Steinert v. Winn Group, Inc.

440 F.3d 1214, 2006 U.S. App. LEXIS 6059, 2006 WL 598165
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 13, 2006
Docket04-3392
StatusPublished
Cited by84 cases

This text of 440 F.3d 1214 (Steinert v. Winn Group, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steinert v. Winn Group, Inc., 440 F.3d 1214, 2006 U.S. App. LEXIS 6059, 2006 WL 598165 (10th Cir. 2006).

Opinion

McCONNELL, Circuit Judge.

This is an appeal from a district court order awarding appellees attorney fees under 28 U.S.C. § 1927 against plaintiffs attorney, pro se appellant John Gage. Gage argues that (1) the award was inconsistent with the district court’s denial of fees under 42 U.S.C. § 1988 and Fed. R.Civ.P. 11; (2) the award violated due process; (3) § 1927 applies only to the multiplication of proceedings and not to the initiation of proceedings; (4) § 1927 was inapplicable to punish his numerous requests for extensions of time; and (5) appellees’ motion for fees violated various procedural rules. Finding partial merit in Gage’s third argument, we affirm in part, reverse in part, and remand for further proceedings.

Background

Lawrence Steinert retained attorney Gage to sue James Winn and The Winn Group, Inc. (collectively, “Winn”). Gage filed a complaint in federal court in December 1998, and served it in April 1999. He alleged that Winn offered to represent Steinert in finding work as an actuary. Steinert apparently accepted and was notified of a job opportunity with Scruggs Actuarial Service, Inc., located in Texas. During an interview with Scruggs, Steinert was allegedly “induced through fraud to provide Scruggs with fifteen ... hours of actuarial services” as part of a conspiracy between Scruggs and Winn “to obtain slave labor.” ApltApp. at 7D. Steinert signed a “secrecy agreement,” but he refused to sign an employment contract because it contained a provision requiring that he “reimburse Scruggs ... for any recruiting fee” if the employment relationship ended within three years. Id. Although Steinert never became a Scruggs employee, he filed a wage claim with the Texas Work Force Commission for the work performed during the interview. Scruggs later sued Steinert in state court, claiming a breach of the secrecy agreement.

Based on these allegations, Gage formulated nine claims for relief against Winn: (1) violation of the “Kansas Private Employment Agency Act,” (KPEA) id. at 7F; 1 (2) violation of the “Texas Personnel Employment Services Act,” (TPEA) id. at 7H; 2 (3) breach of fiduciary duties; (4) breach of the covenant of good faith and fair dealing; (5) negligence; (6) “exposing plaintiff to litigation with ... Scruggs,” id. at 7M; (7) fraud; (8) conspiracy; and (9) violation of 42 U.S.C. §§ 1983 and 1985 regarding, among other things, “plaintiffs right against involuntary servitude and peonage,” id. at 7P.

On April 26, 1999, Winn answered and moved to dismiss the KPEA claim, the fiduciary duty claim, the good-faith-and-fair-dealing claim, the litigation-exposure claim, the Title 42 claims, and a portion of the TPEA claim. In response, Gage embarked on a five-month extension-seeking campaign, during which he requested nine extensions of time to file an opposition to Winn’s motion to dismiss. The requests cited Gage’s problems with support staff, computers, office equipment, “and other problems too numerous to detail,” Aplt. *1218 App. at 88, as well as family illnesses, fatigue, personal doctor visits, responsibilities on other cases, the complexity of the instant case, attendance at a legal convention, and a camping trip with his son. Gage also sought six extensions of time to file a motion for leave to amend or add parties, five extensions to make Fed. R.Civ.P. 26(a) initial disclosures, four extensions to respond to a demand for documents, three extensions to provide medical, employment and tax releases, three extensions to identify authority for any attorney fee award, two extensions to serve a preliminary witness list, and two extensions to file a certificate of financial interest. Winn’s counsel agreed to many of the extensions and the district court expressly granted most of them, citing good cause or excusable neglect, and sometimes both. Most of the extension requests violated Rule 6.1(a) of the United States District Court Rules for the District of Kansas, as the requests were made after the previously extended deadlines. 3

But on October 15, 1999, Winn’s counsel moved to dismiss for failure to prosecute. On October 20, the district court reviewed the litigation’s history and stated:

The Court recognizes that some of plaintiffs requested extensions, viewed in in-solation, may have been properly based on time constrictions or excusable neglect. A review of the entire course of the litigation, however, shows a pattern of neglect which the Court cannot characterize as excusable.

ApltApp. at 104. Nevertheless, the district court declined to dismiss the case, and instead gave Gage forty-eight hours to (1) file any motion to amend/add parties and any opposition to Winn’s April motion to dismiss, and (2) provide initial disclosures and respond to Winn’s production demand. But the court cautioned Gage that it might “order that plaintiff and/or his counsel pay the costs and attorneys’ fees attributable to them default” if Gage failed to timely comply. Aplt-App. at 105.

On October 22,1999, Gage filed a motion for leave to amend the complaint by adding four more claims against Winn 4 and adding Scruggs as a defendant facing ten claims. 5 In the motion, Gage revealed for the first time that the “primary factors” causing the delays in the case were his difficulties in obtaining a determination from Steinert and his Texas counsel regarding their intent to proceed against Winn and Scruggs in state court. Aplt. App. at 182D. 6 The district court denied leave to amend.

*1219 Gage also filed a seventy-seven page opposition to Winn’s April motion to dismiss. Therein, Gage conceded that his client’s 42 U.S.C. § 1983 claim failed because there was no state action. But Gage devoted fourteen pages to arguing that Winn and Scruggs were liable under 42 U.S.C. § 1985(2) 7 and (3). 8 Specifically, regarding subsection (2), Gage argued that Winn and Scruggs had conspired to sue Scruggs’ employees and Steinert in state court “to keep present employees cowering, captive, and unable to mount any challenges to their status as peons based upon the debt bondage Scruggs has put into effect through [its employment] contracts.” Aplt.App. at 169.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
440 F.3d 1214, 2006 U.S. App. LEXIS 6059, 2006 WL 598165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steinert-v-winn-group-inc-ca10-2006.