*1 bearing apportionment on nation has However,
liability. liability no CANE RIVER
placed today, that decision affirm we
issue is moot.
CONCLUSION carefully reviewed the record of
Having parties’ respective brief-
this case and above, set forth the reasons
ing, and for court’s that the district orders
we conclude parts except all
should AFFIRMED be dealing with the claimants’ portion
for that wages. part As to that
past lost
order, and REMAND so we REVERSE may enter a dam-
that the district court
ages reflecting stipulated amount Texaco, previ- which were paid
amounts
ously excluded. part
AFFIRMED in REVERSED part. REMANDED in WHITEHEAD;
Bennie Plaintiffs, al.,
et
v. MISSISSIPPI, MAX OF
FOOD
INC.; al., Defendants, et Corporation, Defendant-
Appellee,
v. Minor, Appellant.
Paul S.
No. 00-60153. Appeals, States Court of
United
Fifth Circuit.
May 2003.
Rehearing July Denied
ble discretion imposing sanctions for Minor’s violation of Rule (“improp- execution). purpose” er in obtaining writ of The district court acted within its discre- tion. AFFIRMED.
I.
In May
the district court entered
approximate
million judgment for
$3.4
against
Minor’s clients
*4
Corporation
Kmart
in an
arising
action
out of
heinous acts
two
individuals
associated with Kmart:
their abduction of a mother and her
daughter
from a
parking
Kmart
lot in
Jackson, Mississippi,
subsequent
and the
rape of
jury
the mother. A
found Kmart
Luther T.
(argued),
Munford
Ross F.
negligent
failing
provide adequate
Bass, Jr.,
Dunbar, Jackson, MS,
Phelps
for parking
security.
lot
See Whitehead v.
Appellant.
Miss., Inc.,
Food Max
Don Keller Khristina Miller, Lewis, DeLuna Liskow & New Or- trial, $1,000 At Minor was sanctioned leans, LA, Defendant-Appellee. violating, during closing argument, his an warning by
earlier the district court. Id. at 277 n. 3. This followed Minor’s refusals during trial to follow other court instruc- tions. See id. at 276-77. KING, JOLLY, Before Judge, Chief In June shortly entry after HIGGINBOTHAM, DAVIS, JONES, judgment, Kmart moved for a remittitur SMITH, WIENER, BARKSDALE, or, alternatively, new trial. See Fed. R. GARZA, DeMOSS, EMILIO M. addition, In pursuant Civ. P. 59. to Feder-
BENAVIDES, STEWART, DENNIS, and 62(b), al Rule of Civil Procedure it request- CLEMENT, Judges.1 Circuit stay judgment ed a of execution of pending BARKSDALE, RHESA HAWKINS post-trial resolution of those motions. Judge: Circuit decided, stay That motion was not howev- er, August, until 18 when the Rule 59 Pursuant to Federal Rule of Civil Proce- accompanying motions were denied. The dure sanctioned Paul stay Minor, motion was then dismissed as moot. attorney, S. an obtaining writ day, That same the district court judgment. primary execute The denied reason $1,000 request for our en banc review is to decide wheth- reconsider the er the district court abused imposed its considera- sanctions at trial. Prado, Judge joined ticipate who our court subse- this decision. quent argument, par- to en banc oral did not later, charged Kmart Minor had violated using a handwritten days
Three ten-day stay execution of automatic signed, Minor obtained request he had judgment, pursuant claimed to be effect court clerk a writ from the district 62(f), Procedure (the writ). to Federal Rule Civil In judgment execution for the Rule of incorporated Mississippi which addition, the media about notified Minor 62(f) 62(a). Procedure Federal Civil repre- With media pending execution. provides: Mar- and two United States sentatives (the Stay According to State Law. ab- shals, entered lot) upon is a lien judgment state which a parking in its duction had occurred judgment debtor and property judgment by attempted to execute judgment in which the debtor is entitled registers in the cash seizing currency execution, stay judgment to a debt- delayed to allow The seizure was vault. entitled, or is in the district court held a chance to consult employees Kmart’s therein, stay to such as would be accord- attorneys; management their had the action ed the debtor thereafter, stayed by it was shortly been maintained in the courts No cash was seized. district court. state. Kmart, inter- at the Minor was While *5 added). 62(f) (emphasis Fed R. P. Civ. media; by reports news about viewed 62(a) Mississippi provides part: Rule writ-execution, including Minor’s ex- Stay; Exceptions. Except Automatic tremely hyperbolic, intemperate, and mis- provid- as stated herein or as otherwise comments), (improper leading comments by by ed statute or order of the court media, were, in at among other broadcast shown, good for cause no execution shall reports. Minor char- least three television upon judgment a nor shall be issued “arrogan[tj” Kmart’s actions as acterized proceedings be taken for its enforce- Kmart “outrageous” and asserted and expiration days ment until ten nojt pay” judgment; claimed “wo[uld entry disposition its or the a after Kmart had been “warned” before the ab- trial, motion a new whichever last going like was duction that “an event [that] occurs. care”; happen” charged to but “didn’t his 62(a) added). P. Miss. R. Civ. by clients had been twice “victimized” pursuant Kmart maintained: to Missis- Kmart, by being once abducted there and 62(a), ten-day stay a sippi Rule is automat- paying just “not ... a once Kmart’s disposition ic in state court after of a new debt”; proclaimed and he was there to motion; therefore, application trial of that supposed ensure Kmart did what it to was rule, 62(f), through Federal Rule resulted do.2 stay August in a from the 18 denial of day, That court same the district held Kmart Kmart’s new trial motion. also as- Minor, with the Kmart parties: newspaper teleconference serted: with “numerous teams”, supersedeas was directed to submit a bond reporters and television interview (it so); justification, “paraded through later did and Kmart advised it and without in full against would seek sanctions Minor. view of customers and em- [Kmart] sanctions, ployees orchestrating] damage Kmart ... pursuant, soon moved alia, Kmart, goodwill”; to Rule 11. its and and his inter business least”, that, extremely regrettable light nique say 2. It is in the ... colorful to Dis [as] taste”, conduct, "perhaps poor especially at id. Minor's his sent comments, the dissent views "Minor’s tech at 815. by Rule court ruled on the sanctions mo- (proscribed purpose” “improper tion. 11(b)(1)) actions. obvious from these was copies were with the motion
Provided
In a
the court
opinion,
well-reasoned
-
newspapers
from
Jackson
two articles
prerequisite
a motion
concluded:
is not
a vid-
city Mississippi
another
62(f);
stay
to a
under Federal Rule
about
of television broadcasts
eotape
Kmart
protected by
stay against
includ-
items
attempted execution. These
v.
attempted execution. Whitehead
improper comments.
ed Minor’s
Corp., 202
529-32
F.Supp.2d
Kmart
(S.D.Miss.1999). Concomitantly, the court
responded:
following denial
Minor
make
concluded that Minor had “failed to
motion,
Kmart had
new trial
inquiry
govern-
a reasonable
into the law
62(f), Rule
Federal
pursuant
moved>
”
ing
judgments....
execution of
Id.
62(a)
stay;
Mississippi Rule
automatic
The court also ruled Minor “was
532.
therefore,
stay
effect.
no
had been
and call at-
seeking to embarrass [Kmart]
Minor
in the record indicates
(Nothing
tention to himself
a tireless laborer
judg-
in district
that the
contended
justice
for his
attempting
the bar
obtain
against
not constitute a lien
ment did
fact,
when, in
there was no basis
client
(one
prerequisites
of the
property
Kmart’s
in fact or in law for the actions
whatsoever
62(f) stay).)
for a Federal
” Id. at
taken....
seeking to obtain
also contended:
ap-
pay
Minor was ordered to
not an
portion
$8,000
attorney’s fees
proximately
—its
proscribed by
improper purpose
Although
the execution.
Id.
opposing
11(b)(1); and,
has
“where
action
counsel’s
requested
public apology
Kmart had
law,
a court
a reasonable basis under
determined,
Minor, the district
*6
”
improper purpose....
will
find an
not
publication
of the sanc-
agreed,
exe-
attempted
Minor’s affidavit stated he
(The opin-
opinion
tions
would suffice. Id.
portion
cution in order
obtain a
2002,
published
after rendition
ion was
(1) Kmart had not re-
because:
judgment
for this
panel opinion
the
of
now-vacated
concerning po-
telephone calls
turned his
appeal.)
(2)
settlement;
he was con-
tential
damages,
the
Following
remand-trial
Kmart,
to be
which he believed
cerned
the
11 sanctions.
appealed
Rule
self-insured,
posted
supersedeas
had not
a
2002,
reversed
January
panel
a divided
bond.
Miss.,
v.
Max
them. Whitehead
Food
of
(5th Cir.),
Inc.,
by
By by to the court at v. presenting (quoting 128 F.3d 884 Cooter & Gell 384, 402, Corp., 496 110 signing, filing, submitting, or later advo- Hartmarx U.S.
803
(1990);
2447,
reconsidering
already
Second,
judge
the district
is inde
maintaining
pendently responsible
review,
For this deferential
integrity
judicial proceedings
his
necessarily
“district court would
abuse its
and, concomitantly,
must be accord
if it
ruling
discretion
based its
on an erro
authority.
ed the
clearly
neous view of the law or on a
Gell,
404,
496
at
110
Cooter &
U.S.
S.Ct.
erroneous assessment of the evidence”.
NASCO,
2447;
Inc. v. Calcasieu Televi
405,
“Generally,
Id.
tices and thus best situated to determine rea existing inquiry concerning when a sanction is warranted to serve sonableness of law), goal opposition affidavit specific general Rule ll’s (1) upon: deterrence. to the determi- sanctions stated he relied Van Deference Landsberg, F.Supp. nation courts on the lines Huss v. front (W.D.Mo.1967) (dictum; had cited litigation will enhance these courts’ *8 in ability litigants opinion opposing to control this earlier Kmart’s before t 62(b) stay pend them. motion for Federal Rule Such will streamline deference (2) motions); litigation process by freeing appel- ing post-trial resolution of its duty reweighing late courts from the of Wright, Kane, Miller & Federal Practice court, court, decided 3. The dissent does not even mention the def- trict not this that Mi- and, (important erential to our standard review was violative of Rule 11 nor’s conduct ruling); appear discretion, nor does it to review the pursuant to its considerable im- sanctions under that deferential standard. In posed those sanctions. fact, forget appears it that it was the dis- (1995) (motion Minor, 532-33, § did not shelter id. at & Procedure stated; 62(f) should, must, stay Federal district court (3) filed); district court’s earlier be Additionally, has submitted [Kmart] (as moot) post-trial Kmart’s denial re- to this court several of the articles 62(b) stay. quest for the Federal in reports generated news which were authority, The district court ruled this the local press improper execu- against plain lan- juxtaposed when tion of in the instant case. It rules, did not guage clear unchallenged these sub- from objectively stay reasonable belief no missions that was seeking [Minor] Whitehead, in See effect. embarrass [Kmart] and call attention to F.Supp.2d at 528-32. aas tireless laborer the bar himself line, Along panel majority this attempting justice to obtain for his client whether, law, on as a matter of focused when, fact, there was no basis what- required stay; to invoke the motion is or in soever law the actions fact that, result, held that it was and no Thus, taken August 1997. this stay place protect Kmart from persuaded imposition court is that the Instead, panel execution. should have appropriate jus- sanctions in this case is belief addressed whether Minor’s was ob proper. tified and jectively reasonable time he re added). Id. at 533 As discussed Thomas, quested writ. (b)(1) infra, subpart “improper pur- (proper “snapshot” F.2d at 874 focus is pose” ruling is sufficient to sustain the signed). In instant when document sanctions. (b)(1) (2) event, subparts pro because sanctions, independent vide bases for it is Minor insists we must decide the sub- (b)(2) issue, part to decide whether asserting subpart the dis that the (b)(1) concerning ruling trict court abused its discretion is inextrica- (b)(2). whether, For subpart purposes deciding bly intertwined with sub- under (b)(2), whether sanctions could be based on sub- part objectively he had an reason- (b)(1), part we will assume Minor did not stay able belief that a did not exist. He (b)(2). subpart violate authority claims: there was even “[I]f did,
arguably supported what there [he] 2. was no basis for the sanctions motion”. determining After Minor failed to make support, Minor notes that the district inquiry (violating subpart reasonable improper purpose ruling court’s states Whitehead, (b)(2)), F.Supp.2d at 529- “there was no basis whatsoever fact or ” addressing why and then Rule ll’s law for [Minor’s] actions.... Id. at (c)(1)(A)) provision (subpart harbor” “safe 533.4 Likewise, correctly previ- dissent insists that these bases law states the test under that intertwined; rigid, paper grounded insists on several ous rule: where a was "well law”, step evaluation-process; erroneously by existing in fact and warranted sanc- "legitimate purpose” imposed only claims we attribute find- tions were under unusual cir- (Unlike ings appears to the district court. This view cumstances. the district pre-1993 ignores grounded por- to be based on a version of Rule 11. dissent the well in fact (now (b)(3) example, upon subparts For the dissent relies case law tion of the test *9 version, (b)(4)) (b)(1) previous contending subparts that was decided under the (b)(2) intertwined.) separated suggest under which these bases were not We do not fact, specific, subparts. into enumerated That case that this case law is not instructive. In
805 [(a)] that, request] certifying tion to the generally, district It is true information, make attorneys knowledge, who not sanction best of his courts do A belief, district representations. a inquiry nonfrivolous formed after [reasonable] however, so, it is where may do [request] proper; ... attorney that an objectively ascertainable [(b)] requesting that the letter the lorit of an to the court for paper a submitted being presented any execution was not for 11(b)(1). improper purpose. Fed.R.Civ.P. as harass improper purpose, such Corp., Motor Sheets v. Yamaha (4) ....”; added); emphasis its then con- (5th Cir.1990); 533, Nat’l F.2d 537-38 891 cluding subpart Minor failed to make a Inc. v. Nat’l Employees, Ass’n Gov’t (b)(2) law, inquiry reasonable into the id. 216, Employees, Fed. 844 F.2d Fed’n of (5) 532; discussing at its then Cir.1988). (5th 224 532-33, provision, ll’s “safe harbor” id. (b)(1) making subpart improper before its instance,
Sheets,
filing
for
held
purpose ruling, id. at 533. To conclude
harass
motions could constitute
excessive
improper pur-
otherwise would render the
11,
if the
by Rule
even
proscribed
ment
pose portion
opinion superfluous.
fact.
law or
motions were well-founded
Moreover,
subparts
quite
concern
two
legiti
otherwise
Filing
F.2d at 538.
891
And, again, the
different considerations.
language
mate
that use abusive
documents
can
improper purpose ruling
fact-driven
counsel could also violate
opposing
toward
(as
728,
if
for our
rule,
Pierre,
be sustained even
we assume
F.2d
Coats v.
(5th
denied,
Cir.),
analysis)
there were
basis
law
cert.
498 U.S.
(1990),
obtaining
sincere intent
Co.,
nia Elec. & Power Cir.1986). may A district court sanction district court’s conclude that We attorney presenting paper to the ruling indepen- “improper purpose” “any improper purpose, court for such as concerning existing “inquiry dent from its 11(b)(1) (em to harass....” Fed.R.CivP. upon this the fol- ruling. law” We base added). Although a court is phasis (1) parties’ having lowing factors: motive into a docu not to read an ulterior purpose is- squarely placed improper law”, in fact and it grounded ment “well (2) court; its earlier sue before the district cases, may exceptional so in such as do (b)(1) in subpart quoting citation to all of this, objec where the 11(b) order, Whitehead, 202 in its Sheets, F.2d tively ascertainable. See (3) 1; F.Supp.2d subsequent at 526 n. its at 537-38. bases, in- specific enumeration of Rule (“Mi- The district cluding improper purpose, id. at 532 found improper purposes requesting had two presented nor to this court writ-execu- [a reason, might compel present form we cite of the same case Rule 11 in its for that some hand, revising improper purpose, this law does law. On the other case the test for subparts the dissent's view of adopted of the Rule. for the former version (b)(1) (b)(2) The as intertwined. struc- presented to our court. The issue was not (as 1993) ture of the current rule amended in Moreover, improper pur- the district court’s belies such notion. easily ruling, infra, pass pose discussed would event, employed dis- under the test purposes deciding muster appeal, is not to determine how sent. *10 806 (N.D.Ga.1988) Kmart;
the writ:
to embarrass
and to
(attempt
to coerce settle-
Whitehead,
promote
himself.
202
proper),
ment not
Minor offered the fol-
F.Supp.2d at 533. Part of our abuse of
lowing explanation to the district court: he
is to determine
discretion review
whether
attempted
Kmart,
had
to contact
but it had
ruling was
...
the district court’s
“based
refused to return his telephone calls or
clearly
on a
erroneous assessment of the
case; therefore,
speak to him about the
he
Gell,
405,
496
evidence”. Cooter &
U.S. at
was forced to take this drastic measure to
2447. Pursuant
to the well-
S.Ct.
open lines of communication.
known
of review for clear error
standard
record, however,
only
The
contains
one
non,
may
findings,
vel
disturb factual
we
requesting
letter from Minor
settlement
choices,
credibility
only
which often involve
(3
1997, shortly
discussions
June
before
if a
of all the
review
evidence leaves us
motions).
Kmart
post-trial
filed its
That
and firm
with “the definite
conviction that
many
letter does not reflect how
calls were
Feedlot,
made”.
mistake has been
Tulia
any event,
made
In
Minor.
his claim
States,
800,
Inc. v.
United
F.2d
that Kmart
all
refused
communication is
denied,
Cir.),
947,
cert.
423 U.S.
belied
his letter: “I am sorry we have
(1975).
S.Ct.
807
(2002). And,
in
improper purpose
obtaining
§
of his
69.02
PRACTICE—Civil
Ivy
certainly
require
Kimbrough,
did not
the me- writ.
v.
115
execution
(8th Cir.1997) (no
improp-
550,
the Kmart or the
at
presence
dia’s
F.3d
553
abuse of
to the
sanctions,
Minor made there
in imposing
er comments
discretion
Rule 11
alia,
where,
media.
inter
“aimed
conduct was
“primarily
the media” and
for local media
fact,
dispute that
does not
he
In
Minor
Tribe,
consumption”); Kramer v.
156
that
to
Kmart or
he
intended
embarrass
(D.N.J.1994),
opin
F.R.D. 96
mthout
recognition.
aff'd
seeking
Most
personal
was
ion,
(3rd Cir.),
denied,
B. kind of behavior will not be ac- the and summary moves for reversal Minor by this short-cir- cepted they have Kmart, or against of sanctions imposition inquiry by cuited the mandated Rule and such sanc- fact-finding for remand for law, potentially and our own case far- with tions, contending: caused the at- Kmart reaching consequences. respectfully I dis- earlier, false re- execution tempted sent. it was self- during discovery that sponses evaluating imposi- a district court’s and, insured; of insur- had Minor known 11(b)(1), sanctions this tion of under Rule covering judgment, the he would ance generally circuits to and other look first (It appears to attempted have execute. court’s findings the district on whether self-insured, um- partly was with by existing was filing at issue warranted coverage.) brella for a argument or a nonfrivolous law was sought relief Minor’s motion The (as Rule change required by the law time, this for the first while requested, 11(b)(2)); on findings look next to motion, pending. In his appeal was an filing presented whether known, claim was nor this neither stated 11(b)(1); Rule improper purpose under confirmed, appeal until well after his findings look next to the on whether majority did not address panel filed. The presented legitimate also for a filing was motion, light reversing in the of its finally to the district purpose; look Whitehead, at 791. 277 F.3d sanctions. any improper court’s evaluation whether under the circum- purpose sufficient his under- Minor fails connect how Rule sanctions under stances standing of Kmart’s self-insured status 11(b)(1). correctly If the court has district conduct. justified improper-purpose his filing, legitimate purpose found discovery do not affect responses Kmart’s reluctant this and other circuits have been whether Mi- underlying the considerations imposition of sanctions approve writ was purpose obtaining nor’s 11(b)(1). Rule under (We express on wheth- proper. opinion no contrast, Here, by majority presents court er Minor can seek relief district subparts of Rule as not the two relevant challenged discovery respons- on the based assessing Rule purposes intertwined es.) 11(b)(1) goes majority sanctions. then The making on to credit district court III. im- findings legitimate crucial both reasons, foregoing purposes the sanctions the district proper For the AFFIRMED; majority winds plainly motion for sum- did make. The conclu- affirming the court’s mary up by reversal or remand is DENIED. sion that sanctions are warranted under circuit has extended logic this in conclud- 11(b)(1) ing that “[a]lthough filing where is not at all clear of a paper for an improper purpose is not immunized the district concluded as much. from rule 11 sanctions simply because it is evaluating This method of entire sanctions grounded law, well in fact only under Rule 11 effectively assessed under eviscer- unusual filing circumstances —such as the were, until up point, ates what critical of excessive filing motions—should the [ ] aspects of the Rule framework. Sheets, constitute sanctionable conduct.” added). 891 F.2d at I. (1) precedent What this says is that THE OF ANALYSIS FRAMEWORK 11(b)(2) finding favorable regarding Rule FOR SANCTIONS UNDER should influence a district court’s conclu- 11(b)(1) RULE sion regarding the existence of an “im- proper purpose” sanction under Rule 11(b)(1) A. The Interrelation (2) 11(b)(1), excep- the most tional circumstances will uphold this court *14 11(b)(2) explicitly requires Rule that an 11(b)(1) sanctions under Rule when a pa- attorney to paper submit a the court 11(b)(2) per satisfies the Rule require- forming after a reasonable belief that it is ments. (or by existing warranted law a non-frivo- Here, majority concludes, the first cor- law) argument change lous for a in the and rectly, that “the two subparts [Rule 11(b)(1) explicitly precludes Rule an attor- 11(b)(1) 11(b)(2)] and Rule quite concern ney submitting paper from a for certain different considerations” but then con- “improper purposes.”1 The subsections cludes, incorrectly, they that need “not” be appear quite thus to be textually. discrete 11(b)(1) “intertwined” inquiry. However, our case law demonstrates that precedent Our does not support that. In actually the subsections are interrelated in the interest of bypassing an evaluation [paper] least one situation: “When a is the district possibly court’s incorrect find- grounded well in fact and by warranted 11(b)(2), ing under Rule the majority has law, existing ‘only under unusual circum- (that 11(b)(1) announced rule the Rule ... filing stances should the paper] [the 11(b)(2) inquiries need not be inter- ” constitute sanctionable conduct.’ 11(b)(1) twined in a situation where Rule Calhoun, 1291, F.D.I.C. v. 34 F.3d 1300 sanctions are to be imposed) that is direct- (5th Cir.1994) added) (quoting ly at precedent. odds with our my In U.S.A., Sheets v. Corp., Yamaha Motors view, mistake, that is a serious now bad (5th Cir.1990)). 891 F.2d This law.2 subparts
1. The two relevant
of Rule 11 state
unnecessary
cause
delay or needless in-
that:
litigation;
crease in the cost of
(2)
claims, defenses,
legal
and other
(b) By
(whether
presenting
by
to the court
contentions therein are warranted
signing, filing, submitting, or later advo-
existing
argu-
law or
a nonfrivolous
motion,
cating) pleading,
written
or oth-
extension, modification,
ment for the
or
paper,
attorney
unrepresented
er
or
existing
reversal of
law or the establish-
party
certifying
is
that to the best of the
ment of new law.
information,
person’s knowledge,
and be-
ll(b)(l)-(2).
Fed.R.Civ.P.
lief,
inquiry
formed after an
reasonable
circumstances,—
under the
majority
In footnote
states that: "In
(1)
event,
being presented
it
any
is not
purposes
deciding
for
im-
ap-
this
proper purpose,
peal,
such as to harass or
to
it is not
to determine how
plaintiff sincerely
plaint
to
in which
Impose
Predicate
Necessary
B. The
11(b)(1)
injunction
the Rule 11
Sanctions under
believes. Yet
against harassment does not exact of
clear that the next
case law makes
Our
pleadings
those ivho
an undiluted
“im-
imposing
in the framework
file
step
just
desire
deserts ...
court
[T]he
consider-
purpose” sanctions
proper
objectively
must focus on
ascertainable
legitimate
court of
by the district
ation
or
that
an inference
litigant
party
circumstances
improper purposes
submitting
had for
the relevant
or
may
filing
have
that a
harassed the defendant
quest
uphold
the district
its
paper.
unnecessary delay.
Judge
As
caused
sanctions,
majori-
imposition
court’s
reasonably
stated: “If
Schwarzer has
to the district court
ty
findings
attributes
justification
clear
legal
can be shown
purpose step
regarding
legitimate
paper
no
filing
question,
make,
clearly
court
did not
the district
can
improper purpose
be found
to the
legal
attributes
conclusion
... A
inappropriate”
sanctions are
regarding whether
sanctions
plaintiff
complaint
file a
in order
]
must
[
under Rule
independently
warranted
rights
find
vindicate his
court. We
may
the district
filing
no
here was
indication
made.
have even
unnecessary,
for the
had
[defendants]
legit-
court finds a
Assuming the district
[alleged
refused to retract the
defamato-
or
for the
purposes
imate
relevant
ry]
circum-
statement. Under
weigh
legitimate
filing, then must
stances,
in-
[plaintiff]
proper
had a
against any illegitimate purposes
purposes
suing
attempt
terest in
its
to vindicate
*15
illegitimate pur-
the
and evaluate whether
reputation.
are sufficient in themselves to inde-
poses
(internal
at
omitted
Id.
223-24
footnote
support sanctions under Rule
pendently
added). Thus,
emphasis
interpret-
as
11(b)(1).
in
As we
National Associ-
stated
court,
can
ed
our
district court
before
Employees, Inc. v.
ation
Government
11(b)(1), it
impose
under Rule
sanctions
Employ-
Federal
National Federation of
Cir.1988):
ees,
(5th
any legitimate
proper
must
or
F.2d
consider
attorney may
or
have
purposes
litigant
the
litigation
not
instituted
We do
condone
in
district
presenting
paper
had
to the
ulterior
rather than to se-
purposes
for
today,
to find
court.
we were loath
well-grounded
cure
on a
com-
Before
might
through the correct
present
compel
its
court must be funneled
Rule 11 in
form
revising
improper purpose,
imposition
the test for
as
the
of sanctions
framework before
adopted for the former version of the Rule.”
appropriate.
taught by our
can be deemed
As
This statement
a critical short-
underscores
(which
questioned
has not
until
case law
been
coming
majority’s opinion.
with the
It an-
plainly
by major-
today
the
and which is
cited
(that
11(b)(1)
a new
the Rule
nounces
rule
ity
proposition
the
for
exact
for which
the
11(b)(2) inquiries
are unrelated in a fact
law),
case
if the rele-
dissent cites the same
11(b)(1)
pattern where
are to
Rule
sanctions
11(b)(2) requirements
filing
vant
Rule
satisfies
imposed,
paper at
be
even if the
issue was
presented
have
for a
and is found to
been
11(b)(2)),
compliance
with Rule
submitted
legitimate purpose,
extremely
we are
reluc-
that,
not,
says it does
and then
but
announces
imposition
approve
tant to
of sanctions
event,
any
knowledge
applicable
11(b)(1).
improper purpose under
If
an
Rule
11(b)(1)
necessary
not
Rule
framework is
rule, it
majority
seeks to alter this clear
imposed
to be
here.
sanctions
has,
(and maybe
say
who’s to
should
so
contrast, I
framework as critical.
see the
say?)
apply
to the facts
then
its new rule
“improper”
The facts related
nature of
to
this
case.
presenting
to the
Minor’s
the writ
district
added).
attorney’s
an
or litigant’s illegitimate
Id.
Kunstler’s
independently
purpose
could
sanc- holding
with our circuit precedent.
accords
legitimate purpose
filing
where a
tions
an illegitimate
If
engulf
does not
paper
the relevant
also existed.
legitimate purpose,
individual’s
sanc-
tions under
Here,
“improper purpose”
sec-
lip
paying
required
service
inquiry into
tion Rule 11 cannot stand.
legitimate purposes, the ma-
Because the
upholds
clearly
jority
as “not
erroneous”
district court
in-
important
overlooked this
findings rejecting
proffered
factual
our
quiry,
place
court has no
upholding
legitimate purposes
seeking
writ
findings that are not even there.
(to satisfy part
execution
of the judgment
attributing
In addition to
factual find-
for his client in order to
medical bills
pay
ings to the district court that it
not
did
settlement). However,
to encourage
make,
majority
jumps to the support of
I
though
thoroughly
have
searched
legal
conclusion that
the district court
order,
mention,
district court’s
I find no
may not have even
majority
made. The
discussion,
possible
much less
legiti-
points
single
to a
paragraph
or proper purpose.
mate
This
court’s eighteen-page order
refer-
predicate is
not
simply
there.
ences Minor’s desire to embarrass Kmart
The Fourth Circuit case of In
Kun
re
gain
publicity
for himself
indis-
as
stler,
Cir.1990),
purpose. purpose the to vindicate sion a regarding comparison between “ha- rights in court must be central sin- rass” and “embarrass” if the words, ... In district court cere other it is enough not (as assumes) truly injured majority that the intended the party subjectively be- to that a lawsuit use the brought interchangeably lieves ha- terms to and to sanc- rass, or to negative publicity focus on tion Minor independently under Rule injured 11(b)(1).3 party. minimum, At a I expect would Further, majority goes so far as to purposes between these two ['harass' and state, discussion, ‘embarrass’], without that this especially light “[o]n in the our record, meaningful there is no distinction deferential standard of review.” In
813 trict necessary have at least men- court with—the factual court to the district dealing predicate with “im- omitted court and subpart district tioned either may to “improper supply legal or the term conclusion that not purpose” proper particu- have I paragraph, itself this been made district court. purpose” technique. of the discussion cannot to this larly given extent subscribe 11(b)(2). regarding II. an order past, imposing
In the
when
shortcomings,
contained such
we
sanctions
THE
OR “EXCEPTION-
“UNUSUAL”
supply
findings
to
refused
AL”
RE-
CIRCUMSTANCES
we,
because
appeal
and conclusions
QUIREMENT
judges,
fact
must
become
appellate
precedent
clear.
assuming
Our
Even
See,
Calhoun,
e.g., F.D.I.C. v.
finders.
appropriate
the district court had made
Cir.1994) (“We
(5th
1291, 1297
have
F.3d
factual findings on whether Minor had a
in applying
district
long held
legitimate purpose
obtaining
the writ
sanctions,
may have to make
detailed
here, in
of execution
situations where an
legal
reasons .... The
explanation
its
attorney
party
paper
that is
or
submits
a record is sim-
creating such
well-grounded
law
under
guard against
to
the applica-
In order
ple:
11(b)(2)
ar-
majority assumes
—as
who
hindsight by
district courts
tion
case
guendo
“improper
to be the
here —
complicated,
through long,
have sat
may
by a
purpose”
imposed
sanctions
be
we
proceedings,
contentious
must not
often
“excep-
district court
“unusual” or
having
position
guess
in the
put
be
disagree
tional” circumstances.
I
with
legal
factual or
errors
what unwarranted
majority’s implied finding
this
sanctions.”);
basis of
were the
United
presents
case
such “unusual” circum-
Alexander,
981 F.2d
v. U.T.
States
stances.
Cir.1993) (“The
did
here
date,
To
have not found a case with
not cite
‘unusual circumstances’
we
merely
up
such
to merit
sanctions. The
“unusual circumstances”
warranted
holding
“improper
finding
purpose”
the view that the claim was filed
an
asserted
here)
(as
the case
though
Even
where
is assumed
be
purpose.
paper
the Rule
findings
required
up-
filing
satisfies
detailed
Calhoun,
sanctions,
requirements.
an award
there must be
hold
Sheets,
review.”).
1300;
538;
Today
F.2d
record to
the ma-
F.3d at
some
F.2d at
precedent
Emp.,
this
to Nat'l
Gov’t
jority back-pedals from
Assoc. of
I
indeed,
spirit,
disagree
224.4 In
supply and,
even credit the dis-
—
*17
statement,
Empl.,
Flaherty
Nat'l
cites to
v. Tor
sive motions.”
Assoc. Gov't
of this
it
of
55,
(W.D.Pa.1985),
This
com
quato,
F.Supp.
623
59-60
majority 450, should as that case serve the 56 F.3d 459 of (“The for district courts imposing benchmark filing district court held that the of in “improper purpose” sanctions the fu complaint the a exerting pres- with view to finding by a ture. district With through generation sure on defendants of oppo an intent to embarrass one’s economically adverse and disadvanta- gain publicity intent to nent and an for geous publicity reflected an pur- quite oneself—both common characteris pose. To the extent that a complaint is in judgment tics a or debt collection set fact, not to lack in held foundation law or ting litmus, will as a poor case serve we not disagree. It is the role of Rule 11 —the given particularly that the district court to safeguard public a defendant from criti- did even consider whether Minor had a cism may result from the assertion filing. legitimate purpose for As claims.”); Kunstler, nonfrivolous In re me, things to appear majority employs 505, (4th Cir.1990) F.2d (“Holding a “I it I see it” approach know when to press lawsuit, conference announce a judging technique, substituting Minor’s its taste, perhaps poor while is not grounds findings own where the district court made sanction, subjective a Rule 11 is a nor none. hope by plaintiff a that a em- lawsuit will defendant, upset or barrass a so long majority
The
shames
for conduct
there
that a plaintiffs
is evidence
central
befit
determines does not
an upstanding
filing complaint
was to vindi-
Specifically,
officer of the court.
it ap-
cate rights through
judicial process.”).
pears
perturbed
most
regarding Minor’s
Further,
in each
cases cited
offensive
tow
media
majority
its determination
collection. I admit that
technique
that “improper purpose” sanctions are
However,
here is
to say
colorful
the least.
here,
spe-
warranted
the district court had
other courts have
at similar circum-
looked
cifically found that the
filing
relevant
stances and have not
so
been
critical of the
well-grounded
litigants’
law under Rule
of litigation
choice
tactics.
11(b)(2).
P.C.,
Kimbrough,
See Ivy v.
115 F.3d
Cinque Cinque,
Revson v.
&
(8th Cir.1997)
Cir.2000)
(2d
(sanctioning
F.3d
(stating
air-
plaintiff and
ing grievances
attorney
his
threatening litigation
bringing
through
action
commonplace”
against
police
letters “are
frivolous
officer and
“[sjimilarly,
judge
the court’s
involved in his
subsequent
concern that
arrest
[plaintiff]
dispute
had
fact
tarnished
marital
[defen-
because “the
cause,
reputation
speaking
good
gave
dant’s]
with a
plaintiff
news
at-
[the
and his
reporter
not a
proper
torney] repeated
basis
sanc-
warning that their claims
11);
tions”
v.
appeared
frivolous,
under
Sussman
Bank
to be
that much of
brought
rights
alleg-
ported by any
not rehired
a civil
action
people
called
[he]
from
ing wrongful termination in retaliation for
university”
filing
his
was "worse than
exercising
speech.
up-
Id. at
We
free
outrageous,” was "unconscionable” and was
plaintiff's
held Rule
11 sanctions
ha-
worthy
proceedings.
"contempt”
Id. The
rassing filings,
opposing
which stated that
clearly distinguishable
case before us is
from
nasty
counsel
like
"acted
a little
dumb female
Coats. The
in Coats found the
*18
pig
Mexican
in heat”
that
was
she
"noth-
here,
unsupportable
lawsuit
in law whereas
ing
garbage.”
Although
but
Id. at 734.
is,
majority
opposite
assumes
it
—that
specific
district
failed
court
there make
objectively
assumes
it was
reasonable
finding
groundless,
that the suit
was
con-
existing
under
fact
law for Minor to file
cluded that sanctions were warranted because
writ
execution with the district court.
plaintiffs allegations
"totally unsup-
were
media,
it did enter —sanctions
on a
aimed at the
based
their conduct seemed
11(b)(2). I think
pursue this
violation of Rule
that the
properly
that failure to
sanc
district court’s conclusions on that
possible
dismissal and
violation
lawsuit risked
Tribe,
tions”);
probably wrong, although
I agree
v.
termination that Minor’s while taste,
perhaps poor does not merit 11(b)(1). We,
sanctions under at a far re-
appellate judges, operate collecting
move from the business judgments effecting or settlements. We LTD.; TRANS CHEMICAL ought excoriating to refrain from a law- al., Plaintiffs, et yer upon based our own sensibilities Ltd., Trans Chemical Plaintiff- to that when the district closer Appellee, are, provided business than we has not explicit predicate clear and for the ex- Khan; A Daud Duad Sardar Shahwar judgment. ercise of our Khan, Plaintiffs- Intervenor Appellants,
III.
v. DONE WHAT WE SHOULD HAVE IM- CHINA NATIONAL MACHINERY I think that we should take the district AND PORT EXPORT CORPORA- TION; al., Defendants, at its word and review et notes ployees; and improper made comments to possible state that one for a sanction viola case, Kmart, regarding media tion of Rule 11 is referral to a state bar willingness satisfy Kmart’s judg- Kramer, authority. See also F.R.D. ment. 96 (imposing referring sanctions and mat found, The district court in part based bar). ter to state District courts have an on videotape, improper that Minor had independent duty maintain the integrity purposes in obtaining the writ: to embar- judicial may process impose rass personal posi- advance his Rule 11 necessary, sanctions where re course, tion. The district in is gardless of discipline whether state bar far position better than we to balance the concurrent. considerations underlying rulings on Rule sanctions, limits sanctions “to what is suffi- 11 especially most the concomi- cient repetition to deter of such conduct or tant findings (including credibility factual AFFIRMED; choices). review MOTION Obviously, why this is we SANCTIONS abuse DENIED. very under a deferential decision its subpart For the standard. of discretion KING, Judge, whom Chief JERRY (b)(1) the record purpose ruling: BENAVIDES, E. SMITH Circuit being findings these does join, Judges, dissenting: erroneous; nor there “an erro clearly Gell, & of the law”. See Cooter neous view all, majority, appellate judges The 405, 110 496 U.S. S.Ct. lawyer exercised Paul Mi- plainly about to collect nor’s efforts his clients’
