272 F.R.D. 47
D. Me.2011Background
- James moves for sanctions under Fed. R. Civ. P. 56(g) based on a allegedly false Stephan affidavit submitted by GMAC; the court granted the motion in part and allowed GMAC to withdraw its summary judgment motion as moot.
- The court found Stephan did not personally know all facts in the affidavit, but that does not prove the substance was entirely true or false.
- The court conducted its own review and determined James was not entitled to summary judgment on any remaining MSJ motions.
- GMAC’s attestation was sanctioned for its egregious nature, but contempt was not found.
- GMAC is ordered to reimburse James for attorney fees and costs incurred in bringing the sanctions motion and responding to GMAC’s MSJ, but not for fees related to James’s own MSJ defenses.
- The court concluded USB likely should not be held liable for GMAC’s misconduct, and emphasized the sanctions target GMAC’s conduct with the joinder of USB unaffected.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Stephan affidavit was submitted in bad faith | James argues bad faith under Rule 56(g) | GMAC/USB contend no bad faith | Yes, sanctions warranted against GMAC for egregious misconduct |
| Whether sanctions should be awarded against GMAC | Award fees and costs incurred responding to MSJ | Denial or limited sanctions | GMAC must reimburse James's fees/costs for sanctions motion and response to MSJ |
| Whether USB should be sanctioned or held liable | USB should be held responsible as sponsor of GMAC’s misconduct | USB not liable for GMAC employee actions | No clear liability on USB; sanctions limited to GMAC |
| Scope of discovery or further inquiry | Need discovery into creation of the false affidavit | Discovery unnecessary given remaining issues | No further discovery needed; limited scope |
Key Cases Cited
- Fort Hill Builders, Inc. v. National Grange Mut. Ins. Co., 866 F.2d 11 (1st Cir. 1989) (sanctions for egregious conduct under former Rule 56(g))
- Michael v. Liberty, 566 F. Supp. 2d 10 (D. Me. 2008) (bad faith when errors on both sides; cannot find false testimony)
- Dupuis v. Federal Home Mortgage Corp., 879 F. Supp. 139 (D. Me. 1995) (undisclosed principal liability in agency)