Document: 498 U.S. 533 111 S.Ct. 922 112 L.Ed.2d 1140 BUSINESS GUIDES, INC., Petitioner,v.CHROMATIC COMMUNICATIONS ENTERPRISES, INC. and Michael Shipp. No. 89-1500. Argued Nov. 26, 1990. Decided Feb. 1991. Syllabus Federal Rule of Civil Procedure 11 provides, in relevant part, that "[t]he signature an attorney or party constitutes a certificate by the signer has read pleading, motion, other paper" "to best signer's knowledge, information, belief formed after reasonable inquiry it is well grounded fact," court shall impose appropriate sanction "upon person who signed " paper violation Rule. (Emphasis added). After finding there was no basis fact for copyright infringement action request temporary restraining order (TRO) filed petitioner, through its counsel, against respondents, District Court imposed monetary sanctions petitioner on ground had failed to make before president initial TRO application research director supplemental affidavit. The Appeals affirmed. Held: 1. applies represented parties. Rule's portion unambiguously states signs pleading without first conducting be sanctioned, nothing full text detracts from this plain meaning. reading urged petitioner—that since does not require sign most pleadings, chooses need comply with certification procedure—is inconsistent language purpose. That may required prohibit attesting merit document behalf, "an conveys same message certification. Thus, whether voluntary, party's capable violating A would fall outside scope only if phrase "attorney party" were given unnatural unrepresented party." Had Advisory Committee responsible intended limit requirement's pro se parties, have expressly distinguished between which did elsewhere Rule, rather than lumping two types together. Including all parties also eminently sensible essence signing denotes merit. Pavelic & LeFlore v. Marvel Entertainment Group, 493 120, 110 456, 107 438, held contemplates law firm he she member, entirely consistent result here his her name bears personal, nondelegable responsibility certify document's truth reasonableness. issue signatures petitioner's agents can treated as resolved here, raised below. Pp. 540-548. 2. standard objective one reasonableness under circumstances. speaks attorneys single breath must conduct "reasonable inquiry" face sanctions. In amending 1983, specifically deleted existing subjective replaced at time amended cover There public policy reason hold standard. client often better positioned investigate facts supporting paper, less able legal means what objectively differ attorney. 548-551. 3. imposition act bad faith violate Rules Enabling Act. fee-shifting statute. are designed reallocate burdens litigation, they tied litigation's outcome, but specific filing founded; shift cost discrete event entire cost; calls mandate attorney's fees. Alyeska Pipeline Service Co. Wilderness Society, 421 240, 247, 258-259, 95 1612, 1616, 1622, 44 141, distinguished. Also argument creates federal common malicious prosecution. reward victimized litigation; deter baseless filings curb abuses. While confer benefit litigants, Act violated incidental effects substantive rights where reasonably necessary maintain integrity practice procedure system. 551-554. 892 F.2d 802 (CA9 1989), O'CONNOR, J., delivered opinion Court, REHNQUIST, C.J., WHITE, BLACKMUN, SOUTER, JJ., joined. KENNEDY, dissenting opinion, MARSHALL STEVENS, joined, Parts I, III, IV SCALIA, post, p. ---. Stephen V. Bomse, San Francisco, Cal., petitioner. Neil L. Shapiro, respondents. Justice O'CONNOR Court. 1 case we decide imposes motions, papers. 2 * Business Guides, Inc., subsidiary leading publisher trade magazines journals, publishes directories 18 specialized areas retail trade. effort protect copying, Guides deliberately plants them bits false known "seeds." Some seeds consist minor alterations otherwise accurate listings transposed numbers address zip code, misspelled while others take form wholly fictitious describing nonexistent businesses. considers presence competitor's directory evidence infringement.* 3 On October 31, 1986, counsel Finley, Kumble, Wagner, Heine, Unterberg, Manley, Myerson, Casey (Finley, Kumble), United States Northern California Chromatic Communications Enterprises, claiming infringement, conversion, unfair competition, seeking (TRO). Kumble Guides' behalf corporation. submitted seal affidavits support application. These charged evidenced 10 Chromatic's directory. One affidavit, sales representative Victoria Burdick, identified allegedly been copied, pinpoint seed each listing. 4 hearing scheduled November 7, 1986. Three days hearing, Judge's clerk phoned asked specify incorrect about relayed Director Research, Lambe. This apparently details seeds. Based Lambe's response, informed retracting claims copying three considered suspicious so conducted own investigation into allegations copying. spent hour telephoning businesses named "seeded" listings, discover 9 contained information. 5 Unaware Court's discovery, prepared affidavit Lambe, identifying seven explaining precisely part listing supposedly seeded Lambe morning 7 hearing. Before doing so, however, crossed out reference fourth determined reflect any information retracted. At based discovery original denied TRO. More importantly, judge stayed further proceedings referred matter Magistrate determine should imposed. evidentiary hearings, instructed explain why charges meritless. Both claimed coincidence. Doubting good these representations, recommended both sanctioned. See App. Pet. Cert. 64a-75a. 6 Later, uncovered true source errors, received third explained compiling "master list," departed normal methodology. Usually, letters recorded list published. case, company compiled master publication looking unintended typographical errors To locate such Burdick compared final version questionnaires wanted listed. When discovered disparity questionnaire directory, included list. She assumed, investigating, accurate. As turned out, themselves sometimes names, employees corrected when proofreading prior publication. Consequently, many appearing identical thus indicate research. accepted explanation, nonetheless appropriate. Id., 48a. First, found application, "failed proper inquiry, resulting presentation unreasonable court." 53a. recommend sanctioned led believe urgent quickly relied provided sophisticated corporate client. 54a-55a. Next, having inquire accuracy remaining following few minutes investigation, invalid. 55a-56a. Finally, their hearings. Instead investigating cause list, "coincidence" defense. 51a. "[n]o satisfied explanations. . point blatant logic representations." 59a. 8 agreed Magistrate, stating: "The Applying circumstances clear Finley Rule." 119 F.R.D. 685, 688-689 (ND Cal.1988). reiterated Magistrate's conclusion that: (1) application; (2) failing once put notice several inaccuracies; (3) arguments 689. Rather time, unsealed invited file motion requesting particular 690. brought Kumble. It later moved withdraw respect learning recently dissolved § 362 Bankruptcy Code. 121 402, 403 withdrawal issued ruling prejudice right pursue date. Ibid. made additional factfindings. observed originally alleged present actually exist. copied directory; offered alternative explanation—that "planted" fake employee requested copy filled providing company, mailed intending publish 403-404. deny charges, silence amounted "tacit admission." 404. light finding, choice conclude: "Business lawsuit fact. ." "[T]here was, is, infringement." then ruled Citing "the remarkable serious consequences improper conduct," dismissed prejudice. 406. Additionally, $13,865.66 amount expenses out-of-pocket costs. 405. 12 Ninth Circuit affirmed holdings subject factual papers court, submitting declaration. 802, 811 (1989). 11, "draws distinction state mind contrary, rule, requiring 'signer' (attorney party) 'reasonable inquiry,' appear prescribe similar standards parties." 809 (emphasis original). reversed, holding oral representations testimony 11. 813. Because reversed bases vacated remanded reconsideration. 813-814. We granted certiorari properly inquiry. 497 1002, 3235, 746 (1990). Subsequently, reaffirming dismissal 1a-2a. II A. 13 "We give meaning." 123, 458, 438 statute, our complete find unambiguous. provides part: If upon sanction" Thus viewed, meaning seems plain: argues, reads text. Accordingly, reproduce below adding bracketed sentence clarify discussion follows: 14 "[1] Every least record individual name, whose stated. [2] address. [3] Except rule pleadings verified accompanied [4] equity averments answer oath overcome witnesses witness sustained corroborating abolished. [5] paper; warranted extension, modification, reversal law, interposed purpose, harass unnecessary delay needless increase litigation. [6] signed, stricken unless promptly omission called attention pleader movant. [7] initiative, it, party, both, sanction, include pay incurred because including fee." 15 quoted initially. "aimed curbing abuses judicial system." Cooter Gell Hartmarx Corp., 496 384, 397, 2447, 2450, 359 end, sets up litigants signature, founded. sentences instances mandatory. Sentence [1] court. proceeding se, documents. acknowledges some situations statute verify affidavits. explains replaces older forms attestation. 16 heart [5], detail conveyed document. certifies document, well-grounded acting motive. 5A C. Wright Miller, Practice 1335, pp. 57-58 (2d ed. 1990) (hereinafter Miller). sentence, terms, governs party," thereby making applicable [1], [2], [3], nevertheless present. requirement now mandates signers consider behavior terms duty owe system conserve resources avoid proceedings." 1331, 21 describe enforced. dictates missing promptly, will stricken. requires fails satisfy 17 proposes interpretation mentioned, indicates itself pleadings; generally, mandated. concludes may, wishes, described [5]. client's normally occasional cannot run afoul short, maintains free frivolous vexatious documents impunity carries risk purpose matter, rarely documents, case. Indeed, do so. 65(b) complaint forth facts. verification Even voluntarily, still requirement. neither behalf. "When unnecessary, improper, well." Miller 1333, 47. declares attorney: law". added.) voluntary mandatory attorney, 19 way used mean Only decline adopt reading, indication intended. Just opposite true. Prior amendment solely attorney" "pleading." 1983 amendments expanded coverage 21. refer broadly "pleading, Represented despite routinely certain papers—declarations, affidavits, like—during course example, fewer five leaves little room doubt "party" "other papers" 20 surely said Elsewhere text, demonstrated ability distinguish refers "a attorney," "[a] draws distinction; lumps together By using more expansive term "party," coverage. natural Leading scholars accord. Professors James Wm. Moore Jo Desha Lucas, authors Moore's Practice, state: current places affirmative subscription submission paper. attorneys, se." 2A J. ¶ 11.02[3], 11-15 11-17, (footnotes omitted). Charles Alan Arthur R. treatise "seven major alterations" occasioned amendments, range people covered expanded. Now, signers, just contents document." expansion non-attorney accomplished changing 'signature attorney' fifth party.' 21-22, n. 54. 22 addition being one. longer meaningless act; sends district taken seriously. illustrative. sought strength statements effect pirating seal, credibility side's view. might plausibly attached incremental significance risked proved baseless. asks construe render free. construction odds general admonition merit, loath absent compelling result. indication, otherwise, conclude word appears mean. 23 dissent contends decision last Term LeFlore. 556, 562-564. true; today follows naturally whole bring home validate filed." U.S., 126, S.Ct., 460. agrees assistance responsibility, insists counsel—even mandatory—is absolved vouch delegated counsel. 556. 24 dissent's dichotomy particularly troubling emphasized reject favor plausible even us achieve 126-127, 458. Yet KENNEDY "unrepresented party"—notwithstanding Committee's ability, earlier, parties—because thinks unwise punish clients. 25 criticizes treating company. suggests "in square conflict" 'the signed' firm. Post, 563. overlooks important distinction. LeFlore, 11's unambiguous statement name." 125, 458 entity, course, anything; agents. anomalous falls within event, question definitely here; concedes raise courts Brief Petitioner 35, 38. B 26 Having concluded next again answer. standard: litigation." correctly observed: "[T]he F.2d, 809. Rather, 27 devotes much brief arguing faith, failure touchstone points approval 56(g) Procedure, summary judgment context misdirected, clean slate; task be, is. Once issue, complete. supra, ----. drafted, set standard, working. Gell, 392-393, 58-60. amend hardly matters. fashion proceedings, chose establishing stringent convinced effectively promote goals implement rulemaking process. "Our apply improve it." 28 Nor that, Quite client, pleading. perfect example. obtain immediate injunction Chromatic. Given apparent urgency, reasoned could blamed relying experienced blame—and fell Guides: 29 "This illustrates dangers commencing Here hired large, powerful nationally suit competitor infringement. 30 happened one-man operating garage California. Two years later, extensive various turns mistake. meantime, objects thousands dollars fees suffered potentially irreparable damage business. scenario avoided if, suit, simply hour, like court's did, checked purported seeds." F.R.D., 31 Where appends revealed see powerless to, instead of, 1336,at 104. contrary establish safe harbor pressed quickly, relies careless misrepresentations. 32 Of But invariably Many clients, in-house fully competent Other great deal practical litigation experience. stranger courts; entity prosecuting actions 1948. 105-106. expected vary Put another way, "what attorney." 810. aware "more good-faith formula," inflexible. circumstances" Note Fed.Rule Civ.Proc. U.S.C.App., 576. formulation "has embraced thirteen circuits." 61-62. far proposed applying lesser noted Appeals, fail whereas enjoy aid higher standard." 811. 33 Giving meaning, paper—whether voluntarily—an filing, III 34 remains: asserts imposing violates Act, U.S.C. 2072. authorizes rules procedure," "shall abridge, enlarge, modify right." argues extent reasonableness, exceeds limits power ways: fee shifting manner approved Congress; tort prosecution, encroaching causes action. 35 begin noting challenge large hurdle get over. enacted Congress, "Congress participates process." 1332, 40, 74, citing Amendments Courts, H.R. Doc. 54, 98th Cong., 1st Sess., 3-25 (1983). go until Congress months look 2074. therefore succeed "only Committee, erred prima facie transgresses nor constitutional restrictions." Hanna Plumer, 380 460, 471, 85 1136, 1144, (1965). 36 Burlington Woods, 480 1, 967, 94 (1987), presents hurdle. There, Act's proscription interference held, unanimous decision, "Rules incidentally affect litigants' provision rules." 5, 970 procedure, incidental. id., 8, 971. Gell: "It central thus, grant authority, streamline administration courts." 393, 2454. 37 Petitioner's challenges substantial hurdles. constitute impermissible shifting, 1616-17, 141 (1975), absence legislative guidance, litigation" awarding costs losing civil suit; faith. 1622-1623. difficulty dealt courts' inherent powers, kind Alyeska. outcome successful, event. sanction"—attorney's "Rule 'A movant entitlement sanction.' 409, 2462, quoting American Judicature Transition, Report Third Task Force 49 (Burbank, reporter 1989). 38 rejected claim Gell. 411-12, ---- (STEVENS, dissenting). main ----, Imposing rights. 969-70, confident resist temptation use substitutes damages. award consequential damages, refused. "[W]hile sympathetic [Chromatic's] plight," "not persuaded compensation purview 11." misapplies error appeal. "But misapplications provide concluding distinct during development promulgation rule." 40. 39 sum, pleadings. occasion nonsigning declaration rulings. For reasons stated herein, 40 Affirmed. 41 whom STEVENS join, SCALIA joins IV, dissenting. 42 control those courts. Extending beyond boundary, holds citizens seek money damages care preparation extraordinary departure settled principles governing liability misuse courts, departs structure itself. defensible quite uninformed necessity. majority's affords avenue escape chilling liability. 43 my view, extension authority. Under I think abuse discretion litigant acts errs Though majority recognizes considered, isolation. Richards States, 369 82 585, 591-92, 492 (1962). errs, precedes question. And history commentary adoption. analysis rely rule: From reasons: party; company's behalf; therefore, assumed 45 construed sentences, "[e]very record," person. Neither requires, contemplates, party. context, then, correlate earlier employed 124, (1989), reasoning paragraph beginning discuss import references portions thought connote mentioned outset." drafters bind disjunction significant purposes borne [the paper], both." different persons. 46 All concede primary govern requirements radical nature change wrought construction. Sir Thomas served Chancellor England, bills Risinger, Honesty Pleading Its Enforcement: "Striking" Problems 61 Minn.L.Rev. 10-12, (1976). Counsel aggrieved bill "irrelevant, impertinent, scandalous" matter. Story, Equity Pleadings 47, 41-42 (1838). Story secure regularity, relevancy decency Bill, guaranty instructions him, laid framed." 9-13. Story's explanation counsel's incorporated XXIV 1842,1 1912 Rules.2 13. adopted 1938, extended encompass well.3 1983. 47 changes expanding duties provisions, extending could, circumstances, provisions attaches already provisions. ensures every constituting preserves well-understood object obligations stands place uncritical severs origin. 48 expect Notes accompanying amendments. say kind. They motions," "expanded lawyer's certification," employ phrases indicating relate perform functions attorneys. App., 575-576 added).4 fact, imply attach liable instance, provide: "If violated, either represents, new provides." 576 50 mention startling assumption passage, finds Notes. begins, "Even though client." 51 Consider "[a]mended continues anyone paper." Since difficult fathom passage attributed majority. makes sense 52 With views Notes, works scholars. though, passages authored seem me endorsements position. speak 'all attorneys' 'non-attorney signers.' Ante, 545-546 (quoting 54 1990)). "signer" art requires. snippets multivolume studied consideration precise comes requirements. explicit "unnecessary, improper." short 53 draw scant deterrent policies 2454, (1990) ("[A]ny [of 11] goal deterrence"). papers, volunteer. holding, enlistees between. supposed today's necessity unaware affected assumed. leave option. imagine leaving assume concomitant suggestion induce greater credence ante, 546, justification construing become trap unwary. sign, swayed suggesting coupled 65(b), "required" Guides. 543. applications orders supported Since, infra, 562, "papers" here. 55 Moreover, "require[s]," 543, "provide[s] for," 544, ignores evident abolishes "[e]xcept statute," statutes, complaints See, e.g., 23.1 (shareholder derivative suit); 27(a)(1) (perpetuation testimony); (ex parte order); 1734(b) (application lost destroyed record); 2242 writ habeas corpus); generally 1339. argue seeks ambit, existed time. Wrongful subjects potential prosecution perjury, §§ 1621, 1623, necessary. Further, verifying signer, odd analysis. 56 among "pleadings, doubtless greatest impact, come surprise members bar. An position else pursuant sixth sentence. which, invoke alleging matters 56. Pursuant "is law." admits, 549, renders superfluous 56(g), standards. 57 resolution feel compelled incurs permitting signed" conflict authority extend signed. "person signed," says corporation may. gist rationale represents. said: strange 'person partnership pleading' necessarily someone partnership." 458-59. strange, submit, assert "ha[d] pleading." 58 moreover, appeal 'long firmly established agency' ": 59 dealing common-law liability, strikingly assumptions delegability. trusted subordinate, partners, himself factually legally responsible; represents merely personally applied judgment." 459. 60 resurrect agency rest Term. position, duty, perhaps delegable agents, Either wrong now. entities not. corporations partnerships, purposes. Applied justified traditional Our decisions recognize "disciplinary powers English (the former primarily Inns Court) centuries possessed over bar, incident broader keeping justice professional unsullied." Cohen Hurley, 366 117, 123-124, 81 954, 958, 156 (1961). representative, officer serve masters. Likewise, does, viewed corollary Requiring law. 62 long step role lawsuit, measured hindsight judge. Until now, never are, ought conduct. remedy previous statutory authorization always track Sibbach Wilson Co., 312 422, L.Ed. 479 (1941). depart practices, becomes 63 "general 2072(a), "abridge, enlarge right," 2072(b). regulate denial alter expresses concern federalism separation powers. Wright, E. Cooper, 4509 (1982). desired "practice area expertise degree definition left cases applies, governs. 64 raises concerns federalism. level, created, all, Congress. confirming bad-faith theory prevailing acted "private general." reaffirmed bear costs, awards statutes encourage claims. "it [was] invade legislature's province redistributing manner" 271, 1628-29. 65 interpreted majority, "redistribut[es] costs" Pipeline. "appropriate "discrete event" Pipeline, 553, breaks down payment respondents' suit. Any mechanism sanctioning concerning deterring meritorious slight available hand, prefiling evaluation arises real arise complaints. 562. particular, reticence pressures create acute 66 tell deciding 554. impact negligence circumstance well. consequence reasoning. 549-550. business "redistributing discourages attempts vindicate Kaiser Aluminum Chemical Corp. Bonjorno, 494 827, 835, 1570, 1576, 108 842 ("[T]he allocation accruing legislature, courts"). 67 incursion reserved counsels adoption rule. mechanisms choices regarding encouraged discouraged, reflects comparable policies. exceeding general, recovery process plaintiff prove malice element. W. Keeton, D. Dobbs, Owen, Prosser Keeton Law Torts 120-121 (5th 1984); F. Harper, James, O. Gray, 4.8 1986); Restatement (Second) 676 (1977). "negligent prosecution" "accidental process," ignorant enough Cf. Response Practitioner's Commentary Actual Use Amended Ford.L.Rev. 28, 29-30 (1985) (remarks Judge Sifton); 68 reliance records developed safeguard property sitting jury, judgments skill companies practices. tolerate deem judges know workings private enterprise supervision investigations defend suggest domain lawyers community whole. 69 misconduct "affects enforcing themselves." 971, (1987). presumption valid weight this, [the] uncertain," 147-148, extends boundaries. Whether weigh reasonable, interpretation, outset, 391, 2453 ("We interpret according congressional [in Act]"); 148 ("If uncertain truly practice, differs, interfere certainly factors applies. effect, 'substantive rights' limitation, policies, determining Rules"). 70 analysis, Regardless reverse shown order. However, submitted. 71 and, 9. Mr. Certainly, agents; corporation's Unlike complaint, purport 72 accept review camera. relief dependent requirements.5 73 violation, view should, 74 patience requisite temperament judge, attribute annoyance spurious claims, burdened dockets, drive interpretations honest claimants fear petition penalties mistakes faith; exercise questionable general. underscore objections holding. respect, dissent. posture copyrightable. Feist Publications, Inc. Rural Telephone Serv. cert. granted, 808, "Every contain annexed affirmation him Courts How. xxxix, xlviii (1842). individually solicitors record, solicitor him; same; scandalous inserted pleading; delay." 226 627, 655 (1912). read: it; delay. intent defeat sham proceed served. wilfull subjected disciplinary Similarly indecent inserted." U.S.C.App. (1982 ed.). 575 ("The reduce reluctance emphasizing responsibilities reenforcing sanctions") added; citation argued created continuing came light. Compare Capital Security Serv., 836 866 (CA5 1988) (en banc), Herron Jupiter Transp. 858 332, 335-336 (CA6 1988). Burbank, Transformation Procedure: Example 137 U.Pa.L.Rev.1925, 1930, unwilling briefed.

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