Sneller v. City of Bainbridge IslandSneller v. City of Bainbridge Island
Lead Opinion
Opinion by Judge TASHIMA; Dissent by Judge TALLMAN.
Plaintiffs-Appellants Jeffrey and Sherry Sneller (together, the “Snellers”) appeal from a $24,000 sanction award to Defendants-Appellees the City of Bainbridge Island (the “City”), Meghan McKnight, Bob Earl, and Darlene Kordonowy (collectively, “Defendants”) under
BACKGROUND
This case arises from a land use dispute between the Snellers and the City over the Snellers’ efforts to develop property which included a wetland. The Snellers brought suit in federal court against the City, several of its employees, and other defendants no longer parties to this appeal.
The City, alleging that certain claims were frivolous, requested that those claims be dropped and that the individual City employees be dismissed from the lawsuit. The City prepared a motion for sanctions under
Three days before the end of the safe harbor period, the Snellers filed a motion to amend their complaint and submitted a proposed Third Amended Complaint which omitted each of the claims referenced in Defendants’ motion for sanctions. The Third Amended Complaint, however, added two new causes of action.
After the motion for sanctions was served on the Snellers and the 21-day safe-harbor period required by
On October 27, 2008, the Snellers moved to dismiss with prejudice their remaining federal claims and all claims against the individual defendants. They also sought to dismiss without prejudice their remaining state law claims. The district court granted the Snellers’ motion to dismiss, and the Snellers now appeal the imposition of sanctions under
JURISDICTION
We have jurisdiction over the final decisions of the district courts under
Here, the Snellers suffered an adverse partial judgment when the district court granted the City’s motion for partial summary judgment, there is no evidence that the Snellers moved to dismiss the claims without prejudice in order to manipulate appellate jurisdiction, and Defendants do not contend otherwise. Instead, the Snellers’ reason for the dismissal, that the remaining claims are state law claims and that any future suit will be in state court, appears legitimate. See Am. States Ins. Co. v. Dastar Corp.,
ANALYSIS
I.
We review the district court’s imposition of
On August 1, 2008, Defendants served the Snellers with a
Defendants contend that the Snellers did not withdraw their challenged claims as required by
The
It is true that the Third Amended Complaint added two new causes of action.
Finally, although the Third Amended Complaint mentions City employee Meghan McKnight in describing the factual context of the case, she is not named as a defendant in the caption of the complaint, nor does her name appear in any of the sections describing the Snellers’ causes of action, and the Third Amended Complaint seeks no relief against her. Because the Third Amended Complaint cannot be interpreted as asserting a claim against McKnight or any of the other individual defendants, the mere reference to McKnight in the Third Amended Complaint is an insufficient basis to support the sanction.
At the end of the day, the Snellers did all that they were required to do to withdraw the offending claims during the safe harbor period. Because their motion was filed within the 21-day safe harbor period, the Snellers complied with Rule ll’s requirement that the challenged claim be “withdrawn or appropriately corrected.” That was all that was required of them in order to receive the benefit of the safe harbor provision.
II.
Because the sanction cannot be upheld under
CONCLUSION
While we agree with the district court that the Snellers and their counsel’s conduct of this litigation in the district court was less than exemplary and understand the district court’s frustration; nonetheless, for the reasons we have explained, the district court’s order imposing sanc
REVERSED.
Notes
. The Snellers also argue that Defendants failed to comply with the procedural requirements of
. Although Defendants assert that the Snellers waived this argument by not presenting it to the district court, the Snellers did inform the district court that the amended complaint withdrew the challenged claims. This was sufficient to preserve their argument that the motion to amend their complaint within the safe harbor period made sanctions improper.
. It is possible, for example, that a party may later develop subsequent facts which would allow the party to reassert the claim in compliance with Rule ll’s non-frivolousness requirement.
. The dissent also implies that
. The dissent notes that "the motion to amend the complaint was noted for four weeks after the close of the safe harbor period,” Diss. at 644, and criticizes the Snellers for not "not[ing] the motion during the safe harbor period to ensure that the withdrawal actually occurred during that period.” Diss. at 644. Under Local Rule 7(d)(3) of the Western District of Washington, however, it could not have been noted any earlier because the rule requires a minimum of three weeks’ notice.
Dissenting Opinion
dissenting:
“[L]ess than exemplary” is a generous description of Jeffrey and Sherry Mills Sneller’s behavior during the course of this litigation. If there were ever a case in which sanctions were appropriate, this is that case. The Snellers’ improper litigation tactics spanned many months and cost the City of Bainbridge Island (the “City”) tens of thousands of dollars in unnecessary attorney fees.
After a land use dispute with the City, the Snellers filed suit against the City, individual City employees, the Washington State Department of Ecology, and several State employees. The City argued that the suit against the individual City employees was brought for an improper purpose and that several of the Snellers’ claims were frivolous and unwarranted by existing law.
Mr. Sneller’s own words demonstrate beyond cavil that the suit against the City employees was nothing more than a tactical maneuver designed to harass and intimidate public employees. See
[Municipalities and government do have weaknesses....
Their ... weakness is individual staff members. And we determined — we decided when we filed suit against the City of Bainbridge that we were going to those staff members that were responsible individually.
Now, you might say, well, what good is that? What does that solve? Because, after all, their government is going to indemnify them and they have a big war chest. Well, that is not necessarily the case. These staff members apply for credit cards just like all of us. They apply for home loans and they apply for car loans. And when they have a lawsuit pending, every time you fill out that application, it says, “Are you a defendant in a lawsuit?” They better check that box, because it’s going to be*642 checked in any event by the company issuing the credit.
If you have a two or three-million-dollar lawsuit pending against you as a defendant, you’re not going to get a cell phone. So that was the approach we took.2
Tellingly, the Snellers do not argue on appeal that these claims were appropriate or non-frivolous.
The City repeatedly tried to convince the Snellers to withdraw the improper claims, and the Snellers refused time and time again. The City also extended every professional courtesy to give them adequate time to respond and to accommodate a change in counsel. Months went by without a response from the Snellers. The record demonstrates that the City repeatedly requested dismissal of the improper claims in writing on January 17, March 18, June 4, July 1, and July 11, 2008, before serving the Snellers with the motion for sanctions under Federal Rule of Civil Procedure (“Rule”) 11 on July 31, 2008. Pursuant to Rule ll’s “safe harbor” provision,
On August 20, 2008, the City again wrote to the Snellers asking them to drop the “frivolous and malicious” claims against the City. In response, the Snellers’ counsel asked the City to “have something drawn up” that he could discuss with the Snellers. Tired of waiting, the City provided a Stipulation and Order of Dismissal, which was sent on August 21, 2008, indicating that if it was not signed and filed by noon on-August 22, 2008, the City would file its
With this background in mind, I turn to the legal questions raised by the Snellers’ appeal.
I
“[A]n appellate court should apply an abuse-of-discretion standard in reviewing all aspects of a district court’s
II
A
My colleagues craft the Snellers’ argument on appeal far more cogently than was articulated by the Snellers themselves. In fact, the successful argument on appeal is not found in the “Statement of the Issue,” and is only discussed in a single paragraph at the end of the opening brief. More importantly, the Snellers never properly raised the question whether the filing of the
My colleagues nonetheless conclude that the motion to amend was sufficient to notify the district court that the
Furthermore, the Snellers invited the district court to rule on the
B
On the merits, the district court properly exercised its discretion in determining on this record that the Snellers’ failed to withdraw the offending claims within the meaning of
Second, the amended complaint contained two new claims against the City. These new claims placed the City in an impossible position. The only way to ensure that the offending claims were removed from the case was to agree to the amendment of the complaint; however, this would allow the Snellers to bring new, potentially frivolous claims against the City. Fighting these new claims would then cost the City even more in attorney fees.
Third, the motion to amend the complaint was noted for four weeks after the close of the safe harbor period. Clearly, the City had no control over the district court’s decision to grant or deny the motion to amend. Therefore, the City would have been forced to wait four extra weeks, while enduring costly discovery and expending resources arguing the City’s previously filed motion for partial summary judgment on the offending claims, with no guarantee that the claims would ultimately be withdrawn. In effect, the withdrawal was made contingent on the Snellers actually pursuing the motion to amend, the court ultimately accepting the Third Amended Complaint in its present form, and the Snellers choosing not to amend again.
If the Snellers truly wished to withdraw the offending claims, they could have noted the motion during the safe harbor period to ensure that the withdrawal actually occurred during that period.
As the majority notes, the Snellers were not required to undertake any of these suggested methods of withdrawing the offending claims to avoid sanctions under
The district court was well aware of all this when it made its ruling. Moving to amend the complaint is not a magic bullet; the district court had an obligation to consider all the evidence presented surrounding the Snellers’ alleged withdrawal, including the Snellers’ recalcitrant behavior throughout the course of the litigation, their continued baseless objection to the partial summary judgment on the offending claims, the new discovery requests related to the “withdrawn” claims, and myriad other objections raised by the City through months of correspondence, which were ignored by the Snellers and their counsel. The court’s conclusion that the Snellers had not properly withdrawn the offending claims within the meaning of
Ill
Considering the history of improper behavior by the Snellers in this action and the admissions Mr. Sneller made on the local television channel which revealed the true motive for plaintiffs’ intransigence, the district court’s determination that the Snellers did not withdraw the offending claims within the safe harbor period was amply supported by the record and was not an abuse of discretion. Unfortunately, the City has now lost even more time and money fighting this frivolous appeal. Plaintiffs should not be able to employ these litigation tactics to harass and intimidate defendants and then avoid the consequences by moving to amend at the eleventh hour. The rules must be enforced so that future parties will know that such behavior is not tolerated in federal court. Otherwise Rule l’s mandate that the Federal Rules of Civil Procedure “should be construed and administered to secure the just, speedy, and inexpensive determination of every action” is merely a toothless aspirational goal.
Because my colleagues take a more charitable view of the Snellers’ behavior than did the district judge who observed it firsthand, I respectfully dissent.
. For example, the Snellers’ claim for violation of the Washington Constitution has not been a colorable theory in Washington for decades. See Brock v. Wash. State Dep’t of Corr., No. C08-5167RBL,
. It is difficult to imagine what facts could be obtained during discovery to justify what, based on Mr. Sneller's malignant admission, is clearly an improper purpose for naming the City employees in their individual capacity.
. A motion under
. As noted above, they do not clearly make the argument here on appeal either. See United States v. Ullah,
. I agree that the existence of these new discovery requests is not grounds for sanctions under
. The majority asserts that a motion to amend pursuant to Rule 15 is the only means by which the Snellers could have removed the offending claims at this point in the litigation. Maj. Op. at 639-40. However, the Snellers could have dismissed their claims against the City employees under Rule 41. See Hells Canyon Pres. Council v. U.S. Forest Sent,
. The majority misreads the Local Rules of the Western District of Washington to support the Snellers' timing in noting their motion to amend. Maj. Op. at 640 n. 5 (reading Local Rule 7(d)(3) to allow the motion to be noted no earlier than the third Friday after filing and service of the motion). When the Snellers filed their motion to amend the complaint, Local Rule 7(d)(3) applied only to nondispositive motions not listed in Local Rule 7(d)(2). Local Rule 7(d)(2)(B) specifically provided that a motion to amend pleadings could be noted "no earlier than seven judicial days after filing.” Even under the seven day rule the Snellers would have had to file the motion to amend earlier to ensure that the motion could be heard during the safe harbor period. However, considering the fact that the City had been requesting the withdrawal of these claims for at least six months, there was ample time to have done it.