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 and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th 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 S A T A N A N D S H A R M A , an in d iv idu a l, AK A S t an S h arm a ; T HE B I DY A S HA R MA I R R E VO C AB L E T R US T OF 1 9 9 6 , atru s t, P l ai n t i ffs - A p p el l an t s, v. N A T I O N A L E N T E R P R I S E S , I N C ., a C a lif o rn iac o rp o r a tio n ; e t a l., D efen d an t s - A p p el l ees. N o. 09- 56461 D . C . N o . 2 : 0 9 - c v - 0 3 3 4 5 - D D P - J WJ ME MOR AN DU M *

S A T A N A N D S H A R M A , an in d iv idu a l, AK A S t an S h arm a ; T HE B I DY A S HA R MA I R R E VO C AB L E T R US T OF 1 9 9 6 , atru s t, P l ai n t i ffs - A p p el l ees, v. N A T I O N A L E N T E R P R I S E S , I N C ., a C a l i f orni ac orpor a t i on, D e f

e n d an t - A p p e llan t, N os . 09- 56828 09- 56962 D . C . N o . 2 : 0 9 - c v - 0 3 3 4 5 - D D P - J WJ



# FI LED JU L 23 2010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALST he pane l una ni m ous l yc onc l ude s the s e appe a l s a r e s ui t abl e f or ** d e c is io n w ith o u t o r a l ar g u m e n t. See F ed. R . A pp . P . 34 (a )( 2). 09- 56828 2 and R O Q U E D E L A F U E N T E , II , an in d iv idu a l; e t a l., D efen d an t s.

A pp ea l s f

rom the U ni t ed S t at es D i stri ctC ou rt f o rth e C e n tr a l D is tr ic t o f C a lif o rn ia D e an D . P r e ge r s on, D i s tr i c tJudge , P r e s i di ng S ubm i tt e d June 29, 2010 ** B efo re: A L A R C Ó N , L E A V Y , an dG R A B E R , C i rcu i tJu d g es. S a t anand S harm aa nd the B i dy aS harm aI rr e voc abl e T rus tof 1996 ( c o lle c tiv e ly , “S h arm a ” ) ap p e a l f r o m th e d is tr ic t c o u rt’s o r d e rd is m is s in g th e ir a c t i on a l l e gi ng vi ol a t i ons of the R a c ke t e e rI nf

l ue nc e d and C orruptO r gani z a t i ons A c t ( “R I C O ” ) . N a tio n a l E n te rp r is e s , I n c . ap p e a ls f r o m th e o r d e rd e n y in g its m ot i on f ors anc t i ons unde rF e de r a l R ul e of C i vi l P r oc e dur e 11. W e ha ve ju risd icti o n u n d er2 8 U .S .C . § 1 2 9 1 . W e r ev iew d e n o v o th e d istrict co u rt’s di sm i ss alfor f

ai l ure t o st at e acl ai m un der F eder alR ul e of C i vi l P roce du re 1 2 ( b ) ( 6 ) . O do m v. Mi cro so f t C o rp . , 48 6 F . 3d 54 1, 54 5 (9th C i r. 20 07 ) ( en banc). W e r e v ie w f

o ra n ab u s e o f

d is c r e tio n th e d is tr ic t c o u rt’s R u le 1 1 d e te rm in a tio n .09- 56828 3 Re ta i l Flo o r i n gD e a le rs o

f Am . , I n c . v . Be a u l i e u o

f Am . , LLC, 339 F . 3d 1146, 1150 ( 9 th Ci r . 2 0 0 3 ) . W e a f

f i rm. A p p e alN o. 09- 56461 T h e d is tr ic t c o u rt p r o p e r lyd is m is s e dth e a c tio n b e c au s e S h arm af a ile dto al l ege f ac t s s ho w i ng thatdefe nd ant s’ ac t i on s proxi m at el y c ause d the al l eged in ju r ie s . See H

em iG ro u p , L L Cv. C i t

y o f N ew Y o rk , 130 S . C t . 983, 988- 90 ( 2010) ( d is c u s s in g p r o x im a te c au s e r e q u ir e m e n t f o rc iv il R I C O c la im s ) . W e ar e n o t p e r s u a d e db yS h arm a ’s c o n te n tio n r e g ar d in g le a v e to a m e n d . Se e L i pton v . P athoge nes is C or p. , 284 F . 3d 1027, 1039 ( 9th C i r . 2002) ( a f f i rm i ng d is m is s a l w ith o u t le a v e to a m e n dw h e r e a m e n d m e n t w o u ldb e f u tile ) . S harm a’ s r em ai ni ng cont ent i on s are un pers uasi ve. A p p e alN os . 09- 56828, 09- 56962 T he di stri ctcourtdi d n otabuse i t s di sc re t i on by denyi ng N at i on al E nt e rpr i s e s ’ m ot i on f

orR ul e 11 s anc t i ons a f

t e rf i ndi ng tha tthe c om pl a i ntw a s not le g a llyo rf

a c tu a llyb a s e le s s f

r o m a n o b

je c tiv e p e r s p e c tiv e . Se e Ch r is tia n v . M a tte l, I nc . , 2 8 6 F . 3 d1 1 1 8 , 1 1 2 7 (9 th C i r. 2 0 0 2 ) (l i st i n g fact o rs th atd i stri ctco u rt s m u st consi der i n d et erm i ni ng w hether t o i m po se R ul e 11 sanct i on s) . A P P E A L N O . 09- 56461 : AF F I RME D. A P P E A L N O S . 09- 56828, 09- 56962 : AF F I RME D.