Adduono v. World Hockey Ass'n

109 F.R.D. 375
CourtDistrict Court, D. Minnesota
DecidedFebruary 4, 1986
DocketNo. 3-82 Civ. 586
StatusPublished
Cited by3 cases

This text of 109 F.R.D. 375 (Adduono v. World Hockey Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adduono v. World Hockey Ass'n, 109 F.R.D. 375 (mnd 1986).

Opinion

ORDER

ALSOP, Chief Judge.

This matter came before the court on December 23, 1985, on a motion by defendant World Hockey Association, which defendant National Hockey League joins. Defendants move for return of counsel fees, damages, and sanctions against Charles L. Abrahams, counsel for plaintiffs in this action.

The facts giving rise to defendants' motion are recounted in the court’s order of October 24, 1985, and these facts are incorporated herein by reference. They need only be summarized here.

In late 1984, all counsel for the parties signed a Settlement Agreement. Charles L. Abrahams executed the agreement on December 8, 1984. The agreement provided:

6. Each of the undersigned counsel for the Plaintiffs hereby represent that they are not presently retained to represent, have not been requested to represent, and have not offered to represent, either as counsel, agents, or in any other capacity any other individual, corporation, partnership or other legal entity for the purpose of pursuing any claim of any kind, either asserted or unasserted, against the National Hockey League or any of its Member Clubs, or against the WHA or any of its former Member Clubs,____

In addition, the Settlement Agreement provided:

[Paragraph 1 [the provision reciting payments to be made] is based and conditioned upon ... (b) the representations made by Plaintiffs’ counsel in paragraph 6.

Abrahams and other counsel also executed a Stipulation of Dismissal with Prejudice. This document was filed with the court on December 14, 1984.

As recounted in the court’s order of October 24, 1985, it has become clear that at the time of the settlement Abrahams had in fact offered the services of the law firm of Kolodny, Katkov & Pressman to approximately 155 individuals for the purposes of pursuing legal claims against the World Hockey Association and the National Hockey League. Abrahams had a contract at that time under which he was to receive for his “services” one-half of all monies recovered by the Kolodny, Katkov firm as fees for bringing such claims. The court found that Charles Abrahams’ conduct violated the representations made in the settlement agreement and was in direct violation of paragraph 6 thereof. The court further found the representations contained in paragraph 6 of the Settlement Agreement to be a misrepresentation of facts then known to Abrahams.

The defendants request several forms of relief. First, they seek an order requiring Abrahams to return to defendants all fees derived from defendants’ settlement payments. Second, defendants seek an order requiring Abrahams to indemnify them for their reasonable costs, disbursements, and attorney’s fees in defending the Chernoff v. National Hockey League litigation begun in the Southern District of California by the Kolodny, Katkov firm. Third, defendants seek costs, disbursements and attorney’s fees in prosecuting this motion. Fourth, defendants seek an order trebling the damages assessed in their favor pursuant to Minn.Stat. §§ 481.07 and 481.071 (1984). Finally, defendants seek a monetary sanction of $25,000 against Abrahams.

DISCUSSION

Defendants’ requests for relief derive from two distinct legal bases. Their first, second and fourth requests are premised on the theory that Abrahams breached the Settlement Agreement to the defendants’ detriment. Defendants seek damages for this breach in the form of Abrahams’ fees derived from the defendants’ settlement payment and the defendants’ costs, disbursements, and attorney’s fees incurred in [378]*378defending the Chernoff litigation. Defendants then seek trebling of these damages pursuant to Minn.Stat. §§ 481.07 and 481.-071. Defendants’ request for a monetary-sanction derives from the court’s inherent authority and authority under Fed.R.Civ.P. 11 to discipline attorneys who abuse the judicial process. Finally, defendants’ request for attorney’s fees incurred in prosecuting this motion derives from both legal bases.

Defendants may have cognizable breach of contract and misrepresentation claims arising out of Abrahams’ conduct in this case. This court may also have authority to enforce the Settlement Agreement by awarding damages based on these claims. See Gardiner v. A.H. Robins Co., Inc., 747 F.2d 1180, 1190 n. 13 (8th Cir. 1984); Aro Corp. v. Allied Witan Co., 531 F.2d 1368, 1371 (6th Cir.), cert. denied, 429 U.S. 862, 97 S.Ct. 165, 50 L.Ed.2d 140 (1976); Conerly v. Flower, 410 F.2d 941, 945 (8th Cir.1969). Resolution of such claims, however, would require the court to inquire further into Abrahams’ involvement in the Chernoff litigation. In addition, the court would have to assess the ultimate merits of the Chernoff case. This court is ill-situated to make such inquiry, however, and resolution of these issues is best left to other forums. Accordingly, the court denies defendants’ request for damages arising out of Abrahams’ breach of the Settlement Agreement.

Federal Rule of Civil Procedure 11 states in part:

Every pleading, motion, and other paper of a party represented by an attorney shall be signed by at least one attorney of record____ The signature of an attorney or party constitutes a certificate by him that he has read the pleading, motion, or other paper; that to the best of his knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is 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____ If a pleading, motion, or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of filing of the pleading, motion, or other paper, including a reasonable attorney’s fee.

As amended in 1983, Rule 11 attempts to deal with abuses in the signing of pleadings by building upon and expanding the equitable doctrine permitting the court to award expenses, including attorney’s fees, to a litigant whose opponent acts in bad faith in instituting or conducting litigation. Fed.R.Civ.P. 11, Notes of Advisory Committee on Rules, 1983 amendment (Advisory Committee Note). See, e.g., Roadway Express, Inc. v. Piper, 447 U.S. 752, 764-65, 100 S.Ct. 2455, 2463-64, 65 L.Ed.2d 488 (1980); Hall v. Cole, 412 U.S. 1, 5, 93 S.Ct. 1943, 1946, 36 L.Ed.2d 702 (1973).

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Bluebook (online)
109 F.R.D. 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adduono-v-world-hockey-assn-mnd-1986.