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Bridge v. Phoenix Bond & Indemnity Co.

553 U.S. 639 (2008)

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Bridge v. Phoenix Bond & Indemnity Co.

United States Supreme Court
553 U.S. 639 (2008)

  • Written by Robert Cane, JD

Facts

Phoenix Bond & Indemnity Company (Phoenix) (plaintiff) and Sabre Group, LLC (defendant) were participants in Cook County sales of tax liens. The bidding system often resulted in ties between bidders, so a rotation was used to award properties to bidders who tied. Each bidding entity was prohibited from using agents or other representatives to submit multiple, simultaneous bids for the same lien by the single, simultaneous bidder rule. Phoenix filed a complaint in district court alleging that Sabre Group had violated the Racketeer Influenced and Corrupt Organizations Act (RICO) by fraudulently obtaining liens in violation of the single, simultaneous bidder rule. Phoenix also alleged that Sabre Group had committed mail fraud in furtherance of its scheme. The district court dismissed Phoenix’s claim for lack of standing because Phoenix was not a direct victim of Sabre Group’s alleged fraud. Phoenix appealed to the United States Court of Appeals for the Seventh Circuit. The appellate court reversed. Sabre Group appealed to the United States Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Thomas, J.)

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