PT Pukuafu Indah v. U.S. Sec. & Exch. Comm'n, No. 09-2117 (6th Cir. 2011)
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Plaintiffs have filed several lawsuits in the past ten years, asserting ownership of mines in Indonesia. Each suit was rejected and sanctions were imposed on plaintiffs in two prior suits. The present suit alleges false filings with the Securities and Exchange Commission and failure, by federal agencies, to take enforcement actions. Following dismissal and denial of reconsideration, the district court ordered that plaintiffs and their counsel pay more than $100,000 in attorney fees and costs and enjoined plaintiffs and from ever filing another lawsuit arising out of the same subject matter in any state or federal court. The Sixth Circuit affirmed dismissal, but reversed imposition of sanctions. The district court lacked jurisdiction over the mining company defendant. The district court did not comply with Rule 11 because it found a Rule 11 violation in conduct that went beyond the specific conduct identified in defendant's motion for sanctions.
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