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Penn, LLC v. Prosper Business Development Corp.

United States Court of Appeals, Sixth Circuit

December 12, 2014

PENN, LLC, et al., Plaintiffs, AMELIA A. BOWER; ALVAND A. MOKHTARI; PLUNKETT & COONEY, P.C., Attorneys-Appellees,
v.
PROSPER BUSINESS DEVELOPMENT CORPORATION, et al., Defendants, JAMES E. ARNOLD & ASSOCIATES; JAMES E. ARNOLD, Defendants-Appellants

Argued: October 9, 2014.

Appeal from the United States District Court for the Southern District of Ohio at Columbus. No. 2:10-cv-00993--Gregory L. Frost, District Judge.

ARGUED:

James E. Arnold, JAMES E. ARNOLD & ASSOCIATES, LPA, Columbus, Ohio, for Appellants.

Josephine A. DeLorenzo, PLUNKETT COONEY, P.C., Bloomfield Hills, Michigan, for Appellees.

ON BRIEF:

James E. Arnold, Damion M. Clifford, Gerhardt A. Gosnell II, JAMES E. ARNOLD & ASSOCIATES, LPA, Columbus, Ohio, for Appellants.

Josephine A. DeLorenzo, PLUNKETT COONEY, P.C., Bloomfield Hills, Michigan, for Appellees.

Before: MOORE and COOK, Circuit Judges; STEEH, District Judge.[*]

OPINION

COOK, Circuit Judge.

In this dispute over the management of a joint venture, Defendants-Appellants James E. Arnold & Associates and the

Page 765

firm's eponymous partner (together the " Arnold Firm" ) challenge the district court's denial of their motion for Rule 11 sanctions against plaintiffs' counsel, Attorneys-Appellees Amelia A. Bower, Alvand A. Mokhtari, and Plunkett & Cooney, P.C. (collectively " P& C" ). Although the district court found the sanctions motion a " close call," it ultimately rejected the Arnold Firm's allegations that P& C filed the plaintiffs' complaint with an improper purpose and without a sufficient basis in law or fact. We AFFIRM the district court's denial of sanctions on the ...


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