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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA - page 23 / 38

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up its membership. (Pl. Am. Compl. ¶59.) Plaintiffs claim the entities functioned as a continuing

unit with a common purpose of deliberately overstating the amounts due and owing for title

insurance. (Id. at ¶61.) Commonwealth Land directed these activities and authorized the title agents

to issue insurance policies on its behalf. (Id. at ¶60). Plaintiffs allege that Defendant has an agent

selection process and audit review program to inspect the title agents’ books and records on an

annual basis. (Id.) The inference arising from these assertions is that Defendant has knowledge of

the fraudulent overcharging. Consequently, Plaintiffs have alleged sufficient facts at the Motion to

Dismiss stage to satisfy the minimum structure standards to establish a RICO association-in-fact

enterprise.

c. Plaintiffs Sufficiently Allege an “Enterprise” Distinct From the Pattern of Racketeering Activity.

Plaintiffs have also alleged in the Amended Complaint sufficient facts to satisfy the third

prong of Turkette: that the organization has an existence separate and apart from the alleged pattern

of racketeering activity. Turkette, 452 U.S. at 583. See also Dianese, Inc. v. Comm. of Pa., No. 01-

2520, 2002 WL 1340316, *11 (E.D. Pa. June 19, 2002) (“It is well settled in RICO law that the

alleged racketeering activity complained of by plaintiff must be separate and distinct from the

enterprise itself...”).

In Brittingham, the Third Circuit explained that the alleged enterprise must be “more than”

an association of individuals conducting the normal business functions of a corporation. 943 F.2d

at 301. Under this premise, Defendant would be correct that Plaintiffs would be foreclosed from

bringing a valid RICO action if Defendant’s agents simply conducted the normal affairs of a title

insurance corporation. (Def. Mot. to Dismiss, 17.)

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