Alfadda v. Fenn: Shifting the Standard for Applying U.S. Statutes to Predominantly Non-U.S. Transactions

Authors

Tara Ann Carroll

Abstract

This Comment argues that the Second Circuit, in Alfadda v. Fenn, properly held that the district court had subject matter jurisdiction over a controversy involving few U.S. activities and actors because the actors engaged in significant conduct in the United States. Part I examines the principles and pertinent case law governing the extraterritorial application of the civil RICO statute. Part II describes the facts and procedural his- tory of Alfadda v. Fenn, detailing the district court's denial of subject matter jurisdiction and the Second Circuit's subse- quent reversal. Part III argues that the Second Circuit cor- rectly applied the existing legal precedents by granting federal subject matter jurisdiction over this case and examines the im- plications of the decision. It also argues that, given the com- peting interests at stake, U.S. courts should grant jurisdiction over predominantly non-U.S. transactions only where, as here, the evidence demonstrates substantial conduct or a substantial effect within the United States. This Comment concludes that Congress should amend RICO and clearly delineate its extra- territorial application so that courts need no longer speculate about congressional intent. This Comment argues that the Second Circuit, in Alfadda v. Fenn, properly held that the district court had subject matter jurisdiction over a controversy involving few U.S. activities and actors because the actors engaged in significant conduct in the United States. Part I examines the principles and pertinent case law governing the extraterritorial application of the civil RICO statute. Part II describes the facts and procedural his- tory of Alfadda v. Fenn, detailing the district court's denial of subject matter jurisdiction and the Second Circuit's subse- quent reversal. Part III argues that the Second Circuit cor- rectly applied the existing legal precedents by granting federal subject matter jurisdiction over this case and examines the im- plications of the decision. It also argues that, given the com- peting interests at stake, U.S. courts should grant jurisdiction over predominantly non-U.S. transactions only where, as here, the evidence demonstrates substantial conduct or a substantial effect within the United States. This Comment concludes that Congress should amend RICO and clearly delineate its extra- territorial application so that courts need no longer speculate about congressional intent.

Recommended Citation

Tara Ann Carroll, Alfadda v. Fenn: Shifting the Standard for Applying U.S. Statutes to Predominantly Non-U.S. Transactions, 16 Fordham Int'l L.J. 159 (1992).
Available at: https://ir.lawnet.fordham.edu/ilj/vol16/iss1/5