Nawal Ali v. BC Architects Engineers, PLC

CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 20, 2026
Docket24-1963
StatusPublished

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Bluebook
Nawal Ali v. BC Architects Engineers, PLC, (4th Cir. 2026).

Opinion

USCA4 Appeal: 24-1963 Doc: 47 Filed: 02/20/2026 Pg: 1 of 17

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 24-1963

NAWAL ALI,

Plaintiff – Appellant,

v.

BC ARCHITECTS ENGINEERS, PLC,

Defendant – Appellee.

Appeal from the United States District Court for the Eastern District of Virginia, at Alexandria. Anthony John Trenga, Senior District Judge. (1:18-cv-01385-AJT-MSN)

Argued: December 9, 2025 Decided: February 20, 2026

Before DIAZ, Chief Judge, and WYNN and HARRIS, Circuit Judges.

Reversed by published opinion. Judge Harris wrote the opinion, in which Chief Judge Diaz and Judge Wynn joined.

Arinderjit Dhali, DHALI PLLC, Washington, D.C., for Appellant. Lars Howard Liebeler, LARS LIEBELER PC, Washington, D.C., for Appellee. USCA4 Appeal: 24-1963 Doc: 47 Filed: 02/20/2026 Pg: 2 of 17

PAMELA HARRIS, Circuit Judge:

This appeal arises out of an employment discrimination lawsuit filed by Nawal Ali

against her former employer, BC Architects Engineers, PLC. But it does not concern the

merits of Ali’s claims – at least not directly. Instead, after granting summary judgment to

BC on Ali’s final claim, the district court imposed sanctions against Ali’s counsel pursuant

to 28 U.S.C. § 1927 and ordered him to pay roughly $57,000 in costs. In the district court’s

view, by the end of discovery Ali’s counsel knew or should have known that his client’s

sole remaining claim was baseless. Because he failed to voluntarily dismiss the case at that

point and instead opposed BC’s motion for summary judgment, the district court found he

had unreasonably and vexatiously multiplied the proceedings in a manner warranting

sanctions.

We conclude the district court abused its discretion in imposing sanctions on Ali’s

counsel and therefore reverse its judgment.

I.

We begin by outlining the factual and procedural history of this long-running

dispute, which has been the subject of four district court opinions and three prior appeals.

Because the merits of Ali’s claims are indirectly relevant to this appeal, we first review the

motion to dismiss and summary judgment proceedings in this case. We then summarize

the sanctions proceedings at issue on appeal.

2 USCA4 Appeal: 24-1963 Doc: 47 Filed: 02/20/2026 Pg: 3 of 17

A.

Nawal Ali worked as a computer-assisted design drafter at BC Architects Engineers,

PLC (“BC”), from March 2015 until April 2016, when BC’s two owners terminated her

employment. Ali is a Syrian-American Muslim woman and wears a hijab.

After her termination, Ali sued BC for unlawful race discrimination, hostile work

environment, retaliation, breach of contract, and a violation of the Fair Labor Standards

Act of 1938. She claimed she was passed up for promotions and later demoted because of

her race and that another BC employee harassed and discriminated against her because she

was Arab. She also alleged that, shortly before she was fired, she reported this

discrimination and harassment to BC’s two owners and subsequently faced retaliation,

including her termination.

The district court dismissed all of Ali’s claims. Ali v. BC Architects Eng’rs, PLC

(“Ali I”), 2019 WL 11316659 (E.D. Va. May 1, 2019). On appeal, we affirmed the

dismissal as to most of those claims. Ali v. BC Architects Eng’rs, PLC, 832 F. App’x 167

(4th Cir. 2020). But a claim for retaliatory termination, we concluded, could go forward,

and we reversed and remanded to the district court on that count. Id. at 173–74. In

particular, we noted that Ali alleged “that her work performance was satisfactory

throughout her tenure,” and that after she reported discrimination and harassment to BC’s

owners “she was twice denied reasonable requests to work from home to care for her sick

son.” Id. at 173. These allegations together, we explained, “plausibly stated a retaliatory-

termination claim.” Id.

3 USCA4 Appeal: 24-1963 Doc: 47 Filed: 02/20/2026 Pg: 4 of 17

On remand, the case proceeded to discovery. As sometimes happens, the evidence

uncovered did not corroborate all of the complaint’s allegations – including the two we had

highlighted in our earlier opinion. For instance, the evidence called into question Ali’s job

performance, indicating that she had failed to meet work deadlines on multiple occasions

and owed 30 work hours to BC, which she did not make up despite promises to do so. As

for Ali’s two requests to work from home, BC had granted one and, while denying the

other, still permitted Ali to take leave so she could care for her son.

But discovery also revealed new information about the case that was arguably less

favorable to BC. First, in interrogatory responses and depositions, BC’s owners put

forward their reasons for terminating Ali’s employment. And as the district court would

later acknowledge, there were certain “variations” in these accounts. See Ali v. BC

Architects Eng’rs, PLC (“Ali II”), 2021 WL 2816016, at *9 (E.D. Va. May 28, 2021).

Second, deposition testimony revealed that Ali had not been placed on the performance

improvement plan (“PIP”) contemplated by BC’s progressive discipline policy before her

termination. According to BC’s owners, that was because they were unaware of the

company’s progressive discipline policy, though it was laid out in the employee handbook.

At the close of discovery, BC moved for summary judgment, and Ali opposed the

motion. Analyzing Ali’s claim under the familiar McDonnell Douglas framework, the

district court found that Ali had established a prima facie case of retaliation. Id. at *7–8.

But, the district court concluded, Ali failed to meet her burden at the “pretext” stage of the

analysis because there was no record evidence from which a jury could infer that BC’s

proffered reasons for her termination were pretexts for retaliation. Id. at *8–9.

4 USCA4 Appeal: 24-1963 Doc: 47 Filed: 02/20/2026 Pg: 5 of 17

Specifically, the district court rejected Ali’s argument that BC’s shifting explanations for

her termination were evidence of pretext, reasoning that Ali had identified only “relatively

minor discrepancies” and that all of BC’s explanations fell “within the general category of

lack of productivity and insubordination.” Id. The district court did not address Ali’s

argument that a jury also could infer pretext from BC’s departure from its progressive

discipline policy in connection with her termination.

Having found that Ali failed to rebut BC’s legitimate, non-retaliatory reasons for

her termination, the district court granted summary judgment to BC. Id. at *9. We affirmed

the district court’s order in an unpublished per curiam decision. Ali v. BC Architects

Eng’rs, PLC, 2022 WL 17985701 (4th Cir. Dec. 29, 2022).

B.

After the district court granted summary judgment, BC moved for sanctions against

Ali’s counsel pursuant to 28 U.S.C. § 1927, which authorizes courts to require “[a]ny

attorney . . . who so multiplies the proceedings in any case unreasonably and vexatiously”

to “satisfy personally the excess costs, expenses, and attorneys’ fees reasonably incurred

because of such conduct.” In support of this motion, BC argued that Ali’s claims were

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