Russell v. United States

Background

Petitioner owned a two-unit apartment building at 4530 South Union in Chicago. He earned rental income and treated the property as business property for tax purposes. In early 1983 he hired a convicted felon, Ralph Branch, to set the building on fire. Branch’s attempt failed, he reported the plan to the FBI, recorded a conversation with petitioner, and petitioner was arrested. After a bench trial the owner was convicted under 18 U.S.C. §844(i) and sentenced to ten years in prison; lower federal courts had rejected his argument that the building was not commercial property.

Reasoning

The central question was whether §844(i) applies to a small rental building. The Court noted that the statute reaches “any building … used in any activity affecting interstate commerce” and that Congress intended broad coverage of business property. The Court explained that renting real estate is plainly an activity affecting commerce and that individual rentals are part of a larger commercial market. Because petitioner was renting the apartment units when he tried to destroy the building, the property was “used” in commerce and the federal arson-and-explosives statute applied. The Court affirmed the Court of Appeals decision.

Real world impact

The ruling makes clear that the federal statute can cover small rental buildings used to earn income, exposing landlords who commit or attempt arson to federal prosecution and severe sentences. The legislative history suggests Congress aimed to protect business property, though it did not plainly resolve whether every private home is covered.