Photo Description: Supreme Court Justice Neil M. Gorsuch
The Supreme Court has ruled 5-4 in favor of truck driver Douglas Horn, allowing him to sue a CBD supplement manufacturer under the Racketeer Influenced and Corrupt Organizations Act (RICO). Horn alleged that Medical Marijuana Inc. falsely marketed its Dixie X product as THC-free, leading to his failed drug test and subsequent job loss. Horn claimed the financial harm to his livelihood qualifies as a business-related injury under RICO.
Photo Description: Justice Amy Coney Barrett at the Supreme Court
Conservative Justice Amy Coney Barrett noted that damage to a person’s earning ability falls under the statute’s protections. Barrett wrote, “The ‘business or property’ requirement operates with respect to the kinds of harm for which the plaintiff can recover, not the cause of the harm for which he seeks relief.”
Photo Description: Members of the Supreme Court pose for a group photo
The Court’s decision hinges on the interpretation of RICO’s phrasing, which permits lawsuits for harm to “business or property.” Horn alleged that harmful misrepresentation and fraudulent claims by the manufacturer constituted a “pattern of racketeering activity.”
Photo Description: Supreme Court Justices Brett Kavanaugh, Neil Gorsuch, and Elena Kagan
Horn began using Dixie X after sustaining workplace back and shoulder injuries. The product, though labeled THC-free, caused him to fail a random drug test. Following his termination for refusing a substance abuse program, Horn filed the lawsuit under RICO.
Photo Description: Justices Neil Gorsuch and Brett Kavanaugh greet President Donald Trump
Justices Neil Gorsuch and Barrett joined the Court’s three liberal justices to form the majority. Chief Justice John Roberts and Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito dissented. Kavanaugh argued that RICO excludes personal-injury lawsuits.
Photo Description: U.S. Supreme Court Associate Justice Brett Kavanaugh
Kavanaugh wrote, “A plaintiff cannot circumvent RICO’s categorical exclusion of personal-injury suits simply by alleging that a personal injury resulted in losses of business or property, thereby converting otherwise excluded personal-injury suits into business- or property-injury suits.”
Photo Description: Chief Justice John Roberts, Elena Kagan, Brett Kavanaugh, Amy Coney Barrett, and Anthony Kennedy
Kavanaugh added, “The aftermath of the Court’s opinion could be quite a mess, as courts grapple with RICO personal-injury cases where the question is what losses qualify as business or property losses.”
Photo Description: Chief Justice of the Supreme Court John Roberts, Elena Kagan, Brett Kavanaugh, Amy Coney Barrett, and Anthony Kennedy
The Chamber of Commerce supported the manufacturer, warning the ruling could lead to a surge in lawsuits. However, Horn’s attorneys have countered that strict evidence requirements for RICO claims limit potential misuse.
Photo Description: Amy Coney Barrett at ceremony for retired Justice Sandra Day O’Connor
RICO expert Jeffrey Grell claimed the law originally targeted organized crime but has broadened since a 1981 Supreme Court decision. Grell also noted the Court’s efforts to limit the statute’s application in recent decades.
Photo Description: U.S. Supreme Court Justice Amy Coney Barrett
Barrett wrote, “When all is said and done, Medical Marijuana is left fighting the most natural interpretation of the text − that ‘injured’ means ‘harmed’ − with no plausible alternative in hand. That is a battle it cannot win.”
