Barrett v. Tallon

ANDERSON, Circuit Judge. Plaintiffs Robert L. Barrett, Johnny Slover, and their cattle companies appeal from separate orders of the district court
(1) dismissing their complaint for failure to state a claim, Fed. R. Civ. P. 12(b)(6), and (2) imposing against them Rule
11 sanctions of $32,885.15. For convenience we decide both appeals (Nos. 93-7029 and 93-7080) in this opinion. The district
court held that the complaint did not state a claim under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18
U.S.C. 1961-1968. The plaintiffs do not challenge that holding but contend that they successfully pleaded state law claims
of fraud and conversion for which there was diversity jurisdiction. The plaintiffs also object to the Rule 11 sanctions on
several grounds. We reverse the order of dismissal to the extent that it is inconsistent with this opinion and remand for
further proceedings. In addition, we vacate the order of sanctions.