Jones v. National Railroad Passenger Corporation

District Court, N.D. California·Decided May 13, 2025·No. 3:15-cv-02726·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 AMANDA JONES, Case No. 15-cv-02726-TSH

8 Plaintiff, ORDER RE: MOTION FOR 9 v. SANCTIONS

10 NATIONAL RAILROAD PASSENGER Re: Dkt. No. 610 CORPORATION, et al., 11 Defendants. 12 13 I. INTRODUCTION 14 Pending before the Court is a motion for sanctions in the form of attorney’s fees and costs 15 brought by Defendant National Railroad Passenger Corporation (“Amtrak”). ECF No. 610. 16 Defendant Amtrak moves the Court to sanction Plaintiff’s counsel Carla Aikens and the law firm 17 of Carla Aikens, PC, and Catherine Cabalo and the law firm of Peiffer Wolf Carr & Kane1 18 pursuant to 28 U.S.C. section 1927 and the Court’s inherent power. Plaintiff filed an Opposition 19 (ECF No. 626) and Amtrak filed a Reply (ECF No. 633). For the reasons stated below, the Court 20 DENIES Amtrak’s motion for sanctions.2 21 II. BACKGROUND 22 In Plaintiff’s operative Third Amended Complaint (“TAC”), Plaintiff alleged five claims 23 for relief: (1) violation of the Americans with Disabilities Act (“ADA”) against Defendant 24 Amtrak, (2) violation of the ADA against Defendant Santa Cruz Metropolitan Transit District 25

26 1 Amtrak’s motion refers to Ms. Cabalo’s law firm as “Peiffer Rosca Wolf Abdullah Carr & Kane.” Plaintiff’s counsel’s opposition, and this Order, refer to the firm as “Peiffer Wolf Carr & 27 Kane.” 1 (“SCMTD”), (3) violation of Section 504 of the Rehabilitation Act of 1973 against both 2 Defendants, (4) violation of the California Unruh Civil Right Act against both Defendants, and (5) 3 negligence against both Defendants. ECF No. 155, TAC. Plaintiff’s claims all stem from an 4 August 25, 2014 incident on the Highway 17 bus en route from Santa Cruz to San Jose, when 5 Plaintiff’s motorized scooter tipped over while Plaintiff was on it. TAC ¶¶ 12–39. Following an 6 order on cross-motions for summary judgment and a subsequent appeal by Plaintiff to the Ninth 7 Circuit, Plaintiff’s lone remaining claim for trial was for negligence against both Defendants. See 8 ECF Nos. 197, 221. Plaintiff alleged that the bus driver failed to properly secure their3 scooter so 9 that it would not fall over during the bus ride. TAC ¶¶ 17-24, 26, 74–82. 10 The parties proceeded to the first jury trial on March 13, 2023. ECF No. 368. At the close 11 of Plaintiff’s case, Amtrak moved for judgment as a matter of law pursuant to Federal Rule of 12 Civil Procedure (“Rule”) 50(a) and on March 17, 2023, the Court denied Amtrak’s Rule 50(a) 13 motion without prejudice. See ECF No. 385. At the conclusion of the first jury trial, the jury was 14 unable to reach a unanimous verdict, and the Court declared a mistrial. ECF Nos. 399, 401. 15 Following the first trial, Amtrak filed a renewed motion for judgment as a matter of law. ECF No. 16 413. The Court granted Amtrak’s motion on June 5, 2023. ECF No. 422. On July 3, 2023, 17 Plaintiff filed a motion under Federal Rule of Civil Procedure 60(b) and Civil Local Rule 7-9 to 18 set aside judgment and/or leave to file a motion for reconsideration of the Court’s order granting 19 Amtrak’s motion for judgment as a matter of law. ECF No. 425. The Court denied Plaintiff’s 20 motion on October 2, 2023. ECF No. 431. The construed Plaintiff’s motion as a motion for leave 21 to file a motion for reconsideration, rather than a motion to set aside judgment, because the Court 22 “ha[d] not . . . directed entry of final judgment in favor of Amtrak[.]” Id. at 4. 23 On November 29, 2023, during voir dire at the start of the second trial, defense counsel 24 tainted the entire venire, and the Court declared a mistrial. ECF Nos. 453, 454, 483. 25 On March 19, 2025, the third trial concluded in a unanimous jury verdict in favor of 26 Plaintiff and against SCMTD. ECF No. 586. The Court entered judgment as to both Defendants 27 1 the same day. ECF No. 589. 2 On April 2, 2025, Defendant Amtrak filed the instant motion for sanctions pursuant to 28 3 U.S.C. § 1927 and the Court’s inherent power. ECF No. 610. On April 16, 2025, Plaintiff filed an 4 opposition. ECF No. 626. On April 23, Amtrak filed a reply. ECF No. 633. 5 III. LEGAL STANDARD 6 A district “court has the inherent power to sanction a party or its lawyers if it acts in 7 ‘willful disobedience of a court order . . . or when the losing party has acted in bad faith, 8 vexatiously, wantonly, or for oppressive reasons,’ as well as for ‘willful[ ] abuse [of the] judicial 9 processes.’” Gomez v. Vernon, 255 F.3d 1118, 1133–34 (9th Cir. 2001) (quoting Roadway 10 Express, Inc. v. Piper, 447 U.S. 752, 766 (1980)). “[T]he district court may not sanction mere 11 ‘inadvertent’ conduct.” Fink v. Gomez, 239 F.3d 989, 993 (9th Cir. 2001). Rather, the imposition 12 of sanctions under the court’s inherent powers requires “a finding of bad faith, or conduct 13 tantamount to bad faith.” Vernon, 255 F.3d at 1134. “[R]ecklessness, of itself, does not justify the 14 imposition of sanctions” under the Court’s inherent power. Id. However, “sanctions are available 15 when recklessness is ‘combined with an additional factor such as frivolousness, harassment, or an 16 improper purpose.’” Id. (quoting Fink, 239 F.3d at 994). “For purposes of imposing sanctions 17 under the inherent power of the court, a finding of bad faith ‘does not require that the legal and 18 factual basis for the action prove totally frivolous; where a litigant is substantially motivated by 19 vindictiveness, obduracy, or mala fides, the assertion of a colorable claim will not bar the 20 assessment of attorney’s fees.” Fink, 239 F.3d at 992 (quoting In re Itel Securities Litigation, 791 21 F.2d 672, 675 (9th Cir. 1986)). 22 Pursuant to 28 U.S.C. § 1927, “[a]ny attorney or other person admitted to conduct cases in 23 any court of the United States or any Territory thereof who so multiplies the proceedings in any 24 case unreasonably and vexatiously may be required by the court to satisfy personally the excess 25 costs, expenses, and attorneys’ fees reasonably incurred because of such conduct.” “[A] finding 26 that the attorney[] recklessly raised a frivolous argument which resulted in the multiplication of the 27 proceedings’ justifies § 1927 sanctions.” Caputo v. Tungsten Heavy Powder, Inc., 96 F.4th 1111, 1 original); see also In re Keegan Mgmt. Co., Secs. Litig., 78 F.3d 431, 436 (9th Cir. 1996) (“Bad 2 faith is present when an attorney knowingly or recklessly raises a frivolous argument.”) (cleaned 3 up). Sanctions under § 1927 may only be imposed upon individual attorneys, rather than against 4 the client or law firm. Kaass Law Firm v. Wells Fargo Bank, N.A., 799 F.3d 1290, 1293–94 (9th 5 Cir. 2015). 6 IV. DISCUSSION 7 A. Timeliness of Amtrak’s Motion 8 Amtrak brought this motion on April 2, 2025, fourteen days after the Court entered 9 judgment in this action. See ECF Nos. 589 (Judgment), 610 (Mot.).

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