Holmes v. Securities Investor Protection Corporation, 503 U.S. 258, 11 (1992)

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268

HOLMES v. SECURITIES INVESTOR PROTECTION CORPORATION

Opinion of the Court

eral Contractors, supra, at 536, n. 33 (citing cases),14 that

congressional use of the § 7 language in § 4 presumably carried the intention to adopt "the judicial gloss that avoided a simple literal interpretation," 459 U. S., at 534. Thus, we held that a plaintiff's right to sue under § 4 required a showing that the defendant's violation not only was a "but for" cause of his injury, but was the proximate cause as well.

The reasoning applies just as readily to § 1964(c). We may fairly credit the 91st Congress, which enacted RICO, with knowing the interpretation federal courts had given the words earlier Congresses had used first in § 7 of the Sherman Act, and later in the Clayton Act's § 4. See Cannon v. University of Chicago, 441 U. S. 677, 696-698 (1979). It used the same words, and we can only assume it intended them to have the same meaning that courts had already given them. See, e. g., Oscar Mayer & Co. v. Evans, 441 U. S. 750, 756 (1979); Northcross v. Memphis Bd. of Ed., 412 U. S. 427, 428 (1973). Proximate cause is thus required.

B

Here we use "proximate cause" to label generically the judicial tools used to limit a person's responsibility for the consequences of that person's own acts. At bottom, the notion of proximate cause reflects "ideas of what justice demands, or of what is administratively possible and convenient." W. Keeton, D. Dobbs, R. Keeton, & D. Owen, Prosser and Keeton on Law of Torts § 41, p. 264 (5th ed. 1984). Accordingly, among the many shapes this concept took at common law, see Associated General Contractors, supra, at 532-533, was a demand for some direct relation between the injury asserted and the injurious conduct alleged. Thus, a plaintiff who complained of harm flowing merely from the misfortunes visited upon a third person by the defendant's acts was generally said to stand at too remote a distance to

14 These lower courts had so held well before 1970, when Congress passed RICO.

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