Opinion ID: 2167166
Heading Depth: 3
Heading Rank: 1

Heading: The Second Raatz Lawsuit

Text: As for the Director's claim that the referee erred with respect to the second Raatz lawsuit, Rule 3.1, MRPC, provides: A lawyer shall not bring or defend a proceeding, or assert or controvert an issue therein, unless there is a basis for doing so that is not frivolous, which includes a good faith argument for an extension, modification or reversal of existing law. The second Raatz lawsuit named the same defendants and sought the same relief as the first Raatz lawsuit. The district court dismissed the second lawsuit on the basis of collateral estoppel and res judicata. In doing so, it awarded attorney fees as a Rule 11 sanction against Albrecht and specifically found that the suit was brought for the purpose of harassing the defendants, was not supported by existing law or a good-faith argument for the extension, modification, or reversal of existing law, and that Albrecht did not have an objectively reasonable basis for bringing the suit. The court of appeals, after concluding that the claims presented in the second lawsuit were identical to those in the first lawsuit, affirmed in all respects. Raatz v. Koerner, No. C3-00-1194, 2001 WL 69473, at -3 (Minn.App. Jan.30, 2001). The court of appeals also affirmed the district court's decision to award attorney fees against Albrecht. Id. at . The referee indicated without explanation that he would not find that the lawsuit was frivolous. Given the district court's findings and award of sanctions and the court of appeals' affirmance of the district court, we conclude that the referee's finding that there was no violation of Rule 3.1, MRPC, is clearly erroneous. While a court of appeals' affirmance of a district court's award of sanctions based on findings that a lawsuit was brought without good faith or for purposes of harassment will not always automatically result in a violation of Rule 3.1, it will be the rare case that does not. This is not the rare case.