Assiniboine & Sioux Tribes v. United States

16 Cl. Ct. 158, 1989 U.S. Claims LEXIS 1, 1989 WL 111
CourtUnited States Court of Claims
DecidedJanuary 4, 1989
DocketNo. 773-87L
StatusPublished
Cited by4 cases

This text of 16 Cl. Ct. 158 (Assiniboine & Sioux Tribes v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Assiniboine & Sioux Tribes v. United States, 16 Cl. Ct. 158, 1989 U.S. Claims LEXIS 1, 1989 WL 111 (cc 1989).

Opinion

MEMORANDUM OF DECISION and ORDER

HARKINS, Senior Judge.

Plaintiffs, Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation (Tribes), on October 25,1988, filed a motion for sanctions pursuant to RUSCC 11 against defendant’s counsel and defendant. The Fort Peck Tribes contend that sanctions are warranted because defendant's March 17,1988, motion to dismiss, or in the alternative, for summary judgment, (1) was not based on any “reasonable inquiry” regarding the facts or law; (2) was not “well grounded in fact”; (3) was not “warranted by existing law”; and (4) on the further ground that defendant’s counsel of record persisted in pressing the motion even after it became clear that the motion was without foundation or basis.

RUSCC 11 requires every pleading, motion, or other paper to be signed by the attorney of record. The rule also provides that the signature of an attorney or party constitutes a certificate by him that (1) he has read the pleading, motion, or other paper, (2) 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, and (3) it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needlessly increase costs. In the event a pleading, motion, or other paper is signed in violation of the rule, the court, on motion or on its own initiative, “shall impose upon the person who signed it, a represented party, or both, an appropriate sanction.” The sanction may include an order to pay the expenses reasonably incurred because of the filing, and such expenses may include reasonable attorney fees.

RUSCC 11 is patterned on Rule 11 of the Federal Rules of Civil Procedure (FRCP). Amendment of FRCP 11 iii 1983 expanded significantly the responsibility imposed on attorneys when signing pleadings or motions. Cobum Optical Industries Inc. v. Cilco, Inc., 610 F.Supp. 656, 658 (M.D.N.C.1985). The pre-1983 rule required a showing of bad faith before imposition of any sanctions would be permitted. This bad faith requirement was eliminated. The 1983 amendment imposed an affirmative [160]*160profiling obligation on counsel to inquire as to the applicable facts and law.

The Advisory Committee on Rules explained the purpose of the 1983 amendment was to facilitate imposition of sanctions when there is a failure to conduct an objectively reasonable inquiry into the facts pri- or to filing. The Notes include:

* * * The new language is intended to reduce the reluctance of courts to impose sanctions, see Moore, Federal Practice 117.05, at 1547, by emphasizing the responsibilities of the attorney and reinforcing these obligations by the imposition of sanctions. * * *
The new language stresses the need for some profiling inquiry into both the facts and the law to satisfy the affirmative duty imposed by the rule. The standard is one of reasonableness under the circumstances. [* * *] This standard is more stringent than the original good-faith formula and thus it is expected that a greater range of circumstances will trigger its violation.

Federal Civil Judicial Procedure and Rules, Notes of the Advisory Committee on Rules, Rule 11, at 34, West Publishing Co. (1988).

Precedent illuminating FRCP 11 is applicable to the imposition of sanctions under RUSCC 11. The test under the amended rule is objective in nature. Hansen v. Prentice-Hall, Inc., 788 F.2d 892, 894 (2d Cir.1986); Eastway Const. Corp. v. City of New York, 762 F.2d 243, 254 (2d Cir.1985). The standard which controls is one of “reasonableness under the circumstances.” Westmoreland v. CBS, Inc., 770 F.2d 1168, 1177 (D.C.Cir.1985). Each case must be examined in light of the particular facts involved, and a ruling involves consideration of the degree of reasonableness in the challenged conduct. The conduct of counsel is to be judged as of the time the pleading was filed, and in its ruling, the court is to “avoid hindsight and resolve all doubts in favor of the signer.” Oliveri v. Thompson, 803 F.2d 1265, 1274-75 (2d Cir.1986), cert. denied, 480 U.S. 918, 107 S.Ct. 1373, 94 L.Ed.2d 689 (1987).

Ruling on plaintiffs’ motion for sanctions requires an examination of the factual context in which defendant made its motion on March 17, 1988. The chronology of events is significant as to the reasonableness of counsel’s signature on defendant’s motion to dismiss or, in the alternative, for summary judgment.

This case is a phase in a continuing contest as to alleged comingling of United States funds with Indian moneys, and misuse of tribal and individual Indian funds, designated in Treasury accounts as Indian Moneys-Proceeds of Labor (IMPL funds). Plaintiffs seek damages for the loss of trust monies and an accounting to establish the amount of such damages. Congress in 1982 abolished the IMPL funds as of September 30, 1982, in legislation that provided the Secretary of the Interior would determine no later than September 30, 1985, the shares of the tribes and individual Indians in the IMPL funds. 25 U.S.C. § 155b (1982).

At the agency level, plaintiffs’ efforts to resolve IMPL funds issues with the Bureau of Indian Affairs (BIA) have been contentious since February 4, 1982. Plaintiffs challenged the Secretary’s regulations issued October 21, 1983, on special deposits in the IMPL funds. 48 F.R. 48808. The Superintendent of the Fort Peck Indian Agency on October 31, 1985, advised that the Tribes’ share, calculated pursuant to the regulations, was $134,491.44. The area director affirmed on October 19, 1986, and the Tribes appealed to the Secretary on December 9, 1986. In connection with this appeal, the Tribes on February 2, 1987, requested three categories of IMPL funds information, supported by backup data, for the time period identified in 25 C.F.R. 114.-5(a)(2), “but not less than 6 years prior to September 30,1982.” The categories were: (1) a list of each tribal trust income producing property, (2) amounts United States received from each property, and (3) amounts disbursed to the Tribes.

This request was processed through BIA’s Branch of Formulation and Presentation, Division of Program Development and Implementation, and was forwarded to the Billings area office in early June 1987. The Billings area office advised that plain[161]

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