Opinion ID: 2336375
Heading Depth: 1
Heading Rank: 16

Heading: Sanction Order

Text: Araiza, Hollingsworth, and Castellano all filed motions to dismiss and for sanctions. Araiza requested as alternative relief an order compelling Respondent's attendance at his deposition. In an order filed April 14, 1992, Federal District Court Judge John G. Davies dismissed the motions of both Hollingsworth and Castellano as premature in light of Respondent's failure to amend the complaint to add Castellano and Hollingsworth and thereafter to serve them properly. However, the Court found that Respondent's attempts to serve Castellano and Hollingsworth and in opposing the motions were not taken in good faith and that his actions were frivolous, unreasonable, and reckless, meriting the imposition of sanctions. On Araiza's motion, the Court compelled Respondent to give his deposition, warned that failure to comply could result in sanctions, including possible dismissal, and ordered sanctions of $2,490.50 payable to Araiza based on the Court's conclusion that Respondent had no legal or reasonable factual basis for his failure to cooperate in discovery. On April 23, 1992, Respondent filed a motion for reconsideration of the sanction order. Responses were filed, and Respondent responded through counsel on June 2, 1992, with a pleading entitled Plaintiff's Replies to Opposition to Motion for Reconsideration of Sanctions. In this document, Respondent asserted [4] , among other charges, that Judge Davies was conspiring with counsel in other Shieh-initiated litigation then pending in federal court, Judge Davies was willing to be used by white people against non-white people, Judge Davies was biased against Respondent as a non-white person and that his rulings reflect that bias. The Court combined this motion with a motion filed by Respondent on April 25, 1992 to dismiss his complaint without prejudice and to seal the record of the proceedings. By order filed June 9, 1992, the Court denied Respondent's motion for reconsideration and his motion to seal the record. The motion to dismiss was granted with prejudice. The Court did so because the state law claims had been dismissed on April 16, 1992, the federal civil rights claim had been dismissed on May 20, 1992, and the RICO claim was abandoned by Respondent. The Court also issued an order to show cause why Respondent should not be sanctioned under Rule 11 for filing the complaint in the first instance, and under 28 U.S.C. § 1928 for the memorandum filed on June 2, 1992. Respondent's counsel was also subject to the order because he signed and filed the June 2 memorandum. Prior to the hearing on the order to show cause, Respondent sought to disqualify Judge Davies. His request was construed as a motion to disqualify and by order filed July 29, 1992, the motion was denied by Judge Richard A. Gadbois. The hearing regarding sanctions was held on August 31, 1992, and an order issued the following day. In it, the Court found that Respondent violated Rule 11, which provides that the signatory of a document filed with the federal court represents to the Court that after reasonable inquiry, the document is well grounded in fact, warranted by existing law, and not interposed for an improper purpose. In this case, the Court stated An objective review of plaintiffs' complaint reveals the paucity of their federal claims. The allegations concerning civil rights and RICO are completely insufficient to support those causes of action. Plaintiffs admitted as much by failing to amend their civil rights claim and by failing to file a RICO case statement. Thus plaintiffs' complaint was not well grounded in fact nor warranted in existing law. The complaint was frivolous and was filed with this Court to harass, and to frustrate the progress of a state court action previously filed by Ms. Araiza. The Court sanctioned Respondent $7500 for filing the complaint and ordered that Ms. Araiza and her attorneys be paid within 20 days. As to the reply filed on June 2, 1992, the Court found that it contained inflammatory, disparaging, and uncivil remarks directed at the Court and opposing parties. For filing the reply in bad faith and for vexatious reasons, the Court sanctioned Respondent $2,500 as both a party and as attorney of record in the matter [5] . The district court's actions were affirmed by the U.S. Court of Appeals for the Ninth Circuit on December 29, 1993, Respondent's petition for rehearing was denied, and the suggestion for rehearing en banc was rejected. None of the sanctions were reported by Respondent to the State Bar.