Civil RICO Section 1962(c) - Vicarious Liability And Arguments For Expanding Its Scope And Elements ~ Part II

3.0 The Parameters: When 1962(c) Vicarious Liability Applies

As the Brady court indicated, 1962(c) vicarious liability will not attach to every principal. The courts have adopted significant and various limitations to its imposition.

3.1 The Person-Enterprise Distinctness Requirement

The distinctness requirement⁷ is the most-often-cited obstacle to a 1962(c) vicarious liability claim. The roots of this requirement are in the language of 1962(c), which provides:

[i]t shall be unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise's affairs through a pattern of racketeering activity or collection of unlawful debt ⁸.