140 F.R.D. 340 | N.D. Miss. | 1991
MEMORANDUM OPINION
This matter is before the court on a motion of the Defendant Board of Supervisors for Rule 11 sanctions or, alternatively, attorney fees and costs pursuant to 28 U.S.C. § 1927. The motion for sanctions and costs is directed against Plaintiff Robert E. Moore and his attorney, Willie Perkins, Sr.,
After reviewing the record, the court finds the motion for Rule 11 sanctions to be well taken. However, mindful of the need to choose the least severe sanction necessary to reprimand and educate, the court limits its sanction to following requirement: In any future Voting Rights case filed in this court within two years from the date of this opinion in which Attorney Perkins serves as counsel for the complaining party, Perkins will be required to file along with his complaint a separate affidavit specifically reciting the Rule 11 requirements and stating that he has complied with these requirements.
Factual Background
The facts surrounding Moore’s complaint were addressed in detail by this court in a memorandum opinion dated February 7, 1989 and need not be recounted fully here. In that opinion and accompanying order, the court granted defendants’ motions to dismiss and for summary judgment. The decision was affirmed on appeal in a per curiam decision dated January 11, 1990. Moore v. Western Surety, 894 F.2d 405 (5th Cir.1990) (per curiam). Although the court’s February 1989 opinion addressed the merits of plaintiffs’ claims, the opinion did not address the Motion for Sanctions that had been filed by the Defendant Board of Supervisors.
As the briefs of the parties amply illustrate, the dispute between Moore and Leflore County was long-standing and resulted in parallel actions in this court before the undersigned judge and United States District Judge L.T. Senter. See Moore, et al. v. Sanders, No. GC 87-7-S-O. Moore, a black supervisor in District 2 of Leflore County, Mississippi, was elected to office in April of 1986. Pursuant to the requirements of Mississippi law, he entered into a contract with Defendant Western Surety for the posting of an official bond as a prerequisite for taking office. Western Surety asked to be relieved from its bond obligations in October of that same year after hearing of certain allegations having been leveled against Moore.
In December, however, a residency complaint was filed against him and in March of 1987, the Board of Supervisors declared Moore’s office to be vacant on account of his failure to reside in his supervisor’s district. One of the issues in the case before Judge Senter was whether the Board’s determination of Moore’s ineligibility for office violated the Voting Rights Act. Judge Senter, basing his decision in part on Smith v. Winter, 717 F.2d 191 (5th Cir.1983), determined that the action of the Board did not create a Section 5 claim. At a hearing on June 8, 1987, Judge Senter warned Moore and his attorney of the danger of allowing politics to overshadow an attorney’s duties to the court and of the possibility of sanctions.
Meanwhile, plaintiffs, having obtained leave to amend before this judge, amended their complaint on June 22, 1987 to raise a new claim under Section 5 of the Voting Rights Act and to add the Board of Supervisors and its members as defendants.
In its initial opinion, this court considered six separate claims in plaintiffs’ revised amended complaint, including plaintiffs’ claim under Section 5 of the Voting Rights Act, and concluded that each was without merit.
Discussion
1. Sanctions Under Rule 11
Rule 11 requires that every pleading, motion or paper signed by an attorney be well grounded in fact and supported by existing law or an argument for the extension, modification or reversal of existing law. Fed.R.Civ.P. 11. The signature also certifies that the signed paper has not been interposed for the purpose of delay, harassment, or increasing the costs to the other party. Id. In Thomas v. Capital Secur. Services, Inc., 836 F.2d 866 (5th Cir.1988) (en banc), the most recent leading case on Rule 11 sanctions in this circuit, the Fifth Circuit noted the obligations imposed by each separate part of the rule. Thus, the attorney must have 1) conducted a reasonable inquiry into the facts which support the document; 2) conducted a reasonable inquiry into the law supporting the document; and 3) certified to the best of his knowledge that the paper was not filed for an improper purpose such as delay, harassment or increasing the costs of litigation. Id. at 873-74. Although earlier panel opinions
The rule also imposes certain obligations on the district court faced with a motion for sanctions. Under Thomas, the imposition of sanctions is mandatory once a Rule 11 violation has occurred. Id. at 876. On the other hand, district courts are afforded considerable discretion in fashioning an appropriate sanction. Id. at 877-88. Sanctions may range from “a warm friendly discussion on the record, a hard-nosed
With these concerns and considerations in mind, the court proceeds to a discussion of the separate parts of the Rule to determine whether any part of it was violated. The court’s discussion is confined to a discussion of the possible violations by Attorney Perkins. Even though it is possible to sanction a client represented by an attorney in some instances,
a. Whether Plaintiff’s Attorney Conducted A Reasonable Inquiry Into the Facts
After reviewing the record in this case, the court is convinced that Perkins did not conduct a reasonable inquiry into the facts which supported the amended verified complaint. The problem centers in paragraphs XVII and XIX of the amended verified complaint which do not appear to have been revised in light of the new facts occurring between October of 1986 and June of 1987. Indeed, the language in these paragraphs is almost identical to that found in paragraphs XIII and XV in the original complaint and is supported by the same composite exhibit.
Plaintiffs’ brief in response to the Motion for Sanctions does not discuss the above paragraphs or their problems. Instead, the brief focuses on why plaintiffs’ claim was supported by existing law or by an argument for a change in the law, an issue the court will reach momentarily. However, as noted at the outset of this discussion, Rule 11 imposes not one, but three affirmative requirements, one of which is a reasonable inquiry into the facts. Perhaps Moore and
b. Whether Plaintiff’s Attorney Conducted A Reasonable Inquiry Into the Law
Defendants’ claim that Perkins did not undertake a reasonable inquiry into the law focuses on only the Voting Rights aspect of plaintiffs’ complaint against the Defendant Board. Accordingly, the court limits its discussion to whether that claim was supported by existing law or a good-faith argument for the extension, modification Or reversal of existing law. Paragraph XXIII of the amended verified complaint alleged that:
[Defendant Board and its members have enforced Miss.Code Ann. § 25-1-27, amended by the Miss. Laws 1986 Legislative Session[,] without having the same submitted and precleared; that the aforésaid Section is the Section followed by the Board in granting defendant Western Surety Company’s petition to be relieved from the surety bond of Plaintiff Moore and the Section is a change in voting practice and procedure in Leflore County, MS, which is covered by the Voting Rights Act.
Section 5 of the Voting Rights Act forbids covered jurisdictions from making changes in their voting qualifications or procedures without prior approval (“preclearance”) of the Attorney General or the District Court for the District of Columbia. 42 U.S.C. § 1973c. Although a three-judge panel determines Section 5 claims, a single judge may dismiss a claim that is wholly insubstantial and completely without merit. Broussard v. Perez, 572 F.2d 1113, 1118 (5th Cir.1978), cert. denied, 439 U.S. 1002, 99 S.Ct. 610, 58 L.Ed.2d 677 (1978). Finding such a situation in the case before it, this court found plaintiffs’ Section 5 claim to be completely without merit and granted defendants’ motions to dismiss and for summary judgment. Like Judge Senter, the court relied on Smith v. Winter to find that the right to vote stops short of any absolute right to hold office. In the court’s opinion, the withdrawal of a surety bond from an elected official did not create a claim under the Voting Rights Act under the law as it existed in the Fifth Circuit.
Having ruled against the plaintiffs on the merits, the court must now avoid the benefits of hindsight and determine whether Attorney Perkins had a viable argument for a change in the law when he signed the amended verified complaint. Sanctions are warranted in this case because Perkins
c. Whether the Amended Verified Complaint Was Filed for An Improper Purpose
Having already determined that sanctions are warranted, the court need not reach the question of whether plaintiffs filed the amended verified complaint for an improper purpose. However, for the purposes of determining an appropriate sanction and for reaching the issue of sanctions under Section 1927, discussed below, the court concludes that the proof of improper purpose is not so clear as to warrant sanctions on this basis alone. Defendants would have the court believe that plaintiffs filed the amended complaint solely to improve Moore’s and Perkins’ reelection chances and to increase costs to the Defendant County.
d. Appropriateness of a Non-Monetary Sanction In This Case
As expansive as the Voting Rights Act may be, it cannot work to eclipse the Rule 11 requirements. Having found that Moore’s attorney did not undertake a reasonable inquiry into the law and the facts of the case, this court must impose a sanction. However, the court finds that monetary sanctions are not appropriate for several reasons. First, many of the claims contained within the amended verified complaint were not challenged in the Defendant Board’s motion for sanctions. Therefore, it would be difficult, if not impossible, to separate the attorney’s fees and costs devoted to the discrimination- and conspiracy-based claims from those devoted to the Section 5 Voting Rights claims. Second, the main factual problem in the amended verified complaint was one that was immediately discoverable by attorneys for the defendants. In his deposition, Moore was questioned by opposing attorneys who were well aware of the mistake in the complaint that listed November 6, 1986 as the bond deadline date when that date had already passed. The Board members themselves would have been cognizant of Moore’s ability to retain office after the posting of the personal surety bond. Therefore, it is unlikely that Perkins’ failure to update the facts in the complaint cost the Board’s attorney significant time, research and attorney’s fees. Finally, a non-monetary sanction best serves the twin goals of deterrence and education while imposing the least severe sanction necessary to meet those goals as required by Thomas, 836 F.2d at 878. The court offers no comment as to the validity of studies and articles that suggest that civil rights’ attorneys disproportionately feel the impact of Rule 11 sanctions. Nevertheless, the Voting Rights Act is a highly complex area of the law made more complex by the Supreme Court’s recommendation that Section 5 of the Act be read expansively. It is in an effort to set some parameters that the court imposes a sanction here.
Accordingly, in any future Voting Rights case filed in this court within two years from this date in which Attorney Perkins serves as counsel for the complaining party, Perkins will be required to file along with his complaint a separate affidavit specifically reciting the Rule 11 requirements and stating that he has complied with these requirements. As noted previously in this opinion, this sanction merely formalizes the Rule 11 mandate. But by requiring Attorney Perkins to file a separate affidavit specifically stating that his pleading is well grounded in fact and supported by existing law or by a good-faith argument for a change in the law, the court hopes to impress upon Attorney Perkins the necessity for thoroughly investigating the merits of a claim before asserting it in a cursory fashion. Zealous as Perkins may have wanted to be in defending the political gains of blacks in Leflore County, this did not excuse his duty to forward an argument grounded in law or in a reasonable argument for its extension, modification or reversal.
2. Sanctions Under Section 1927
Section 1927 of Title 28 provides: Any attorney or other person admitted to conduct cases in any court of the United States or any Territory thereof who so multiplies the proceedings in any case unreasonably and vexatiously may be required by the court to satisfy personally the excess costs, expenses, and attorney’s fees reasonably incurred because of such conduct.
28 U.S.C. § 1927. Unlike Rule 11, Section 1927 imposes a continuing obligation on
Conclusion
In summary, the court finds that Attorney Perkins did not undertake a reasonable inquiry into the law and the facts as required by Rule 11 and will impose the non-monetary sanction outlined in this opinion. The court declines to impose sanctions against Moore because the unusual circumstances warranting sanctions against a client are not present here. As to the request for fees and costs pursuant to Section 1927, the court finds that the Defendant Board is not entitled to recover costs, expenses and attorney fees because the court is not convinced that Perkins filed the complaint in bad faith.
. The motion for sanctions was not directed against plaintiff Alice Yvette McPherson.
. Of course, this sanction merely formalizes what Rule 11 already requires. As stated in the Rule,
The signature of an attorney or party constitutes a certificate by the signer that the signer has read the pleading, motion, or other paper; that to the best of the signer’s knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is*342 warranted by existing law or a good faith argument for the extension, modification or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation.
Fed.RXiv.P. 11. By requiring Attorney Perkins to file a separate affidavit specifically stating that his pleading is well grounded in fact and supported by existing law or by a good-faith argument for a change in the law, the court hopes to impress upon Attorney Perkins the necessity for thoroughly investigating the merits of a claim before asserting it in a cursory fashion.
. An investigator for Western Surety had determined that Moore used his official county vehicle for private purposes, that he had been subject to garnishment proceedings, that his wife had charged him with assault and that his driver’s license had been suspended for traffic violations. The court offers no opinion as to the validity of these charges. Additionally, at the time of Western Surety's request, a controversy had arisen between Moore and the other Board members as to whether he had authorized and directed the paving of a private road.
. This section provides in pertinent part:
In case a surety on any bond of any local officer or employee shall conceive himself to be in danger of suffering by being such surety and shall desire to be relieved therefrom, he may petition to board of supervisors or the municipal governing authority, as the case may be, for relief ... The appropriate governing authority shall thereupon order that the officer or employee give new bond with sufficient sureties in a penalty not less than the first bond and conditioned according to law, and notice of such order shall forthwith be given to such officer or employee ...
Miss.Code Ann. § 25-1-27.
. Deposition of Robert Moore, p. 4.
. Judge Senter’s remarks were particularly directed to Attorney Perkins, who was a candidate in the upcoming November elections in District 4. The record also shows that Moore was a candidate for District 2 supervisor.
. The amended complaint also named McPherson, a voter, as an additional plaintiff.
. Amended Verified Complaint, para. XVII.
. Amended Verified Complaint, para. XIX.
. Deposition of Robert Moore, pp. 21-23. Moore stated in his deposition that he and his attorney had not intended to include paragraph XIX in the amended verified complaint and that the November 6, 1986 date was obviously wrong. However, when asked whether the entire paragraph could be withdrawn, Perkins objected, stating that only the date was inappropriate.
. In their brief in response to the Board’s motion for sanctions, plaintiffs state that Moore was able to get a surety bond approved through the Chancery Court of Leflore County, although "Plaintiff Moore had to make at least two (2) other surety bonds due to the Board's encouragement of some of plaintiffs individual sureties to get off plaintiffs bond.” Brief by Moore and his Counsel in Opposition to Defendant Board of Supervisor’s Motion for Sanctions, p. 22. Perhaps Moore did have difficulties maintaining the personal surety bond, but this statement is different from that conveyed in the amended verified complaint, which suggests that Moore was never able to post a new bond.
. The court’s earlier opinion addressed and rejected each of the following claims: 1) denial of the right to contract under 42 U.S.C. § 1981; 2) violation of constitutional rights under color of state law under 42 U.S.C. § 1983; 3) conspiracy to interfere with civil rights under 42 U.S.C. § 1985; 4) violations of the Voting Rights Act; 5) unspecified violations of the fourteenth and fifteenth amendments; and 6) state law claims for breach of contract and bad faith.
. In their response to the Defendant Board’s Motion for Sanctions, plaintiffs contend that Rule 11 violates the Rules Enabling Act. This issue has been foreclosed by the Supreme Court's decision in Business Guides, Inc. v. Chromatic Communications Enterprises, Inc., 498 U.S. -, 111 S.Ct. 922, 112 L.Ed.2d 1140 (1991). There, the Court noted that any Rules Enabling Act Challenge to Rule 11 faces significant hurdles because "Rule 11 is reasonably necessary to maintain the integrity of the system of federal practice and procedure and ... any effect on substantive rights is incidental.” Id. 498 U.S. at---, 111 S.Ct. at 934, 112 L.Ed.2d at 1159-60. Accordingly, the court finds that plaintiffs’ Rules Enabling Act argument is without merit and proceeds to a discussion of whether sanctions are warranted in this case.
. See, e.g., Thomas v. Capital Securities, 812 F.2d 984, 989 (5th Cir.1987); Robinson v. Nat'l Cash Register Co., 808 F.2d 1119, 1127 (5th Cir.1987).
. In Thomas, the Fifth Circuit “specifically adopt[ed] the principle that the sanction imposed should be the least severe sanction adequate to the purpose of Rule 11. Therefore, as a less severe alternative to monetary sanctions, district court may choose to admonish or reprimand attorneys who violate Rule 11.” Thomas, 836 F.2d at 878.
. Fed.R.Civ.P. 11, Advisory Committee’s Notes.
. Composite Exhibit D to Original Complaint and Amended Verified Complaint.
. As noted in the facts of this opinion, Moore first suggested that paragraph XIX was erroneously included in the amended verified complaint, but Perkins later suggested that it was only the November 6, 1986 date that was in error.
. The court finds only that the amended verified complaint filed in June of 1987 was not attended by a reasonable inquiry into the facts. The court offers no opinion about the validity of the original complaint filed in October of 1986, nor should it. That complaint is not at issue in this Motion for Sanctions. Moreover, the Thomas opinion made clear that counsel does not have a continuing duty to reevaluate a paper once it is filed. However, Thomas also made clear that each and every filing must reflect a reasonable inquiry, Thomas, 836 F.2d at 875, so that the filing of the amended verified complaint renewed Attorney Perkins’ Rule 11 obligations.
. Because the court has already found that Perkins did not make a reasonable inquiry into the facts, the court need not further explore the need for sanctions, but chooses to do so in order to best determine what sanction is appropriate.
. Perkins did not present these cases to the district court in his brief in opposition to the Motion for Sanctions. Instead, the court became aware of the Hardy and Horry cases through its own research and through arguments that have been advanced by counsel in other Voting Rights cases before it.
. At best, Moore had a subjective belief that the bond problems could affect his ability to hold office. See Deposition of Robert Moore, pp. 20-21.
. The court does not seriously entertain plaintiffs’ argument that Section 25-1-27 of the Mississippi Code was faulty for not having been precleared in light of the fact that the procedures for the withdrawal of a bond have not changed and apply to minority and non-minority bond holders alike. A comparison of the present provision, amended in 1986, and the former provision, which appears in Miss.Code Ann. (1972), shows that the procedures for withdrawal of a bond from a county district officer are identical to what they were before the amendment. The change merely substitutes terms such as "local officer or employee” from the previous terms of "county or county district officer.” See Miss.Code Ann. § 25-1-27 (1972); Miss.Code Ann. § 25-1-27 (1991).
. Moore stated in his deposition that he ran for office in the next elections in November, 1987, but was defeated. Deposition of Robert Moore, p. 6. _