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In the Matter of the Dissolution of Oka Towers Corp., }{\fs20\insrsid2428386 Opinion\tab Page }{\field{\*\fldinst {\fs20\insrsid2428386 PAGE }}{\fldrslt {\fs20\lang1024\langfe1024\noproof\insrsid6554785 5}}}{\fs20\insrsid2428386  of  7
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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid2428386\charrsid6554785 IN THE SUPREME COURT OF GUAM}{\insrsid6554785 
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\par OKA TOWERS CORPORATION,
\par }{\insrsid2428386\charrsid6554785 Petitioner-Appellee,}{\b\insrsid2428386\charrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 TRANS PACIFIC EXPORT CO.,}{\b\insrsid2428386\charrsid6554785 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 Filed: May 2, 2000}{\insrsid6554785 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid2428386\charrsid6554785 Supreme Court Case No. CVA98-022
\par Superior Court Case No. CV1285-97}{\insrsid6554785 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid2428386\charrsid6554785 Appeal from the Superior Court of Guam
\par Argued and submitted on May 10, 1999
\par Hag\'e5t\'f1a, Guam}{\insrsid6554785 
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\par }{\ul\insrsid2428386\charrsid6554785 Appearing for the Appellant}{\insrsid2428386\charrsid6554785 :}{\insrsid2428386\charrsid6554785 
\par }{\insrsid2428386\charrsid6554785 Steven A. Zamsky, Esq.}{\insrsid2428386\charrsid6554785 
\par }{\insrsid2428386\charrsid6554785 Zamsky Law Firm}{\insrsid2428386\charrsid6554785 
\par }{\insrsid2428386\charrsid6554785 Suite 501, Bank of Guam Bldg.}{\insrsid2428386\charrsid6554785 
\par }{\insrsid2428386\charrsid6554785 111 Chalan Santo Papa}{\insrsid2428386\charrsid6554785 
\par }{\insrsid2428386\charrsid6554785 Hag\'e5t\'f1a, Guam 96910}{\insrsid2428386\charrsid6554785 
\par \cell 
\par }{\ul\insrsid2428386\charrsid6554785 Appearing for the Appellee}{\insrsid2428386\charrsid6554785 :
\par James T. Mitchell. Esq.
\par Frederick J. Horecky, Esq. on the briefs
\par Law Offices of Horecky & Associates
\par 1}{\super\insrsid2428386\charrsid6554785 st}{\insrsid2428386\charrsid6554785  Floor, J. Perez Bldg.
\par 138 Seaton Blvd.
\par Hag\'e5t\'f1a, Guam 96910\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid2428386\charrsid6554785 \trowd \irow0\irowband0\lastrow 
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\par }{\insrsid2428386\charrsid6554785 BEFORE:}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 BENJAMIN J. F. CRUZ, Chief Justice; PETER C. SIGUENZA, Associate Justice; and JOHN A. MANGLONA, Designated Justice.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 SIGUENZA, J.:
\par }{\insrsid6554785\charrsid6554785 
\par }{\b\insrsid2428386\charrsid6554785 [1]}{\insrsid2428386\charrsid6554785 \tab 
Oka Towers Corporation filed a Petition for the Dissolution of a Corporation. Trans Pacific Export Company entered an appearance and objected to the dissolution on the basis of an outstanding claim against the corporation which was being litigated by the 
parties in the Superior Court of Guam. That matter was subsequently disposed of by summary judgment in favor of Oka Towers and}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 
Trans Pacific appealed that ruling. In the dissolution matter, the lower court awarded sanctions against Trans Pacific for filing a legally unreasonable claim. Trans Pacific}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 
appeals the award of sanctions. Contrary to the lower court, we find that Trans Pacific}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s filing of its appearance and objection to dissolution was proper; consequently, we reverse the award of sanctions in this case.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 FACTS}{\insrsid6554785 
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\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 [2]}{\insrsid2428386\charrsid6554785 \tab On September 22, 1997, Oka Towers Corporation (hereinafter }{\insrsid2428386\charrsid6554785 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2428386\charrsid6554785 Appellee}{\insrsid2428386\charrsid6554785 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid2428386\charrsid6554785 ) filed a Petition for Voluntary Dissolution of a Corporation in the Superior C
ourt of Guam. On October 15, 1997, an amended petition was filed. A Notice by the Clerk of Court of Petition for Voluntary Dissolution and Order to Show Cause was filed on November 26, 1997.}{\cs15\super\insrsid2428386\charrsid6554785 \chftn {\footnote 
\pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid2428386 \chftn }{\fs20\insrsid2428386 It appears that two Amended Notices by Clerk for Voluntary Disso
lution were subsequently filed on December 19, 1997, and January 12, 1998. }}}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 On January 9, 1998, counsel for Trans Pacific Export Company (hereinafter }{\insrsid2428386\charrsid6554785 
{\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2428386\charrsid6554785 Appellant}{\insrsid2428386\charrsid6554785 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\insrsid2428386\charrsid6554785 ) filed an Entry of Appearance and Objection and objected to the dissolution of Appellee; however, no basis for the objection was articulated in this document.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [3]}{\insrsid2428386\charrsid6554785 \tab At the March 10, 1998, Order to Show Cause hearing before J
udge Lamorena it was disclosed that another civil case between the parties was before Judge Manibusan, and that summary judgment motions were argued the previous}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 week.}{
\cs15\super\insrsid2428386\charrsid6554785 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid2428386 \chftn }{\i\fs20\insrsid2428386 
Transpacific Export Co. v. Oka Towers Corp.,}{\fs20\insrsid2428386  Superior Court Civil Case No. CV 1232-97. We have earlier decided the appeal of this case in 2000 Guam 3 and affirmed the trial court}{\fs20\insrsid9662653 '}{\fs20\insrsid2428386 
s grant of summary judgment against Appellant and the imposition of sanctions there. }}}{\insrsid2428386\charrsid6554785  Also at the hearing, it was discussed that Appellant}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s counsel had filed an objection and that there was some confusion as to whether a claim was to be filed in addition thereto.}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 
Judge Lamorena continued the hearing until April 7, 1998, ostensibly to allow time for either the Appellant to file a claim or for the parties to settle
 the matter. The Appellant, on the same day, filed its claim and incorporated by reference all documents and the entire record in the above-referenced civil case. }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785  Appellee}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s Excerpts of Record (EOR) 7. }{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [4]}{\insrsid2428386\charrsid6554785 \tab In the interim, on March 16, 1998, Judge Manibusan issued a Decision and Order which granted Appellee}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s Summary Judgment motion in the civil case, dismissed that complaint with prejudice, and assessed sanctions pursuant to Rule 11 of the Guam Code of Civil Procedure. }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785  Appellee}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s EOR 4.}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 Judge Lamorena transferred the instant dissolution case to Judge Manibusan on April 7, 1998.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [5]}{\insrsid2428386\charrsid6554785 \tab On April 17, 1998, Appellee filed a Motion for Award of Petitioner}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s Attorneys Fees and Costs. The hearing occurred on June 2, 1998, before Judge Manibusan.}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 Although the court found that}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 the Appellant}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s objection was timely filed, sanctions were appropriate because}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 it had earlier dismissed the civil case. }{
\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785  Transcript, vol. --, p. 28 (Hearing on Motion for Award of Petitioner}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s Attorneys Fees and Costs, June 2, 1998). The court also opined that should the matter be appealed or}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 
resurrected and some award granted, then Section 5101 of Title 18 of the Guam Code Annotated would provide the means for Appellant to act on its claim. }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785 
 Transcript, vol. --, p. 28 (Hearing on Motion for Award of Petitioner}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s Attorneys Fees and Costs, June 2, 1998). The court issued an Order for Payment of Petitioner}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s Attorneys Fees and Costs on July 30, 1998.}{\insrsid6554785  }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785  Appellant}{\insrsid9662653\charrsid6554785 '}{
\insrsid2428386\charrsid6554785 s EOR 4. The court articulated its findings by stating that Appellant}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s claim was legally unreasonable and that Appellee was entitled to its attorneys fees and costs incurred in defending against a claim that should not have been maintained from the outset. }{\i\insrsid2428386\charrsid6554785 See }{
\insrsid2428386\charrsid6554785 Appellant}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s EOR 4. Judgment was issued for Voluntary Dissolution of Oka Towers Corporation and Payment of Petitioner}{\insrsid9662653\charrsid6554785 '}{
\insrsid2428386\charrsid6554785 s Attorneys Fees and Costs. }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785  Appellant}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s EOR 5.}{\insrsid6554785 
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 DISCUSSION}{\insrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 [6]}{\insrsid2428386\charrsid6554785 \tab Jurisdiction of this court is not disputed and vests pursuant to Title 7 o
f the Guam Code Annotated sections 3107 and 3108 (1994).}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [7]}{\insrsid2428386\charrsid6554785 \tab We review orders imposing Rule 11 sanctions for an abuse of discretion. }{\i\insrsid2428386\charrsid6554785 Cooter & Gell v. Hartmarx Corp.}{\insrsid2428386\charrsid6554785 
, 496 U.S. 384, 405, 110 S.Ct. 2447, 2461 (1990). A court abuses its discretion in imposing sanctions when it bases its decision on an erroneous view of the law or on a clearly erroneous assessment of the evidence. }{\i\insrsid2428386\charrsid6554785 
Mark Indus Ltd. v. Sea Captain}{\i\insrsid9662653\charrsid6554785 '}{\i\insrsid2428386\charrsid6554785 s Choice, Inc}{\insrsid2428386\charrsid6554785 ., 50 F. 3d 730, 732 (9}{\super\insrsid2428386\charrsid6554785 th}{\insrsid2428386\charrsid6554785 
 Cir. 1995). }{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [8]}{\insrsid2428386\charrsid6554785 \tab Rule 11 of the Guam Rules of Civil Procedure provides, in relevant part:}{\insrsid6554785 
\par 
\par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 Rule 11. Signing of Pleadings, Motions, And Other Papers;}{\b\insrsid6554785  }{\b\insrsid2428386\charrsid6554785 Sanctions}{
\insrsid2428386\charrsid6554785 . Every pleading, motion, or other paper of a party represented by an attorney shall be signed by at least one attorney of record in the attorney'
s individual name, whose address shall be stated. A party who is not represented by an attorney shall sign the party's pleading, motion, or other paper and state the party's address. . .The signature of an attorney or party constitutes a certificate by th
e
 signer that the signer has read the pleading, motion, or other paper, that to the best of the signer's knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argumen
t
 for the extension, modification or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. . . If a pleading, motion, or other paper
 
is signed in violation of this rule, the court, upon motion or its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amoun
t of the reasonable expenses incurred because of the filing of the pleading, motion, or other paper, including a reasonable attorney's fee.}{\insrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid6554785 
\par }{\insrsid2428386\charrsid6554785 Guam R. Civ. P. 11.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [9]}{\insrsid2428386\charrsid6554785 \tab This rule was adopted from the corresponding provision of the Federal Rules of Civil Procedure. }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785 
 Comment to GRCP 11.}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 Rule 11 empowers federal courts to impose sanctions upon the signers of paper where: (a) the paper is frivolous or (b) the paper is filed for an improper purpose. }{
\i\insrsid2428386\charrsid6554785 Townsend v. Holman Consulting Corp}{\insrsid2428386\charrsid6554785 ., 929 F. 3d 1358, 1362 (9}{\super\insrsid2428386\charrsid6554785 th}{\insrsid2428386\charrsid6554785  Cir. 1991).}{\insrsid6554785  }{
\insrsid2428386\charrsid6554785 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2428386\charrsid6554785 Frivolous}{\insrsid2428386\charrsid6554785 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2428386\charrsid6554785  is used to denote a filing that is both baseless and made without reasonable and competent inquiry. }{\i\insrsid2428386\charrsid6554785 Id}{\insrsid2428386\charrsid6554785 
. (citation omitted). Lastly, a }{\insrsid2428386\charrsid6554785 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2428386\charrsid6554785 reasonable inquiry}{\insrsid2428386\charrsid6554785 {\field{\*\fldinst 
SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\insrsid2428386\charrsid6554785  means an inquiry reasonable under all the circumstances of a case. }{\i\insrsid2428386\charrsid6554785 Id.}{\insrsid2428386\charrsid6554785 
 at 1364 (citing }{\i\insrsid2428386\charrsid6554785 Cooter & Gell}{\insrsid2428386\charrsid6554785 , 496 U.S.}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 at 402, 110 S.Ct. at 2459).}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [10]}{\insrsid2428386\charrsid6554785 \tab 
In this case, the trial judge awarded sanctions because it held the claim was legally unreasonable and that Appellee had incurred fees and costs in defending against a claim that should not have been maintained from the outset. We are unsure whether the t
rial court}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s reason for the imposition of sanctions was because the objection and claim}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 
were frivolous, or they were brought for some improper purpose, or both.}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 Under either inquiry, however, we hold that sanctions should not have been ordered.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [11]}{\insrsid2428386\charrsid6554785 \tab Guam law provides a mechanism for the pursuit of claims against a corporation even after its corporate existence is terminated.}{\cs15\super\insrsid2428386\charrsid6554785 
\chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid2428386 \chftn }{\fs20\insrsid2428386 
A corporation may be voluntarily dissolved by the Superior Court of Guam. }{\i\fs20\insrsid2428386  See}{\fs20\insrsid2428386  Title 18 GCA }{\fs20\insrsid2428386 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{
\fs20\insrsid2428386  5102 (1992). The application for dissolution must be in writing and must set forth all claims and demands against the corporation and that dissolution was resolved by the affirmative vote of the stockholders holding or repres
enting two-thirds of all shares of stock issued or subscribed. }{\i\fs20\insrsid2428386 See}{\fs20\insrsid2428386  Title 18 GCA }{\fs20\insrsid2428386 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{
\fs20\insrsid2428386  5104 (1992). Notice for the application of dissolution must be published and the date on which the right of objection to the application must also be set out. }{\i\fs20\insrsid2428386 See }{\fs20\insrsid2428386 Title 18 GCA }{
\fs20\insrsid2428386 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid2428386  5106 (1992). Any person may file objections to the dissolution of the corporation. }{\i\fs20\insrsid2428386 See}{
\fs20\insrsid2428386  Title 18 GCA }{\fs20\insrsid2428386 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid2428386  5107 (1992). Any i
ssue that arises from the application and the objection thereto shall be tried by the court. }{\i\fs20\insrsid2428386 Id}{\fs20\insrsid2428386 .}}}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 
We are of the view that it was not unreasonable for Appellant to seek to protect its interest by filing the objection and claim in the instant matter and that it was brought in good faith.}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 
Appellant proceeded to properly prosecute its claim against the Appellee by using the statutory procedure for resolution of claims in a dissolution.}{\cs15\super\insrsid2428386\charrsid6554785 \chftn {\footnote \pard\plain 
\qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid2428386 \chftn }{\fs20\insrsid2428386 The record indicates that another creditor objected to the Appellee}{
\fs20\insrsid9662653 '}{\fs20\insrsid2428386 s dissolution,  although it later withdrew its claim. }{\i\fs20\insrsid2428386 See}{\fs20\insrsid2428386  Transcript, vol. --, p. 29 (Hearing on Motion for Award of Petitioner}{\fs20\insrsid9662653 '}{
\fs20\insrsid2428386 s Attorneys Fees and Costs, June 2, 1998).}}}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 Although Appellee}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s application already contained an averment of the pending civil case between itself and Appellant and of an outstanding debt owed to Universe Insurance Underwriters, Inc., }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785 
 Appellant}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s EOR 1, that fact alone does not preclude the respective creditor/claimant from filing their objections and claims. The resolution of Appellant}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s claims in the earlier civil case was still pending at the time the objection was filed.}{\cs15\super\insrsid2428386\charrsid6554785 \chftn {\footnote \pard\plain 
\qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\fs20\super\insrsid2428386 \chftn }{\fs20\insrsid2428386 
Had the civil case been undecided at the time dissolution was granted, then the court would have had an option to appoint a receiver for lawful distribution to shareholders, creditors or other interested parties. }{\i\fs20\insrsid2428386 See}{
\fs20\insrsid2428386  18 GCA }{\fs20\insrsid2428386 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f36\fs20}}}{\fs20\insrsid2428386  5107.}}}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 Moreover, Appellee}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s petition to dissolve came shortly after Appellant had instituted its breach of contract and fraud claims. We find nothing frivolous or improper with Appellant}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s pursuit of some protection of its interests by filing notice with the court of its pending claim against Appellee.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [12]}{\insrsid2428386\charrsid6554785 \tab In fact, it appeared that the trial court felt that Appellant}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s filing of the objection of January and the claim of March 10 was proper.}{\insrsid6554785  }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785  Transcript, vol. --, pp. 20-24 (Hearing on Motion for Award of Petitioner}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s Attorneys Fees and Costs, June 2, 1998
). The court below seemed to agree with Appellee that any action taken by the Appellant after its decision and order granting summary judgment in the civil case would be frivolous. }{\i\insrsid2428386\charrsid6554785 See}{\insrsid2428386\charrsid6554785 
 Transcript, vol. --, pp. 24-28 (Hearing on Motion for Award of Petitioner}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 
s Attorneys Fees and Costs, June 2, 1998). However, the record does not indicate that Appellant did anything more in pursuit of the claims in the dissolution matter that justified the court}{\insrsid9662653\charrsid6554785 '}{
\insrsid2428386\charrsid6554785 s award of sanctions.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [13]}{\insrsid2428386\charrsid6554785 \tab The trial court concluded that Appel
lant should have withdrawn its claim upon the rendition of the Decision and Order on the summary judgment motion of the civil case and that continued pursuit of the claim was frivolous. However, by its very terms, Rule 11 speaks only to the filing of a pl
eading, motion, or other paper that is frivolous or interposed for an improper purpose. }{\i\insrsid2428386\charrsid6554785 See Townsend}{\insrsid2428386\charrsid6554785 
, 929 F.3d at 1362. We find no infirmity in the Entry of Appearance and Objection filed by the Appellant and hold that the trial court abused}{\insrsid6554785  }{\insrsid2428386\charrsid6554785 its discretion
 in imposing sanctions upon the Appellant for this filing.}{\cs15\super\insrsid2428386\charrsid6554785 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {
\cs15\fs20\super\insrsid2428386 \chftn }{\fs20\insrsid2428386 Because the lower court relied on no other basis for the imposition of sanctions there is no need to address Appellee}{\fs20\insrsid9662653 '}{\fs20\insrsid2428386 
s arguments of alternative bases for the lower court}{\fs20\insrsid9662653 '}{\fs20\insrsid2428386 s award.}}}{\insrsid6554785 
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 CONCLUSION}{\insrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\tqc\tx4680\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\b\insrsid2428386\charrsid6554785 [14]}{\insrsid2428386\charrsid6554785 \tab The trial court abused its discretion by awarding fees and costs on the basis that Appellant}{
\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s objection and claim were legally unreasonable.}{\insrsid6554785 
\par 
\par }{\b\insrsid2428386\charrsid6554785 [15]}{\insrsid2428386\charrsid6554785 \tab Therefore, the trial court}{\insrsid9662653\charrsid6554785 '}{\insrsid2428386\charrsid6554785 s imposition of sanctions is }{\b\insrsid2428386\charrsid6554785 REVERSED}{
\insrsid2428386\charrsid6554785 .}{\insrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid6554785 
\par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid2428386\charrsid6554785 JOHN A. MANGLONA\tab \tab \tab \tab }{\insrsid6554785  }{\insrsid2428386\charrsid6554785 PETER C. SIGUENZA
\par Designated Justice\tab \tab \tab \tab }{\insrsid6554785  }{\insrsid2428386\charrsid6554785 Associate Justice}{\insrsid6554785 
\par }\pard \qj \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid6554785 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6554785 {\insrsid2428386\charrsid6554785 BENJAMIN J. F. CRUZ
\par Chief Justice
\par }}