In a split decision, the Supreme Court ruled on Wednesday that Douglas Horn can pursue damages under the Racketeer Influenced and Corrupt Organizations (RICO) Act after losing his job due to a CBD product containing THC. The case centers on whether Horn’s injury qualifies for RICO’s civil penalties.
Horn, a truck driver, failed a drug test after ingesting a CBD product marketed as THC-free, leading to his firing. The Court ruled that personal injuries can be linked to business losses under RICO, even if the initial harm was personal. Justice Amy Coney Barrett’s opinion emphasized that Horn’s loss of business, not just personal injury, allows for potential recovery.
The defendants, including Medical Marijuana, Inc., argued that the harm must be related to business or property rights for RICO claims. Barrett disagreed, stating the law’s “ordinary meaning” allows for business loss claims, even if they result from personal injury.
However, Barrett cautioned that Horn’s case still faces challenges. RICO requires a direct link between the injury and criminal activity, and the case must demonstrate a pattern of racketeering, not just a single incident.
Justice Clarence Thomas dissented, suggesting the case had evolved too much from its original argument. Justices Kavanaugh, Roberts, and Alito also dissented, voicing concerns over expanding federal jurisdiction in tort cases. Despite the controversy, Barrett’s ruling is unlikely to significantly affect future RICO cases.
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