Medical Marijuana, Inc. v. Horn

Justia · Docket · oyez.org

Argued on Oct 15, 2024.

Petitioner: Medical Marijuana, Inc.
Respondent: Douglas J. Horn.

Advocates:

• Lisa S. Blatt (for the Petitioners)

Facts of the case (from oyez.org)

In February 2012, Douglas J. Horn was involved in a car accident that caused injuries to his hip and right shoulder. While seeking alternative natural remedies, he discovered an advertisement for Dixie X CBD Dew Drops Tincture, which claimed to contain 0% THC and be compliant with federal law. As a commercial truck driver subject to random drug testing, Horn carefully investigated these claims before purchasing and consuming the product in October 2012. However, he subsequently failed a drug test and lost his job, wages, and benefits. Independent lab tests confirmed that Dixie X contained THC, contrary to the advertisement's claims.

On August 6, 2015, Horn sued the companies who allegedly falsely marketed the product—Medical Marijuana, Inc., Dixie Holdings, LLC, and Red Dice Holdings, LLC—in the U.S. District Court for the Western District of New York, which included a civil RICO claim and eight state law claims. The district court granted partial summary judgment to the defendants, concluding that Horn lacked RICO standing because he sued for the loss of earnings, which was derivative of an antecedent personal injury. The U.S. Court of Appeals for the Second Circuit vacated, concluding that nothing in the text of RICO’s civil-action provision, or in its structure or history, supports a rule that bars plaintiffs from suing simply because their otherwise recoverable economic losses happen to have been connected to a non-recoverable personal injury.

Question

Are economic harms resulting from personal injuries properly considered injuries to “business or property by reason of” the defendant’s acts for purposes of a civil treble-damages action under the Racketeer Influenced and Corrupt Organizations Act?