Opinion ID: 748844
Heading Depth: 1
Heading Rank: 3

Heading: the sanctions imposed on the larsens and their counsel

Text: 41 In its January 29, 1997 Order, the district court sanctioned the Larsens and their attorneys by requiring them to pay the City's attorneys' fees and costs incurred in opposing three motions that the court considered dilatory. The court stated that the motions were a part of that further delay which has been orchestrated by plaintiffs' counsel from the commencement of this action to date. A second Order, dated February 4, 1997, set the amount of the sanction at $1,286.75. 42 It is not clear from the Orders whether the court imposed its sanctions under Federal Rule of Civil Procedure 11, under 28 U.S.C. § 1927, or pursuant to its inherent powers to manage litigation before it. In any case, however, the imposition of sanctions requires that the party to be sanctioned receive notice of the possible sanction and an opportunity to be heard. Rule 11(c), for instance, explicitly requires notice and a reasonable opportunity to respond. Rule 11(c)(1)(B) further prescribes that, when the court itself initiates the suggestion of sanctions, it should enter an order describing the specific conduct that appears to violate subdivision (b) [the substantive subdivision of the Rule] and directing an attorney, law firm, or party to show cause why it has not violated subdivision (b) with respect thereto. See Johnson v. Waddell & Reed, Inc., 74 F.3d 147, 150-151 (7th Cir.1996). Similarly, sanctions imposed pursuant to 28 U.S.C. § 1927 require prior notice and an opportunity to respond. Kapco Mfg. Co. v. C & O Enters., Inc., 886 F.2d 1485, 1494-1495 (7th Cir.1989) (holding that due process requires notice and an opportunity to respond, but not necessarily a hearing); see also Roadway Express, Inc. v. Piper, 447 U.S. 752, 767, 100 S.Ct. 2455, 2464-65, 65 L.Ed.2d 488 (stating that notice and opportunity to be heard are generally required before awarding attorneys' fees). Finally, even the court's inherent power to sanction is to be exercised by means of a rule to show cause or similar procedure, rather than by the sudden imposition of sanctions with no opportunity to respond. Chambers v. NASCO, 501 U.S. 32, 40, 50, 111 S.Ct. 2123, 2130, 2135-36, 115 L.Ed.2d 27 (approving sanction of attorneys' fees on trial court's inherent power, but only after full briefing and a hearing, and noting that due process requirements apply to such sanctions). 43 The record is clear, and counsel for the City admitted at oral argument, that the district court did not give counsel for the Larsens notice or an opportunity to respond before imposing the sanctions. For that reason, this Court vacates the award of sanctions against the Larsens and their attorneys. Because of our resolution of this matter, this Court does not reach the question whether the district court abused its discretion in determining that the three motions that gave rise to the sanctions were dilatory.