Opinion ID: 159520
Heading Depth: 3
Heading Rank: 2

Heading: Multiplication of the Proceedings

Text: Under the plain language of § 1927, in order to award sanctions, the court must find, first, that the attorney engaged in “unreasonable and vexatious” conduct, and second, that the “unreasonable and vexatious” conduct “multiplie[d] the proceedings.” 28 U.S.C. § 1927. On appeal, Mr. Losavio first contends that the district court erred in finding that his conduct multiplied the proceedings. The magistrate judge wrote that it was “self-evident” that the entire federal lawsuit multiplied the proceedings because after the filing of the federal action, -10- the “battle over the sale of the Ranch was expanded from one front (the state dissolution proceeding) to two (the state dissolution action and the federal suit).” Appellee’s Supp. App. at 49. Relying upon Citizens Bank & Trust Co. v. Case (In re Case) , 937 F.2d 1014 (5th Cir. 1991), Mr. Losavio contends that because § 1927 applies only to proceedings in federal court and does not reach conduct that multiplies a state court proceeding, the district court erred in sanctioning him for conduct that multiplied separate state proceedings, not the federal proceedings before the court. Mr. Losavio’s argument misperceives the magistrate judge’s findings. In In re Case , the Fifth Circuit prohibited a district court from awarding fees incurred in a completely separate collateral state court proceeding, holding that § 1927 does not reach conduct that cannot be construed as part of the proceedings before the court issuing the § 1927 sanctions. See id . at 1023. Here, unlike In re Case , the magistrate judge and district court did not impose sanctions because of any conduct of counsel in the state court proceedings, nor were any of the fees awarded based on fees incurred in the state court action. Rather, the magistrate judge was merely noting that the entire course of the federal court proceedings inherently multiplied the overall litigation between the parties. The magistrate judge then concluded that the prosecution of this federal proceeding became unreasonable and vexatious when there was no longer any factual or legal merit -11- to the action. We find no error in the magistrate judge’s and district court’s findings that Mr. Losavio multiplied the proceedings in the federal action.