SUPPLEMENTAL OPINION
Appellant Ann Coghlan brought suit under 42 U.S.C. § 1983 against the local Waterworks District and its Board of Commissioners, asserting violation of her constitutional rights in that the defendants refused to perpetuate the free water service she had enjoyed for several years. The district court, on the basis of a magistrate’s hearing and recommendation, denied all relief. We previously affirmed that judgment.
At that time we raised, sua sponte, the possible propriety of sanctions for frivolous appeal pursuant to Fed.R.App.P. 38 and gave Coghlan’s attorney an opportunity to
We accept counsel’s admonition that it was he and not his indigent client who decided to prosecute this case further. After review of the memorandum and affidavit filed by appellee Waterworks District, setting forth the time and expense incurred by it in responding to this frivolous appeal, we find $1,350.00, the amount submitted by appellee’s counsel, to be a reasonable attorneys’ charge for its appellate defense, based upon the reasonable hourly fee of $75. Accordingly, we ORDER appellant’s counsel personally to pay such sum over to appellee, in addition to the costs normally taxable against the nonprevailing party. Coghlan shall remain ultimately liable only for said single costs, but she and her attorney may apportion this routine award between themselves as they see fit.
I. OUR PURPOSE.
In this case, unlike some of the others cited, the appellee did not move for sanctions on appeal, or, for that matter, in the district court; nonetheless, there is no question that the courts of appeals have the ability to impose sanctions sua sponte.
Counsel continually argues, in explanation of his pursuit of Coghlan’s baseless claim, that he believed in good faith that recitation of the facts ought easily to have led us to a conclusion diametrically opposed to that reached by the magistrate. Thus, Coghlan’s attorney asserts that “[i]n other words, the magistrate should have found under the facts that Coghlan possessed a
Argument could be made without extensive citation of authority. Counsel’s brief therefore contained the argument that the magistrate’s conclusion was incorrect, based upon the very facts found by the magistrate and based upon the very law the magistrate cited.
Somehow, the three judge panel of this court to which this case was allotted rejected what counsel in good faith believed to be a strong contention that Coghlan was a consumer/customer of the Waterworks District and possessed a constitutionally protected property interest. The panel affirmed the magistrate in [a] seven page opinion....
Somehow, also the three judge panel of this court found Coghlan’s claim was unfounded. This court, therefore, in effect determined Coghlan abused her right of appeal.
However, it is not Coghlan’s right to appeal the judgment against her that is at issue; rather, the point is that her entirely “frivolous” appeal is an unjustified consumption of appellate resources, which, “in addition, has put the appellee to heavy expense required to analyze the record, brief the issues and argue the case.” Bank of Canton, Ltd. v. Republic Nat’l Bank,
It is human nature to crave vindication of a passionately held position even if the position lacks an objectively reasonable basis in the law. Although we have no reason to believe that the company or its counsel was acting in bad faith, ... the company’s briefs and oral argument failed to identify any arguable error in the district court’s decision.... We have gone on at such length not because the question of the validity of the arbitrator’s award is difficult but to make clear that the company’s attack on the award was frivolous, thus entitling the union to attorney’s fees.
Dreis & Krump Mfg. Co. v. Int’l Ass’n of Machinists,
The purpose of this lengthy review of current sanctions eases is to elaborate clearly for counsel herein, and for all prac-tioners, that there can be little tolerance for unmerited appeals without articulable support in the law. Appeal as of right does not translate into propriety of appeal when counsel can make no reasonable argument for extension, modification, or reversal of precedent clearly elaborated by the district court opinion. Another circuit court of appeals recently took the time to readdress a rule 38 award it had imposed:
When the appellant files an appeal, he asks for this court’s attention. [T]he notion that an appellant has an untram-melled right of review cannot shift the burden of going forward to the appel-lee.... Appellee should not be forced to endure the expense and anxiety of waiting unnecessarily to have its dispute resolved. With so many worthy claims waiting to be resolved, we cannot tolerate unfounded and undeveloped claims [to clog our docket and consume appellate time and resources],
II. THE PURPOSE OF RULE 38.
The magistrate’s decision dispelled any claim that there was a colorable constitutional deprivation. Disregarding the magistrate^ recommendation that each party bear its own costs, the district court ordered Coghlan to pay the Waterworks District’s taxable expenses. Because of the totally unfounded nature of the constitutional claim here advanced, the district court was entirely justified in imposing costs upon the plaintiff. That action alone should have suggested to Coghlan that her claim was more than merely meritless — the law was and is well settled that the claim was unsupportable and unreasonable.
However, assertedly having reviewed the judgment against Coghlan and examining the case law, her attorney on appeal agreed to bring the case to this court. With what independent judgment he determined that success on the facts could be obtained totally evades our imagination; no attorney who made a diligent inquiry into the state of the law when this appeal was taken could have thought the suit had any possible merit.
Though novel constitutional theories should not be chilled, costs and attorneys’ fees are merited for a frivolous appeal the result of which is obvious from the comprehensive and decisive exposition of the law by the judge below.
[tjhis court has no desire to deter any litigant from advancing any claim or defense which is arguably supported byexisting law, or any reasonably based suggestion for its extension, modification, or reversal. Positions thus taken cannot be considered as frivolous, although they may be unsuccessful and indeed may be given short shrift. But claims outside of this broad umbrella may prove frivolous.
Farguson v. MBank Houston, N.A.,
An appeal is frivolous if the re-suit is obvious or the arguments of error are wholly without merit. See, e.g., Atwood v. Union Carbide Corp.,
We accept arguendo that the appeal here was not taken merely to vex the Waterworks District. Nonetheless, the appeal was patently meritless and had as its natural consequence further unwarranted expense and inconvenience for the defendants. Thus, we must consider whether sanctions are necessary both to compensate the Waterworks District and the Commissioners for their defense of the appeal and to penalize plaintiff and her attorneys for needless consumption of appellate time and resources.
At least two categories of sanctions are available: costs and attorneys’ fees. One of the applicable provisions on appeal, rule 38, provides that “[i]f a court of appeals shall determine that an appeal is frivolous, it may award just damages and single or double costs to the appellee.” This court recently has confirmed the viability of this provision by assessing both double costs
However, we conclude that the circumstances of this case are not egregious enough to justify compensation of the prevailing party beyond its actual out-of-pocket outlays on appeal. Hence, we will not impose both attorneys’ fees and double costs here. Nonetheless, the actions of plaintiff’s counsel are sufficient to suggest the propriety of an award of attorneys’ fees in addition to the single costs normally assessed as of right against the losing party-
Accepting that counsel in good faith believed the magistrate’s decision to be erroneous, our point is that counsel’s good-faith impression was unreasonable in light of the magistrate’s clear exposition of the law and the attorney’s total inability to distinguish dispositive authority or make rational argument for the extension, modification, or reversal of precedent. Rule 38 concerns are amply raised in this case by conclusory assertions of an alleged right in an appellate brief that cites only two cases, and fails to explain even those two.
In Operating Eng’r Pension Trust v. Cecil Backhoe Serv., Inc.,
Similarly, the Second Circuit has held that an honest belief in the merits of a claim, and the subjective feeling that a litigant has been denied a fair hearing, do not excuse an appellate brief that “ignores significant issues and facts while deploying a smokescreen of irrelevant and tangential issues.” Brady v. Chem. Constr. Corp.,
While the facts in Brady might have indicated that appeal was taken “to avoid or at least delay contractual obligations,”
While the language of § 1927 suggests deliberate misbehavior, subjective bad faith is not necessary; attorneys have been held accountable for decisions that reflect a reckless indifference to the merits of a claim.
Id. at 1138.
Although rule 38 is denominated “Damages for Delay,” the body of the rule provides that damages may be awarded for any frivolous appeal, because such merit-less claims impose “an unnecessary burden on this court and [tend to infringe upon] the rights of appellees.” Hagerty v. Succession of Clement,
Penalizing this waste of appellate resources, as much as compensation for damages suffered by prevailing parties, is the justification for sanctions. See Fed.R. App.P. 38 advisory committee note (damages appropriate in frivolous appeals “as a matter of justice to the appellee and as a penalty against appellant.”). The Second Circuit has stated concisely the principles involved:
If any doubts existed about the frivolousness of this appeal, we would let the matter rest [with dismissal, but this] appeal is so completely frivolous as to render its prosecution an abuse of the appellate process which, in addition, has put the appellee to heavy expense required to analyze the record, brief the issues and argue the case.
Bank of Canton,
We have ourselves noted, in the context of frivolous tax appeals, the public policy justifications underlying rule 38:
Frivolous appeals unjustly burden the resources of the court and the government. The devotion of limited resources and time to these meritless cases causes deserving litigants to wait. In addition, the opposite party is delayed in receiving the just benefits of the trial court’s judgment until the appeal is concluded. Justice delayed is justice denied. Sanctions are imposed to deter such suits.... [W]hen the claim advanced is unreasonable, or it is not brought with a reasonable good faith belief that it is justified ... in light of the overwhelming and longstanding precedent refuting appellants’ arguments^ sanctions are necessary.]
Plaintiff Coghlan may have been unreasonable in her obdurate rejection of concession after concession,
Because appellee Waterworks District has now filed an affidavit of hours expended in defense of this appeal, we need not follow our common procedure of remanding to the district court for the fixing of the fee.
So ORDERED.
Notes
. McDougal v. Comm'r,
. E.g., McDougal v. Comm’r,
. See Simon & Flynn, Inc. v. Time Inc.,
. Accord, Dreis & Krump,
. Our prior opinion cited, for example, Burgess v. City of Houston,
. George v. Texas,
. Cf. NLRB v. Lucy Ellen Candy Div.,
. An appeal, though based upon a questionable legal position, may not be deemed frivolous if, inter alia, the underlying litigation is complex or confusing. Nat'l Acceptance Co. of Am. v. Frigidmeats, Inc.,
Of course, sanctions are inappropriate if the appeal presents an issue of first impression. Ehm v. Amtrak Bd. of Directors,
Similarly, when the appeal challenges a finding that is not "mandatory,” such as an abuse of discretion or a credibility determination, the appropriateness of sanctions must be carefully weighed. Sturgeon v. Airborne Freight Corp.,
Compare Rose v. Black Eyed Pea,
. Accord, Reliance Ins. Co. v. Sweeney Corp.,
. E.g., McDougal v. Comm’r,
. E.g., Reliance Ins. Co. v. Sweeney Corp.,
. See Olympia Co. v. Celotex Corp.,
. McLaughlin v. Alban,
. The District of Columbia Circuit relied upon In re TCI Ltd.,
Section 1927 permits a court to insist that the attorney bear the costs of his own lack of care. Subjective bad faith or malice is important only when the suit is objectively color-able.
Id. A more recent Seventh Circuit sanctions case, assessing the appellee’s expenses against the appellant’s attorney personally under rule 38, commented in the same vein:
A lawyer does not expose himself to sanctions merely by failing to dig up some obscure precedent. But the petitioner’s counsel is a specialist in labor law [and her ignorance of the questioned] bedrock principle of labor law [reveals] an elementary lapse [in her research].
Sparks v. NLRB,
. See also News-Texan, Inc. v. City of Garland,
. See also Olympia Co. v. Celotex Corp.,
. Grimes v. Comm'r,
. See Farguson,
. See Hale v. Harney,
.Though the Waterworks District did not even file a motion under rule 38, it now urges sanctions against the lawyers who handled the case through judgment, as well as against the appellate counsel, because Coghlan’s original attorneys refused to compromise their “impact litigation” in favor of beneficial settlement in their named client's best interest. However, even if the Southeast Louisiana Legal Services Corporation’s focus was, in fact, upon "the rules and regulations of the District and on other matters of procedure,” rather than upon Coghlan’s circumstances, we are not convinced that the standards of rule 11 or, generally, of good-faith litigation, were violated by her three public interest attorneys. As in Stelly, the constitutional claim advanced in the district court was totally lacking in merit, but, again, as there, the unreasonableness of litigating those unsupported and meritless legal positions rose to a level appropriate for sanctions only after the opinion below elaborated why current law could not support the contention advanced.
Coghlan was represented throughout the proceedings below by counsel, who should have been expected to bring to bear a more sophisticated understanding of the merits of the claim than we would have expected if Coghlan had proceeded pro se. See Reis v. Morrison,
Regardless of an appellant’s obstinance, litigation is not frivolous unless devoid of articuable legal support. Accordingly, the meritlessness of the underlying suit is not determinative, in itself, of awarding attorneys' fees and appellate costs. See Freeze v. Griffith,
. Although we base imposition of sanctions here upon Fed.R.App.P. 38, ample alternative authority supports similar action. Representative citations of specific congressional grants and court rules include: 5 U.S.C. § 552b(i); 15 U.S.C. § 4303; 21 U.S.C. §§ 455, 1034; 26 U.S. C. § 6673; 28 U.S.C. §§ 1912, 1927; 42 U.S.C. § 1988; 49 U.S.C.App. §§ 1686(e), 2014; Fed.R. Civ.P. 11; Bankruptcy Rule 9011. The result reached here under rule 38 could have been achieved under various statutory provisions. See Hagerty v. Succession of Clement,
Moreover, at least three other circuit courts of appeals have awarded rule 11 sanctions for conduct on appeal. E.g., Hedison Mfg. Co. v. NLRB,
[although Rule 11 is not applicable as such to pleadings filed in this court, in interpreting Rule 38 ... which authorizes sanctions for frivolous appeals, we look to the principles that have evolved in the interpretation of Rule 11.
Sparks v. NLRB,
While this court has not yet specifically held that rule 11 sanctions are available on appeal, new Local Rule 35.1 states that "Rule 11, F.R. C.P., is fully applicable to petitions for en banc consideration.” Inferentially, therefore, this court has heretofore concluded that the standards of rule 11, irrespective of the rule itself, govern appeals to our court. Although no Fifth Circuit cases have awarded rule 11 sanctions on appeal, the mandatory nature of such sanctions where called for in the trial court is amply discussed in our recent en banc decision in Thomas v. Capital Sec. Serv., Inc.,
Even absent these applicable rules and statutory authorizations, federal courts have inherent power to assess attorneys’ fees in instances of bad faith or willful abuse of process. Roadway Express, Inc. v. Piper,
. See McGoldrick Oil Co. v. Campbell, Athey & Zukowski,
. We note, of course, that court costs are usually assessed against the party, not the attorney, and that even where attorneys’ fees are charged to the attorney it would normally be appropriate for his client to pay the single costs. See Eversley v. MBank Dallas,
. Marston v. Red River Levee & Drainage Dist.,
