Beck v. Test Masters Educational Services, Inc.

7 F. Supp. 3d 46, 2013 WL 6668699, 2013 U.S. Dist. LEXIS 177326
Procedural entryThis page is a short order in Beck v. Test Masters Educational Services, Inc.. Read the opinion of the Court — 289 F.R.D. 374
District Court, District of Columbia·Decided December 18, 2013·No. Civil Action No. 2004-1391·Published

Opinion

MEMORANDUM OPINION

Royce C. Lamberth, U.S. District Judge

Before the Court is the defendant’s renewed motion for sanctions against the plaintiffs and/or their attorneys. For the reasons stated below, defendant’s motion for sanctions will be DENIED.

I. BACKGROUND

The relevant facts are as'follows: hoping to attend law school beginning in the fall of 2004, plaintiffs Jarrod Beck, Keerthi Reddy, and Erin Galloway signed up for an LSAT prep course with defendant, Test Masters Educational Services, Inc. (“TES”). Plaintiffs claim that they believed they were signing up with TestMas-ters, a company known as Robin Singh Educational Services, Inc. (“Singh”). Both companies offer test preparation classes for standardized tests such as the LSAT. Plaintiffs brought claims of common law fraud and negligent misrepresentation, as well as claims under the D.C. Consumer Protection Procedures Act (“CPPA”), 28 D.C. Code § 28-3904(e), (f), (s), arising out of plaintiffs’ purported confusion between the LSAT preparation courses offered by Singh and those offered by TES. Docket No. 30, Exh. 21, pp. 10-12.

This case comes before the Court after a tortured history, having been before two other judges before ending up here, on remand from the U.S. Court of Appeals for the D.C. Circuit and on transfer from Judge John Bates of this Court. Even before that, there is a documented history of Singh filing lawsuits against TES alleging trademark violations in order to prevent TES from doing business under that name. Singh’s previous suits have been unsuccessful. TES claims that this losing history is driving the current, allegedly meritless suit brought by plaintiffs, which *48 is why TES moved for sanctions based on alleged impropriety.

This action began in the Superior Court for the District of Columbia, and was removed to this Court based on diversity jurisdiction. After being transferred to Judge Gilmore for Multi District Litigation proceedings, it came back to this Court where Judge Robertson granted summary judgment in TES’s favor on all counts brought by the plaintiff. Further, Judge Robertson denied TES’s sanctions motions — one based on Federal Rule of Civil Procedure 11 and one based on 28 U.S.C. § 1927 and the court’s inherent power— “without prejudice.” Plaintiffs appealed the ruling granting summary judgment against them, and TES appealed the rulings denying without prejudice their motions for sánctions against plaintiffs and their counsel.

On the appeal of Judge Robertson’s summary judgment decisions, the D.C. Circuit affirmed the grant of summary judgment on the common law fraud and negligence claims, but reversed as to the D.C. CPPA claims for statutory damages. Beck v. Test Masters Educ. Servs., Inc., 407 Fed.Appx. 491 (D.C.Cir.2011). The D.C. Circuit stated that plaintiffs’ statutory claims could continue and granted limited discovery as to those claims.

As to the present motion, both Judge Robertson and Judge Bates denied TES’s motion for sanctions without prejudice. Upon transfer of the case to the present chambers, TES renewed its motion for sanctions, asking it to be considered a third time.

II. DISCUSSION

A. RECONSIDERATION REQUIREMENTS ARE NOT SATISFIED BY TES

1. Legal Standard

Reconsideration of a prior court order may be appropriate if: (1) the court had a “patent misunderstanding of the parties;” (2) the court made a decision that “exceeded the issues presented;” (3) the court failed to consider controlling law; or (4) there was a “significant change in the law ... after the decision was rendered.” Pueschel v. Nat’l Air Traffic Controllers’ Ass’n, 606 F.Supp.2d 82, 84-85 (D.D.C.2009); see also Zalduondo v. Aetna Life Ins. Co., 845 F.Supp.2d 146, 157 (D.C.C.2012). The burden is on the mov-ant, here TES, to “show[ ] that reconsideration is warranted, and that some harm or injustice would result if reconsideration were to be denied.” Pueschel, 606 F.Supp.2d at 85. These grounds are quite narrow and must be assessed here due to the procedural posture of TES’s renewed motion for sanctions. While the D.C. Circuit remanded on the sanctions issue, it did so for -possible reconsideration. Beck v. Test Masters Educ. Servs., Inc., 407 Fed.Appx. 491, 493 (D.C.Cir.2011). It is still up to the movant — TES—to satisfy the grounds for reconsideration.

2. Discussion

Here, TES has not met any of the four criteria for reconsideration. There is nothing in Judge Bates’ 50-plus page memorandum opinions that would give this Court the impression that he misunderstood the parties, made a decision that exceeded the issues, or failed to consider controlling law. Indeed, TES makes no allegation of any of the scenarios being present. Further, there has been no change in controlling law — either that the Court is aware of or that TES has alleged — that would mandate a different result from that of Judge Bates. As plaintiffs correctly point out, the only change in this case since Judge Bates ruled is that the matter is now before these chambers. Pl. Mem. Opp. to Def. Renewed Mot. for *49 Sanctions. And, without a reason to do so, this Court will not review Judge Bates’ decisions that bear every mark of propriety.

B. AVAILABLE SANCTIONS

TES requests sanctions to be issued, jointly and severally, against plaintiffs and their counsel under Federal Rule of Civil Procedure 11, the court’s inherent power, and 28 U.S.C. § 1927.

1.Rule 11 Legal Standard

Under Rule 11, an attorney or party signing any “pleading, motion, or other paper” filed with the court certifies that the filing “is not being presented for any improper purpose, ... [that] the claims, defenses, and other legal contentions therein are warranted[,] ... [and that] the factual contentions have evidentiary support ... or will likely have evidentiary support after a reasonable opportunity for further investigation or discovery.” Fed. R. Cxv. P. 11. A court’s decision on whether to impose Rule 11 sanctions will be reviewed by an appellate court in light of the totality of all surrounding circumstances. Atkins v. Fischer, 232 F.R.D. 116, 129 (D.D.C.2005) (citing Link v. Wabash R.R. Co., 370 U.S. 626, 635, 82 S.Ct. 1386, 8 L.Ed.2d 734 (1962)).

2.§ 1927 or Discretionary Sanctions Legal Standard

Section 1927 allows the Court “to assess attorney’s fees against an attorney who frustrates the progress of judicial proceedings.” United States v. Wallace,

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Beck v. Test Masters Educational Services, Inc., 7 F. Supp. 3d 46, 2013 WL 6668699, 2013 U.S. Dist. LEXIS 177326 (D.D.C. 2013).

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