E&e Co., Ltd. v. Kam Hing Enterprises, Inc.

MEMORANDUM

E & E Co., Ltd. (“E & E”) filed suit against Kam Hing Enterprises, Inc., Sun-ham Home Fashions, LLC, JJ International Trading Co., Howard Yung, and Arthur Cournbanou (collectively “Defendants”) alleging a violation of California’s Unfair Competition Law (“UCL”). E & E appeals (1) the district court’s dismissal of its claims for failure to plead with particularity as required by Federal Rule of Civil Procedure 9(b). Defendants cross-appeal (2) the district court’s finding that E & E has standing to bring this action under the UCL. Defendants also alternatively assert that this court can affirm the district court, because (3) E & E’s complaint failed to state a claim upon which relief can be granted, and (4) California lacks jurisdiction over Defendants Howard Yung and Arthur Cournbanou. Pursuant to 28 U.S.C. § 1291 we have jurisdiction and we AFFIRM in part, REVERSE in part, and REMAND.

1. Federal Rule of Civil Procedure 9(b) governs complaints that “allege a unified course of fraudulent conduct and rely entirely on that course of conduct as the basis of a claim.” Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1103 (9th Cir.2003). Fraud must be alleged with…