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Efron v. Embassy Suites, Inc.

Plaintiff failed to adequately allege pattern of racketeering activity by claiming that partners intentionally caused hotel project to experience financial difficulties in scheme to extract additional money from plaintiff and, ultimately, to squeeze down the value of plaintiff's partnership interest.

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The full case caption appears at the end of this opinion. COFFIN, Senior Circuit Judge.

Plaintiff-appellant David Efron, a member of a limited partnershipformed to build and operate an Embassy Suites hotel in Puerto Rico, claims that several of his partnersintentionally caused the project to experience financial difficulties in a scheme to extract additionalmoney from him and other investors and, ultimately, to squeeze down the value of Efron’s substantialinterest in the partnership. Efron brought a civil suit under the Racketeer Influenced and CorruptOrganizations Act (RICO), 18 U.S.C. � 1962(c), (d), and Puerto Rico law. Concluding that theallegations in the complaint did not show RICO violations, the court dismissed the federal claims anddeclined to exercise supplemental jurisdiction over the Commonwealth claims. See Efron v. EmbassySuites (Puerto Rico), Inc., 47 F. Supp.2d 200 (D.P.R. 1999). We affirm, agreeing with the districtcourt that appellant has failed to adequately allege a “pattern of racketeering activity,” see 18U.S.C. � 1962(c), but adding elaboration to its rationale.

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