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NORTHERN TRUST BANK/O'HARE v. INRYCO
July 29, 1985
NORTHERN TRUST BANK/O'HARE, N.A. AS TRUSTEE, ETC., PLAINTIFF,
INRYCO, INC., ET AL., DEFENDANTS.
The opinion of the court was delivered by: Shadur, District Judge.
MEMORANDUM OPINION AND ORDER
Northern Trust Bank/O'Hare, N.A. as Trustee under Trust No.
74 L 214 ("Trustee") charges Inryco, Inc. ("Inryco") and others
violated 18 U.S.C. § 1964(c) and (d) (part of the Racketeer
Influenced and Corrupt Organizations Act ("RICO"),
18 U.S.C. § 1961-1968*fn1), as well as state law, when they participated
in a construction contract kickback scheme. Inryco now moves
under Fed.R.Civ.P. ("Rule") 9(b), 12(b)(1) and 12(b)(6) to be
dismissed from the Complaint. For the reasons stated in this
memorandum opinion and order, the motion is granted.
On October 22, 1979 Trustee contracted with Inryco for
construction of a warehouse addition (the "Project") in
Franklin Park, Illinois (Complaint ¶ 11(a)*fn3). Inryco
designated its employee Jerry Ranke ("Ranke") as Senior Project
Manager in charge of construction (¶ 11(b)). Ranke's duties
included soliciting bids from subcontractors and awarding
subcontracts (¶ 3(b)).
1. On November 19, 1979 Ranke issued a phony
work order to Century in the amount of $35,049
(¶ 14(a)). Inryco released funds in that amount to
Century, but Century never performed the specified
work. On December 20 Century issued a $35,049 check
to Ranke under the alias Tom Mann. Ranke converted
the funds to his own use through a bank account he
had established under the Mann name at First Bank
and Trust Company of Palatine ("Palatine Bank") (¶¶
2. Century and D'Angelo later funneled three
more kickbacks to Ranke (¶ 15):
(a) July 1, 1980 — $190,000(b)
October 27, 1980 — 20,840(c)
October 27, 1980 — 18,939
Each of those payments also took the form of a
Century check made out to Mann and deposited in
the Palatine Bank account (id.).
Century did not perform its work in accordance with the
Project specifications (¶ 19(b)). Much of the concrete work was
performed in an unworkmanlike manner (id.). Trustee charges
Ranke is responsible for the defects because he either failed
adequately to supervise the work or knowingly permitted Century
to perform it in an unsatisfactory manner. Trustee alleges no
In support of its motion Inryco asserts a congeries of flaws
in the Complaint:
1. It fails to allege sufficient facts to permit
a determination whether Trustee is the "real party
in interest" (Rule 17(a)) and is hence the proper
party to prosecute this action.
2. It alleges injuries not proximately caused by
the claimed racketeering activity.
3. It improperly names Inryco as a RICO
defendant, because Inryco was a victim of the
4. It fails to allege a proper "enterprise."
5. It fails properly to allege Inryco conspired
to violate RICO.
6. It fails to set out the alleged fraudulent
activity with the specificity ...
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