Young v. Annarino

123 F. Supp. 2d 943, 48 Fed. R. Serv. 3d 804, 2000 U.S. Dist. LEXIS 19434, 2000 WL 1804735
Procedural entryThis page is a short order in Young v. Annarino. Read the opinion of the Court — 123 F. Supp. 2d 915
District Court, W.D. North Carolina·Decided October 24, 2000·No. Civ. 1:99CV113·Published

Opinion

ORDER

THORNBURG, District Judge.

THIS MATTER is before the Court on the Defendants’ motion pursuant to Federal Rule of Civil Procedure 54(d) for an award of attorneys’ fees, costs and interest as the prevailing party. Defendants also maintain that the filing and prosecution of this action violated Federal Rule of Civil Procedure 11 and seek an award of attorneys’ fees as a sanction. The Plaintiffs oppose the motion.

On June 21, 2000, the undersigned granted the Defendants’ motion for summary judgment and dismissed the action. In so doing, the Court rejected the Plaintiffs’ claims pursuant to 42 U.S.C. §§ 1983 and 1985, civil claims pursuant to the Racketeer Influenced and Corrupt Organization Act (RICO), and state law claims based on breach of contract, wrongful discharge, negligent supervision, defamation and willful and wanton conduct. Defendants now seek an award of attorneys’ fees, claiming they are the prevailing parties, Plaintiffs’ action was frivolous and the allegations were not based on existing law.

Section 1988 of Title 42, United States Code, provides in pertinent part that “[i]n any action ... to enforce a provision of section[ ] ... 1983 ... the court, in its discretion, may allow the prevailing party ... a reasonable attorney’s fee as part of the costs.” 42 U.S.C. § 1988(b). This section

confers discretion on courts to award attorneys fees to the prevailing party in an action brought under, inter alia, 42 U.S.C. § 1983. When the prevailing party is the defendant, the attorneys fees should be awarded if the court finds “ ‘that the plaintiffs action was frivolous, unreasonable, or without foundation, even though not brought in subjective bad faith.’” Stated otherwise, “[t]he *944 plaintiffs action must be meritless in the sense that it is groundless or without foundation,” but there need not be any subjective bad faith on the part of the plaintiff.

DeBauche v. Trani, 191 F.3d 499, 510 (4th Cir.1999), cert. denied, 529 U.S. 1033, 120 S.Ct. 1451, 146 L.Ed.2d 337 (2000) (quoting Hughes v. Rowe, 449 U.S. 5, 14, 101 S.Ct. 173, 66 L.Ed.2d 163 (1980) (quoting Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 98 S.Ct. 694, 54 L.Ed.2d 648 (1978))). The parties do not dispute that the Defendants here were the prevailing parties since the action was dismissed in its entirety. Nor is there any allegation that the action was brought with subjective bad faith, such as actions brought for vindictive reasons. See, e.g., Hutchinson v. Staton, 994 F.2d 1076 (4th Cir.1993). The issue, then, is whether the action was “frivolous, unreasonable, or without foundation.” DeBauche, supra. In this regard, it is noteworthy that the Defendants admit “this lawsuit involved numerous parties and ten causes of action invoking both state and federal law through novel, inventive legal theories.” Motion for Allowance of Attorney’s Fees, filed July 5, 2000, at 2. Novel and inventive legal theories are not frivolous as long as they support “the extension, modification, or reversal of existing law or the establishment of new law.” Fed.R.Civ.P. 11(b)(2); Legal Services of Northern California, Inc. v. Arnett, 114 F.3d 135, 141 (9th Cir.1997) (The fact that a position is not supported by existing precedent does not make it frivolous. “It is likely that [plaintiff] was launching a good faith effort to advance a novel theory under our § 1983 jurisprudence. While we have rejected this attempt, [plaintiffs’] arguments were not wholly without merit.”).

An assertion of law violates Rule 11(b)(2) when, applying a standard of objective reasonableness, it can be said that “a reasonable attorney in like circumstances could [not have] believe[d] his actions to be ... legally justified.” A legal contention is unjustified when “a reasonable attorney would recognize [it] as frivolous.” Put differently, a legal position violates Rule 11 if it “has ‘absolutely no chance of success under the existing precedent.’ ”

In re Sargent, 136 F.3d 349, 352 (4th Cir.1998), cer t. denied, 525 U.S. 854, 119 S.Ct. 133, 142 L.Ed.2d 108 (1998) (quoting Cabell v. Petty, 810 F.2d 463, 466 (4th Cir.1987); Forrest Creek Associates, Ltd. v. McLean Sav. & Loan Ass’n, 831 F.2d 1238, 1245 (4th Cir.1987); and Brubaker v. City of Richmond, 943 F.2d 1363 1373 (4th Cir.1991)).

Although appropriate for disposition on summary judgment, this action was fact intensive in the sense that Plaintiffs’ counsel could have objectively perceived the facts stated due process violations. Hutchinson, 994 F.2d at 1080 (awarding fees where the claim had no factual basis). When the Defendants’ summary judgment motion was considered, the undersigned found that certain of the Plaintiffs had shown they had protected liberty interests in the form of continued employment. And, the issue of whether the Plaintiffs received procedural due process was not simply resolved. Indeed, 22 pages of the 25-page opinion were devoted to the facts and application of law thereto. Claims which are dismissed after “ ‘careful consideration,’ especially as evidenced by lengthy, detailed and reasoned orders or opinions, are not ‘groundless’ or ‘without foundation.’” Jane L. v. Bangerter, 61 F.3d 1505, 1513 (10th Cir.1995) (quoting Hughes, 449 U.S. at 15-16, 101 S.Ct. 173). Indeed, if the Plaintiffs’ theories for recovery had been frivolous, “the district court would have had no need to engage in prolonged and fact specific inquiries.” Id.,

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Young v. Annarino, 123 F. Supp. 2d 943, 48 Fed. R. Serv. 3d 804, 2000 U.S. Dist. LEXIS 19434, 2000 WL 1804735 (W.D.N.C. 2000).

123 F. Supp. 2d 943 (Young v. Annarino) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hughes v. Rowe
449 U.S. 5 (Supreme Court, 1980)
In Re Sargent
136 F.3d 349 (Fourth Circuit, 1998)
DeBauche v. Trani
191 F.3d 499 (Fourth Circuit, 1999)
Jane L. v. Bangerter
61 F.3d 1505 (Tenth Circuit, 1995)
Hershinow v. Bonamarte
772 F.2d 394 (Seventh Circuit, 1985)
Cabell v. Petty
810 F.2d 463 (Fourth Circuit, 1987)
Introcaso v. Cunningham
857 F.2d 965 (Fourth Circuit, 1988)
Brubaker v. City of Richmond
943 F.2d 1363 (Fourth Circuit, 1991)
Hutchinson v. Staton
994 F.2d 1076 (Fourth Circuit, 1993)
Portorreal-Quezada v. United States
525 U.S. 854 (Supreme Court, 1998)