Containing the Uncontainable: Drawing RICO's Border with the Presumption Against Extraterritoriality

Abstract

In Morrison v. National Australia Bank Ltd. the Supreme Court disseminated a two-step test to determine the extraterritorial reach of all federal statutes, radically shifting the application of U.S. laws. Nowhere has this decision caused more upheaval than in the context of analyzing claims under the Racketeering Influenced and Corrupt Organizations Act (RICO): while courts have reached broad agreement that RICO does not apply extraterritorially, courts disagree over the proper standard to determine when a RICO case is domestic or foreign. This Note explores RICO’s origins, the statute’s legislative history, and the evolution of RICO’s extraterritorial application in Morrison’s shadow. This Note then sifts through the conflicting approaches employed by courts faced with RICO cases involving foreign elements before ultimately advocating an alternative approach that accurately applies the Supreme Court’s Morrison decision and faithfully embodies RICO’s legislative history and intent.