WILLIAM H. PAULEY, III, District Judge.
Defendants Jewish Agency for Israel,
The operative facts stem exclusively from proceedings in Israel. Plaintiffs are a group of seven divorced fathers who allege that they are victims of a conspiracy orchestrated by former and current Israeli government officials and a number of charities. Plaintiffs allege they were injured in various ways, ranging from wage garnishment to restrictions on their travel.
Distilling the allegations in the amended complaint ("Complaint"), which are accepted as true for purposes of this motion, the mechanics of the conspiracy unfold in the following manner: an Israeli family court enters an order related to the dissolution of a Plaintiff's marriage—usually for alimony and/or child support—imposing a financial obligation on that Plaintiff. The agency responsible for collecting payment on such obligations—the Debt Collections Office in Israel—"wrongfully refuse[s] to accept [the] payments . . . and arbitrarily and capriciously," absent judicial approval, changes the amount owed and charges excessive fines resulting from a failure to pay the modified balance. (Amended Complaint ("Compl."), ECF No. 40, ¶ 8(b).) Israeli officials from various levels of the government (the "Israeli Officials") either control, oversee, or facilitate the Debt Collections Office's efforts to unlawfully collect these "arbitrary and excessive debts." (Compl. ¶ 45.)
As Plaintiffs' debts grow, the Debt Collections Office deploys a number of coercive tactics to obtain payment, ranging from making false arrests to threatening Plaintiffs' family members. (Compl. ¶ 8(b).) When Plaintiffs fail or refuse to pay these debts, they face severe consequences: an order freezing their bank accounts and credit cards, garnishment of their wages, imposition of excessive interest rates, issuance of stop-travel orders prohibiting them from traveling outside of Israel, and revocation of their driver's licenses. To add insult to injury, Plaintiffs are cast as "deadbeat dads" and "abusive fathers" solely because of their failure to honor their financial obligations.
Another part of the conspiracy involves actions taken by various Jewish or Christian fundraising organizations and individuals (the "Fundraising Defendants"). According to the Complaint, the Fundraising Defendants offer money and services to Plaintiffs' ex-wives in exchange for their agreement to assert "false claims and [ ] false allegations against their ex-husbands relating to their payment of spousal and child support." (Compl. ¶ 58.) The filing of these complaints authorizes the Debt Collections Office to "manipulat[e] the amounts of the spousal and child support owed [by Plaintiffs] and thereby provide examples for the Fundraising Defendants to raise funds." (Compl. ¶ 59.) Those examples—"deadbeat" fathers who have abandoned their child support obligations—are prominently advertised on billboards and through communications soliciting donations on behalf of the Fundraising Defendants' organizations.
As a result of their ex-wives' complaints, Plaintiffs lose custody of their children. (
Plaintiffs assert six separate causes of action against the Israeli Officials and Fundraising Defendants: (1) negligent infliction of emotional distress; (2) intentional infliction of emotional distress; (3) aiding and abetting violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO"); (4) violations of RICO; (5) extortion; and (6) mail fraud.
To survive a motion to dismiss, the complaint must plead "enough facts to state a claim to relief that is plausible on its face."
Dismissal for lack of subject matter jurisdiction is proper "when the district court lacks the statutory or constitutional power to adjudicate [the claims]."
Here, all of the Israeli Officials' acts were taken in their capacities as government officials. The Complaint alleges that the Israeli Officials entered illegal orders, made extra-judicial demands, arbitrarily altered amounts owed, and assessed improper fees against Plaintiffs. (Compl. ¶ 45.) The Israeli Officials also issued arrest warrants, froze bank accounts, and garnished wages. (Compl. ¶¶ 106, 138, 210, 222.) Each of these actions represent official conduct taken in response to Plaintiffs' apparent failure to comply with their child and spousal support obligations. The authority to take such actions arises directly from their positions as government officials tasked with overseeing the Debt Collections Office, enforcing the child and spousal support orders, and providing judicial recourse for unpaid debts.
Plaintiffs characterize these actions as wrongful and illegal, but such slights do not render the acts any less official.
While lack of subject matter jurisdiction suffices to dispose of the claims against the Israeli Officials, it bears noting that there also is no basis to exercise personal jurisdiction. "Determining personal jurisdiction over a foreign defendant in a federal-question case such as this requires a two-step inquiry. First [the court] look[s] to the law of the forum state to determine whether personal jurisdiction will lie. If jurisdiction lies, [the court] consider[s] whether the district court's exercise of personal jurisdiction over a foreign defendant comports with due process protections established under the United States Constitution."
New York's C.P.L.R. § 302 applies to jurisdiction over non-domiciliaries. Under C.P.L.R. § 302(a), a court may exercise personal jurisdiction over any non-domiciliary who, either "in person or through an agent": (i) "transacts any business within the state or contracts anywhere to supply goods or services in the state"; (ii) "commits a tortious act within the state"; (iii) "commits a tortious act without the state causing injury to person or property within the state. . . if he [a] regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered, in the state, or [b] expects or should reasonably expect the act to have consequences in the state and derives substantial revenue from interstate or international commerce"; or (iv) "owns, uses or possesses any real property situated within the state." N.Y. C.P.L.R. § 302(a)(1)-(4).
None of the scenarios set forth in § 302(a) apply here. With the exception of a single, unsubstantiated reference to Defendant Livni's residence in Brooklyn, the Complaint is bereft of any allegation connecting the Israeli Officials to the State of New York. Even if Plaintiffs sought to use Livni's Brooklyn residence as a hook for jurisdiction under C.P.L.R. § 302(a)(4), such an attempt would fail because they must demonstrate "a relationship between the property and the cause of action sued upon."
Moreover, an exercise of personal jurisdiction would not comport with constitutional due process. The Complaint makes no showing of the minimum contacts necessary to "justify the court's exercise of personal jurisdiction" over any of the Defendants.
The federal grounds for jurisdiction are equally unavailing. The RICO statute does not, by itself, confer personal jurisdiction.
Plaintiffs assert a civil RICO claim against both the Israeli Officials and the Fundraising Defendants. Because all claims against the Israeli Officials are dismissed for lack of subject matter and personal jurisdiction, this Court focuses its analysis on the civil RICO claim as it pertains to the Fundraising Defendants.
Relief under the civil RICO statute is appropriate if the Plaintiffs can establish: (1) that they suffered an injury to business or property; (2) that their injury is a domestic one; and (3) that the injury was proximately caused by the defendants' violation of 18 U.S.C. § 1962.
Plaintiffs' civil RICO claim fails at the first step—alleging facts to show a domestic injury to business or property. As an initial matter, it is difficult to discern the exact nature of Plaintiffs' injury. Plaintiffs allege a plethora of injuries resulting from the Fundraising Defendants' activities—harassment, garnishment, personal injuries, false arrest, and asset freezes, among others. But only injuries to business or property are covered by the RICO statute.
But even the alleged injuries to business or property fail to make out a RICO injury because they are not domestic injuries. For example, the Complaint alleges that Defendants "took all the money in [Plaintiff Weisskopf's] bank account[,] intentionally leaving a negative balance in his bank account" without making any reference to the account's location. (Compl. ¶ 136.) Plaintiffs vaguely allude to other bank and financial accounts throughout the Complaint. (
Moreover, to the extent that Plaintiffs seek to establish a domestic connection by alleging that some of the Fundraising Defendants located in the United States made off with illicit proceeds derived from Plaintiffs' assets, the "only domestic connections alleged here were acts of
Finally, the civil RICO claim fails because the Plaintiffs have not sufficiently established the requisite predicate acts. The Complaint ticks off more than a dozen criminal acts, ranging from financial institution fraud to slavery, but "RICO claims must be pled with specificity."
Accordingly, the civil RICO claim against the Fundraising Defendants is dismissed.
Plaintiffs assert a number of claims to which there are no private rights of action. Each claim is addressed in turn.
The Complaint alleges a claim for aiding and abetting a RICO violation against the Fundraising Defendants. However, it has long been held by courts in this District and across the country that "there is no private right of action for aiding and abetting a RICO violation."
Plaintiffs assert an extortion claim against both the Israeli Officials and the Fundraising Defendants. But extortion is a criminal offense and may not be converted into a private civil cause of action.
Plaintiffs' final cause of action alleged in the Complaint is a claim for mail fraud pursuant to 18 U.S.C. §§ 1341 and 1343 against the Fundraising Defendants. But as with the prior claims, a mail fraud claim is not actionable as a private cause of action. The mail fraud statute is a "bare criminal statute with no indication of any intent to create a private cause of action, in either the section in question or any other section."
In addition to dismissal, Defendants seek a "finding that [Plaintiffs'] claims are frivolous and an order barring Messrs. Weisskopf and Eliahu from filing future lawsuits without the Court's prior authorization." (Def. Memo. of Law in Support of Motion to Dismiss, ECF No. 89, at 33.) "When a plaintiff files repeated lawsuits involving the same nucleus of operative facts, a district court has the inherent power to enjoin him from filing vexatious lawsuits in the future."
Relevant factors to consider include: (1) the litigant's history of litigation and in particular whether it entailed vexatious, harassing or duplicative lawsuits; (2) the litigant's motive in pursuing the litigation, e.g., whether the litigant has an objective good faith expectation of prevailing; (3) whether the litigant is represented by counsel; (4) whether the litigant has caused needless expenses to other parties or has posed an unnecessary burden on the courts and their personnel; and (5) whether other sanctions would be adequate to protect the courts and other parties.
The two plaintiffs here—Weisskopf and Eliahu—are not first-time litigants. Weisskopf previously filed a raft of other lawsuits, all of which have alleged claims predicated on facts substantially similar to the ones here, throughout the country including a second one in this District.
Three factors weigh in favor of the injunctive relief sought by Defendants. First, there is a clear history of vexatious litigation, especially with regard to Weisskopf. In one case, the Western District of Wisconsin chastised Weisskopf for the "spurious, abusive nature of [his] repeated, failed efforts to invoke federal court jurisdiction in the United States over what is essentially an Israeli family-law dispute."
Second, Weisskopf and Eliahu's motives in pursuing this litigation are quite clear. Having achieved minimal success in Israel, they seek to find any forum in the United States that will entertain any one of their claims. The RICO statute's treble damages provides an extra layer of incentive, but also carves out a path to bypass Israel's ostensibly less generous remedial regimes.
Third, the Defendants have had to incur the necessary expense of defending these baseless lawsuits. These are not insignificant costs. Even if a future lawsuit contains claims that are so meritless that it is considered dead on arrival, Defendants nevertheless must retain counsel and incur the time and cost of defending even the most frivolous claims in federal court. They should be spared from that burden given the spate of cases—including those filed by other parties who are not plaintiffs here—that have roundly been rejected by courts across the country.
Accordingly, Plaintiffs Weisskopf and Eliahu are enjoined from filing lawsuits in the future without this Court's prior authorization.
For the foregoing reasons, Defendants' motion to dismiss this action is granted.