Sanders v. Farina

197 F. Supp. 3d 892, 95 Fed. R. Serv. 3d 312, 2016 U.S. Dist. LEXIS 89789, 2016 WL 3896845
CourtDistrict Court, E.D. Virginia
DecidedJuly 6, 2016
DocketCase No. 1:16-cv-617
StatusPublished
Cited by5 cases

This text of 197 F. Supp. 3d 892 (Sanders v. Farina) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanders v. Farina, 197 F. Supp. 3d 892, 95 Fed. R. Serv. 3d 312, 2016 U.S. Dist. LEXIS 89789, 2016 WL 3896845 (E.D. Va. 2016).

Opinion

ORDER

T.S. Ellis, III, United States District Judge

At issue post-remand in this matter is whether Rule 11, Fed. R. Civ. P., sanctions should be imposed against the pro se defendant following a trilogy of unsuccessful and baseless attempts to remove a state court breach-of-contract dispute to federal court.

I.

Plaintiff is an attorney residing in the District of Columbia. Defendant is a resident of Virginia. Their dispute arises out of a legal services agreement (the “Agreement”) entered into on January 23, 2013, in which plaintiff agreed to represent defendant in a legal action against defendant’s employer for alleged violations of the District of Columbia Human Rights Act, D.C. Code § 2-1402.21.

On August 19, 2013, plaintiff filed an action against defendant in the Circuit Court for the City of Alexandria, Virginia (“state circuit court”) alleging that defendant breached the Agreement by failing to pay plaintiff for legal services rendered and costs advanced. On February 26, 2014, the pro se defendant removed the breach-of-contract action to federal court on the basis of diversity jurisdiction. Plaintiff promptly filed a motion to remand the action to the state circuit court, and on March 14, 2014, an Order issued granting plaintiffs motion to remand on the following grounds: (i) that under 28 U.S.C. § 1441(b)(2), defendant’s status as a Virginia resident precluded removal to a federal court in Virginia on the basis of diversity jurisdiction,1 and (ii) that defendant’s notice of removal was untimely. See Sanders v. Farina, No. 1:14-cv-214 (E.D.Va. March 14, 2014) (Order) (Doc. 12). No Rule 11 sanction or a 28 U.S.C. § 1447(c) fee award was sought in connection with this first removal attempt.

Thereafter, on September 12, 2014, approximately two weeks before trial was scheduled to begin on the breach-of-contract action in the state circuit court, defendant once again sought to remove this state action to federal court, and once again, plaintiff filed a motion to remand. Shortly before the scheduled hearing on that motion, defendant filed for Chapter 7 bankruptcy protection.2 Defendant then argued that as a result of the bankruptcy filing, plaintiffs motion to remand could not be heard in federal district court. On November 18, 2014, an Order issued (i) rejecting defendant’s argument that the bankruptcy proceeding barred a ruling on plaintiffs second motion to remand,3 and [895]*895(ii) granting the motion to remand because there was no sound legal basis for removal. Sanders v. Farina, 67 F.Supp.3d 727 (E.D.Va.2014) (Order) (Doc. 11).

Thereafter, on December 22, 2015, plaintiff filed a motion for actual expenses, including attorney’s fees, pursuant to § 1447(c). In the course of oral argument on plaintiffs § 1447(c) motion before the magistrate judge, plaintiffs counsel argued that an award of attorney’s fees stemming from the second removal attempt was warranted because defendant’s meritless removal attempt was the second of two removal attempts, both of which were entirely without basis in law. Specifically, defendant’s first removal attempt was based on a theory of removal clearly barred by § 1441(b)(2), and defendant’s second removal attempt was based on a purported right to a jury trial. Defendant’s claim to a right to a jury trial in a state law contract dispute was not a basis for removal to federal court, and defendant’s claim to the contrary was frivolous. This is so because, as the November 18, 2014 Order made clear, the purported federal question defendant alleged—a right to a jury trial—was not a part of plaintiffs well-pleaded complaint, and therefore the case was not one “arising under” federal law pursuant to 28 U.S.C. § 1331. See Louisville & Nashville R.R. Co. v. Mottley, 211 U.S. 149, 153-54, 29 S.Ct. 42, 53 L.Ed. 126 (1908) (holding that federal question jurisdiction exists only when a federal question is necessarily raised on the face of a well-pleaded complaint). Thus, the magistrate judge concluded that it was appropriate to award plaintiff attorney’s fees related to the second improper removal attempt pursuant to § 1447(c),4 and accordingly, on January 22, 2016, the magistrate judge issued an Order granting plaintiffs § 1447(c) motion for actual expenses, including attorney’s fees, with respect to the second removal attempt. Sanders v. Farina, No. 1:14-cv-1214 (E.D.Va. Jan. 22, 2016) (Order) (Doc. 19).

Thereafter, defendant filed an objection to the Order granting plaintiffs § 1447(c) motion, and on February 17, 2016, an Order issued overruling defendant’s objection to the award of attorney’s fees and adopting the magistrate judge’s ruling awarding attorney’s fees pursuant to 28 U.S.C. § 1447(c). Sanders v. Farina, No. 1:14-cv-1214 (E.D.Va. Feb. 17, 2016) (Order) (Doc. 24). The Order also remanded the matter to the magistrate judge “for a prompt hearing on the appropriate amount of attorney’s fees to be awarded and for entry of a final order.” Id. Accordingly, plaintiff filed a motion to determine the proper amount of attorney’s fees to be awarded. Plaintiff contended that attorney’s fees for the 21.06 hours claimed should be awarded at a rate of $350/hour, whereas defendant contended that attorney’s fee for those hours should be awarded at a rate of $150/ [896]*896hour, based on the hourly rate plaintiff had previously charged defendant for legal services. Ultimately, the magistrate judge concluded that it was appropriate to award attorney’s fees at the $150/hour rate, in part because during oral argument, plaintiffs counsel agreed that for purposes of the attorney’s fee award, he would “live with it [the $150/hour rate].” Sanders v. Farina, No. 1:14-cv-1214 (E.D.Va. April 20, 2016) (Doc. 47) (Transcript of April 1, 2016 Hearing). The magistrate judge also found it appropriate to award plaintiff $166.76 in other expenses to reimburse plaintiff for the cost of a deposition transcription. Id. at 18-19. To this end, the magistrate judge issued an Order granting in part and denying in part plaintiffs motion for attorney’s fees and costs pursuant to § 1447(c),5 and directing defendant to reimburse plaintiff for attorney’s fees in the amount of $3,169.00 and costs in the amount of $166.76. Sanders v. Farina, No. 1:14-cv-1214 (E.D.Va. April 1, 2016) (Order) (Doc. 43).

Thereafter, defendant filed an objection to the magistrate judge’s April 1, 2016 Order, and on April 21, 2016, a Memorandum Opinion and Order issued overruling defendant’s objection and adopting the reasoning of the magistrate judge. Sanders v. Farina, No. 1:14-cv-1214, 183 F.Supp.3d 762, 2016 WL 1633212 (E.D.Va. April 21, 2016) (Order) (Doc. 49).6 Accordingly, the Order directed defendant to reimburse plaintiff for actual expenses in the amount of $3,326.75—$3,159.00 in attorney’s fees and $166.75 in other expenses— pursuant to § 1447(c).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sanders v. Farina
671 F. App'x 183 (Fourth Circuit, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
197 F. Supp. 3d 892, 95 Fed. R. Serv. 3d 312, 2016 U.S. Dist. LEXIS 89789, 2016 WL 3896845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanders-v-farina-vaed-2016.