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05-465 MOHAWK INDUSTRIES V. WILLIAMS DECISION BELOW: 411 F3d 1252 LIMITED TO QUESTION 1 PRESENTED BY THE PETITION. DISMISSED AS IMPROVIDENTLY GRANTED. CERT. GRANTED 12/12/2005 QUESTION PRESENTED: 1. Whether a defendant corporation and its agents can constitute an "enterprise" under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-1968 ("RICO"), in light of the settled rule that a RICO defendant must "conduct" or "participate in" the affairs of some larger enterprise and not just its own affairs. 2. Whether plaintiffs state proximately caused injuries to business or property by alleging that the hourly wages they voluntarily accepted were too low. LOWER COURT CASE NUMBER: 04-13740
In the case of Mohawk Industries, Inc. v. Shirley Williams et al., 2005, employees of Mohawk Industries filed a lawsuit against their employer under the Racketeer Influenced and Corrupt Organizations Act (RICO). The plaintiffs alleged that Mohawk had engaged in racketeering activity by knowingly hiring illegal immigrants to depress wages for all workers at the company. However, the Supreme Court ruled in favor of Mohawk Industries stating that corporations could not be both "persons" conducting an enterprise's affairs and also constitute part or whole of the same "enterprise". This ruling clarified how RICO laws apply to businesses; it stated that a corporation cannot conspire with its own employees because they are legally considered one entity under those circumstances.
In the dissenting opinion for Mohawk Industries, Inc. v. Shirley Williams et al., Justice Scalia argued that the majority's interpretation of "enterprise" under RICO was too broad and inconsistent with Congressional intent. He contended that Congress intended to target only those entities involved in organized crime, not legitimate businesses like Mohawk Industries accused of hiring illegal immigrants. Furthermore, he disagreed with the majority's view that a corporation could conspire with its own employees or agents as it would imply an entity conspiring against itself which is legally impossible according to him. Therefore, he believed that corporations cannot be both the 'person' and 'enterprise' under RICO unless they are infiltrated by organized crime groups.