Holmes v. Securities Investor Protection Corporation, 503 U.S. 258, 7 (1992)

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264

HOLMES v. SECURITIES INVESTOR PROTECTION CORPORATION

Opinion of the Court

SIPC nor the trustees had satisfied the "proximate cause requirement under RICO," id., at 39a; see id., at 37a. Although SIPC's claims against many other defendants remained pending, the District Court under Federal Rule of Civil Procedure 54(b) entered a partial judgment for Holmes, immediately appealable. SIPC and the trustees appealed.

The United States Court of Appeals for the Ninth Circuit reversed and remanded after rejecting both of the District Court's grounds. Securities Investor Protection Corporation v. Vigman, 908 F. 2d 1461 (1990). The Court of Appeals held first that, whereas a purchase or sale of a security is necessary for entitlement to sue on the implied right of action recognized under § 10(b) and Rule 10b-5, see Blue Chip Stamps v. Manor Drug Stores, 421 U. S. 723 (1975), the cause of action expressly provided by § 1964(c) of RICO imposes no such requirement limiting SIPC's standing, 908 F. 2d, at 1465-1467. Second, the appeals court held the finding of no proximate cause to be error, the result of a mistaken focus on the causal relation between SIPC's injury and the acts of Holmes alone; since Holmes could be held responsible for the acts of all his co-conspirators, the Court of Appeals explained, the District Court should have looked to the causal relation between SIPC's injury and the acts of all conspirators. Id., at 1467-1469.6

Holmes' ensuing petition to this Court for certiorari presented two issues, whether SIPC had a right to sue under

that ruling, Vigman II, supra, holding that the District Court should have permitted SIPC to proceed under the Birnbaum rule to the extent that FSSC and Sebag had made unauthorized use of those customers' assets to buy manipulated securities, as SIPC had alleged they had. Id., at 1519- 1520. On remand, after discovery, the District Court ruled that no genuine issue of material fact existed on the question of unauthorized use and that Holmes was entitled to summary judgment. App. to Pet. for Cert. 27a. SIPC has not appealed that ruling.

6 For purposes of this decision, we will assume without deciding that the Court of Appeals correctly held that Holmes can be held responsible for the acts of his co-conspirators.

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