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News: U.S. Supreme Court remands Mohawk Industries case

U.S. Supreme Court remands Mohawk Industries case
On June 5, 2006, the Supreme Court essentially decided not to decide the Mohawk Industries case, a matter I have been chronicling in prior posts on this site. In a separate RICO case decided the same day, Anza v. Ideal Steel Supply, the Court limited the use of RICO by companies seeking damages for allegedly illegal acts by their competitors. In that case, Justice Kennedy, writing for the majority, said the victim of racketeering must suffer “direct” injury from the illegal acts. In light of the Anza decision, the Court remanded the Mohawk Industries case back to the 11th Circuit Court of Appeals for further consideration.

The Court had heard arguments only in April involving Mohawk Industries, a floor-covering company that had been sued by a group of its workers for allegedly suppressing wages by hiring illegal workers. At the time, several justices voiced skepticism over whether Mohawk could be sued under RICO for allegedly using recruiters to find and hire illegal immigrants. The Bush administration had sided with the workers, urging the high court to allow the lawsuit to go forward.

However, in light of the decision in the Anza case, the case has now simply been sent back to the lower court for further consideration by that lower court.

I will continue to update the matter in future postings



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