Mullen v. GLV, Inc.

CourtDistrict Court, N.D. Illinois
DecidedSeptember 28, 2022
Docket1:18-cv-01465
StatusUnknown

This text of Mullen v. GLV, Inc. (Mullen v. GLV, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mullen v. GLV, Inc., (N.D. Ill. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

LAURA MULLEN, ) ) Plaintiff, ) ) vs. ) Case No. 18 C 1465 ) GLV, INC., d/b/a SPORTS ) PERFORMANCE VOLLEYBALL ) CLUB and GREAT LAKES ) CENTER, RICKY BUTLER, ) and CHERYL BUTLER, ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

MATTHEW F. KENNELLY, District Judge:

Laura Mullen filed suit against GLV, Inc., a youth sports club, and its owners Rick and Cheryl Butler, asserting claims involving fraud and concealment. (The Court will refer to each of the Butlers by their first names for the sake of simplicity.) Mullen cited evidence that Rick Butler had engaged in sexual conduct with several sixteen and seventeen year old girls while coaching them in the 1980s. She said that the defendants had concealed and misrepresented the full extent of Butler's sexual conduct and contended that she would not have enrolled her two daughters in the program had she known the full truth. Mullen sued on behalf of a putative class. The Court denied a motion to dismiss filed by the defendants, see Mullen v GLV, Inc., No. 18 C 1465, 2018 WL 3218693 (N.D. Ill. July 2, 2018), and later certified a class. See Mullen v. GLV, Inc., 329 F.R.D. 587 (N.D. Ill. 2019). During discovery, Mullen sought, among other things, discovery regarding Butler's sexual activity with girls he had coached. The defendants persuaded the Court to stay that discovery and to allow them to seek summary judgment on other unrelated grounds. In considering the motion for summary judgment later filed by the defendants, the

Court ruled that Mullen's individual claims could not succeed because she lacked evidence that the defendants believed their representations about the club's programs (largely, that its staff were "extremely qualified") were false; there was sufficient publicly- available information regarding Rick's sexual abuse of female youth athletes that Mullen could not justifiably rely on the defendants' concealment of full information; and that Mullen could not show that the alleged deception proximately caused her an injury because she could not establish that she had actually been deceived. See Mullen v. GLV, Inc., 444 F. Supp. 3d 883 (N.D. Ill.), amended on reconsideration, 488 F. Supp. 3d 695 (N.D. Ill. 2020). Accordingly, the Court dismissed Mullen's individual claims, which of course

made her an inadequate class representative. The Court afforded class counsel the opportunity to seek substitution of a new class representative, but they either were unable to do so or elected not to do so. The upshot was that a final judgment was entered in September 2020 that had the effect of dismissing Mullen's claims with prejudice and the class's claims without prejudice. Mullen then appealed. Around the time the Court ruled on summary judgment, it also sanctioned on the defendants and on their counsel for what the Court found to be improper communications with members of the putative class during the opt-out period after class notice was sent. Specifically, the Court imposed a non-monetary sanction on defendants' counsel and imposed on the defendants a monetary penalty as well as the plaintiffs'' reasonable attorney's fees and expenses in connection with the investigation and litigation of the motion for sanctions, in an amount to be determined. See Mullen v. GLV, Inc., 334 F.R.D. 656 (N.D. Ill. 2020). The Court later denied the defendants' and

counsel's motion for reconsideration of that ruling. See Mullen v. GLV, Inc., No. 18 C 1465, 2020 WL 5630454 (N.D. Ill. Sept. 20, 2020). While the motion for reconsideration was pending, defendants moved for imposition of sanctions against Mullen and her attorneys. Once Mullen appealed from entry of judgment, the Court determined to hold off ruling on the defendants' motion for sanctions and on the amount of the sanctions award to the plaintiff, in the event an appellate ruling might affect matters. In late June 2022, the court of appeals affirmed this Court's dismissal order. Mullen v. GLV, Inc., 37 F.4th 126 (7th Cir. 2022). It concluded that Mullen could not show she had been injured by the defendants' claimed deception because she knew

enough about "the findings adverse to Butler," id. at 1330, to undermine her claim that she had been injured as a result of the claimed deception. The Court now addresses defendants' motion for sanctions and plaintiffs' fees- and-costs petition based on the Court's earlier sanctions order. A. Defendants' motion for sanctions Defendants' 49-page motion, reduced to its essentials, includes the following contentions in support of their request for imposition of sanctions on Mullen and her attorneys: • Mullen and her counsel filed the suit for an improper purpose, specifically, to force the defendants out of business. • Mullen and her counsel included all sorts of irrelevant and extraneous material in her complaint in an effort to prejudice and embarrass the defendants. • Mullen, and perhaps her counsel, engaged in a social media campaign

that harassed and was defamatory of the defendants. • The lawsuit and filings in it included a number of false factual assertions and irrelevant allegations, including principally the following: o false statements that Mullen did not have prior knowledge of the allegations about Rick's sexual misconduct with underage girls; o false statements that Mullen would not have paid for volleyball training for her daughters if she had known of the allegations regarding Rick; o false statements about Mullen's daughter's experience in the

program(s); and o false statements about the DCFS proceedings regarding Rick. • Mullen's counsel engaged in abusive discovery tactics. Defendants seeks sanctions under Fed. R. Civ. P. 11, 28 U.S.C. § 1927, and the Court's inherent power. Rule 11 provides that by filing a document with the Court, an attorney certifies that "to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances," the filing has an adequate foundation in fact and law, and "it is not being presented for any improper purpose, such as to harass, cause unnecessary delay, or needlessly increase the cost of litigation."

Fed. R. Civ. P. 11(b). Rule 11 embodies both an objective and a subjective standard, prohibiting "frivolousness on the objective side" and "bad faith on the subjective side." MAO-MSO Recovery II, LLC v. State Farm Mut. Auto. Ins. Co., 935 F.3d 573, 583 (7th Cir. 2019) (citing Mars Steel Corp. v. Cont'l Bank N.A., 880 F.2d 928, 930 (7th Cir. 1989)).

Section 1927 provides that an attorney "who so multiplies the proceedings in any case unreasonably and vexatiously" may be required to pay "the excess costs, expenses, and attorneys' fees reasonably incurred because of such conduct." 28 U.S.C. § 1927. The Seventh Circuit has said that section 1927 "sets a higher standard for sanctions" than Rule 11, see United Stars Industries, Inc. v. Plastech Engineered Products, Inc., 525 F.3d 605, 610 (7th Cir.

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