United States Fifth Circuit

In an action by an attorney bringing federal securities fraud, RICO, and state law claims against a former client to recover fees, dismissal of the action is affirmed in part and reversed in part where: 1) plaintiff's procedural challenges failed; 2) section 12(2) of the Securities Act is unavailable in a privately-negotiated assignment; 3) plaintiff adequately pled a securities fraud claim under section 10(b) of the Securities Exchange Act; and 4) plaintiff did not adequately plead the existence of an enterprise for his RICO claim. Imposition of Rule 11 sanctions against plaintiff is reversed where the court could not impose a sanction of payment of attorney's fees upon its own initiative.

Appellate Information

• Decided 02/17/2009
• Published 02/18/2009

Judges

• PATRICK E. HIGGINBOTHAM, Circuit Judge:, Before HIGGINBOTHAM, BENAVIDES and STEWART, Circuit Judges.

Court

• United States Fifth Circuit

Counsel

• For Appellant:
  
• Robert Arthur Brunig (argued), Brunig & Associates, Southlake, TX, pro se.


• For Appellees:
  
• Wendell Eugene Washington (argued), Valdez Washington, LLP, Frisco, TX, for Defendants-Appellees.