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Brokers Alternative Funding, Inc. v. Hamilton Financial Corp.

Citation: 52 F. App'x 953Docket: No. 99-56752; D.C. No. CV-99-10209-RSWL

Court: Court of Appeals for the Ninth Circuit; December 10, 2002; Federal Appellate Court

Narrative Opinion Summary

In this appellate case, Edgar Juarez III and Annette Juarez challenged the district court's dismissal of their RICO claims against Hamilton Financial Services and their legal representatives, The Buckley Firm, Lawrence J. Buckley, and Paula Scotland. The appellate court, exercising jurisdiction under 28 U.S.C. 1291, conducted a de novo review and partially affirmed and partially dismissed the lower court's decision. The claims against Hamilton Financial Services were rendered moot by the bankruptcy court's disallowance of the Juarezes’ claims. Regarding the Attorney Appellees, the court found that the Juarezes failed to sufficiently allege a pattern of racketeering activity as required by 18 U.S.C. 1962, leading to a dismissal of these claims. Conspiracy claims were also dismissed, as they lacked an overt act constituting racketeering necessary for action under 18 U.S.C. 1964(c). The Juarezes' contention about the inapplicability of the California litigation privilege to their federal RICO claims was dismissed since the privilege was applied solely to uncontested state law claims. The court denied the Appellees' motion for judicial notice, and the decision is not intended for publication, except under specific circuit rules.

Legal Issues Addressed

California Litigation Privilege

Application: The district court applied the California litigation privilege only to state law claims, which were not contested by the Juarezes.

Reasoning: The Juarezes' argument that their federal RICO claims are not barred by the California litigation privilege is rejected, as the district court applied this privilege only to the unrelated state law claims, which the Juarezes do not contest.

Conspiracy Claims under 18 U.S.C. 1964(c)

Application: The court dismissed conspiracy claims since an overt act not constituting racketeering cannot support a cause of action.

Reasoning: Additionally, the conspiracy claims are dismissed since an overt act not constituting racketeering cannot support a cause of action under 18 U.S.C. 1964(c).

Judicial Notice

Application: The court denied the Appellees' motion for judicial notice.

Reasoning: The Appellees' motion for judicial notice is denied.

Mootness Due to Bankruptcy Proceedings

Application: Claims against Hamilton Financial were dismissed as moot following the bankruptcy court's disallowance of the Juarezes’ claims.

Reasoning: Claims against Hamilton Financial are dismissed as moot due to the bankruptcy court's disallowance of the Juarezes’ claims.

RICO Claims under 18 U.S.C. 1962

Application: The court dismissed the RICO claims against the Attorney Appellees due to insufficient allegations of a pattern of racketeering activity.

Reasoning: The focus shifts to the claims against the Attorney Appellees, which are dismissed because the Juarezes did not sufficiently allege a pattern of racketeering activity as required under 18 U.S.C. 1962.