Affirmed by published opinion. Judge WILKINSON wrote the opinion, in which Judge MICHAEL and Judge AGEE joined.
OPINION
This case presents a purely legal question: whether 28 U.S.C. § 1447(c) permits the imposition of legal fees on an attorney who erroneously removes a case from state to federal court. The district court held that it does not. We affirm.
I.
This case began in Maryland state court in February 2007. Several entities with an ownership stake in Crescent City Estates, LLC (collectively, appellants) brought a derivative suit against defendants Crescent City Estates, LLC and its managers, alleging that the managers had not accounted properly for approximately $12 to 15 million in insurance proceeds. In connection with the litigation, defendants retained as legal counsel the appellees in this case: attorneys Douglas S. Draper and William J. Murphy.
About six months after the suit’s commencement, defendants removed the state court action to the United States Bankruptcy Court for the District Court of Maryland. As lawyers for the defendants, appellees signed the notice of removal. Shortly thereafter, appellants filed a motion to remand the case back to state court. In doing so, appellants sought attorneys’ fees for improper removal under 28 U.S.C. § 1447(c), which allows a court to “require payment of ... attorney fees ... incurred as a result of removal.” Notably, appellants sought attorneys’ fees both from defendants and from their attorneys, the appellees.
The attorneys argued that they could not be liable, claiming that § 1447(c) authorized the imposition of attorneys’ fees only against removing parties and not against removing attorneys. The federal bankruptcy court, however, disagreed. It held that, as a matter of law, § 1447(c) applied both to parties and to attorneys. Appellees sought immediate review, and on interlocutory appeal, the United States District Court for the District of Maryland reversed.
Crescent City Estates, LLC v. MR Crescent City, LLC (In re Crescent City),
II.
The statute, 28 U.S.C. § 1447(c), states in relevant part: “An order remanding [an erroneously removed] case may require payment of just costs and any actual expenses, including attorney fees, incurred as a result of removal.” The statute, however, does not state expressly who may be required to make such payment. Appellants contend that both removing parties and their lawyers are liable, while appel-lees assert that only removing parties are liable.
As of yet, no circuit court has confronted this issue, and the district courts that have addressed it are badly divided.
Compare Creek Ventures, LLC v. World Parts, LLC,
Appellants argue that because § 1447(c) does not explicitly prohibit a fee award against counsel, it thereby permits it. Appellants, however, have the presumption reversed. The proper presumption is that when a fee-shifting statute does not explicitly permit a fee award against counsel, it prohibits it. In short, silence does not equal consent. Because we find that the presumption is not overcome in this case, we accordingly hold that § 1447(c) does not apply to counsel.
III.
The presumption that fee-shifting statutes apply only to parties unless they expressly state otherwise is consistent with the American Rule. Under the American Rule, “the prevailing litigant is ordinarily not entitled to collect a reasonable attorneys’ fee from the loser.”
Alyeska Pipeline Serv. Co. v. Wilderness Soc’y,
Congress is, of course, free to alter either or both of these premises through legislation.
See id.
However, departures from the American Rule require “explicit statutory authority.”
See Buckhannon Bd. & Care Home, Inc. v. West Virginia Dep’t of Health & Human Servs.,
Absent explicit authorization from Congress, it is our duty to keep the American Rule intact. “Congress ha[s] not ‘extended any roving authority to the Judiciary to allow counsel fees ... whenever the courts might deem them warranted.’”
Buckhannon,
In this case, it is undisputed that Congress intended § 1447(c) to modify the American Rule in part. Section 1447(c) is, after all, a fee-shifting statute.
See Martin v. Franklin Capital Corp.,
We see no justification for the dramatic deviation from the American Rule advocated by appellants. Neither § 1447(c)’s text nor its legislative history is sufficient to overcome the American Rule’s presumption that parties rather than attorneys are liable for attorneys’ fees.
First,
the text of § 1447(c) makes no explicit mention of counsel. And because “Congress legislates against the strong background of the American Rule,”
Fogerty v. Fantasy, Inc.,
Although the statutory text does not explicitly forbid fee awards against counsel, it does so implicitly. The statute speaks, by implication, only to parties. Section 1447(c) allows a court to impose a fee award in “[a]n order remanding the case,” which, as the district court noted, “would normally, if not inevitably, be contemplated as one that pertains to parties and not counsel.”
Crescent City,
In fact, the Supreme Court has repeatedly emphasized the “crucial connection” between liability on the merits and liability for attorneys’ fees under fee-shifting statutes.
See Indep. Fed’n of Flight Attendants v. Zipes,
Second,
our conclusion is confirmed by the legislative history. While such history cannot be used to override statutory text, it can serve as a useful supplement. Like the statute’s text, the legislative history here makes no express mention of attorney liability. It defies common sense to think that Congress wished to expand fee liability to encompass lawyers but failed to say anything at all about that wish, at any point, during the statute’s consideration. “Such a bold departure from traditional practice would have surely drawn more explicit statutory language and legislative comment.”
Fogerty v. Fantasy, Inc.,
To the contrary, the legislative history suggests that Congress anticipated that § 1447(c) would apply exclusively to litigants. Section 1447(c) was enacted in 1988 to succeed a former statutory provision, which subjected defendants to a “bond requirement.” See H.R. 4807, 100th Cong. (1988); 28 U.S.C. § 1446(d) (repealed). Under this bond requirement, defendants had to post a bond, prior to removal, in order to secure payment for costs incurred if removal turned out to be improper. Id. Significantly, this bond requirement explicitly applied only to parties, limiting liability to “defendant or defendants.” Id.
The legislative history states that § 1447(c) was designed merely to “replace *828 the bond provision,” H.R.Rep. No. 100-889, at 72 (1988), as reprinted in 1988 U.S.C.C.A.N. 5982, 6033, thus directly substituting a party’s, obligation to pay costs ex ante with a party’s obligation to pay costs ex post. If Congress had intended § 1447(c) not only to change the timing of payments but also to expand the categories of individuals potentially liable for payments, that expansion probably would have generated at least minimal legislative debate. Instead, § 1447(c) was enacted as part of a “noncontroversial,” omnibus bill. See 134 Cong. Rec. H7443-02 (Sept. 13, 1988) (statement of Rep. Moorhead). In conclusion, nothing demonstrates a congressional intent to overcome the American Rule in order to make attorneys liable for an adversary’s attorneys’ fees.
IV.
Moreover, federal case law corroborates our holding. Indeed, the Supreme Court and other circuits have interpreted fee-shifting statutes with text materially indistinguishable from that of § 1447(c) to be inapplicable to counsel. These cases firmly support the presumption that fee-shifting statutes shift fees only to parties unless they expressly state otherwise.
For example, in
Roadway Express, Inc. v. Piper,
The presumption is widely held. As the Second Circuit summarized, “When a fee-shifting statute that authorizes the courts to award attorneys’ fees ... does not mention an award against the losing party’s attorney, the appropriate inference is that an award against attorneys is not authorized.”
Healey v. Chelsea Res., Ltd.,
These decisions interpret fee-shifting statutes with language remarkably similar to the language of § 1447(c). Like § 1447(c), the provisions in these cases
*829
vest courts with discretion to award attorneys’ fees but do not expressly state who must pay those fees. Accordingly, we choose to interpret § 1447(c) similarly. As the Supreme Court has explained, “fee-shifting statutes’ similar language is ‘a strong indication’ that they are to be interpreted alike.”
Indep. Fed’n of Flight Attendants v. Zipes,
V.
Finally, the consequences of departing from sound statutory construction would be severe. For one thing, subjecting counsel to § 1447(c) liability for improvident removals would only generate more collateral litigation. “A request for attorney’s fees should not result in a second major litigation, and ... accordingly [courts should] avoid[] an interpretation of the fee-shifting statutes that would spawn[] a second litigation of significant dimension.”
Buckhannon Bd. & Care Home, Inc. v. West Virginia Dep’t of Health & Human Servs.,
Plus, § 1447(e)’s application to lawyers could promote the provision’s use as a disruptive litigation tactic, employed to pit lawyer and client against each other, thereby causing further friction and delay. Forcing an attorney to defend his actions in the midst of litigation might create a conflict of interest or rift in the lawyer-client relationship, possibly forcing the lawyer to withdraw,
see Healey v. Chelsea Res., Ltd.,
Additionally, exposing lawyers to personal monetary liability whenever they remove a case risks chilling the right of removal. Removal is a federal right, which Congress has long provided and which courts have long protected.
See Martin,
Furthermore, holding counsel responsible under § 1447(c) could begin to transform what it means to practice law. A lawyer should not be required to risk personal liability merely for acting in a representational capacity or for seeking to place a client in a more favorable litigation posture. Generally, an attorney is held liable in a representational capacity only when he engages in misconduct — not for legal judgments.
See DeBauche v. Trani,
Thus, holding lawyers accountable under § 1447(c) would go too far. Erroneous removal need not entail misconduct. Questions of removal are often complicated, generating the most extensive commentary in the most learned of treatises. See, e.g., 14B & 14C Charles Alan Wright, Arthur R. Miller, et ah, Federal Practice and Procedure, §§ 3721-40 (4th ed. & supp.2009); 29A Federal Procedure, Lawyer’s Edition §§ 69:1 to 69:200 (2009). Erroneous removal might very well be the result of an honest but forgivable mistake of legal judgment or perhaps the product of a lawyer’s operating at the behest of a client’s desires and demands.
To be sure, no one wishes to encourage improper removals. Wrongful or erroneous removals impose their own litigious burdens on the system. As the Supreme Court has noted, “[t]he process of remov
*831
ing a case to federal court and then having it remanded back to state court delays resolution of the case, imposes additional costs on both parties, and wastes judicial resources.”
Martin v. Franklin Capital Corp.,
There are, however, cases where removal is not just erroneous but egregiously so. Where an attorney’s decision to remove
is
particularly blameworthy, courts do not need § 1447(c) to impose sanctions. For example, courts have at their disposal Federal Rule of Civil Procedure 11, 28 U.S.C. § 1927, and their inherent powers, all of which may permit awards of attorneys’ fees against attorneys whose actions compromise standards of professional integrity and competence. “The power of a court over members of its bar is at least as great as its authority over litigants. If a court may tax counsel fees against a party who has litigated in bad faith, it certainly may assess those expenses against counsel who willfully abuse judicial processes.”
Roadway Express, Inc. v. Piper,
We are asked here, however, to impose liability on lawyers solely on the basis of § 1447(c). We are asked further to import into law a species of liability that Congress has in no way seen fit to adopt. Lacking explicit direction from the legislative branch, we refuse to read § 1447(c) to authorize the imposition of legal fees upon attorneys for erroneous removals.
VI.
For the foregoing reasons, the judgment of the district court is
AFFIRMED.
Notes
Appellants argue that we must instead interpret § 1447(c) consistently with 28 U.S.C. § 1912 and Federal Rule of Appellate Procedure 38. Those provisions allow courts to award "just damages" and "single or double costs” resulting from frivolous appeals but, like § 1447(c), do not expressly articulate who must bear liability. Despite the provisions’ failure to expressly include counsel, some courts have nevertheless indicated that attorneys may be liable under them.
See Oum v. INS,
For a number of reasons, however, we believe that these cases do not call into question the general presumption against attorney liability under fee-shifting statutes. First, not all of the cases squarely decided the issue. For example, this Court, in
Oum v. INS,
merely suggested that it might be willing to apply § 1912 and Rule 38 to counsel but did not have to address the issue since the government was not seeking fees from counsel.
