Baker McKenzie’s Nick Kennedy Goes to Washington

The U.S. Supreme Court recently heard arguments in two consolidated cases that could see the scope of civil Racketeer Influenced and Corrupt Organizations Act claims expanded. The cases — Yegiazaryan v. Smagin and CMB Monaco v. Smagin — ask the high court to determine if Russian citizen and resident Vitaly Smagin can bring a RICO suit against Ashot Yegiazaryan, a Russian citizen living in California, in his quest to enforce a $92 million arbitration award from a London panel that was confirmed by a court in California.

Nick Kennedy

The dispute is rooted in Smagin’s claim that Yegiazaryan defrauded him in a joint real estate venture in Russia, which prompted him to bring the London arbitration proceedings. Smagin alleges Yegiazaryan has employed “a complex web of financial instruments and personal relationships” to avoid paying the award and accuses the bank CMB Monaco of being an accomplice.

The RICO claim, filed in December 2020, has met mixed results in courts, with the district court tossing it after holding Smagin failed to show he suffered a domestic injury; the Ninth Circuit reversed, finding Smagin’s allegations had met the definition of domestic injury.

Nick Kennedy

Michelle Casady

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