In an intriguing turn of events in international litigation, the U.S. Supreme Court recently ruled in the case of Yegiazaryan v. Smagin (available for review here), offering a new approach for foreign plaintiffs looking to collect on arbitration awards in the U.S. By employing the Racketeer Influenced and Corrupt Organizations Act (RICO), it can indeed be a tactical play for the plaintiffs.
The crux of the Supreme Court decision resides in the interpretation of what signifies a “domestic injury” for the purpose of filing a private civil suit under RICO. This, previously, had been a point of contention and misalignment among varying Circuit courts.
In Smagin, the Supreme Court resolved this dispute by clarifying that a plaintiff has alleged a “domestic injury” when the circumstances surrounding the… (the full text of the decision provides a more detailed analysis).
This ruling thus ushers in a beneficial judgment for foreign plaintiffs, as RICO then becomes an auxiliary tool in their legal arsenal, assisting in the successful collection of international arbitration awards.
Although the implications of this judgment warrant critical analysis and will certainly spark discourse among legal professionals, it nevertheless represents a significant juncture in the lens of international litigation.