In a sternly-worded, sixty-page opinion last week, the Sixth Circuit’s Bankruptcy Appellate Panel affirmed a bankruptcy court’s $200,000 sanctions order against an attorney that arose from a plethora of litigation over an ultimately disallowed claim in what became a complicated bankruptcy. We have previously posted about the Circuit’s trend in upholding sanctions, and this bankruptcy … Continue Reading
Until last Friday, the question of whether an informal warning letter satisfied Rule 11’s safe harbor provision was unsettled in the Sixth Circuit. In Penn, LLC, et al. v. Prosper Business Development Corporation, et al. (6th Cir. Case No. 14-3108) (PDF), the Sixth Circuit panel followed the Second, Fifth, Eighth, Ninth, and Tenth Circuits in holding … Continue Reading
A review of Sixth Circuit appeals mentioning “sanctions” in the last twelve months turned up fewer than a dozen cases, but an overview of their holdings reveals a few insights for practitioners in the Circuit. Given that the standard for review of the imposition of sanctions is generally “abuse of discretion,” it is not too … Continue Reading
Frivolous and unwarranted appeals. They continue to be a problem in the Sixth Circuit, as long-time followers of our blog know. We’ve gone back and reviewed over two years’ worth of opinions in the Sixth Circuit, and the picture that emerges is one of too many parties and too many attorneys pursuing frivolous and unwarranted … Continue Reading
The Sixth Circuit recently shed light on a district court’s discretion to award sanctions under 28 U.S.C. § 1927 in an unpublished opinion, Meathe v. Ret, Case Nos. 12-2479, 12-2507. In Meathe v. Ret, the plaintiff filed shareholder suit which the defendants sought to dismiss on summary judgment. The plaintiff then moved to amend his … Continue Reading
In the otherwise legally unremarkable decision in Waeschle v. Dragovic (11-1878), the Sixth Circuit warned that the failure to cite controlling precedent may result in sanctions. The panel found that Albrecht v. Treon, 617 F.3d 890 (6th Cir. 2010) was “clear circuit precedent that rendered [the appellant’s] argument meritless.” The Court criticized the appellant’s … Continue Reading
In PT Pukuafu Indah, et al. v. Newmont Mining Corp. (6th Cir. Nos. 09-02117/2570, 10-1477/1837) (PDF), the Sixth Circuit reversed a hefty Rule 11 sanction determination, including an award of over $107,000 in attorneys fees and an injunction permanently enjoining the plaintiffs from filing lawsuits against the defendants in any federal or state court. In … Continue Reading
