This is аn appeal from the grant of summary judgment by the United States District Court for the Eastern District of New York, Nickerson, J., after finding that (1) the claims of appellant Bartel Dental Books Co. (Bartel) under 42 U.S.C. § 1983 (1982) were frivolous because Bartel had previously released all of its claims against defendants, and (2) the claims of appellant Mapleton House Books, Inc. (Mapleton) were barred by the doctrines of issue and claim preclusion. The district court also ordered plaintiffs to reimburse defendants New York Dormitory Authority (NYDA) and Peter J. Schultz for the costs аnd attorneys’ fees they incurred in defending against all but one of plaintiffs’ claims.
We affirm the judgment of the district court and order that sanctions for a frivolous appeal be imposed on appellants and their attorney, Michael Rikon.
BACKGROUND
Bartel and Mapleton were fаmily owned businesses operating out of the same warehouse. Bartel owned the warehouse and Mapleton leased it from Bartel. When NYDA condemned the property, Bartel and Mapleton filed claims for their respective losses. Later Bartel released NYDA from all claims and Mapleton gave NYDA a par
Although NYDA was not bound by either federal or state law to pay a business for the cost of moving its operations, it regularly followed the administrаtive practice of the City of New York and made such payments. Mapleton and NYDA failed to reach an agreement with regard to relocation expenses.
NYDA moved under section 405 of the New York Eminent Domain Procedure Law, N.Y.E.D.P.L. § 405 (McKinney 1979), for an order directing Mapleton to vacate the premises. In its moving papers, NYDA alerted the Supreme Court that Mapleton might attack NYDA’s method of calculating relocation costs. Mapleton defaulted instead and the order to vacate was granted. Mapleton then confirmed NYDA’s prognostication. In Mapleton’s appeal of the order to vacate, it claimed that NYDA’s method of calculating relocation costs violated its rights to due process. The Appellate Division ultimately dismissed that appeal for lack of prоsecution.
Mapleton’s due process claim appeared a second time in a proceeding under Article 78 of the New York Civil Practice Law, N.Y.Civ.Prac.Law § 7801 et seq. (McKinney 1981). There Mapleton requested a judicial determination of the proper method for сalculating relocation costs and a stay of the order to vacate. The application for a stay was denied. Mapleton then abandoned the Article 78 proceeding.
Mapleton and Bartel next brought a section 1983 action in federal court аlleging that the failure to grant them a plenary hearing on the amount and manner of calculating relocation expenses denied them their rights to due process and that the failure to treat them in the same manner as the other claimants denied them equal protection of the law. Defendants moved to dismiss the action. The district court treated the motion as one for summary judgment after giving the parties notice at oral argument that it intended to do so. Maple-ton submitted a memorandum in opposition to the motion to dismiss, again asserting that it had a constitutional right to a hearing.
The district court found that Bartel had released all claims against NYDA when it signed a release. The court therefore concluded that Bartel’s section 1983 claims were frivolous. As to Mapleton, the court concluded that beсause all of its constitutional claims were actually raised or could have been raised in the state court proceedings, they were barred under Migra v. Warren City School District Board of Education,
Mapleton and Bartel claim on this appeal that the district court erred in all aspects of its decision. We disagree. Mapleton and Bartel also claim that the district judge should have recused himself because one of his law clerks had applied to become an associate in the law offices of defendant Schultz’s counsel. This claim is frivolous.
DISCUSSION
1. Bartel’s Release
The district court properly found Bartel’s claims to be frivolous. Contract principles apply to the interpretation of releases. Bank of America v. Gillaizeau,
2. Claim Preclusion Under Migra
In Migra, the Suprеme Court held that federal district courts hearing section 1983 actions should apply the law of the forum state when deciding matters of claim preclusion.
Mapleton argues that Migra does not apply when a hearing has not actually been granted by the state courts. This argument is without merit for two reasons. First, Migra emphasized that federal courts should apply the same preclusive doctrines that a state court would apply.
3. Due Process
The Fifth Amendment to the Constitution does not give rise to a “just compensation” right for the cost of relocating a business. United States v. Westinghouse Co.,
The only original claim in this action was that Schultz violated Mapleton’s equal protection rights under the Fourteenth Amendment of the Constitution by offering other condemnees better relocation settlements than were tendered to Mapleton. There was no evidence, however, that Mapleton was discriminated against because it was a member of a suspect class or exercised a protected right. NYDA and Schultz correctly argue that administrative action is presumed regular unless there is some burden on a protectеd class or on protected rights. Cf. Bishop v. Wood,
Because there was no genuine issue as to any material fact, NYDA was entitled to a judgment as a matter of law. Fеd.R.Civ.P. 56(c). Therefore, the court’s grant of summary judgment was proper.
5. Rule 11 Sanctions
Mapleton’s equal protection claim against Schultz was the only claim raised for the first time in its federal action. That claim was not supported by any legally relevant facts. Mapleton’s other claims had already been rejected by the New York courts and were clearly without merit. Furthermore, a competent attorney could not form a reasonable belief that any of these claims were “warranted by existing law or a good faith argument for extension, modification, or reversal of existing law.” Fed.R.Civ.P. 11. See also Eastway Construction Corp. v. City of New York,
The district court clearly did not abuse its discretion when it ordered Maple-ton to pay defendants’ costs and attorneys’ fees. The district court probably would have erred if it had not awarded attorneys’ fees to NYDA and to Schultz under Rule 11 of thе Federal Rules of Civil Procedure. See Eastway,
6. Recusal
Mapleton argues that Judge Nicker-son should have recused himself whеn he learned that, the law firm representing defendant Schultz was considering one of his law clerks, who was not working on the case, for employment as an associate. Mapleton concedes that disqualification has not been required where the clerk is not working оn the case. Reddy v. Jones,
The conclusion that a law clerk “had to be” influenced by the actions of a co-worker is compelled by neither logic nor the record before us. Furthermore, the facts on the record do not justify further inquiry. This claim is also frivolous.
7. Sanctions for Frivolous Appeal
This court has discretion to award Schultz and NYDA damages and doublе costs if it determines that this appeal is frivolous. Fed.R.App.P. 38. They may be awarded “as a matter of justice to the appellee[s] and as a penalty against the appellant.” Fed.R.App.P. 38 advisory committee note. Bartel and Mapleton have raised only frivolous issues on this appeal. The sheer number of claims of error makes
Attorneys can be held jointly and severally liable with their clients under Rule 38 for bringing frivolous appeals. United States v. Potamkin Cadillac Corp.,
Bartel’s and Mapleton’s counsel in this case should have been on notice that our patience with frivоlous appeals is at an end. See, e.g., Beary v. West Publishing Co.,
In this case, counsel brought the same claims on appeal that the district court had previously found to be frivolous or baseless. The district court properly determined that the original pleading was not well grounded in fact and that it was not warrаnted either by existing law or by a good faith argument for reversing existing law. See Fed.R.Civ.P. 11. In his appellate brief and oral argument, counsel attempted to obfuscate the fact that his clients had no federal claim. Moreover, he fails even to offer a good faith argument for reversing the precedents that are so hostile to his clients’ claims.
Affirmed with double costs against appellants Bartel and Mapleton and $1,000 attorneys’ fees as damages against appellants’ attorney Michael Rikon, all in favor of appellees Schultz and NYDA.
Notes
. Mаpleton disingenuously claims that when it raised in state court the issues sought to be litigated here it was in a defensive posture. Mapleton was not in a defensive posture in the Article 78 proceeding. Moreover, we have already held that a “defensive posture” argument does not vitiate Migra. Genova v. Town of Southampton,
Mapleton also urges that it did not have a "full and fair opportunity” to litigate the question it raises here. See Kaufman v. Eli Lilly and Co.,
. Even if Maplеton had a due process interest in obtaining the full measure of relocation costs available to it under New York administrative
