Patterson v. Aiken

111 F.R.D. 354
CourtDistrict Court, N.D. Georgia
DecidedJune 27, 1986
DocketCiv. A. No. C85-3501A
StatusPublished
Cited by6 cases

This text of 111 F.R.D. 354 (Patterson v. Aiken) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patterson v. Aiken, 111 F.R.D. 354 (N.D. Ga. 1986).

Opinion

ORDER

FORRESTER, District Judge.

This action is before the court on the motion of certain of the defendants for attorney's fees pursuant to Rule 11 of the Federal Rules, of Civil Procedure. In a prior order issued by this court, plaintiff’s complaint was dismissed on the grounds that it was frivolous. The counts of the complaint subject to this motion are Count III, in which plaintiff alleged a violation of the antitrust laws by the moving defendants, which this court dismissed because plaintiff had failed to allege that he had suffered any “antitrust injury” as defined by case law; Count V of the complaint, as against these defendants, which alleged obstruction of justice and was dismissed by this court on grounds of res judicata and collateral estoppel, since everything alleged in that count was or could have been raised in plaintiff's prior lawsuits against these defendants; and Count VI of the com[355]*355plaint, which alleged that certain of these defendants induced plaintiff’s attorneys to breach their contract with him, and the court dismissed that count because it was non-diverse.

The defendants predicate their motion for attorney’s fees on three legal arguments: first, that fees are appropriate under Rule 11 of the Federal Rules of Civil Procedure; second, that fees are appropriate pursuant to 28 U.S.C. § 1927 governing willfulness or bad faith in continuing litigation; and third, on the court’s inherent equitable powers. The court finds that neither of the latter two prongs of defendants’ motion are well founded, since no evidence was brought forward at the evidentiary hearing held on this motion of willfulness or bad faith on the part of the plaintiff. That means that if sanctions are appropriate, they may be imposed only under Rule 11 of the Federal Rules of Civil Procedure. That rule provides in pertinent part as follows:

Every pleading, motion, and other paper of a party represented by an attorney shall be signed by at least one attorney of record in his individual name, whose address shall be stated. A party who is not represented by an attorney shall sign his pleading, motion, or other paper and state his address. The signature of an attorney or party constitutes a certificate by him that he has read the pleading, motion, or other paper; that 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 or a good faith argument for the extension, modification, or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation____ If a pleading, motion, or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, motion, or other paper, including a reasonable attorney’s fee.

Therefore, Rule 11 imposes upon both attorneys and pro se litigants the burden of investigating both the factual and legal bases for the claims they assert in papers addressed to the court, and of ascertaining that there is a reasonable basis for maintaining the action or position taken in the papers. The language of Rule 11 represents a change from the prior law, which was that the attorney or party need only satisfy the court that he had a subjective good faith belief that his position was justifiable.

The new language stresses the need for some pre-filing 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 that the original good-faith formula____

Advisory Committee Notes to Rule 11. In applying this rule, the court is not to exercise hindsight with respect to what the attorney or party should have known, but instead is to “test the signer’s conduct by inquiring what was reasonable to believe at the time the pleading, motion or other paper was submitted.” Id. Because the plaintiff herein is a pro se litigant, it is relevant to note that the Advisory Committee has indicated that although pro se litigants are subject to Rule 11, “... the court has sufficient discretion to take account of the special circumstances that often arise in pro se situations.” The notes continue:

... [T]he court should take account of the state of the attorney’s or party’s actual or presumed knowledge when the pleading or other paper was signed. Thus, for example, when a party is not represented by counsel, the absence of legal advice is an appropriate factor to be considered.

Once it is determined that a pleading or other paper has been signed in violation of [356]*356Rule 11, the court must then determine the appropriate sanction to be imposed. Consideration of the appropriateness of any-given sanction depends upon the court’s particular orientation toward the purposes of Rule 11. The Advisory Committee Notes list only one purpose for Rule 11, which is to discourage dilatory or abusive tactics, and to lessen frivolous claims or defenses—in other words, a deterrence rationale. There are at least two other potential functions served by Rule 11, however. These are punishment of the offending party, and a cost-shift so that the innocent party does not bear the cost of the offending party’s violation. See, e.g., An Empirical Study of Rule 11 Sanctions, Federal Judicial Center, 1985, p. 29.

Those courts which have adopted a punishment rationale also tend to focus upon such issues as good faith, bad faith, and willfulness in determining the appropriate sanction. Id. at 25-28. The problem with a punishment rationale, from this court’s perspective, is that it requires an inquiry into the state of mind of the person who violated the rule; in other words, a determination of the person’s subjective good or bad faith. Rule 11 was amended in 1983 specifically because the drafters wanted to avoid the necessity of the court making such a subjective inquiry. In substituting the reasonable inquiry language, the drafters injected a measure of objectivity and empirical verifiability into Rule 11 inquiries. See, e.g., Mohammed v. Union Carbide Corp., 606 F.Supp. 252 (E.D.Mich. 1985). In Mohammed, the court noted that unlike subjective good faith, where the court was limited to believing or disbelieving the testimony of the person who signed the pleading, if the court is determining whether an inquiry was “reasonable” the court may look to the facts surrounding what actions were taken by the person and determining whether that constituted reasonable inquiry under all the circumstances. While not mathematically precise, the system at least affords some degree of consistency in imposing Rule 11 sanctions. A punishment-oriented inquiry, however, does not, and for that reason this court finds it inappropriate as a rationale for the imposition of sanctions.

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152 F.R.D. 656 (N.D. Georgia, 1993)
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821 F.2d 121 (Second Circuit, 1987)
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Bluebook (online)
111 F.R.D. 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-aiken-gand-1986.