Opinion ID: 2336375
Heading Depth: 1
Heading Rank: 11

Heading: The Ebershoff Federal Case

Text: After dismissing his state court action, in October 1991, Respondent filed a federal court lawsuit against hundreds of individual attorneys and numerous law firms, alleging essentially the same causes of action raised in the state court action. On July 13, 1992, Federal District Judge William J. Rea heard argument by the defendant law firms on motions to stay the federal court action pending payment of costs of the prior state court action, and motions to dismiss the complaint for improper service and for failure to prosecute. The Court filed an order staying the proceedings pending payment of the costs of the prior state court action, and dismissing the action with prejudice against the defendants Lewis, D'Amato for improper service and for failure to prosecute. The Court declined to exercise pendent jurisdiction over Respondent's state law claims, and reserved the issue of Respondent's remaining RICO claims. The judgment was entered on August 5, 1992. By order entered August 31, 1992, Judge Rea dismissed Respondent's RICO claims with prejudice. Respondent took two actions in response to the federal court action. On July 31, 1992, Respondent filed a 180-page lawsuit against numerous lawyers and law firms in Los Angeles Superior Court ( Shieh v. Ebershoff, et al., case no. BC061170), reiterating the causes of action against Lewis, D'Amato which had been dismissed with prejudice by the federal district court. (See infra. ) Respondent also appealed the federal court orders to the United States Court of Appeals for the Ninth Circuit. In a memorandum filed December 30, 1993, the Court of Appeals affirmed all of the district courts orders, and by order filed March 28, 1994, denied the petition for rehearing and rejected the suggestion for rehearing. By order entered January 15, 1993, the federal court set the costs of the prior state court action in the amount of $125,421.00 in favor of Graham & James and $37,236.00 in favor of the Fulbright & Jaworski defendants. On May 27, 1994, the federal defendants moved to dismiss the federal case with prejudice because Respondent had not paid the costs of the state court action. Respondent filed an opposition to the motion to dismiss on June 7, 1994, and in that motion requested reconsideration of the district court orders which had been affirmed by the Ninth Circuit. On June 20, 1994, the federal court dismissed the action and issued an order to show cause why Respondent and his attorney, James Andion, should not be sanctioned under Federal Rules of Civil Procedure, Rule 11 and 28 United States Code § 1927 for bringing an improper and frivolous motion for reconsideration. By order entered July 15, 1994, the Court found that Respondent opposed defendant's motion to dismiss on frivolous grounds' and requested reconsideration of an issue previously decided by the Ninth Circuit. It concluded that the opposition was filed in bad faith, or at a minimum, with conscious disregard for counsel's duty to the court. It ordered that Respondent and his attorney, Mr. Andion, pay sanctions in the amount of $1,000.00 under Rule 11.