Connecticut General Life Insurance v. New Images of Beverly Hills

MEMORANDUM **

We affirm the district court’s entry of final judgment against appellant Haya Zilka. Although Zilka correctly asserts that, despite the default judgment, she is enti *498 tied to contest the sufficiency of the complaint, see Alan Neuman Prods., Inc. v. Albright, 862 F.2d 1388, 1392-93 (9th Cir.1989), her arguments regarding the complaint are without merit.

We assume without deciding that Rule 9(b) applies where a default judgment is entered as a result of terminating sanctions, even where no Rule 9(b) objection was raised before the answer was filed. Plaintiffs alleged sufficient facts in the second amended complaint to satisfy the Rule 9(b) particularity requirement with respect to its allegations of fraud. See Cooper v. Pickett, 137 F.3d 616, 625 (9th Cir.1997). Plaintiffs also sufficiently alleged that Zilka participated in the “operation or management” of the fraudulent enterprise to satisfy Reves v. Ernst & Young, 507 U.S. 170, 185 , 113 S.Ct. 1163 , 122 L.Ed.2d 525 (1993). The complaint also contains sufficient allegations of the elements of common law fraud.

The complaint likewise contains sufficient allegations to support the violation of California…