Appellate Division of the Supreme Court of New York, 1992

New York Mortgage Servicing Corp. v. Dake

New York Mortgage Servicing Corp. v. Dake
Appellate Division of the Supreme Court of New York · Decided January 31, 1992
179 A.D.2d 1007
New York Mortgage Servicing Corp. v. Dake

Opinion of the Court

*1008Based on those facts, defendants, in their fourth counterclaim, assert a civil RICO claim against plaintiff. They allege, in a conclusory fashion, that plaintiff committed two or more predicate acts constituting a pattern of racketeering activity within the meaning of RICO, that plaintiff had participated in an enterprise that affected interstate commerce, and that defendants had sustained property damages as a result of plaintiff’s RICO violations.

In order to sustain a civil RICO claim, a party is required to allege that the multiple predicates constitute a pattern of racketeering activity (see, H.J. Inc. v Northwestern Bell Tel. Co., 492 US 229, 250). Further, to allege a pattern of racketeering activity, a party "must show that the racketeering predicates are related, and that they amount to or pose a threat of continued criminal activity” (H.J. Inc. v Northwestern Bell Tel. Co., supra, at 239). Here, defendants’ pleading fails to satisfy those requirements. Because defendants’ fourth counterclaim contains insufficient factual allegations to show a pattern of racketeering activity, it fails to state a civil RICO cause of action (see, H.J. Inc. v Northwestern Bell Tel. Co., supra; Simpson Elec. Corp. v Leucadia, Inc., 72 NY2d 450). (Appeal from Order of Supreme Court, Monroe County, Stander, J. — Dismiss Counterclaim.) Present — Callahan, J. P., Doerr, Green, Balio and Lawton, JJ.

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