T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on a nd i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T MAS UD HA NN AN , P la in tif

f - A p p e lla n t, v. M A X I M I N TEG RA TED PRO D U CTS, I N C . , aD e l a w a r e c orpor a t i on, D ef

endant- A pp el l ee . N o. 09- 35804 D. C . No . 3 : 0 9 - c v - 0 0 4 1 4 - HA ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt

f orthe D i s tr i c tof

O r e gon A nc e rL . H a gge r ty , S e ni orD i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d A ugus t30, 2010

S e a tt l e , W a s hi ngt on B efo re: H A W K IN S , M cK E O W N an d B E A , C i rcu i tJu d g es. A pp el l antM as ud H annan app ea l s the di stri ctcourt ’ s orderthatgrant ed M a xi m I nt e gr a t e d P r oduc t s , I nc . ’ s F e de r a l R ul e of C i vi l P r oc e dur e 12( b) ( 6) m ot i on to d is m is s H a n n a n ’s c la im s f o rb r e a c h o f

c o n tr a c t, b r e a c h o f

th e d u ty o f

g o o d f a ith 

# FI LED SEP 03 2010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALSB ec ause the part i es ar e f am i l i arw i th the fa ct s, w e r ec i t e them on l y a s 1 n ecessary. 2 and fai r dea l i ng , and v i ol at i on of the O re go n W age A ct(O re go n R evi se d S t atut es §§ 65 2. 14 0(2)(a ), 65 2. 61 0(3)). 1 T he di stri ctcourthad j uri sdi ct i on pu rs uantt o 2 8 U . S . C . § 1 33 2. T hi s C ou rt ha s j ur i s di c t i on pur s ua ntt o 28 U . S . C . § 1291; w e r e ve r s e a nd r e m a nd. W e r e v ie w d e n o v o th e g r a n t o f aR u le 1 2 ( b ) ( 6 ) m o tio n to d is m is s . Kni ev el v . ES PN, 3 9 3 F .3 d 1 0 6 8 , 1 0 7 2 ( 9 th C ir . 2 0 0 5 ) . “W h e n ru lin g o n am o tio n to di s m i s s , w e a c c e pta l l f

a c tua l a l l e ga t i ons i n the c om pl a i nta s true a nd c ons true the pl ea di ng s i n the l i gh tm ostfa vo rabl e t o the no nm ov i ng party. ” I d. “ T o survi ve a m ot i on t o d i sm i ss , a c om pl ai ntm ustcont ai n suffi ci entfa ctual m att er , ac ce pt ed as true, t o st at e acl ai m t o rel i ef thati s pl ausi bl e on i t s f ac e. ” A s hc r of

t v . I qbal , 1 2 9 S. C t . 19 37 , 19 49 (200 9) (i nt ernal qu ot at i on s om i tt ed). “ A cl ai m has f ac i al pl ausi bi l i ty w hen the pl ai nt i ff pl ea ds fa ctual cont entthatal l ow s the courtt o d ra w the re as on abl e i nfer ence thatthe defendanti s l i abl e f or the m i sc on du ctal l eged. ” I d. T h e d is tr ic t c o u r t e rr e d w h e n it d is m is s e d H a n n a n ’s b r e a c h o f c o n tr a c t c la im a nd c onc l ude d tha tM a xi m c om pl i e d w i th the e xpr e s s t e rm s of the O pt i on A gree m ent . (T he part i es and the di stri ctcourtvari ou sl y r ef ert o the contra ctat3

i s s ue a s i nc l udi ng s om e ora l l of the N ot i c e of

G r a ntof S t oc k O pt i ons , the 1996 S to c kI n c e n tiv e P la n , a n d th e L e g a l P r o v is io n s . W e r e f e rto th e s e d o c u m e n ts c ol l e c t i ve l y a s the “ O pt i on A gr e e m e nt . ” ) T he pl e a di ngs c ont a i ne d no a l l e ga t i on th atM ax i m ’ s sh ares w ere u n reg i st ered o r th atM ax i m ’ s p erfo rm an ce w as o th erw i se e xc us e d. N orc oul d s uc h a n i nf e r e nc e be dr a w n f

r om doc um e nt s r e f

e r e nc e d i n the c o m p la in t o rju d ic ia lly n o tic e d d o c u m e n ts , p a r tic u la r ly g iv e n th a t, o n aR u le 12 (b)( 6) m ot i on , the di stri ctcourtw as re qu i re d t o acc eptal l w el l -pl ea ded a lle g a tio n s in th e c o m p la in t a s tru e a n d v ie w th e m in th e lig h t m o s t f a v o r ab le to H a nna n. T he di stri ctcourtsi m i l ar l y e rr ed w hen i tdi sm i ss ed H annan’ s c l ai m that M a x im b r e a c h e d th e d u ty o f g o o d f a ith a n d f

a ird e a lin g . B a s e d o n H a n n a n ’s w e llp le a d e d a lle g a tio n s , aju ry c o u ld h a v e f o u n d th a t M a x im f

a ile d to a c t in g o o d f

a ith and, thu s, brea ched the O pt i on A gree m entw hen M axi m engaged i n an i l l egal st ock opt i on ba c kda t i ng s c he m e tha tc aus e d i t s i nabi l i ty t o i s s ue s ha r e s unde rthe O pt i on A g r e e m e n t. T he O r e gon W a ge A c tc l a i m i s de pe nde nton the pl a i nt i f f’ s br e a c h of contra ctcl ai m , and thu s, need no tbe addres se d atthi s t i m e.4

A m o tio n f

o rs u m m a ry ju d g m e n t w o u ld b e m o r e ap p r o p r ia te in th is c a s e . T h is p a n e l w ill ta k e b a c kth is c a s e s h o u ld th e r e b e af u r th e rap p e a l. RE V E RS E D A ND RE MAND E D.