Federal 7th Circuit Court
Civil Court
Immunity
In civil RICO action alleging that Gov. Blagojevich, Friends of Blagojevich and owner of two racetracks participated in scheme in which Gov. Blagojevich took bribes in exchange for influencing state legislature to pass Horse Racing Act of 2006 and 2008 that required certain casinos to pay 3% of their adjusted gross revenue to Horse Racing Equity Trust Fund for benefit of owner's racetracks, Dist. Ct. erred in finding that Gov. Blagojevich was not entitled to legislative immunity since instant RICO action broadly implicated his role in legislative process. Ct. rejected plaintiffs-casinos' arguments that legislative immunity was limited to section 1983 actions, or that state immunity law, as set forth in Jorgensen, 811 NE2d 652, which precluded Gov. Blagojevich from asserting legislative immunity under Illinois Constitution under certain circumstances, applied to instant lawsuit. However, RICO action could still proceed against remaining defendants. Additionally, with respect to plaintiffs' count seeking constructive trust on proceeds of Home Racing Fund, Ct. found that Tax Injunction Act did not serve to block Dist. Ct. from imposing constructive trust on proceeds disbursed from Horse Racing Fund since instant casino surcharge was not tax for purposes of said Act. (Dissent filed.)