Supreme Court Allows RICO Tax Lien Lawsuit
National News
A pair of Chicago-area companies have the right to sue their competitors under federal racketeering law for allegedly gaining more than their fair share of tax liens, the U.S. Supreme Court ruled.
BCS Services Inc. and Phoenix Bond & Indemnity Co. sued their competitors under the Racketeer Influenced and Corrupt Organizations Act, claiming they committed mail fraud when they sent notices to delinquent taxpayers.
At issue were the competitors' statements that they were independent organizations bidding for the tax liens, when there were instances of relatives bidding for the same properties, the plaintiffs claimed.
The district court had ruled that BCS and Phoenix did not have standing because the taxpayers did not receive the notices in the mail. Justice Thomas, writing for the unanimous court, upheld the 7th Circuit's reversal of that decision, which ruled that BCS and Phoenix had standing because they were injured by the defendants' actions.
The competitors had argued that BCS and Phoenix did not rely on the competitors' statements of independence because they were made to the county, not to BCS and Phoenix.
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Texas Adopts Statewide Texting-While-Driving Ban
Effective September 1, 2017, Texas will become the 47th state to pass a statewide ban on texting while driving. Governor Abbott’s signing of House Bill 62 is an effort to unify Texas under a uniform ban and remedy the “patchwork quilt of regulations that dictate driving practices in Texas.”
The bill specifically prohibits drivers from reading, writing, or sending an electronic message on a device unless the vehicle is stopped. That includes texting and emailing. It does not, however, prohibit dialing a number to call someone, talking on the phone using a hands-free device, or using the phone’s GPS system.
Violations would be punishable by a fine ranging from $25 to $99, to be set by each municipality. Although penalties could rise to as much as $200 for repeat offenders.
Studies have found that a driver’s reaction time is half as much when a driver is distracted by sending or reading a text message. According to state officials, in 2015 more than 105,000 traffic accidents in Texas involved distracted driving, leading to at least 476 fatalities.