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New Jersey Section 2C:41-6.1 – Remedies cumulative

New Jersey Section 2C:41-6.1 – Remedies cumulative

New Jersey Section 2C:41-6.1 is part of New Jersey’s Racketeer Influenced and Corrupt Organizations (RICO) Act, which provides civil remedies for persons injured by racketeering activity. Section 2C:41-6.1 specifically states that the remedies under the RICO Act are cumulative, meaning they are in addition to any other remedies provided under state or federal law.

Overview of New Jersey’s RICO Act

New Jersey’s RICO Act was modeled after the federal RICO Act and aims to give law enforcement additional tools to combat organized crime. The Act provides both criminal penalties and civil remedies for certain racketeering activities like extortion, money laundering, trafficking, and financial crimes.

The civil remedies section of the RICO Act allows persons injured by violations of the Act to sue for damages in civil court. This provides an additional avenue for victims to receive compensation for injuries caused by criminal racketeering enterprises.

Key Provisions of Section 2C:41-6.1

Section 2C:41-6.1 of the New Jersey RICO Act states:

“The remedies provided in this act shall be cumulative with each other and other remedies at law.”

This simple section clarifies that the civil remedies available under the RICO Act do not preclude victims from seeking other remedies as well. Even if a victim pursues damages under the RICO Act, they can also utilize other laws and remedies to recover compensation.

For example, a victim could potentially file both:

• A civil RICO lawsuit for damages under the state RICO Act
• A common law fraud lawsuit based on state fraud statutes

The remedies would be cumulative, allowing the victim to collect damages through both claims.

Purpose and Effects of Allowing Cumulative Remedies

The New Jersey Legislature’s intent with Section 2C:41-6.1 was to maximize the tools available to combat racketeering activity. Allowing cumulative remedies furthers this purpose in a couple key ways:

• Expands options for victims – Victims can pursue multiple options for compensation instead of being limited to just the RICO Act remedies. This increases their chances of fully recovering losses.
• Increases liability for racketeers – Racketeers face increased financial liability because victims can sue under multiple laws. This enhances the deterrent effect of the RICO Act.
• Supports cooperation between state and federal law – Cumulative remedies allow both state RICO claims and federal RICO claims to proceed simultaneously. This improves coordination in prosecuting racketeering across jurisdictions.

However, some argue that allowing cumulative remedies over-penalizes defendants who may face double liability for the same underlying criminal activity. But most courts have held that cumulative remedies are reasonable given the gravity of organized criminal activity.

Examples of Cumulative Claims Under RICO

Here are some examples of how cumulative remedies work in practice:

• A victim sues a racketeering enterprise under the RICO Act for damages from extortion. The victim also sues members of the enterprise for assault and battery under common law. Both claims can proceed at the same time.
• A victim sues under the civil RICO Act for damages from financial fraud. The victim also files a claim for fraud under the New Jersey Consumer Fraud Act. The victim can potentially recover under both state laws.
• A victim sues under the New Jersey RICO Act and also files a federal civil RICO claim. Both the state and federal RICO claims can proceed simultaneously against the defendants.
• A victim sues for racketeering activity under the RICO Act. The victim also sues for negligence related to a premises liability issue. The negligence claim is unrelated to the racketeering but can still proceed alongside the RICO claim.

Limits to Cumulative Remedies Under RICO

While Section 2C:41-6.1 allows victims to pursue multiple remedies, there are some limits in place to prevent excessive damages:

• No double recovery for same injury – While a victim can assert multiple claims, they cannot recover full damages for the same injury twice. Courts will reduce damages to prevent double recovery.
• Statutory limits may apply – Some remedies are subject to statutory limits on the amount of recoverable damages. These limits still apply when seeking cumulative remedies.
• RICO penalties only for RICO violations – Only racketeering injuries can be remedied under the RICO Act. Regular civil or criminal claims unrelated to racketeering cannot be bootstrapped to a RICO case.
• Proper pleading requirements – Plaintiffs must properly plead each claim and cannot assert frivolous claims just to access cumulative remedies. Courts will dismiss improperly pled claims.

So victims cannot obtain excessive damages by stacking claims. But Section 2C:41-6.1 still provides significant advantages to victims by allowing additional opportunities for compensation when injured by racketeering activity.

Policy Considerations for Cumulative Remedies Under RICO

There are some policy issues to consider regarding the use of cumulative remedies under RICO:

Pros

• Increases avenues for victim compensation
• Enhances deterrence of racketeering activity
• Allows state and federal cooperation on RICO cases

Cons

• Increased litigation and costs for defendants
• Potential for disproportionate damages
• Risk of frivolous claims and damages

Lawmakers have generally determined that the benefits outweigh the risks, given the gravity of organized crime. But some refinements have been proposed to prevent misuse of cumulative remedies under RICO:

• Heightened pleading standards – Requiring detailed facts to be pled to support each cumulative claim to prevent frivolous suits.
• Fee-shifting provisions – Requiring plaintiffs who assert frivolous cumulative claims to pay the defendant’s attorney fees to deter abuse.
• Damage caps – Capping the total damages allowable through cumulative claims, even if based on separate laws.

The efficacy of these proposed reforms is still debated. For now, the New Jersey Legislature has preserved the broad cumulative remedies provision in its RICO Act. But amendments could come in the future if the courts find plaintiffs are routinely misusing cumulative claims.

Conclusion

Section 2C:41-6.1 of the New Jersey RICO Act serves the important purpose of allowing victims of racketeering activity to access multiple avenues for compensation. This furthers the core goal of the RICO Act to provide robust tools for combatting organized crime. However, some care is required in applying cumulative remedies to prevent misuse and disproportionate damages against defendants. Overall, New Jersey’s approach strikes the right balance by clearly authorizing cumulative remedies while giving courts discretion to prevent abuses. This maximizes victims’ rights while retaining procedural fairness for defendants.