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Aloe Vera of America, Inc., a Texas Corporation Rex G. Maughan Ruth G. Maughan Maughan Holdings, an Arizona Corporation, Bureau of National Affairs, Inc. Tax Management, Inc., Intervenors-Appellees, and Gene Yamagata Yamagata Holdings, Inc., a Nevada Corporation v. United States

Citations: 381 F.3d 916; 94 A.F.T.R.2d (RIA) 5739; 2004 U.S. App. LEXIS 18142Docket: 03-15265

Court: Court of Appeals for the Ninth Circuit; August 26, 2004; Federal Appellate Court

Narrative Opinion Summary

Aloe Vera of America, Inc. and associated parties (Plaintiffs-Appellants) filed an appeal against the United States (Defendant) in the Ninth Circuit. The court reviewed Aloe Vera's response to an order to show cause and concluded that the appeal was frivolous, meaning the arguments presented were without merit and the outcomes were obvious. Consequently, the court imposed sanctions on Aloe Vera, requiring them to pay the Bureau of National Affairs, Inc. (BNA) for attorney's fees incurred in defending the appeal, including travel expenses for oral argument. The determination of the exact fee amount was delegated to the Appellate Commissioner. Judge Graber dissented regarding the imposition of sanctions.

Legal Issues Addressed

Awarding Attorney's Fees and Costs

Application: The court ordered Aloe Vera to pay the Bureau of National Affairs, Inc. for attorney's fees, including travel expenses for oral argument, as a result of the frivolous appeal.

Reasoning: Consequently, the court imposed sanctions on Aloe Vera, requiring them to pay the Bureau of National Affairs, Inc. (BNA) for attorney's fees incurred in defending the appeal, including travel expenses for oral argument.

Delegation of Fee Determination

Application: The task of determining the exact amount of attorney's fees to be awarded was assigned to the Appellate Commissioner.

Reasoning: The determination of the exact fee amount was delegated to the Appellate Commissioner.

Judicial Dissent on Sanctions

Application: Judge Graber expressed disagreement with the majority's decision to impose sanctions on Aloe Vera.

Reasoning: Judge Graber dissented regarding the imposition of sanctions.

Sanctions for Frivolous Appeals

Application: The court determined that the arguments presented by Aloe Vera were without merit, thus classifying the appeal as frivolous and warranting the imposition of sanctions.

Reasoning: The court reviewed Aloe Vera's response to an order to show cause and concluded that the appeal was frivolous, meaning the arguments presented were without merit and the outcomes were obvious.