-
gress's power to legislate.” Morrison v. National Austra-
lia Bank Ltd., 561 U. S. 247, 255 (2010). The presumption
provides that “[a]bsent clearly expressed congressional in-
tent to the contrary, federal laws will be construed to have
only domestic application.” RJR Nabisco, 579 U. S., at 335.
Dual rationales support the presumption against extrater-
ritoriality. On the one hand, it refects concerns of interna-
tional comity insofar as it “ `serves to protect against unin-
tended clashes between our laws and those of other nations
which could result in international discord.' ” Kiobel v.
Royal Dutch Petroleum Co., 569 U. S. 108, 115 (2013) (quot-
ing EEOC v. Arabian American Oil Co., 499 U. S. 244, 248
(1991)). On the other hand, the presumption is informed by
“the commonsense notion that Congress generally legislates
with domestic concerns in mind.” Smith v. United States,
507 U. S. 197, 204, n. 5 (1993). In fact, consistent application
of the presumption “preserv[es] a stable background against
wh ich Congress can leg islate with predictable effects. ”
Morrison, 561 U. S., at 261.
RJR Nabisco distilled the presumption against extraterri-
toriality into two steps. The frst asks “whether the statute
gives a clear, affrmative indication that it applies extraterri-
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542 YEGIAZAR
YAN v. SMAGIN
Opinion of the Court
torially.” 579 U. S., at 337. If the answer is “yes,” then the
presumpti
on is rebutted, obviating any need to proceed to
step two. If the presumption is not rebutted, however, then
step two asks whether the case involves a domestic applica-
tion of the statute, which is assessed “by looking to the stat-
ute's `focus.' ” Ibid.
2
Applying this framework, the Court assessed the extrater-
ritoriality of two of RICO's substantive provisions and, as
relevant here, its private cause of action. As to the substan-
tive provisions, the Court held at step one that they apply
extraterritorially to the same extent that RICO's predicates
do, making it unnecessary to proceed to step two. Id., at
340. Regarding RICO's private right of action, § 1964(c),
however, the Court's conclusion was different. The Court
determined that § 1964(c) does not overcome the presumption
at step one because there is no “clear indication that Con-
gress intended to create a private right of action for injuries
suffered outside of the United States.” Id., at 349. “If any-
thing,” the Court reasoned, by “cabining ” the private cause
of action to “injur[ies] to `business or property,' ” “Congress
signaled that the civil remedy is not coextensive with § 1962's
substantive prohibitions.” Id., at 350. Accordingly, in ref-
erence to step two, the Court held that “[a] private RICO
plaintiff . . . must allege and prove a domestic injury to its
business or property.” Id., at 346.
In announcing this “domestic-injury” requirement, the
Court did not have occasion to explain what constitutes a
“domestic-injury,” because the plaintiffs in RJR Nabisco had
stipulated that they were not seeking redress for domestic
injuries. Id., at 354. The question now before the Court is
whether Smagin has alleged a domestic injury.
2
“While `it will usually be preferable' to begin with step one, courts
have the discretion to begin at step two `in appropriate cases.' ” Western-
Geco LLC v. ION Geophysical Corp., 585 U. S. –––, ––– (2018) (citing RJR
Nabisco, 579 U. S., at 338, n. 5).
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B
The
parties advance competing approaches to the domestic
injury inquiry. Petitioners urge the Court to adopt a
bright-line rule, akin to the Seventh Circuit's, that locates
a plaintiff 's injury at the plaintiff 's residence. Petitioners
advance two different versions of this rule.
As their primary position, petitioners argue that any in-
jury cognizable under § 1964(c) is necessarily suffered at the
plaintiff 's residence because “the private cause of action
remedies only economic injuries, and a plaintiff necessarily
suffers that injury at its residence” where the economic in-
jury is felt. Brief for Petitioners 2. In the alternative,
petitioners argue that, at least when the alleged injury in-
volves intangible property, such as the judgment here, rele-
vant common-law principles locate the intangible property
at the plaintiff 's place of residence, such that the injury is
also located there. Id., at 2–3, 43–44. On either version
of petitioners' rule, Smagin cannot allege a domestic injury
because he lives in Russia.
Smagin, in contrast, defends a contextual approach that
considers all case-specifc facts bearing on where the injury
“arises,” not just where it is “felt.” Brief for Respondent 9.
In the context of this suit, Smagin argues that he has stated
a domestic injury because he has alleged that he was injured
in his ability to enforce a California judgment, against a Cali-
fornia resident, through racketeering acts that were largely
“designed and carried out in California” and were “targeted
at California.” Id., at 3, 21.
C
The Court agrees with Smagin and the Ninth Circuit that
“determining whether a plaintiff has alleged a domestic in-
jury [for purposes of RICO] is a context-specifc inquiry that
turns largely on the particular facts alleged in a complaint.”
37 F. 4th, at 570. Specifcally, courts should look to the cir-
cumstances surrounding the alleged injury to assess whether
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YAN v. SMAGIN
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it arose in the United States. In this suit, that means look-
i
ng to the nature of the alleged injury, the racketeering ac-
tivity that directly caused it,
3
and the injurious aims and
effects of that activity.
This approach to the domestic-injury requirement is most
consistent with RJR Nabisco. There, the Court clarifed
that its domestic-injury requirement “does not mean that
foreign plaintiffs may not sue under RICO.” 579 U. S., at
353, n. 12. Similarly, the Court explained that “application
of [the domestic-injury] rule in any given case will not always
be self-evident, as disputes may arise as to whether a partic-
ular alleged injury is `foreign' or `domestic.' ” Id., at 354.
These remarks point toward a case-specifc inquiry that con-
siders the particular facts surrounding the alleged injury.
Petitioners' bright-line rule, in contrast, dispenses with any
such subtlety. It makes the location of the plaintiff 's resi-
dence determinative, thus barring all foreign plaintiffs, ex-
actly as RJR Nabisco said it was not doing.
A contextual approach to the domestic-injury requirement
also better refects the requirement's origin in step two of
the extraterritoriality framework, which assesses whether
there is a domestic application of a statute by looking to the
statute's focus. RJR Nabisco implied that the focus of
§ 1964(c) is injuries in “business or property by reason of a
violation of [RICO's substantive provisions].” § 1964(c).
This focus makes sense because, in the context of RICO, “the
compensable injury necessarily is the harm caused by predi-
cate acts suffciently related to constitute a pattern, for the
essence of the violation is the commission of those acts in
connection with the conduct of an enterprise.” Sedima, S.
3
The alleged RICO violation must have proximately caused the injury
in order for the plaintiff to be able to sue under § 1964(c). See Holmes v.
Securities Investor Protection Corporation, 503 U. S. 258, 268 (1992);
Anza v. Ideal Steel Supply Corp., 547 U. S. 451, 457–458 (2006) (des-
cr ibi ng the proxi mate causati on requirement as a “direc tness
requiremen[t]”).
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P. R. L. v. Imrex Co., 473 U. S. 479, 497 (1985). So under-
stood,
§ 1964(c)'s focus is on the injury, not in isolation, but
as the product of racketeering activity. Thus, in assessing
whether there is a domestic injury, courts should engage in
a case-specifc analysis that looks to the circumstances sur-
rounding the injury. If those circumstances suffciently
ground the injury in the United States, such that it is clear
the injury arose domestically, then the plaintiff has alleged
a domestic injury.
Because of the contextual nature of the inquiry, no set of
factors can capture the relevant considerations for all cases.
RICO covers a wide range of predicate acts and is notori-
ously “expansive” in scope. Id., at 498–499. Thus, depend-
ing on the allegations, what is relevant in one case to assess-
ing where the injury arose may not be pertinent in another.
While a bright-line rule would no doubt be easier to apply,
fea lty to the st atute's focus requires a more nuanced
approach.
D
This suit illustrates well why the domestic-injury inquiry
must account for the facts of the case, rather than rely on a
residency-based rule. While it may be true, in some sense,
that Smagin has felt his economic injury in Russia, focusing
solely on that fact would miss central features of the alleged
injury. Zooming out, the circumstances surrounding Sma-
gin's injury make clear it arose in the United States.
Smagin alleges that he “has been injured in his inability
to collect [his] massive judgment.” App. 38a. Much of the
alleged racketeering activity that caused the injury occurred
in the United States. Yegiazaryan took domestic actions to
avoid collection, including allegedly creating U. S. shell com-
panies to hide his U. S. assets, submitting a forged doctor's
note to a California District Court, and intimidating a U. S.-
based witness. It is true that other components of the
scheme occurred abroad. As Smagin alleges, however, even
those “wrongful acts and plans were devised, initiated, and
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Opinion of the Court
carried out . . . through acts and communications initiated in
and
directed towards Los Angeles County, California,” with
the “central purpose of frustrating enforcement of [the] Cali-
fornia judgment.” Id., at 45a–46a.
Further, the injurious effects of the racketeering activity
largely manifested in California. Smagin obtained a judg-
ment in California because that is where Yegiazaryan lives,
and where Smagin had thus hoped to collect. The rights
that the California judgment provides to Smagin exist only
in California, including the right to obtain postjudgment dis-
covery, the right to seize assets in California, and the right
to seek other appropriate relief from the California District
Court. The alleged RICO scheme thwarted those rights,
thereby undercutting the orders of the California District
Court and Smagin's efforts to collect on Yegiazaryan's assets
in California.
In sum, Smagin's interests in his California judgment
against Yegiazaryan, a California resident, were directly in-
jured by racketeering activity either taken in California or
directed from California, with the aim and effect of subvert-
ing Smagin's rights to execute on that judgment in Califor-
nia. On the Court's contextual approach, those allegations
suffce to state a domestic injury in this suit.
III
Petitioners argue that a contextual approach is inconsist-
ent with certain common-law principles, which instead favor
their bright-line rule. According to petitioners, because
Smagin has alleged an “economic injury” or an “injury in
intang ible proper ty, ” Br ief in Oppositi on 15 –16, cour ts
should look to common-law principles governing “the situs”
of such injuries, when determining whether those injuries
are foreign or domestic. Specifcally, as to economic inju-
ries, petitioners point to the Restatement (First) of Confict
of Laws § 377 (1934), from which they discern the principle
that “a fraud plaintiff suffer[s] an economic loss at the plain-
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547
Opinion of the Court
tiff 's domicile.” Brief for Petitioners 36; see also Sack v.
L
ow, 478 F. 2d 360, 366 (CA2 1973) (Under the First Restate-
ment, “loss from fraud is deemed to be suffered where its
economic impact is felt, normally the plaintiff 's residence”).
As to intangible injuries, petitioners further rely on the prin-
ciple of mobilia sequuntur personam, which they claim
“generally locat[es] intangible property at the domicile of its
owner.” Brief for Petitioners 44. Both principles, they
argue, locate Smagin's alleged injury at his residence.
Petitioners fall short, however, when explaining the rele-
vance of these principles. They do not clearly explain why
choice-of-law principles are germane here, let alone why the
First Restatement dictates those principles.
4
Meanwhile, it
is far from clear that petitioners' gloss on the principle of
mobilia sequuntur personam was as well established or as
wide sweeping as petitioners take it to be, in light of the
many twists and turns in the doctrine across a range of con-
texts. See A. Simowitz, Siting Intangibles, 48 N. Y. U. J.
Int'l L. & Pol. 259, 270–292 (2015). In short, at the time of
RICO's enactment, both principles were hardly “settled . . .
at common law.” Beck v. Prupis, 529 U. S. 494, 500 (2000).
The core problem with petitioners' approach is that it is
unmoored from the presumption against extraterritoriality.
While legal fctions regarding the situs of economic injuries
and intangible property have their justifcations in other
areas of law, those justifcations do not necessarily translate
to the presumption against extraterritoriality, with its dis-
4
Although the First Restatement was in effect in 1970, when RICO was
enacted, numerous jurisdictions had by then moved away from the First
Restatement's methodology and toward a “ `most signifcant relationship' ”
test, which resembles “the kind of `multi-factor' analysis the Court of Ap-
peals conducted here.” Brief for George A. Bermann as Amicus Curiae
15. This shift was refected in § 145 of the Restatement (Second) of Con-
fict of Laws, which superseded the First Restatement the following year
in 1971. Thus, even assuming choice-of-law principles are relevant, peti-
tioners' identifcation and application of those principles is questionable.
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tinctive concerns for comity and discerning congressional
meani
ng.
Indeed, it is because petitioners' view invokes these fc-
tions that it generates results so counter to comity and so far
afeld from any reasonable interpretation of what qualifes as
a domestic application of § 1964(c). On petitioners' primary
view, a business owner who resides abroad but owns a brick-
and-mortar business in the United States cannot bring a
§ 1964(c) suit even if an American RICO organization burns
down her storefront. Perhaps aware of how odd this seems,
petitioners offer a fallback rule for intang ible property.
That rule fares no better. It provides that if racketeering
activity targets the intangible business interests of two U. S.
businesses, one owned by a U. S. resident and one owned by
someone living abroad, only the former business owner can
bring a § 1964(c) suit. There is no evidence Congress in-
tended to impose such a double standard, especially because
doing so runs its own risks of generating international dis-
cord. These implausible consequences are strong evidence
that petitioners have gone astray in assessing the focus of
§ 1964(c) and, thus, the meaning of “domestic injury” as con-
templated by RJR Nabisco.
Finally, petitioners, as well as the dissent, post, at 553
(opinion of Alito, J.), argue that a contextual approach is
unworkable because it does not provide a bright-line rule.
Reply Brief 17–18. An approach is not unworkable, how-
ever, merely because it directs courts to consider the case-
specifc circumstances surrounding an injury when assessing
where it arises. While “the ease with which [petitioners']
bright-line rule can be applied gives it some surface appeal,”
Humphrey, 905 F. 3d, at 709, a look beneath the surface
quickly reveals that the test is inconsistent with RJR Nabi-
sco, the presumption against extraterritoriality, and the
thrust of § 1964(c) itself. Concerns about a fact-intensive
test cannot displace congressional policy choices, where a
more nuanced test is true to the statute's meaning.
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549
Alito, J., dissenting
***
A
plaintiff has alleged a domestic injury for purposes of
§ 1964(c) when the circumstances surrounding the injury in-
dicate it arose in the United States. Smagin alleges that
he was injured in California because his ability to enforce a
California judgment in California against a California resi-
dent was impaired by racketeering activity that largely oc-
curred in or was directed from and targeted at California.
Those allegations state a domestic injury. The judgment of
the Ninth Circuit is affrmed, and the cases are remanded for
further proceedings consistent with this opinion.
It is so ordered.
Justice Alito, with whom Justice Thomas joins, and
with whom Justice Gorsuch joins as to Part I, dissenting.
These are the frst cases in which we have been required
to decide when injury to intangible property that a civil
plaintiff attributes to a violation of the Racketeer Infuenced
and Corrupt Organizations Act (RICO) qualifes as a “domes-
tic injury” and may therefore provide the basis for recovery
under 18 U. S. C. § 1964(c). See RJR Nabisco, Inc. v. Euro-
pean Community, 579 U. S. 325, 346–354 (2016). This ques-
tion has divided the lower courts, but the Court's decision
resolves very little. It holds only that ascertaining the site
of intangible injuries for purposes of civil RICO requires a
court to consult a variety of factors and that two factors it
identifes show that respondent has suffered a domestic in-
jury. This analysis offers virtually no guidance to lower
courts, and it risks sowing confusion in our extraterrito-
riality precedents. Rather than take this unhelpful step,
I would dismiss the writ of certiorari as improvidently
granted.
I
We granted certiorari “to resolve [a] Circuit split” be-
tween, on the one hand, the Third and Ninth Circuits, which
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Alito, J., dissenting
embrace a totality-based inquiry like the one the Court
adopts
here, and, on the other hand, the Seventh Circuit,
which has held that RICO injuries to intangible property
are sited at the plaintiff 's residence. Ante, at 540; compare
Humphrey v. GlaxoSmithKline PLC, 905 F. 3d 694, 706–707
(CA3 2018), and 37 F. 4th 562, 567–568 (CA9 2022) (case
below), with Armada (Sing.) PTE Ltd. v. Amcol Int'l Corp.,
885 F. 3d 1090, 1094–1095 (CA7 2018).
1
The Seventh Cir-
cuit's decision, however, contains little analysis and simply
declares that “[i]t is well understood that a party experiences
or sustains injuries to its intangible property at its resi-
dence.” Id., at 1094; see also Czyzewski v. Jevic Holding
Corp., 580 U. S. 451, 471 (2017) (Thomas, J., dissenting) (re-
ferring to a dearth of “reasoned opinions . . . from the courts
of appeals” regarding “a novel and important question”).
The Third and Ninth Circuits, for their parts, did not co-
alesce around any common set of factors to guide the civil
RICO domestic-i n jury i nquiry for i nt ang ible-proper ty
claims. See Humphrey, 905 F. 3d, at 706–707; 37 F. 4th, at
567–568. And no court of appeals has even broached the
possibility that different categorical rules might be available
for different types of intangible property (e. g., perhaps there
could be a rule that injuries to trademark rights should be
sited in the country that provided the trademark). “[W]e
would greatly beneft from the views of additional courts of
appeals on this question.” Czyzewski, 580 U. S., at 472
(Thomas, J., dissenting).
Bringing clarity to this area of the law is not an easy task,
and I must conclude that the Court falls short. It cites peti-
tioners' domestic racketeering conduct and the California
rights conferred by the California judgment Smagin has ob-
tained to enforce his London arbitral award, but it gives no
1
The Second Circuit has adopted a bright-line rule that RICO injuries
to tangible property are sited at the location of the property. Bascuñán
v. Elsaca, 874 F. 3d 806, 818–824 (2017). The Second Circuit's holding is
not implicated in this split, nor did that court offer any analysis of intangi-
ble property relevant to these cases.
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Alito, J., dissenting
indication of the relative import of each of these factors.
An
te, at 545–546. And while the Court appears to envision
a long list of factors that might be relevant to this inquiry,
see ante, at 545, it mentions none other than these two. Nor
does it say anything about the circumstances that would call
for consideration of additional factors, when such factors
might outweigh one or both of the ones it mentions, or what
these other factors might be.
Of course, under the majority's all-factors-considered ap-
proach, many other features of this very suit could be rele-
vant, such as the history and location of the underlying
dispute, where any relevant business relationships were
formed, Smagin's residence, and the existence of the London
arbitral award. Are future courts to infer that these mat-
ters have no import? It is diffcult to come to any other
conclusion given that the Court pays them no heed in under-
taking what is ostensibly an examination of all relevant “con-
tex[t].” Ante, at 543–545. But it is equally diffcult to see
why they are irrelevant (especially in light of the Court's
unexplored acknowledgment that “in some sense, . . . Smagin
has felt his economic injury in Russia,” ante, at 545), or what
room the Court is leaving for additional factors to be identi-
fed if none of these counts. And because the Court sets
aside the factors that would favor petitioners, it also pro-
vides no guidance on how to weigh competing considerations
that do not all point toward the same result.
One might additionally think that the nature of the intan-
gible property itself could be relevant under the majority's
approach, such as whether the property is a debt, a stock, a
trademark, etc. In these cases, however, the relationship
between the California judgment Smagin has obtained and
the underlying arbitral award that that judgment confrmed
is uncertain, so the precise property at issue is another as-
pect of this suit that is shrouded in confusion. Smagin ac-
knowledged at oral argument that even though he has ob-
tained multiple judgments confrming the arbitral award, he
can collect on only one. See Tr. of Oral Arg. 49. There is
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Alito, J., dissenting
thus at least some relevant relationship between the Califor-
nia
judgment and the London arbitral award—the latter of
which is not “domestic” in any way—but the Court does not
address this point, either.
Even with respect to the two factors it focuses on, the
Court engenders confusion. It offers no hint which of the
two might be more important (should they point in different
directions), whether either or both are necessary, or whether
either is suffcient. And the Court acknowledges that there
was also substantial foreign conduct in these cases, but
writes that off because it was “ `initiated in and directed to-
wards' ” the United States. Ante, at 546. Once more, I am
unsure of the origin or scope of this rule. If domestic con-
duct is “initiated in” a foreign nation, does that make it for-
eign? What exactly does it mean to direct conduct “to-
wards” the United States? All in all, were I a lower-court
judge, I would struggle to apply today's decision to any set
of facts other than the precise combination present here. In
my view, it is not worth our deciding a case when we provoke
so many more questions than we provide answers. That is
especially so now that the lower courts must additionally de-
cide whether and how today's cryptic decision binds them,
rather than continuing to think through unencumbered when
intangible-property injuries are the basis of a domestic appli-
cation of civil RICO.
II
It is not just that we are contributing little by deciding
these cases, however; we are also risking signifcant harm,
particularly to the uniformity of our case law. A thrust
of our international-comity jurisprudence is that we should
not lightly give foreign plaintiffs access to U. S. remedial
schemes that are far more generous than those available in
their home nations. See RJR Nabisco, 579 U. S., at 347–348;
F. Hoffmann-La Roche Ltd v. Empagran S. A., 542 U. S.
155, 166–167 (2004). In light of RICO's unusually plaintiff-
friendly remedies, that concern applies in spades here. See
RJR Nabisco, 579 U. S., at 348. But in today's decision, the
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553
Alito, J., dissenting
Court countenances that the plaintiff 's residence may play
no
role at all in the civil RICO extraterritoriality inquiry.
The Court justifes this result with the assertion that favor-
ing U. S. plaintiffs' access to American courts over that of
foreign plaintiffs “runs its own risks of generating interna-
tional discord,” ante, at 548, a concern that the Court directly
rejected in RJR Nabisco, see 579 U. S., at 361 (Ginsburg, J.,
dissenting in relevant part).
Additionally, we have placed a premium on workability in
our extraterritorial-application cases. The Court acknowl-
edges that a bright-line rule would be preferable here, but
essentially shrugs: RICO is too “nuanced” for that. Ante,
at 545, 548. Our cases do not let us off the hook so easily.
Compare Morrison v. National Australia Bank Ltd., 561
U. S. 247, 258–259 (2010) (“There is no more damning indict-
ment of the [Second Circuit's] `conduct' and `effects' tests
than the Second Circuit's own declaration that `the presence
or absence of any single factor which was considered signif-
cant in other cases . . . is not necessarily dispositive in future
cases' ”), with ante, at 545 (“[N]o set of factors can capture
the relevant considerations for all cases”).
Perhaps there is a reason why RICO justifes these depar-
tures from our customary rules, but I have no confdence in
reaching that conclusion now (let alone sub silentio). RJR
Nabisco was relatively recent, and there have been only a
small number of court of appeals decisions implementing it,
and even fewer with respect to intangible property. More-
over, unlike in our typical extraterritoriality case, we have
received no input here from the sovereign states our rules
will affect, including the U. S. Government. RJR Nabisco,
579 U. S., at 348; Morrison, 561 U. S., at 269; F. Hoffmann-
La Roche, 542 U. S., at 167–168.
***
The only rule of law that the Court announces today is that
there is no rule, and despite offering such minimal guidance
regarding how to site a RICO injury, the Court nonetheless
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Alito, J., dissenting
manages to sow confusion regarding our broader law of ex-
traterr
itoriality. Respectfully, the most we could contribute
to this issue at this juncture is to stay away from it. I would
dismiss the writ of certiorari as improvidently granted.
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Reporter’s Note
The attached opinion has been revised to refect the usual publication
and citation style of the United States Reports. The revised pagination
makes available the offcial United States Reports citation in advance of
publication. The syllabus has been prepared by the Reporter of Decisions
for the convenience of the reader and constitutes no part of the opinion of
the Court. A list of counsel who argued or fled briefs in this case, and
who were members of the bar of this Court at the time this case was
argued, has been inserted following the syllabus. Other revisions may
include adjustments to formatting, captions, citation form, and any errant
punctuation. The following additional edits were made:
None