Black Dragon Resource Companies Inc (BDGR)

[LGL8054]

Am I correct in assuming that RICO's statute of limitations cannot bar a civil RICO claim so long as the defendant continues to engage in acts of racketeering?

As stated above, the statute of limitations on civil RICO claims begins to run whenever a victim knows or reasonably should know of its injury. The Supreme Court has held that RICO imposes a duty of diligence on all victims who wish to seek redress through the statute. Accordingly, once the victim knows of his injury or reasonably should know of his injury, he cannot sit back on his rights, refrain from bringing a civil RICO claim and thereby allow the defendant to continue to engage in acts of racketeering that will increase the amount of the victim's monetary claim against the defendant. Once a victim is aware of its injury, it has four years to bring a claim.

Many times, however, a defendant will conceal the plaintiff's injury by making false promises, or by engaging in a number of other fraudulent statements. Likewise, a defendant may conceal the pattern of racketeering by similar means. Under these circumstances, the doctrine of fraudulent concealment may toll the running of the statute of limitations for so long as the defendant's affirmative acts of concealment prevent the defendant from discovering his injury or the pattern of racketeering. Once the victim has actual knowledge of his injury or the pattern of racketeering, however, the statute of limitations will not be tolled - regardless of the defendant's efforts to further conceal the victim's claim. There are many equitable tolling doctrines that may come into play in any civil RICO scenario. Other such doctrines include (but are not limited to) duress, infancy, and incompetence. One must consult with an attorney to determine the appropriate application of the statute of limitations or any tolling doctrine with regard to the particular facts of a case.