Opinion ID: 3015876
Heading Depth: 2
Heading Rank: 2

Heading: Morris’s Cross-Appeal

Text: Having concluded that the imposition of a sanction was not in error, we turn now to the type of sanction imposed. Although monetary sanctions are not encouraged under Rule 11, they are not forbidden. Zuk v. E. Pa. Psychiatric Inst. of the Med. Coll., 103 F.3d 294, 301 (3d Cir. 1996). We have emphasized that the main purpose of Rule 11 is to deter, not to compensate. Id. We have also indicated that “fee-shifting is but one of several methods of achieving the various goals of Rule in Lingle, 847 F.2d at 100, and relied upon in Landon, 938 F.2d at 453—that a litigant must file a motion for Rule 11 sanctions prior to the entry of final judgment. Here, although the sanction was fashioned after the dismissal, the filing of the sanctions motion, as well as the decision to impose a sanction, occurred before the dismissal. As such, the supervisory rule is not implicated. 12 11, . . . [and that district courts] should consider a wide range of alternative possible sanctions for violation of the rule.” Zuk, 103 F.3d at 301 (quoting Doering v. Union County Bd. of Chosen Freeholders, 857 F.2d 191, 194-96 (3d Cir. 1988)). “The language of Rule 11 evidences the critical role of judicial discretion, stating that when the district court determines that a filing is in violation of the rule, the court ‘shall’ impose sanctions that ‘may’—not ‘shall’—‘include an order to pay’ the other party’s expenses.” Doering, 857 F.2d at 194. Moreover, we have encouraged district courts to “consider mitigating factors in fashioning sanctions, most particularly the sanctioned party’s ability to pay.” Zuk, 103 F.3d at 301. In his cross-appeal, Morris argues that the District Court’s refusal to impose a monetary sanction was an error of law. In Morris’s view, the District Court erred by giving undue weight to civil proceedings pending in state court pursuant to which Morris could recover his counsel fees. While it is clear from the transcript that the District Court inquired about and gave some consideration to the pendency of the state action, the transcript does not reveal that the District Court would have awarded counsel fees as a sanction but for those proceedings. Rather, its taking into account the state court proceedings was merely one of many factors weighed in determining what sanction to impose. Consistent with our indication that courts considering monetary sanctions should take into account the party’s financial 13 resources, see Doering, 857 F.2d at 195-96, the District Court asked a number of questions along those lines. The responses to these questions illustrated that Puricelli is a solo practitioner who runs a relatively modest law practice out of his home. Further, Puricelli has several dependents and, other than his home, does not have significant assets. In this regard, the Court was concerned that Puricelli would have difficulty paying the fees—which exceeded $30,000—sought by Morris. The state court action, in which Morris was also seeking monetary compensation, only added further reason to consider Puricelli’s ability to pay as a mitigating factor. Moreover, the guiding purpose in fixing Rule 11 sanctions is fashioning a sanction adequate to deter undesirable future conduct. Viewing the record in its entirety, the District Court did not abuse its discretion in this regard. To the contrary, the sanction imposed was the product of careful deliberation after thorough factual inquiry.