Court dismisses RICO claims stemming from family law dispute

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Legal Assistance of Dakota County represented a man’s ex-wife in a family law proceeding and secured a favorable judgment for her. The man claimed a RICO violation alleging collusion among defense attorneys and state officials, which a federal court has dismissed.

Steve Ybarra and his ex-wife were married in 2015. They have two minor children. Michelle Ybarra petitioned for divorce. She received temporary sole legal and physical custody of the children in 2024. The divorce was granted in July 2025.

Michelle Ybarra was represented by Legal Assistance of Dakota County. Steve Ybarra, pro se, filed a lawsuit against parties including Legal Assistance of Dakota County; attorneys; state district court judges David Lutz, Tanya O’Brien and Dannia Edwards; as well as Attorney General Keith Ellison and Assistant Attorney General Jeff Timmerman.

Originally filed in state court, Steve Ybarra claimed that his ex-wife did not qualify for assistance based on her income, claiming that she had a financed 2014 GMC Terrain and lived with her parents. He also asserted that Legal Assistance of Dakota County filed an ex parte motion that falsely accused him of illegal firearms trafficking. His complaint asserts violations of 42 U.S.C. §§ 1983, 1985(3), and 1986, as well as RICO claims under 18 U.S.C. §§ 1962(c) and (d), against all named defendants in both individual and official capacities.

The court dismissed all claims against the three state judges because they are protected by absolute judicial immunity. Ybarra alleged that the judges denied hearings and issued orders, but these concerned routine judicial functions. Therefore, the judges were shielded from the suit.

The court also dismissed the claims under 42 U.S.C. §§ 1983, 1985(3), and 1986 against the Legal Assistance of Dakota County defendants, finding that Ybarra failed to plausibly allege state action or a conspiracy. It noted that Ybarra offered only vague references to collusion, but asserted no facts showing that Executive Director Sharon Jones exercised state authority, received government funding, or reached a mutual agreement with state actors.

“Ybarra has not sufficiently plead a conspiracy,” wrote U.S. District Court Judge Katherine Menendez. “Instead, he relies almost entirely on conclusory statements to suggest there is smoke, but he fails to allege with facts any underlying fire.”

The court rejected the civil RICO claims Ybarra made against the Legal Assistance of Dakota County defendants, finding that Ybarra failed to allege facts showing a plausible enterprise or substantive ties between the Legal Assistance defendants and the other parties. His assertions rely solely on their shared involvement in his court proceedings. “Outside of this setting, the only allegation creating any semblance of connective tissue between these Defendants is that Judge Lutz previously worked pro bono for Legal Assistance,” Menendez stated.

The judge also dismissed claims against Ellison and Timmerman, who had been added in an amended complaint for their involvement in the defense of state-employed defendants in this case. Both were deemed immune from Ybarra’s claims.

Menendez also noted that, even if there were adequate relationships between the defendants, “the activity Ybarra sees as nefarious amounts only to legal work, which generally does not qualify as predicate RICO conduct.”

The court also sua sponte dismissed the action against his Michelle Ybarra, casting doubt that she was ever properly served, as Steve Ybarra attempted to serve her via her email address. The court also determined that the claims against her were frivolous.