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Jurldine A. Donaldson v. Paul v. Clark
819 F.2d 1551
11th Cir.
1987
Check Treatment

*1 ment did not show his participation in two

predicate acts, provides grounds for rever-

sal of his conviction. Accordingly, Mr. Teague’s REVERSED, conviction is the other defendants’ convictions are AF-

FIRMED. DONALDSON,

Jurldine A. Plaintiff-Appellant, CLARK, al., Paul V. et Defendants-Appellees.

No. 85-8270. United States Court Appeals,

Eleventh Circuit.

June

James W. Howard and Ware, R. David Atlanta, Ga., for plaintiff-appellant. III, Charles R. Ga., Adams Valley, Ft. for Clark. McDougald,

Alvin Valley, Ga., Ft. Harris. Allen,

Kathryn Gen., Asst. Atty. Atlanta, Ga., for Wilcox.

Gregory Homer, Ga., Ft. Valley, for Wil- der. Kalish, Macon,

Katherine M. Ga., for Shelley. RONEY, Judge,

Before Chief GODBOLD, TJOFLAT, HILL, FAY, VANCE, KRAVITCH, JOHNSON, HATCHETT, ANDERSON, CLARK, EDMONDSON, and Judges. Circuit GODBOLD, Judge: Circuit

I. BACKGROUND The court took this case en banc to con- sider and standards for the im- position of sanctions under Rule Fed.R.

Civ.P., as amended in 1983.1 Motions, Signing Pleadings, roborating

1. Rule and circumstances is abolished. The Sanctions, Papers; provides signature Other attorney amended: party of an or constitutes a by plead- certificate him that he has read the motion, Every pleading, paper and other of a motion, ing, paper; or other that to the best of party represented by attorney an shall be knowledge, his information signed and belief formed by attorney at least one of record in name, inquiry grounded after reasonable it is well in his individual whose address shall be by existing fact and is warranted good represented by stated. A attorney law or a who is not an extension, motion, argument sign pleading, faith for the shall his modifi- cation, law, existing paper or reversal of Except other and state and that it his address. interposed specifically any improper purpose, is provided by when otherwise not rule statute, pleadings unnecessary such as need not to harass or to cause be verified or by delay accompanied equity litiga- affidavit. The rule in or needless increase in the cost motion, pleading, paper that the averment of an answer under oath tion. If a or other testimony signed, must be overcome of two it shall be stricken unless it is signed promptly witnesses or of one witness sustained cor- after the omission is called to acy. plaintiff submitted consequence of a On March as a This case arose Judge response to defendant Georgia court which Jarrell affidavit suit in state his wife sought plaintiff’s a divorce from counsel Donaldson Wilcox’s affidavit and the divorce support plain- Donaldson. While Jurldine an affidavit submitted Donaldson filed pending, Jurldine attorneys’ case was response to motions tiff’s in the U.S. 42 U.S.C. suit under response all Rule 11 issues. § fees and in 1983^ Court, Georgia, alleging that M.D. District plaintiff’s counsel stated The affidavit of color of conspired under persons various allegations complaint that the factual the di- unlawfully expedite law to state and supported by admissible evidence were marriage, her proceedings, terminate vorce supported legal arguments were visiting perhaps and prevent her from by authority. husband, thereby de- reconciling her granted court On March 29 the district rights under the Fourth priving her of of defend- summary judgment on behalf pro- Amendments without Fourteenth despite ample opportuni- ants and held that *4 complaint sought various cess of law. complaint the was ty to demonstrate that including and com- relief actual forms of fact, plaintiff’s counsel grounded in well damages, in- damages, punitive pensatory support. The proffer such had failed pending divorce against relief the junctive were warranted court found that sanctions against further harassment action and pay counsel to under Rule 11 and ordered defendants, attorneys’ fees. and costs and and to reimburse to the clerk a fine $500 to dismiss and for filed motions Defendants attorneys’ all fees and the defendants for attorneys’ fees. an award defending reasonably incurred in expenses 21, held hearing 1985 a February On action, determined these amounts to be the dismiss. The focus on the motions to of affidavits by the court on submission question hearing away from the the shifted Clark, Donaldson v. defense counsel. allegations complaint the of whether (M.D.Ga.1985). F.R.D. 526 the for relief and toward stated a claim appeal panel of this court reversed On any factual question of whether there was judgment and the Rule summary the the end allegations. Near for those basis Clark, 786 F.2d Donaldson v. sanctions. said: hearing the court Cir.1986).2 (11th The court voted the Now, has entertained since the Court banc, thereby vacating panel case en record, motions these matters outside opinion. as motions dismiss will be considered you summary judgment. Either for record within one

may supplement AND OF JUDGMENT II. FINALITY week, you if wish to do so. WITH RULE FAILURE TO COMPLY REQUIREMENTS asked counsel Jurldine 56 NOTICE The court personal financial statements submit adopt the rendition of the facts We client and himself, partners and his his law panel history set out procedural for use these statements were advised that 1571-74. opinion at 786 F.2d impose the court decided in the event under Rule 11. agree panel We appealable decision was affidavits, district court’s one All defendants submitted adopt merits and its judgment on the February final February 22 others on on and the holding that issue. Id. at conspir- on 26-28, participation denying 1574-75. motion, including paper, a reason- or other pleader or movant. If a attention of the the pleading, motion, paper signed attorney’s or other fee. able rule, court, upon motion of this violation contention, initiative, impose upon Contrary plaintiffs case is this upon shall or its own it, signed represented party, person who has been divorced Because Jurldine not moot. sanction, both, appropriate injunctive which request her husband her pay to the other moot, include an order to parties the remainder of her is now but relief expenses reasonable the amount of the are not moot. claims filing pleading, because of the incurred adopt part againstplaintiff's Wealso of the sitionof sanctions coun- Although timing panelopinionholding selunderRule11. sanctionsrestsinthediscretionofthetrial thatthedistrictcourt granting erredin summaryjudgment, defendants'motionsfor judge, anticipated convertedfrommo "it is thatinthecaseof giving pleadings normally dismiss, tionsto movingparty days without the non- thesanctionsissueunderRule11 ten noticethatthemo willbe determinedat the endof litigation, tionsweretobesoconverted.Id.at 1575- the andinthecaseofmotionsat authority by the timewhenthe motionis decidedor 76. In additionto the cited panel shortly onthisissuewealsonotethat: thereafter." Committee (here- 11, clearly Noteto Rule as amendedin1983 It is whenevera district the lawin thiscircuitthat "Advisory Note"). judge after causewehaveheldthat the districtcourt Committee Be- convertsa 12(b)(6) motionto dismissintoonefor giveplaintiff's summaryjudgmentby considering failedto ten-dayperiod counselthe full mat- opposi- pleadings judge tosubmitmaterialin ters outsidethe summaryjudgment give partiesten-days tionto the converted must heis so all noticethat converting motions,thedistrictcourtshouldwaituntil themotion.Herron (11thCir.1982); Beck, 125, 693F.2d counselhashadsuchan deciding before impose Hunter, whetherto Rule11sanc- Underwoodv. 604F.2d imposing (5thCir.1979). tions. If thecourtdoesconsider following Property Management sanctionsunderRule standardsand Investments, & guide should it in Lewis, Inc.v. 752F.2d Cir. deciding appropriate 1985). give whethersanctionsare Failureto suchnotice"will *5 they andwhat shouldbe. resultin reversalanda remand."Id. at Although require provide 606. thatanoral Rule56doesnot Rule11wasamendedin1983to hearing summary (underlinings beheldona indicateadditionsandbrack- judgment non-movingparty amendments): motion,the ets deletionsin the 1983 shouldbeinformedofthedateasofwhich signature attorney party The of an or the courtwillconsiderthe motion.See constitutesa certificate himthat he hasreadthe Florida, 516, pleading,motion, Moorev. State of 703F.2d or other (11thCir.1983). purpose paper; knowledge, 519 The thattothebestofhis ten-dayrequirement notify parties isto good information, [there and b9lief is maydispose ground supportit; thatthe court of the case andthat it is not summaryjudgment interposed dela~y] so that "thenon-mov for formedafter rea- ingparty inquiry grounded willhavean to mar sonable it is well rebut[] byexisting shalits resourcesand... themo fact and is warranted law summaryjudgment every good argument tionfor fac or a faith for theexten- legalargument sion,modification, tual and available."Id.3 or reversalofexist- ing interposed law, Wethereforereversethedistrictcourt's and that it is not any improperpurpose, grantingsummaryjudgment suchas to order of defendantsand remandthe casefor infavor unnecessarydelay harassor to cause or needlessincreasein thecostof liti- proceedings. further gation. III. SANCTIONSUNDERRULE11 language Fed.R.Civ.P.11. This "stresses prefilinginquiry holding summaryjudg the needfor some into Our thatthe satisfy mentin favorof defendantsmustbe re boththe factsandthe lawto duty imposedby compels impo- affirmative the rule." versed usalsotoreversethe parties extremely exception long- 3. Thedistrictcourt'sfailuretoallowthe an standing comply cessitatesreversalandremand.Thiscasedoes not limited to the days supplement ten therecordonthecon- rulein thiscircuitthata failureto 12(b)(6) ten-day requirement verted motionswasnotharmlesserror. withthe notice ne- PropertyManagement, In andDenisv. MutualInsurance 752F.2dat 605-07 Liberty Company, present unique such circumstancesofharm- (11thCir.1986), 846, 791F.2d 850 becauseofthe lesserror. unique presented,recognized circumstances we 1556 forwarding counsel depended on he 11 as Rule Note.

Advisory Committee of the bar. member another “reduce frivolous is intended amended and to deter claims, or motions” defenses d. appellate scope of respect to the I With maneuvers,” avoid- thus “costly meritless approach following review, we find liti- expense in unnecessary delay and ing (1) factual or one: Whether the correct is Conference the Judicial gation. Report exist to reasons (2) faith dilatory or bad and Proce- Practice Rules of on Committee district is Rule 11 sanctions impose (letter 9, 1982) (Mar. dure, app. C for abuse subject to review to decide court Chairman, Mansfield, Adviso- Judge Walter hand, a deci discretion;5 the other on Rules), reprinted on Civil ry Committee legally is pleading or motion sion whether (1983); Adviso- 190, also 192 see F.R.D. 97 law sub question of involves a sufficient are 11 Rule Note. ry Committee by this court. See review novo ject to de “discourage dilatory or abusive designed to Inc., CBS, F.2d v. Westmoreland litigation help to streamline tactics (D.C.Cir.1985). 1174-75 claims lessening frivolous process by a form are viewed Whether Inc., Texaco, 793 F.2d v. Pin defenses.” opposing cost-shifting, compensating Cir.) (5th (quoting or friv- injured by the vexatious parties denied, F.2d Note), reh’g Committee 11, or as by Rule litigation forbidden olous banc). (1986) (en those imposed on punishment a form incorporates 11 as amended rule, of sanc- imposition violate the who v. Hashemi See objective standard. meant to deter 11 is to Rule pursuant tions Publications, Inc., Campaigner Ad- See violating the rule. attorneys from Pin, Cir.1986); F.2d at 1581, 1583 ‘sanc- “The word visory Note. Committee Eavenson, 1455; Auchmuty & Greenwald example, stresses caption, for tions’ (3rd Cir. Holtzman, im- dealing with orientation a deterrent testing conduct 1985). The standard motions, pa- or other pleadings, proper “reasonableness Rule 11 amended under pers.” Id. circumstances,” standard under original good- stringent than the “more imposing permissibility A. fi- *6 Advisory Committee faith formula.” 11 Rule under penalties nancial re Advisory Note The Committee Note.4 dis the gives courts 11 itself using the wisdom to “avoid minds courts specific to fit sanctions to fashion cretion signer’s conduct hindsight” to “test the cases: to be was reasonable by inquiring what motion, or pleading, the time the motion, paper

lieve at or other pleading, If a court, Id. What submitted.” paper rule, other the of this signed violation inquiry initiative, reasonable constitutes a upon its own or upon motion signed person upon the who impose shall as how factors depend on such may both, ap- an it, party, or represented a was avail- investigation much time may include sanction, which propriate he had signer whether able [and] the other pay to an order to toas for information a client rely on ex- of the reasonable the amount parties mo- pleading, underlying facts filing of of the incurred penses because plead- tion, paper; whether or other paper, in- motion, or other pleading, on motion, paper was based or other ing, attorney’s fee. cluding reasonable a law; or whether plausible a view 1584, applied Hashemi, at we 784 F.2d 5. In predi a subjective faith was finding of bad 4. A reviewing the clearly when erroneous standard imposition under of sanctions cate to pre- under Hashemi, court’s determination at district 784 F.2d pre-amendment rule. See plain- Rule 11 540; Eavenson, version 1583; Ves amendment Davis v. F.2d 775 at present The (5th in bad faith. 494, not acted tiffs had 4 497 n. Enterprises, 765 lan under come before us is the first to Corp. City case Cir.1985); v. Eastway Construction Cir.1985). 243, rule. (2d York, amended 762 F.2d 253 New

1557 forcing deterring (emphasis added). Rule 11 and baseless Fed.R.Civ.P. 11 fore, There expressly per imposed upon lawyer, while Rule 11 neither suits. When expressly imposition penalty lawyer mits nor forbids the finkncial forces the rather penalty, explicitly give than the client to bear the costs of viola a financial it does authority impose "appro Monetary courts the tions of the rule. priate way power sanction." 6 The discretion vested in be the most effective to deter a wealthy party bringing the court is reinforced ful and friv- "{t]he litigation. legitima Committee Note which states that olóus or vexatious The necessary flexibility cy i~nposing monetary court ... retains the sanctions under appropriately already recognized. to deal rule. It has discretion to tailor sanctions to with violations of the Rule 11 has been See CURL, 1007, In re Hopkins, 803 F.2d at Cotner v. particular case, 900, (10th Cir.1986) facts of the with which 795 F.2d 903 acquainted." Although it should be well (fine plaintiff's cannot be total bar to ac commonly imposed the sanctions most are courts; pf cess to fine vacated becai~he~ attorneys' fees, costs and the selection of improper procedure); brod, Glick v. Gut type imposed the within the district court's sound exercise of of sanction to be lies 754, (7th Cir.1986); Huge 782 F.2d 757 n. 3 Peoples Bank, (7th ford v. 776 F.2d 176 Westmoreland, discretion. See 770 F.2d at Cir.1985), denied, -, cert. - U.S. 106 1178-79; Davis, 765 F.2d at 500-01.7 1644, (1986); Snyder S.Ct. 90 L.Ed.2d 188 IRS, F.Supp. 240, (N.D.Ind.1984); imposition monetary v. 596 252 of a sanc particularly Young IRS, F.Supp. 141, (N.D. tion is a reasonable use of a Ind.1984); Schultz, F.Supp. court's discretion under Rule 11. The Dore v. (S.D.N.Y.1984). everyday meaning "appropriate We hold that mone sanc encompasses monetary tary purposes tion" Imposing sanction. sanctions serve the of Rule ~iay imposed penalty 11 and as sanctions for a financial often will be appropriate the most effective and fair means of en- Rule 11 violations in cases so (upholding $50,000 against Apart 11, previously 1209-10 fine coun- from Rule this court has imposedby recognized power sel for intentionalmisconduct dis- the inherent of a court to power impose appropriate trict courtunder its inherent attorneys practicing to sanction reasonableand it); upon litigationpractices before Miranda v. counselfor abusive TransportationCo., procedural SouthernPacific 710 F.2d for violationsof rules or court or 516, (9thCir.1983)(imposition,pursuant See,e.g., Piper Corp. ders. Carlucciv. Aircraft rule, monetary attorney Inc., 1440, (11thCir.1985); local sanctionon 775F.2d Klein governingprocedural Atlanta, violation of local rule er v. First NationalBank of 751 F.2d matters); Yates, 503, 1193, (11thCir.1985); seealsoBurdenv. 644F.2d 1208-11 Flaksav. Little 1981)(recommending Co., Cir. UnitB im- River Marine Construction position (5thCir.), denied, of lesser sanctionssuch as costs or 888&n. 10 88 S.Ct. cert. 392U.S. imposing greater fines before dismissal). sanctionof (1968); 20 L.Ed.2d1387 Wood CystoscopeCompany ham v. American ham, N.Y., of Pel *7 551, (5th 335F.2d 557& n. 15 Cir. may 7. Othersanctions includean awardof the 1964). power The court has the either to dis delay amountof accruedinterestlostbecauseof in 765F.2dat prejudice missa casewith or to enter a default entering judgment, Davis, a state court 500-01;requiring see judgment prosecute for failure to with reason the errant attor diligence comply able courtordersor rulesof F.2dat or for failure to with ney opinionfinding to circulatethe court's him procedure. Flaksa, 389 every in violationof Rule 11to memberof his 887; see alsoLink v. WabashRailroad firm, Huettig Schromm, Landscape see & Inc. v. Co., 626,629-33, 1386,1388-90, 370U.S. 82S.Ct. Council, F.Supp.1519, Contractors 582 1522-23 (1962). 8 L.Ed.2d734 (N.D.Cal.1984),aff'd, 790 F.2d 1421 Cir. remedies,however, 1986);suspension practice, Theseare drastic which or disbarmentfrom only Disciplinary CURL, are to be used court has a wide in extremesituationsas the see In re Action 803 F.2d range 1004, (9thCir.1986); issuing published of lessersanctionsthat 1005 or a deprive litigant day unpublishedreprimand, Schwarzer, willnot of his or her in see Sanc Flaksa, tions Underthe NewFederalRule 11-A Closer' court. able ney 389 F.2d at 888-89. A reason- Look, 181,201-02, (1985). monetary imposedupon 104F.R.D. 204 1~n sanction an attor- addition,prior occasionally amendments, canbe onesuchalternativesanctionsinceIt to the 1983 coui~ts appropriate dismissedbaselessclaims or de well be more than a sanction See,e.g., Stauffer, penalizes parties fenses. Rhinehartv. 638F.2d that for the offensesof 1169, (9th Cir.1979). See, e.g., Kleiner, 1171 their counsel. 751 F.2d at 1558 monitoring judi- of efficiently the use imposed in accordance

long they are and the fiscal and administra- system cial prócess. with due re- procedural that additional tive burdens protections comporting B. Procedural Providing due would entail.8 quirements process due 11 will not be will ensure that Rule process applica- arbitrarily, that erroneous applied facing possi Attorneys and clients minimized, will tion of the rule 11 have interests discipline under Rule ble vigorous arguments and ad- legal creative the Due protection under qualifying stifled. vocacy will not be Amendment. the Fifth Process Clause of requires notice and process due Procedural any gov contempt procedures heard before 1. Criminal opportunity to be

an inter property required of a deprivation ernmental Connecticut, 401 U.S. 371, v. est. Boddie Nothing in of Rule the text 11 780, 786, 379, 28 L.Ed.2d 91 S.Ct. Note Committee indicates (1971). Determining process is due what follow process requires a court to that due requires applica an simply 11 case a Rule called for procedures Fed.R.Crim.P. process: principles of tion of familiar due 42(b) contempt proceedings be for criminal of the notice and timing and content impose monetary it a sanction fore can hearing depend upon will of nature Both the note and pursuant Rule 11. circumstances and of all the an evaluation to the policy opposite considerations tend of the com appropriate accommodation an man Although Rule itself conclusion. v. Lo involved. See Goss peting interests procedures to be specific no followed dates 729, 738, 565, 578-79, 95 pez, U.S. S.Ct. evaluating viola claims of when (1975). of very “The nature 42 L.Ed.2d 725 tions, that courts says explicitly the note any concept inflexi process negates due scope limit possible extent “must to the universally applicable to ev procedures ble proceedings to the record.” sanction & imaginable situation.” ery Cafeteria language support general does not Such McElroy, v. Union Restaurant Workers procedures of Fed.R. requirement 1748, 895, 1743, 886, 81 S.Ct. 367 U.S. every 42(b) be followed time Crim.P. Morrissey v. (1961); see also L.Ed.2d sanc imposing monetary court considers 471, 481, 2593, Brewer, 408 U.S. S.Ct. tion. (1972); Mathews 33 L.Ed.2d 484 v. First National Bank Kleiner In 319, 334, 96 S.Ct. Eldridge, 424 U.S. argu- rejected the explicitly Atlanta we (1976). can No rule 47 L.Ed.2d 18 set mone- punitive character of a ment that the cases; govern all Rule 11 be stated discipli- imposed judicial in a tary sanction necessarily to cover standard is flexible proceeding as proceeding fixes the nary specific The dictates varying situations. requiring the contempt, criminal one of inter determined will be analogous criminal right jury trial and factors factors. These action several Kleiner, at rights. procedural to: interests are not limited include but 11 is funda- violation of Rule 1209-10. A specif parties having attorneys and mentally infraction different only justified; imposed when ic sanction contempt and therefore warrants criminal imposition of sanc an erroneous the risk of proceedings. different sanction and the used tions under special administrative bears a bar additional notice probable value of *8 inde- judicial process responsibility in the in hearing; interests of the court and the used, through procedures the principles such Supreme of interest Court has laid down 8. The value, any, determining process of guide is if additional probable in what the to courts and safeguards; procedural due: and the or substitute the ad- specific of due burdens that of the dictates administrative fiscal and [Identification requires requirement generally procedural consideration of the process substitute ditional or First, private inter- distinct factors: three entail. would action; by the est will be affected official Mathews, that 96 S.Ct. at 903. U.S. at 424 second, deprivation risk of an erroneous

1559 pendent public from tine at large. jor goals We of Rule 11 are rid to the courts of frequently attorneys refer to as officers litigation meritless and grow- to reduce the of the court. A monetary sanction ing cost and burdensomeness of litiga- civil failure carry to special out this responsi- tion. It would counterproductive be if the bility as an attorney differs from the rule itself were to cause increase in more severe infractions of criminal con- unnecessary litigation by mandating exten- tempt for attorneys which and members sive procedures collateral prerequisites as general public of the can become liable. imposition to the of sanctions. The amend- The former unjustified is an failure to ments to Rule 11 were intended to encour- carry out an administrative responsibility age judges to use the rule and to eliminate court; as an officer of the the latter is an their reluctance to lawyers sanction who affront to the authority of judge. litigation abuse the process. Committee Note. Miranda v. The fear of Co., Southern Transp. spawning Pacific litigation satellite 710 F.2d Cir.1983). one cause of the “The reluctance of power judges impose court’s to to impose appropriate sanc- sanctions pre-amendment under the tions on attorneys judges rule. If practicing before it are required to ‘springs engage in a different source unnecessarily than does hearings, extensive power and punish to in effect conduct a criminal con- ” second trial on tempt.’ Kleiner, every issue of (cita- at 1209 and create omitted). possibility jury tions of any trial for U.S.C. 401 limits a § monetary small, sanction court’s contempt power they criminal however will to three often refrain from imposing instances that are far narrower than the and vitality subject actions amended Rule 11 will to sanction be under Rule 11. away. drained It is not necessary Under 401 a follow court § United States procedures required may punish in criminal con- contempt “such of its au- tempt proceedings thority, every in other, (1) and case to none insure Misbehav- as— imposition that the any person monetary ior of of a presence in its sanction or so near justified; is less thereto as to obstruct the extensive will administration of (2) generally protect justice; the individual any Misbehavior of interests its offi- transactions; cers their involved without (3) undermining official ll.10 Disobedience or resistance to its lawful process 2. What due: is notice writ, process, order, rule, decree, or com- and hearing mand.” “An Supreme elementary pointed Court has fundamental out that requirement process of due evaluating any proceed when process what is there due ing point comes a which is to be finality when the benefit of accorded is notice an addi- safeguard reasonably calculated, tional individual under all the circum affected government action, stances, apprise parties society and to interested pendency terms of assurance the action increased that the ac- and afford them an just, tion is may outweighed present be objections.” cost. their Mathews, at Co., U.S. 96 S.Ct. at 909. Mullane Central Hanover Trust uniformly require 306, 314, To courts 652, 657, Fed. follow U.S. 70 S.Ct. 42(b) procedures R.Crim.P. (1950). they L.Ed. process whenever Due requires contemplate imposing monetary (or that attorney sanction applica where just would create ble) that situation. The ma- fair possible has notice of imposi- imposition If fines under Rule 11 were monetary 10. It being sanction finding specific to constitute contempt, considered in a criminal is so case severe in arguably arguably or so might amount duct process safeguards the rule unrelated to the miscon- violate the Rules En- process require due will extensive abling by expanding Act law of substantive prerequisites imposi- to its subject contempt actions to criminal because This, however, very tion. different from re- the action or failure sanctioned under Rule 11 quiring position procedures precede every that such im- might not constitute "misbehavior” under § 401. text, monetary sanctions. See sec- tion B.2 for discussion of what is due. *9 1560 attorney 11 party

tion of Rule sanctions and of the rea- An should be imposition. given early sons for their The existence of notice that his or her conduct may form 11 Early Rule itself constitutes a of notice warrant Rule sanctions. no violations, imposes duty continuing thereby since the rule an affirmative tice can deter attorney saving monetary judicial on to conduct a reasonable and resources. an pleading inquiry viability Yagman, into the of a be- Matter Brown and Fleischer Baden, (9th Cir.), signed; attorney fore it is an could not denied, (1986). reh’g assert that he or she had no notice or 803 F.2d 1085 The knowledge party of the standards of conduct that Committee Note instructs a provides.11 seeking “give the rule itself sanctions to notice to the offending party promptly court and responsibilities of the attor discovering so;” upon doing a basis for rule; ney emphasized by are since may correspond failure to do so result in a longer required, the proof of bad faith is no ing any reduction in the amount of costs attorneys higher rule to a amended holds attorneys’ and fees awarded. prior standard than did the version of Rule party seeking Notice can come from the If attorney an is said to have sub sanctions, court, or from the or from both. complaint any mitted a without basis in requiring We see no basis that all fact, Rule 11 alone should constitute suffi writing instances notice be in and with the attorney’s responsibili cient notice formality pleadings. But to avoid mis- explicitly requires ties since the rule review, understanding permit appellate and complaint attorney certify to that a is well given, giving the notice or evidence of the hand, grounded ques in fact. the other On notice, part should made a be attorney good tions of whether an made a record. argument faith under the law whether motion, attorney interposed pleading, given op The accused must be an paper improper purpose portunity respond, orally writing or other for an are or in ambiguous may require may appropriate, more more and be invocation of specific justify notice of the reasons for contem Rule 11 and to his or her actions. plating pro require hearing If are 11 does not' sanctions. that a client, posed imposed separate pretrial to be on the due from trial or other hear process specific ings charges will demand more notice be held on Rule 11 before likely imposed; client can indeed the Ad because the is unaware of given visory existence of Rule 11 and should be Committee Note indicates that the prepare contrary preferable:12 defense. hearing rights adequacy respect- process court, 11. “The of notice and not violated because the district sanctions, ing turns, party’s rights proceedings imposing affect a after allowed attor extent, ney days respond subsequently to a considerable on the knowl- and en five edge accompa which the circumstances show such tertained a reconsideration motion Hardware, consequences briefing); to have of the of his own con- full Roberts v. Ace nied 1389-90, Link, Inc., 1985) (Rule duct.” 370 U.S. at 82 S.Ct. at 779 F.2d 52 Cir. 11 does Carlucci, quoted hearing imposition 775 F.2d at 1452. require before of sanc tions; attorney response because the had filed a separate 12. Several courts have found that a to the Rule 11 motion and it was clear from the hearing post-judgment prerequisite imposition is not a to the documents before the court that ’ merit, See, hearing e.g., Thomp Rule 11 sanctions. Oliveri v. motions had no necessary); no further Davis, 496; son, (2d Cir.1986) (due F.2d 765 F.2d at 500 & n. 12 mean, (after hearing necessarily, does not that an evi- on whether case should be re court, held; dentiary hearing judge’s must be here the manded to state the district court held participation proceedings provided him that sanctions were warranted because of bad by attorney; ap knowledge filing petition the relevant faith of removal with full facts pellate court affirmed award of sanctions find therefore the followed district evidentiary hearing process); ing as to amount of attor court did not violate due Brown v. Examiners, given nearly neys’ required; fees not counsel parties’ National Board Medical (7th Cir.1986) (court respond need not hold a hear two months to affidavits complain ing on coun chose to femain mute so he could not when Rule sanctions are based matter; evidentiary hearing). incompetence handling about the lack of an sel’s

J561 To assure that the efficiencies achieved As mentioned by the Advisory through operation Committee, more effective type of the the severity and of the pleading regimen sanction are necessary will not be offset elements in the cal culus. the The more litigation cost of possible satellite serious the over the sanc tion both in absolute imposition sanctions, size and in of the relation court must to to expenditures, actual the more possible extent scope limit the of the will be due. proceedings sanction to the record. Thus, discovery should only be conducted Some cautions are in order. Rule court, leave of and then only ex- change does not plead liberal notice traordinary circumstances. ing regime of the federal courts or the requirement of Fed.R.Civ.P. which de Advisory Committee Note. Whether and only mands plain “short and statement of to what extent additional hearing re- the claim.” The rule does not require that quired vary will depending upon the nature pleadings allege all material facts or the of the case. Advisory The Committee Note exact legal articulation of the upon theories indicates some of the matters to be con- which the case will be based. The reason (1) sidered: general; circumstances in able inquiry standard of Rule 11 does not (2) type severity and of the sanction preclude plaintiffs establishing consideration; (3) under judge’s and merits of claims through discovery. Nor is participation in proceedings, judge’s Rule 11 intended to chill innovative theories knowledge facts, and there whether vigorous and advocacy that bring about is need for inquiry. further The positive vital and changes in the law. The Committee Note many observes that “[i]n rule should not be used to deter potentially the judge’s situations participation in the or unpopular controversial suits. It does proceedings provides him with full knowl- not mean the end of development, doctrinal edge of the relevant facts and little further legal arguments, novel or cases of first inquiry will necessary.” impression. The Advisory Committee Note When an attorney specifies present has failed to rule “is not intended to chill necessary attorney’s an support factual for enthusiasm or creativity claims de- in pursuing spite factual or opportunities so, legal several theories.” Nor to do for does 11 impinge upon example, right further hearing on of the sanctions indigent criminal defendants appoint to only issue well be unnecessary not but , ment of see Gideon v. Wain a waste judicial also resources. counsel On the wright, 372 U.S. 83 S.Ct. hand, other when a court is to re- asked (1963), L.Ed.2d 733 obligation counsel’s an credibility solve issue of or to determine represent the client to the best of his or good argument whether a faith can be her abilities. legal taken, made for position the risk imposition erroneous un- REVERSED. der limited probable and the HILL, Judge, Circuit specially concur- hearing value likely additional are to be ring: greater. opportunities Prior respond charges Rule 11 will also influence I judgment concur in the reversing the hearing extent which further judgment is neces- court, of the district but not for sary. given. reasons Supreme request judgment. Court has said that frequently may The court "[a] be able to attorney’s fees should result in second evaluate Rule 11 issue course of major litigation.” Eckerhart, Hensley v. 461 U.S. examining ruling legal on the factual and 424, 437, 1933, 1941, 103 S.Ct. L.Ed.2d merits a motion to summary dismiss (1983). principle applies This same attor- when judgment any proceedings. without further But neys’ imposed fees and sanctions are other un- potential target must have no- der Rule 11. contemplated tice that sanctions are and of is, alleged deficiency what 13. Assertions of his or her Rule 11 violations and have are often made 12(b)(6) explain. connection a Rule motion reasonable to contest and summary dismiss or a Rule 56 motion for sanctions, simply filing copy a case that the This case is almost carbon (11th opinion Dykes authorized. Hosemann, 743 F.2d 1488 Dykes v. *11 (en Cir.1984), part, 776 F.2d 942 rev’d. in in and Dykes The result the result here banc), 783 F.2d rehearing, on dramatically they different can not modified are so Cir.1986). cases, (11th In both together comfortably in the sit same cir- dispute relations asserted to a domestic prefer cuit. I would that we take this others con- that state court officials and banc, opportunity, Dykes. en to correct judgment in state court spired produce to However, good case is in while that law to the interests of the federal ought subject adverse this circuit we an attor- presented bare- ney claimant.1 Both cases it to the extreme sanctions who follows proper allegations conspiracy of and other of Rule 11. What we held be bones may lawyer Dykes work of a in be found to wrongdoing. In both cases all defendants case, contempt yet be near in this and any in unconditionally participating denied escapes difference between the two cases conspiracy wrongdoing. me. plaintiff’s Dykes case in was dis- I do not take issue with the extensive engaged in parties after the had missed part Rule 11 forms III discussion of which they produced In discovery. fact extensive guide opinion. of this It is a valuable for 10,000 disposition testimony, pages some lawyers, judges and others who need con- carefully the district court evaluated which I front Rule 11 in the future. would sim- for granting the defendant’s motion before ply reverse the district court’s award summary judgment. None of it contained case, open in this and not leave it Yet, conspiracy. any direct evidence of we opinion Dykes, in on remand. Given our grant court’s of sum- reversed the district play in Rule 11 has no role to this case. mary judgment, holding, apparently, that conspiracy could be inferred from the law- JOHNSON, Judge, specially con- Circuit I dissented ful actions of state officials.2 TJOFLAT, KRAVITCH, curring, in which panel opinions Dykes in be- from the two HATCHETT, Judges, join: and Circuit judge that agreed cause I with the district agree I Although the main with the allegations totally plaintiff’s were with- separately majority’s opinion, I write Id., support in the record. 743 F.2d at out First, highlight couple my concerns. I (Hill, C.J., dissenting); 783 F.2d at that, cir- emphasize under certain wish (Hill, C.J., dissenting). cumstances, may follow the courts have to point, Donaldson’s At this Jurldine 42(b) procedures set forth in Fed.R.Crim.P. proofs conspiracy are no weaker than 11. imposing sanctions under Rule when plaintiff in Dykes. those offered indicates, monetary majority As the sanc- in- conspiracy Both asserted imposed attorney’s for an failure to tions solely from the fact that state offi- ferred carry responsibilities as an officer out his of lawful acts. cials carried out a series generally of the court have been viewed Indeed, if there is a distinction between differing more severe infractions “from the cases, that Ms. Donaldson’s case contempt.” two it is of criminal Miranda v. South- Co., may prove stronger than conspiracy Transportation ern Pacific (9th Cir.1983). Thus, proceed 516, courts often Dykes’, were she allowed Ms. the full impose Donaldson’s can those sanctions without discovery. Yet here Ms. procedural rights called for subject panoply to Rule 11 attorney potentially case, Dykes, custody parties are unleashed.” 743 F.2d Dykes and this of both involved a child pro- divorce from the Donaldsons' case stems ceeding, at 1501-1502. ends. As I but there the distinction original panel my from the stated in dissent judge who 2. The en banc court did hold that the any opinion Dykes, “If there are cases where absolutely Dykes immune. sued in was wrong- conclusory allegations conspiracy and However, rehearing, panel, upon allowed against judge doing likely and are to be made against appellees, proceed the other the case dispute, they persons are involved in the - other F.2d at 1000. save one. Id. 783 this, strongest emotions such as where the cases 42(b). Rule Nonetheless, such sanctions “contest explain.” That opportunity to can assume criminal character of a fine contest explain, however, must be as, instance, when their amount is more than the opportunity to submit mate grossly disproportionate to the attorney’s rial in support of or in opposition to a misconduct. Yagman, Matter motion summary judgment, for a court 1180-81 Cir.1986). Additional cannot sanction an attorney under Rule 11 safeguards are necessary simply un- because his client prevail failed to der those circumstances. Those on a additional motion for summary judgment. In safeguards parallel should stead, the court must determine whether, provided for in 42(b). at the time the complaint or motion was *12 filed, the attorney believed after objectively Admittedly in Kleiner v. First National reasonable inquiry that the complaint or Atlanta, Bank F.2d 1209-10 motion well grounded in See, fact. (11th Cir.1985), held we that a monetary e.g., Hashemi v. Campaigner Publica sanction imposed on an attorney in judi- tions, Inc., 784 Cir. cial disciplinary hearing was not a penalty 1986). A court cannot reliably make that contempt criminal though even it bore determination simply on the basis of the all the of being indicia However, so. that material submitted connection with a decision not did foreclose the possibility motion for summary judgment. Therefore, that under certain circumstances impo- before a court imposes Rule 11 sanctions sition such a might sanction need to on an attorney, that attorney must be al comport with set forth in explain lowed to why he reasonably be 42(b). Rule In affirming sanction, lieved that the complaint or motion was court determined that the size of the fine grounded well in fact. was commensurate with the attorney’s mis- As the majority’s conduct. at recitation of Id. Thus facts Kliener does indicates, the district speak not court directly to here where, denied situations plaintiff’s counsel adequate discussed Yagman, opportunity such paral- sanctions contest, to either orally or in writing, lel penalty for criminal contempt. imposition of Rule 11 sanctions and to ex- I do not read the majority’s opinion as plain his actions. The court sanctioned plaintiffs counsel ostensibly because the excluding the possibility that in those cir- cumstances a court may have to follow the complaint was not grounded well in fact. procedures set forth in 42(b). Rule None- However, the only hearing the court con- theless, I believe that point this spe- bears ducted was commenced to discuss the de- cial emphasis specter lest the of satellite fendants’ motions to the complaint dismiss litigation trample process the due rights for failure to state a claim. During that that targets judicial sanctions unde- hearing the court’s focus did shift to the niably possess. question of whether there was any factual Second, I wish emphasize to that basis for the complaint. Nonetheless, district court’s summary method of sanc- plaintiff’s counsel had no notice that that tioning plaintiff’s counsel pro- violated due question would be discussed and thus had cess. The majority correctly points out no opportunity prepare his position. that due requires that an attorney Near the close of the hearing, the court must have fair notice of possible impo- plaintiff’s instructed per- counsel submit sition Rule sanctions and an opportu- sonal financial statements for use in the nity to respond to the invocation of Rule event the court decided to impose sanctions 11. The majority points that, also out in under Rule 11. Although that instruction ruling on a Rule 56 motion for summary plaintiff’s notified counsel that the court judgment, a court may be able to decide was considering imposing sanctions, without proceedings further whether to im- court did request plaintiff’s not counsel to pose Rule 11 long sanctions as as the attor- make any opposing submission imposi- ney had notice that sanctions are contem- tion of sanctions. Nor did the court indi- plated and had a opportunity reasonable cate that it would any entertain such sub- Furthermore, the hear- between missions. imposing entry of its order

ing and the later, month approximately one the matter comment on the court did entering that or- Finally, after sanctions. coun- allow der, plaintiffs did not the court respond. Such sum- opportunity any sel principles contravene mary procedures espouses. majority process the separate require 11 does not That every case before hearing in evidentiary my not alter imposed does can be court’s actions. the district assessment majority cites for the cases In all of evidentiary separate proposition par unnecessary, the sanctioned hearing is and ex contest ty had an *13 v. In fact Oliveri plain his actions. Cir.1986), (2d 1265, 1280 Thompson, County nom. sub denied rt. ce — U.S. —, Graseck, 107 S.Ct. v. Suffolk (1987),the court stat 94 L.Ed.2d mandate 11 does not that, although Rule ed evidentiary hearing, “notice separate required.” heard opportunity Thus, although an effective always neces does explain contest and evidentiary full-blown separate, sitate some reasonable must be hearing, there imposition of challenge the opportunity to 11 sanctions. comments, I concur clarifying With these opinion of the court. FALLADA, Petitioner-Appellant, Juan DUGGER, Secretary, Depart- L. Richard Corrections, State ment of Florida, Respondent-Appellant. 86-5185.

No. Appeals, States Court United Circuit. Eleventh 24, 1987. June

Case Details

Case Name: Jurldine A. Donaldson v. Paul v. Clark
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Jun 24, 1987
Citation: 819 F.2d 1551
Docket Number: 85-8270
Court Abbreviation: 11th Cir.
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