Opinion ID: 760362
Heading Depth: 2
Heading Rank: 5

Heading: CCI's motion for sanctions and attorney's fees

Text: 43 An attorney who signs a pleading, motion, or other paper certifies that she has made a reasonable inquiry and that to the best of her knowledge, information, and belief, (1) the pleading is not filed for any improper purpose; (2) any claims or defenses have support in existing law or in a non-frivolous argument for a change in existing law; (3) there is current or likely future evidentiary support for all evidentiary contentions; and (4) denials are warranted either by the evidence or, if specifically so identified, are reasonably based on a lack of information or belief. Fed.R.Civ.P. 11(b). [S]anctions imposed for violations of this rule shall be limited to what is sufficient to deter repetition of such conduct or comparable conduct by others similarly situated. Fed.R.Civ.P. 11(c)(2). In considering whether to impose sanctions based on the lack of evidentiary support for an attorney's factual contentions, the district court must direct its inquiry at ascertaining the attorney's knowledge and conduct at the time the pleading in question was signed. Healey v. Chelsea Resources, Ltd., 947 F.2d 611, 625 (2d Cir.1991). The imposition of sanctions and the determination of the amount of the sanctions are matters left to the district court's discretion and are not to be disturbed absent an abuse of that discretion. Caisse Nationale de Credit Agricole-CNCA v. Valcorp, Inc., 28 F.3d 259, 264 (2d Cir.1994) (noting that the district court, which is familiar with the issues and litigants, is better situated than the court of appeals to marshal the pertinent facts and apply the fact-dependent legal standard mandated by Rule 11) (internal quotation omitted). In this case, the district court stated: 44 the Court, in its exercise of discretion, declines to impose sanctions, although it believes that the question is a close one and the Court is troubled by the plaintiff's contradictory assertions in regard to the receipt and reading of the August 14, 1995 letter. However, bearing in mind that the primary goal of Rule 11 sanctions is the deterrence of baseless filings and the curbing of abuses, and that sanctions should be imposed with caution, the Court believes that sanctions are unwarranted, especially since the plaintiff ultimately prevailed on the merits of his claim. Accordingly, the defendant's motion for sanctions and attorney's fees pursuant to Rule 11 is denied. 45 Savino, 990 F.Supp. at 165. In opposition to the motion for sanctions, Savino provided an affidavit in which his counsel detailed the pre-filing inquiry into the facts forming the basis for Savino's allegation that he had not received any letter prior to the August 28, 1995, letter. Because Savino's counsel documented reasonable inquiry into the allegations in the complaint, the fact that Savino's deposition testimony later contradicted those allegations does not rise to the high threshold necessary for the imposition of sanctions under Rule 11, and the district court's decision in this regard was not an abuse of discretion. 3 CONCLUSION 46 We vacate the judgment only as to the award of attorney's fees, and we remand to the district court for further findings on this issue. We have considered the parties' remaining arguments and find them unpersuasive. The judgment is affirmed in all other respects. 47 Costs to appellant.