High Court To Hear Don King Case
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In the Ring With Don KingThe Supreme Court stepped into the boxing ring today, agreeing to hear a fight promoter’s argument that he can sue rival promoter Don King for racketeering.
The high court will use the case to clarify when people can be sued for allegedly conducting racketeering activity through a business.
The federal Racketeer Influenced Corrupt Organizations (RICO) lawallows people to file civil lawsuits, seeking triple damages,against people accused of conducting an “enterprise’s affairsthrough a pattern of racketeering activity.”
Boxing promoter Cedric Kushner filed such a lawsuit against King in New York in 1998that accused him of interfering with Kushner’s contract with boxerHasim Rahman.
The lawsuit, which sought about $12 million in damages, said King paid Rahman not to go through with a fight that had been arranged through Rahman’s contract with Kushner.
A federal judge dismissed the case, saying the RICO law required the person and the enterprise to be “distinct” from each other.
King is president and sole shareholder of Don King Productions.
The 2nd U.S. Circuit Court of Appeals agreed. King was “an employee acting within the scope of his authority” at Don KingProductions, the court said last July.
In the appeal acted on today, Kushner’s lawyer said the racketeering law was aimed at employees who “conduct the employer’s affairs as a vehicle to accomplish racketeering activity.” Under the 2nd Circuit Court’s ruling, “an organizedcrime family would merely need to incorporate to escape …liability altogether,” Kushner’s lawyer said.
King’s lawyer said the law aimed to attack the infiltration oforganized crime into legitimate organizations. The appeals court’sruling “keeps in check yet another unwarranted expansion of RICOtreble-damage liability,” the promoter’s lawyer said.
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