Court Opinion

ID: 9472233
Source: CourtListenerOpinion
Date Created: 2023-08-05 03:53:48.858579+00
Date Added: 2024-06-11T17:42:49.293055
License: Public Domain

BOOCHEVER, Circuit Judge,
concurring and dissenting, in part:
I agree with Judge Solomon’s opinion with one exception. I think that we should issue an order to show cause to the attorneys before imposing the sanction of an award of costs and attorney’s fees.
My conclusion is that counsel is entitled to some sort of notice and hearing before this court holds them liable for costs and attorney’s fees under 28 U.S.C. § 1927. The lead case supporting such a requirement is Roadway Express, Inc. v. Piper, 447 U.S. 752, 100 S.Ct. 2455, 65 L.Ed.2d 488 (1980). There, in discussing the “inherent” power of a federal court to assess fees against counsel for bad faith conduct, the Court stated that “[l]ike other sanctions, attorney’s fees certainly should not be assessed lightly or without fair notice and an opportunity for a hearing on the record.” Id. at 767 (footnote omitted). Several Ninth Circuit cases also support the need for a hearing.
In Barnd v. City of Tacoma, 664 F.2d 1339 (9th Cir.1982), the district court ordered defense counsel to pay costs and fees as a sanction. On appeal, in analyzing the court’s power to assess such fees, we noted the Roadway Express qualification regarding necessity of notice and hearing. Id. at 1342-43.
In United States v. Blodgett, 709 F.2d 608 (9th Cir.1983), the district court sanctioned counsel under 28 U.S.C. § 1927 for filing an interlocutory appeal the court found frivolous. This court remanded, holding that, because the conduct giving rise to imposition of sanctions occurred outside the presence of the district court, counsel was entitled to an opportunity to explain his conduct. Id. at 610.
In Miranda v. Southern Pacific Transportation Co., 710 F.2d 516 (9th Cir.1983), the district court summarily imposed a monetary sanction on counsel under the auspices of a local rule. This court held that counsel was entitled to notice, an op*1139portunity to prepare a defense and a hearing before imposition of monetary sanctions. We stated:
This court, in an analogous circumstance, will not impose monetary penalties or take other disciplinary actions for an attorney’s failure to comply with its orders until “after reasonable notice and an opportunity to show cause to the contrary, and after hearing, if requested ____” Fed.R.App.P. 46(c); see United States v. Birtle, 521 F.2d 134 (9th Cir.1975), cert. denied, 426 U.S. 947, 96 S.Ct. 3165, 49 L.Ed.2d 1183 (1976).
Id. at 522.
Since section 1927 requires bad faith or intentional misconduct by counsel, I think that counsel should be entitled to present any arguments that they may have as to why the sanction should not be imposed. This is particularly true in this case since two attorneys signed on the brief and there was no oral argument. It may well be that at least one of the attorneys may be able to convince us that he had no part in the misleading arguments which are really the basis for imposing the sanction, and that he did not consciously adopt those arguments.
It seems to me that our case is controlled by United States v. Blodgett, 709 F.2d 608. In that case the district court imposed sanctions on counsel for filing a frivolous appeal. We held:
While on the facts we cannot conclude that the district court erred in finding that the appeal was frivolous, the mere fact that an appeal is frivolous does not of itself establish bad faith. To establish bad faith on this record, a hearing was required to determine if the appeal was taken solely for purposes of delay.
Id. at 610.
Similarly here, in order for us to determine that one or both of the attorneys acted in bad faith it is necessary to afford them a hearing.
I have not found a ease addressing the issue of what specific procedure this court generally follows when it imposes a sanction under 28 U.S.C. § 1927. In McConnell v. Critchlow, 661 F.2d 116, 119 (9th Cir.1981), however, we did impose a sanction under the statute. The opinion notes that counsel at oral argument was given an opportunity to state any reason why sanctions should not be imposed. Because no oral argument was held on the merits of the case at bar, I believe that the proper procedure at this time is to issue an order to counsel to show cause why a penalty should not be imposed. See United States v. Birtle, 521 F.2d 134 (9th Cir.1975), cert. denied, 426 U.S. 947, 96 S.Ct. 3165, 49 L.Ed.2d 1183 (1976) (following this procedure before sanctioning counsel under Fed. R.App.P. 46(c) for failure to prosecute an appeal with due diligence).