a. Plaintiffs Sufficiently Allege a “Person” Distinct From the “Enterprise.”
The United States Supreme Court has held that “to establish liability under § 1962(c) one
must allege and prove the existence of two distinct entities: (1) a ‘person’; and (2) an ‘enterprise’ that
is not simply the same ‘person’ referred to by a different name.” Cedric Kushner Promotions, Ltd.
v. King, 533 U.S. 158, 161 (2001). In other words, Defendant must be the “person” who conducts
the “enterprise’s” affairs through a pattern of racketeering activity, and the person/defendant must
be separate and distinct from the “enterprise.” Phillip Morris, 556 F.3d at 1110.
Plaintiffs maintain in the Amended Complaint and in the RICO Case Statement (Doc. No.
32) that Defendant is the liable “person” and the “enterprise” is an association-in-fact between
Defendant and its title agents in Pennsylvania. The Court may consider a RICO Case Statement in
assessing the merits of Plaintiffs’ RICO claims. De Lage Landen Fin’l Servs. v. Rasa Floors, LP,
No. 08-533, 2009 WL 564627, *10 (E.D. Pa. Mar. 5, 2009). Plaintiffs claim that Brokers and
Madison, Defendant’s title and settlement agent in transactions with Plaintiffs, worked with and
assisted Defendant Commonwealth Land in misrepresenting the amount due and owing for title
insurance and misappropriating the overcharges. (Pl. Am. Compl. ¶61.) Plaintiffs describe the
structure, purpose, functions, and course of conduct of the enterprise as follows:
Commonwealth is the principal in the enterprise and has the responsibility for providing title insurance policies. The Title Agents act as Commonwealth’s agents in selling title insurance policies and often act as closing agents for the lenders in the same mortgage transactions. The Title Agents, acting on Commonwealth’s behalf and subject to Commonwealth’s direction and control, are responsible for conducting the title searches and (with Commonwealth’s assistance) calculating the title insurance premiums. The Title Agents take a percent of the premiums collected as their remuneration for their services.