Religious Technology Center v. Liebreich , 98 F. App'x 979 ( 2004 )


Menu:
  •                                                         United States Court of Appeals
    Fifth Circuit
    F I L E D
    REVISED
    May 10, 2004
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT             Charles R. Fulbruge III
    Clerk
    No. 03-41447
    RELIGIOUS TECHNOLOGY CENTER,
    Plaintiff-Appellant,
    versus
    DELL LIEBREICH, as Personal Representative of the Estate of Lisa
    McPherson,
    Defendant-Appellee.
    - - - - - - - - - - - - - - - - - - - - - - - - - - -
    No. 03-41575
    RELIGIOUS TECHNOLOGY CENTER,
    Plaintiff-Appellee,
    versus
    DELL LIEBREICH, as Personal Representative of the Estate of Lisa
    McPherson,
    Defendant-Appellant.
    Appeals from the United States District Court
    for the Eastern District of Texas
    (No. 00-CV-503)
    Before GARWOOD, WIENER, and DeMOSS, Circuit Judges.
    PER CURIAM:*
    This appeal is just the latest skirmish in the protracted war
    between these litigants.       Consolidated before us are two appeals
    that are, in effect, cross-appeals by the combatants and their
    respective attorneys, each side seeking to shift attorney’s fees
    and costs to the other in the form of sanctions.          Indeed, that is
    the sole issue remaining in the instant appeal, the merits having
    long since been determined.
    I.   FACTS & PROCEEDINGS
    This is the second time that the question of sanctions has
    been before us in this ongoing dispute between the Plaintiff-
    Appellant, Religious Technologies Center (“RTC”) and the Defendant-
    Appellee, the estate of Lisa McPherson (the “Estate”).              In the
    first appeal (“RTC I”), we vacated the entire judgment of the
    district court —— including its award of sanctions in RTC’s favor
    —— for lack of personal jurisdiction over the Estate.1            We heard
    RTC I after RTC prevailed in the merits trial of its breach of
    contract claim.
    In addition to the compensatory damages awarded to RTC by the
    jury, the district court had awarded RTC attorney’s fees totaling
    $327,654   and   costs   of   $10,675    pursuant   to   the   fee-shifting
    *
    Pursuant to 5TH CIR. R. 47.5, the court has determined that
    this opinion should not be published and is not precedent except
    under the limited circumstances set forth in 5TH CIR. R. 47.5.4.
    1
    See Religious Tech. Ctr. v. Liebreich, 
    339 F.3d 369
    , 376
    (5th Cir. 2003), cert. denied, 
    124 S. Ct. 1085
     (2004).
    2
    provision of the underlying contract.         In ruling on cross-motions
    for sanctions, the district court found that counsel for the
    Estate, Thomas and Kennan Dandar (the “Dandars”), had violated 
    28 U.S.C. § 1927
     and ordered them personally to pay $98,296, being 30
    percent of the total attorney’s fees awarded to RTC.           The district
    court declined to sanction RTC’s counsel.2
    In RTC I, we did not address the merits of the Dandars’
    challenge to the district court’s award of sanctions, because the
    issue of personal jurisdiction was dispositive.3           In responding to
    a motion to clarify, however, we explained that “the sanctions
    award is vacated and not reversed.           The vactur of the sanctions
    award is appropriate in light of our determination that there is no
    jurisdiction against the Estate of Lisa McPherson.            The district
    court    can   reconsider   the   sanction    issue   in   light   of   said
    determination.”4 On remand following our ruling and clarification,
    the district court summarily denied RTC’s renewed motion for
    sanctions and attorney’s fees, stating only that its ruling was
    “[i]n accordance with the directions of the United States Court of
    Appeals for the Fifth Circuit.” The district court also denied the
    Estate’s post-remand motion for sanctions against RTC and its
    counsel.
    2
    Id. at 373.
    3
    Id. at 371 n.2.
    4
    Emphasis added.
    3
    In the instant appeal (“RTC II”), RTC contends that the
    district court misconstrued our RTC I decision and subsequent
    clarification as prohibiting the imposition of sanctions against
    the Dandars for the conduct that the district court had previously
    adjudged to be sanctionable.                For its part, the Estate advances
    four challenges, viz., (1) the district court’s refusal to award
    the Estate attorney’s fees and costs under the contractual fee-
    shifting provision; (2) the denial of costs under 
    28 U.S.C. § 1919
    ;
    (3) the denial of costs authorized under the Federal Rules of
    Appellate Procedure for the RTC I appeal; and (4) the district
    court’s refusal to sanction RTC and its counsel under 
    28 U.S.C. § 1927
    , Federal Rule of Civil Procedure 11, and Florida law.
    II.     ANALYSIS
    A.   STANDARD   OF   REVIEW
    We review a district court’s imposition or denial of sanctions
    for abuse of discretion.5             We review de novo a district court’s
    interpretation        of      the   terms    of   a     contract,      including   the
    interpretation and application of a fee-shifting provision.6
    B.   THE DISTRICT COURT’S RULINGS —— BEFORE           AND   AFTER REMAND
    5
    Mercury Air Group, Inc. v. Mansour, 
    237 F.3d 542
    , 548, 549
    (5th Cir. 2001).
    6
    See, e.g., L & A Contracting Co. v. So. Concrete Svcs.,
    Inc.
    
    17 F.3d 106
    , 109 (5th Cir. 1994).
    4
    Before RTC I vacated the judgment and award of damages to RTC,
    the district court, in ruling on RTC’s motion for sanctions under
    § 1927, had expressed the following findings:
    The court finds that Plaintiff’s request to have
    Defendant’s attorneys sanctioned pursuant to 
    28 U.S.C. § 1927
     is well taken in part.       These proceedings were
    unnecessarily and vexatiously multiplied by arguments
    repeated over and over again by the defense after their
    merit was initially found lacking by the court early in
    the litigation. The court finds the conduct of Thomas
    and Kennan Dandar in filing these repeated, frivolous
    motions to be both unreasonable and vexatious. However,
    the Court also finds that Plaintiff’s litigation posture
    in this case was overzealous and that Plaintiff advanced
    strident and specious arguments in its characteristic
    “overkill” mode of conducting this litigation.       This
    action was also vexatious and unnecessarily complicated
    this case. Accordingly, the court orders that 30% of the
    attorney’s fee award to be paid by Thomas and Kennan
    Dandar as a sanction for their unreasonable and vexatious
    conduct.
    In essence, the district court originally concluded that, even
    though the Dandars had engaged in sanctionable litigation conduct
    on behalf of the Estate, counsel for RTC likewise employed tactics
    that unnecessarily multiplied the proceedings.          Thus, as sanctions
    under § 1927, the court ordered the Dandars to pay personally a 30
    percent share of the attorney’s fees awarded under the fee-shifting
    provision in the underlying contract.            But, as we subsequently
    vacated the underlying attorney’s fee award in RTC I for lack of
    personal jurisdiction over the Estate, we effectively vacated the
    quantum of the § 1927 sanction award against the Dandars as well.
    We   later   clarified,   however,   that   we   were   not   reversing   the
    imposition of sanctions vel non, only the quantum of the award
    5
    because of the methodology employed by the district court in
    assessing a portion of the contractual attorney’s fees against the
    Dandars.
    We are admittedly puzzled by the district court’s ruling on
    remand as to RTC’s renewed motion for § 1927 sanctions.                  We
    speculate that the district judge either misconstrued our mandate7
    or, frustrated by the contumacious conduct of both parties and
    their respective counsel, threw up his hands and denied all of the
    parties’   post-remand   motions   in   an   effort   to   terminate   this
    unseemly litigation once and for all.           The district court was
    certainly acting within its authority to reconsider whether § 1927
    sanctions were justified in light of our decision in RTC I.8            Our
    primary problem in dealing with that decision today, however, is
    the court’s failure to provide any explanation for denying RTC’s
    renewed motion for sanctions and attorney’s fees.            “Although an
    award of attorney’s fees, like an award of costs, is committed to
    the discretion of the trial court and can only be reversed for an
    7
    We are not sure what to make of the district court’s
    notation that its denial of RTC’s renewed motion for sanction and
    attorney’s fees was “[i]n accordance with the directions of” this
    Court.
    8
    For example, it is conceivable that the district court
    could have determined on remand that our decision in RTC I
    significantly undermined the justification for § 1927 sanctions.
    After all, we have explained that a finding of “unreasonable” and
    “vexatious” multiplicative proceedings necessitates “evidence of
    bad faith, improper motive, or reckless disregard of the duty
    owed to the court.” Mercury Air Group, 
    237 F.3d at 549
     (quoting
    Edwards v. General Motors Corp., 
    153 F.3d 242
    , 246 (5th Cir.
    1998)).
    6
    abuse of discretion, the trial court must give reasons for its
    decisions regarding attorney’s fees; otherwise, we cannot exercise
    meaningful review.”9
    The district court’s denial of RTC’s renewed motion for
    sanctions without giving any explanation whatsoever is reversible
    error. Under normal circumstances, we would reverse and remand for
    more detailed findings and a fuller explanation of the district
    court’s   ruling.   Tragically,   though,   the   district   judge   who
    presided over this action passed away shortly after the parties
    filed their notices of appeal in RTC II.      Thus, were we again to
    remand the sanctions issue to the district court, any judge who
    would draw the assignment would have no first-hand knowledge of the
    behavior at issue and, like us, would have to consider the motion
    afresh on the basis of the cold record.     Given the history of this
    litigation, we have no doubt that a third panel of this court would
    then be required to confront yet another appeal (or cross-appeals)
    containing myriad assertions of error, regardless of the district
    court’s ruling.
    Under these circumstances, we are no less capable of engaging
    in such a record review than would be a newly assigned district
    judge.    The peculiar posture of this case has led us to eschew
    another remand and instead to conduct our own independent review of
    9
    Schwarz v. Folloder, 
    767 F.2d 125
    , 133 (5th Cir. 1985)
    (citations omitted). See also Copeland v. Wasserstein, Perella &
    Co., Inc., 
    278 F.3d 472
    , 484-85 (5th Cir. 2002).
    7
    the history of this action as reflected by the record on appeal.
    Having done this as carefully as practicable, we are led to the
    analysis and rulings that follow.
    C.   RTC’S APPEAL: § 1927 SANCTIONS AGAINST   THE   DANDARS
    Section 1927 of the Judicial Code authorizes the imposition of
    sanctions in the form of attorney’s fees and costs against an
    attorney who engages in improper litigation conduct:
    Any attorney or other person admitted to conduct cases in
    any court of the United States or any Territory thereof
    who so multiplies the proceedings in any case
    unreasonably and vexatiously may be required by the court
    to satisfy personally the excess costs, expenses, and
    attorneys’ fees reasonably incurred because of such
    conduct.10
    “Underlying the sanctions provided in 
    28 U.S.C. § 1927
     is the
    recognition that frivolous appeals and arguments waste scarce
    judicial resources and increase legal fees charged to parties.”11
    The Supreme Court has observed that Ҥ 1927 does not distinguish
    between winners and losers or between plaintiffs and defendants.
    The statute is indifferent to the equities of a dispute and to the
    values advanced by the substantive law.”12             As explained by the
    Fourth Circuit, the statute is designed to curb litigation abuses
    by counsel, irrespective of the merits of the client’s claim:
    10
    
    28 U.S.C. § 1927
     (2000).
    11
    Baulch v. Johns, 
    70 F.3d 813
    , 817 (5th Cir. 1995).
    12
    Roadway Express, Inc. v. Piper, 
    447 U.S. 752
    , 762, 
    100 S. Ct. 2455
    , 2462 (1980). See also DeBauche v. Trani, 
    191 F.3d 499
    ,
    511 (4th Cir. 1999).
    8
    [A]n attorney who files a meritorious claim and wins a
    substantial verdict may still be assessed sanctions under
    § 1927 if, during the case, he “multiplies the
    proceedings ... unreasonably and vexatiously.” Likewise,
    an attorney who files a meritless claim may not be
    sanctioned under § 1927 if he does not engage in such
    conduct. Section 1927 focuses on the conduct of the
    litigation and not on its merits.13
    We nevertheless remain mindful that § 1927 sanctions are
    “penal in nature, and in order not to dampen the legitimate zeal of
    an   attorney      in    representing       his   client,       §    1927     is   strictly
    construed.”14           Therefore,      sanctions       against       the    Dandars      are
    justified     only      if    their    conduct    was    both       “unreasonable”        and
    “vexatious”;       and       even   then,   counsel      may    be     ordered      to   pay
    personally only the “excess” costs, expenses, and attorney’s fees
    generated by their conduct.
    1.     The Dandars Filed Numerous Motions Containing
    Frivolous and Redundant Arguments
    In its first order on the § 1927 issue, the district court
    found that “a significant portion of the number of hours spent by
    Plaintiff’s counsel on this simple breach of contract case was due
    to the repeated, frivolous arguments made by [the Dandars] in
    needless     and    pointless         motions.”     The     record          supports     this
    conclusion: The Estate, through pleadings signed by the Dandars,
    repeatedly      filed        motions    that    reiterated          many    of     the   same
    assertions and arguments.              The record makes clear that the Estate
    13
    DeBauche, 
    191 F.3d at 511
    .
    14
    Travelers Ins. Co. v. St. Jude Hosp., 
    38 F.3d 1414
    , 1416
    (5th Cir. 1994) (citations omitted).
    9
    frequently rehashed previously-rejected arguments, and that the
    court issued several cautionary rebukes before imposing sanctions.
    For example, in ruling against the Estate on one motion, the
    district court remarked, “Defendant reargues several issues of law
    on which the Court has previously ruled and provides no authority
    which requires a revisit of those issues.”      The Dandars took no
    heed.     In another instance, the district court stated that “[t]he
    Court has addressed Defendant’s arguments in its previous rulings.
    Defendant presents no new arguments or newly discovered evidence
    showing the need to correct manifest errors of law or fact.”
    It is expected and required that an attorney preserve error
    and represent his client vigorously. And it is certainly true that
    courts sometimes make legal and factual mistakes, which is what the
    appellate process corrects, as illustrated in RTC I by our reversal
    of the district court on the issue of personal jurisdiction.    But
    attorneys do a disservice to their clients as well as to the court
    and the judicial system when they repeatedly file essentially
    identical motions that do little more than waste their opponent’s
    and the courts’ time and resources.     Such tactics overburden the
    courts and frustrate the administration of justice; they simply
    will not be tolerated.
    We can never know precisely what motivated the Dandars to
    pursue such contumacious tactics.15     In any event, the Dandars’
    15
    Perhaps the Dandars believed that their motion practice
    was the only way to confront RTC, an affiliate of the Church of
    10
    continued engagement in improper motion practice after repeated
    warnings by the district court was “reckless disregard” of the duty
    they owed     to    the   court.16      Such   conduct   is    unreasonable     and
    vexatious beyond cavil, and therefore warrants § 1927 sanctions.
    2.     The Proper Amount of the Sanctions
    In determining the appropriate quantum of sanctions against
    the Dandars, the district court made the important observation that
    RTC itself was not blameless in this respect.                    The court also
    concluded that the three law firms representing RTC billed hours
    that were excessive:
    There was no need to have three law firms duplicating
    work on a simple case wherein the court found the
    liability issue on summary judgment for [RTC] before
    trial. Numerous, overly zealous arguments were advanced
    by [RTC] in needlessly voluminous fashion in response to
    weak, frivolous, and brief motions of [the Estate]. Also
    it appears there was much billing for conferences between
    attorneys at different firms, rereading of pleadings by
    three different sets of lawyers, and some needless
    duplication.
    Our review of the record confirms the accuracy of this finding.
    Because of the district judge’s ensuing death, we are at a
    disadvantage       in   setting   the   amount   of   the     sanction   with   the
    precision that could have been accorded by the judge who observed
    the sanctionable conduct of the Dandars first-hand.
    Scientology, which has acquired a “reputation for extremely
    aggressive litigation tactics.” J.P. Kumar, “Fair Game”:
    Leveling the Playing Field in Scientology Litigation, 16 REV.
    LITIG. 747, 747-48 (1997). It goes without saying, though, that
    this is no excuse for counsel’s behavior.
    16
    Mercury Air Group, 
    237 F.3d at 549
    .
    11
    The principal fact issue in § 1927 cases——the state of
    mind of the offender——may perhaps best be described as a
    mixed question of law and fact. It is one which “is
    informed by the district court’s intimate familiarity
    with the case, parties, and counsel, a familiarity [that
    an appellate court] cannot have. Such a determination
    deserves substantial deference from a reviewing court.”17
    Nevertheless, we have audited RTC’s counsel’s billing records
    and supporting documentation, which comprise nearly 500 pages in
    the record on appeal, and we conclude that the Dandars should be
    ordered personally to pay $27,304.50, being one-twelfth (or 8.33%)
    of RTC’s total amount of attorney’s fees that the district court
    had determined to be reasonable.18
    Our admittedly-imprecise sanction is grounded in our estimate
    that at least one-sixth of the hours expended by RTC’s lawyers was
    the “excess” product of sanctionable conduct by the Dandars. Under
    the facts of this case, though, we cut this amount in half for two
    reasons. First and most importantly, we must account for RTC’s own
    blameworthiness in multiplying the proceedings here.        Second,
    although RTC’s legal basis for suing in Texas —— the Estate’s
    representative residing there —— was not a legal position taken in
    bad faith,19 RTC’s tactical decision to file this suit in Texas made
    little practical sense.     Because Florida was geographically the
    17
    Pac. Harbor Capital, Inc. v. Carnival Air Lines, Inc.,
    
    210 F.3d 1112
    , 1119 n.12 (9th Cir. 2000) (quoting O’Connell v.
    Champion Int’l Corp., 
    812 F.2d 393
    , 395 (8th Cir. 1987)).
    18
    We agree with the district court’s calculation of
    $327,654 as a reasonable lodestar.
    19
    See RTC I, 
    339 F.3d at 374-76
    .
    12
    true locus of this dispute, RTC appreciably increased both parties’
    costs of litigation and wasted judicial resources by suing in
    Texas.    Thus, we do not penalize RTC for advancing that which, in
    RTC I, proved to be a losing theory of personal jurisdiction.    We
    decline, though, to reimburse attorney’s fees that RTC would not
    have incurred if its counsel had filed suit in Florida, the most
    logical and convenient forum and one with obvious jurisdiction.
    In sum, even though in RTC I the Estate might have ultimately
    prevailed, we still cannot condone and reward the Dandars’ grossly
    excessive multiplication of the district court proceedings.     Our
    sanction reflects what is probably a conservative estimate of the
    net “excess” attorney’s fees generated by the Dandars’ conduct.20
    D.   THE ESTATE’S CROSS-APPEAL
    For its part, the Estate advances four issues on appeal.   None
    has merit.
    1.    Attorney’s   Fees   and   Costs    under   the
    Contractual Fee-Shifting Provision
    The only non-frivolous point advanced by the Estate on appeal
    is its contention that the district court erroneously denied its
    motion for attorney’s fees and costs under the fee-shifting term of
    20
    Although we sit in the shoes of a district court as we
    render our decision today, under the circumstances, we simply
    cannot bring to this case the perspective of a district judge who
    presides over a case from start to finish. For that reason, we
    have not designated this opinion for publication, and we caution
    district courts from relying on this decision’s methodology in
    the future for the imposition of § 1927 sanctions.
    13
    the contract that underlies this litigation. This provision states
    that, “[i]n the event of a breach of this agreement, the prevailing
    party shall be entitled to attorneys’ fees and costs.”                      The
    contract also provides that it “shall be construed in accordance
    with Florida law.”
    The Estate contends that our ruling in RTC I, concluding that
    personal jurisdiction over the Estate was wanting, renders the
    Estate the “prevailing party” and thus entitles it to attorney’s
    fees and costs under the contract.             The Estate relies on state
    court     decisions    from    Florida    which   hold   generally   that    if
    attorney’s fees are provided for by statute or by the parties’
    contract,    such     fees    are   properly   awarded   after   a   voluntary
    dismissal of the case.21        These cases cannot carry the day for the
    Estate for the obvious reason that RTC did not voluntarily dismiss
    the case: Our judgment in RTC I did that.
    The Estate is not entitled to an award of attorney’s fees for
    a more rudimentary reason: The plain language of the contract’s
    fee-shifting provision limits the award of attorney’s fees and
    costs to breaches of that agreement. Under Florida law, agreements
    21
    Thornber v. City of Fort Walton Beach, 
    568 So. 2d 914
    ,
    919 (Fla. 1990); Landry v. Countrywide Home Loans, Inc., 
    731 So. 2d 137
    , 139 (Fla. Dist. Ct. App. 1999); Prescott v. Anthony, 
    803 So. 2d 835
    , 836-37 (Fla. Dist. Ct. App. 2001); Ajax Paving
    Indus., Inc. v. Hardaway Co., 
    824 So. 2d 1026
    , 1029 (Fla. Dist.
    Ct. App. 2002).
    14
    providing for the award of attorney’s fees are strictly construed.22
    Before there can be an award of attorney’s fees and costs, there
    must be a determination that the contract was breached.   After RTC
    I’s vacature, no such determination exists.    For this reason, the
    Estate is foreclosed from seeking attorney’s fees and costs under
    the contract.
    2.   Costs under 
    28 U.S.C. § 1919
    The Estate next asserts that it was improperly denied costs
    under 
    28 U.S.C. § 1919.23
       Section 1919 permits district courts to
    order the payment of “just costs” when an action or suit is
    dismissed for want of jurisdiction.    There is nothing in § 1919,
    however, that requires such an award: Orders under this statute are
    purely permissive.24   In light of the conduct of the Estate’s
    22
    See Rivera v. Deauville Hotel, Employers Svc. Corp., 
    277 So. 2d 265
    , 266 (Fla. 1973); Ohio Realty Inv. Corp. v. So. Bank
    of West Palm Beach, 
    300 So. 2d 679
    , 682-83 (Fla. 1974); Venetian
    Cove Club, Inc. v. Venetian Bay Developers, Inc., 
    411 So. 2d 1323
    , 1324 (Fla. Dist. Ct. App. 1982). See also Sholkoff v. Boca
    Raton Cmty. Hosp., Inc., 
    693 So. 2d 1114
    , 1117-18 (Fla. Dist. Ct.
    App. 1997) (explaining that “perhaps it is more accurate to say
    that the rule is that if an agreement for one party to pay
    another party’s attorney’s fees is to be enforced it must
    unambiguously state that intention and clearly identify the
    matter in which the attorney’s fees are recoverable”).
    23
    
    28 U.S.C. § 1919
     (2000) (“Whenever any action or suit is
    dismissed in any district court, the Court of International
    Trade, or the Court of Federal Claims for want of jurisdiction,
    such court may order the payment of just costs.”).
    24
    Miles v. California, 
    320 F.3d 986
    , 988 n.2 (9th Cir.
    2003). This follows from the plain text of the statute, which
    states that a court “may order the payment of just costs.” 
    28 U.S.C. § 1919
     (emphasis added).
    15
    counsel described above, we cannot conclude that the district court
    abused its discretion in denying the Estate costs under § 1919.
    3.     The Estate’s Appellate Costs from RTC I
    As part of our mandate in RTC I, we ordered that “the costs on
    appeal are to be taxed against” RTC.25      The Estate, however, failed
    timely to file its bill of costs as required by Federal Rule of
    Appellate Procedure 39(d)(1).        As a result, the district court on
    remand denied the Estate its costs incurred in RTC I, a decision
    the Estate now appeals.      The Estate’s attempt on appeal to lay the
    blame for its own failings at the doorstep of the district court is
    pure sophistry.26     The district court committed no reversible error
    in denying appellate costs to the Estate.
    4.     The Estate’s Motion for Sanctions
    Lastly, the Estate contends that the district court should
    have sanctioned RTC and its counsel under Federal Rule of Civil
    Procedure 11, § 1927, and a Florida frivolous litigation statute.27
    The   essence of the Estate’s argument is that RTC I demonstrated
    25
    See FED. R. APP. P. 39.
    26
    On appeal, the Estate failed even to mention that its
    costs were denied for failure to file its bill of costs on time.
    We disapprove of this lack of candor with the Court. See United
    States v. City of Jackson, 
    359 F.3d 727
    , 732 n.9 (5th Cir. 2004)
    (reminding counsel that they are expected to bring directly
    before the Court all those conditions and circumstances relevant
    to a given case).
    27
    See FLA. STAT. ANN. § 57.105 (West 2004). See generally
    Visoly v. Security Pac. Credit Corp., 
    768 So. 2d 482
    , 490-91
    (Fla. Dist. Ct. App. 2000) (construing § 57.105).
    16
    conclusively that RTC’s breach of contract claim was baseless.                    As
    such, argues the Estate, RTC and its counsel should be sanctioned
    and required to pay the Estate’s attorney’s fees and costs.
    We recognize that the district court failure to provide any
    explanation for its denial of the Estate’s post-remand motion for
    sanctions was an abuse of discretion.28                  We need not, however,
    belabor consideration of the merits of that motion here.                         Just
    because the Estate prevailed on appeal on jurisdictional grounds
    does    not    mean    that    RTC’s   conduct     in   bringing   the   claim   was
    sanctionable under Rule 11 or otherwise.29                    Lack of personal
    jurisdiction is not synonymous with lack of a substantive basis for
    a claim.      We have already acknowledged that RTC (and its counsel)
    do not have clean hands; they, too, improperly multiplied the
    proceedings.         As we have explained, though, the sanctions imposed
    against the Dandars has been reduced concomitantly to the extent
    that    we    have    judged    RTC    to   have    engaged   in   conduct   which
    unnecessarily multiplied the proceedings.                  The district court’s
    28
    See supra note 9 and accompanying text.
    29
    The Estate’s reliance on 
    Fla. Stat. § 57.105
     is feckless.
    “Because section 57.105 is patterned after Federal Rule 11,”
    Florida courts “construe it as its prototype has been construed
    in federal courts, insofar as such construction is harmonious
    with the spirit and policy of Florida legislation on the
    subject.” Mullins v. Kennelly, 
    847 So. 2d 1151
    , 1154 (Fla. Dist.
    Ct. App. 2003). In this case, § 57.105 sanctions would be
    inappropriate for the same reasons that Rule 11 sanctions are
    unwarranted.
    17
    denial    of   the   Estate’s   post-remand   motion   for   sanctions   is
    affirmed.
    III.    CONCLUSION
    By failing to articulate the reasons for its ruling, the
    district court abused its discretion when it denied RTC’s renewed
    motion for sanctions and attorney’s fees following our remand in
    RTC I.    Under the unusual posture of this case, though, we decline
    to remand this case only to have it assigned to another district
    judge who, like us, would be compelled to examine a cold record
    from scratch so as to calculate the proper quantum of sanctions.
    Instead, we have conducted our own thorough examination of the
    district court record and of the parties’ contentions on appeal.
    Based on this review, we reverse the district court’s ruling and
    render an award of $27,304.50 in favor of RTC as a sanction of the
    Dandars for their unreasonable and vexatious litigation conduct in
    derogation of 
    28 U.S.C. § 1927.30
     All other rulings of the district
    court are affirmed.
    AFFIRMED in part; REVERSED in part; and RENDERED.
    30
    This sanction is assessed against Thomas Dandar, Kennan
    Dandar, and their law firm of Dandar & Dandar, P.A., jointly and
    severally.
    18
    

Document Info

Docket Number: 03-41447, 03-41575

Citation Numbers: 98 F. App'x 979

Judges: Garwood, Wiener, Demoss

Filed Date: 5/10/2004

Precedential Status: Non-Precedential

Modified Date: 10/19/2024

Authorities (23)

AJAX PAVING INDUSTRIES, INC. v. Hardaway Co. , 2002 Fla. App. LEXIS 12527 ( 2002 )

Sholkoff v. BOCA RATON COMMUNITY HOSP. , 1997 Fla. App. LEXIS 5649 ( 1997 )

Rivera v. Deauville Hotel, Employers Service Corp. , 277 So. 2d 265 ( 1973 )

Venetian Cove Club, Inc. v. Venetian Bay Developers , 411 So. 2d 1323 ( 1982 )

Ohio Rlty. Inv. Corp. v. Southern Bk. of W. Palm Beach , 300 So. 2d 679 ( 1974 )

Prescott v. Anthony , 803 So. 2d 835 ( 2001 )

Roadway Express, Inc. v. Piper , 100 S. Ct. 2455 ( 1980 )

Charles N. Schwarz, Jr. v. Harry Folloder, Alexander Grant &... , 767 F.2d 125 ( 1985 )

sue-harris-debauche-v-eugene-trani-lawrence-douglas-wilder-clear-channel , 191 F.3d 499 ( 1999 )

Travelers Insurance v. St. Jude Hospital of Kenner, La., ... , 38 F.3d 1414 ( 1994 )

Mullins v. Kennelly , 847 So. 2d 1151 ( 2003 )

Edwards v. General Motors Corp. , 153 F.3d 242 ( 1998 )

Copeland v. Wasserstein, Perella & Co. , 278 F.3d 472 ( 2002 )

United States v. City of Jackson MS , 359 F.3d 727 ( 2004 )

Thornber v. City of Ft. Walton Beach , 15 Fla. L. Weekly Supp. 535 ( 1990 )

charles-oconnell-appelleecross-appellant-v-champion-international , 812 F.2d 393 ( 1987 )

Landry v. Countrywide Home Loans, Inc. , 731 So. 2d 137 ( 1999 )

Mercury Air Group, Inc. v. Mansour , 237 F.3d 542 ( 2001 )

l-a-contracting-company-plaintiff-counter-v-southern-concrete-services , 17 F.3d 106 ( 1994 )

Michael Baulch, Individually and on Behalf of His Deceased ... , 70 F.3d 813 ( 1995 )

View All Authorities »