Court Opinion

ID: 9474750
Source: CourtListenerOpinion
Date Created: 2023-08-05 05:07:47.793816+00
Date Added: 2024-06-11T17:44:18.791879
License: Public Domain

GUY, Circuit Judge,
dissenting.
Although dissenting, my difference with the majority is more one of degree than of kind. There is no disagreement that sanctions are now mandatory under Rule 11 if & violation is found. Our problem on review of this matter is complicated by the fact that the trial court made no findings but simply denied the motion for Rule 11 sanctions. If the court had made factual findings, these would be reviewable under the “clearly erroneous” standard. Taylor and Gaskin, Inc. v. Chris Craft Industries, 732 F.2d 1273 (6th Cir.1984). However, where the trial court makes no findings but simply concludes in an order that there is no Rule 11 violation, then that is a conclusion of law subject to de novo review. Notwithstanding that fact, however, I am convinced that the trial judge is in the best position to ascertain if sanctions are appropriate in any given case. We have to review on the cold record without any independent knowledge, as the trial judge has, of the cast of characters involved and the nuances of what was done or not done in this case. Rule 11 as now constituted allows the trial judge to do some fine tuning of the system and up the ante for violations of the rules without having a chilling effect on what attorneys may do in representing their clients.
I simply do not believe that we have enough evidence before us that we can sanction plaintiff’s counsel in this case. Had the majority merely remanded for hearing at which factual findings could be developed, I would have readily concurred.1
I believe there is another resolution for this particular case, however, that would have made the defendant whole for its costs without the necessity of finding a violation of the rules. Rule 41(a) provides that after a party has filed either an answer or a motion for summary judgment a plaintiff may not dismiss as to that party without order of the court or by stipulation with all parties who have appeared. In this case, defendant Upjohn filed a summary judgment motion. Subsequent to the filing of that summary judgment motion, the plaintiff, rather than responding to the summary judgment motion, filed an amended complaint dropping Upjohn from the case. Under such circumstances, the plaintiff needed the court’s permission to dismiss Upjohn, and Rule 41(a)(2) provides that such permission may be “upon such terms and conditions as the court deems proper.” Upjohn was not a proper defendant in this case. In order to remove itself from the case, Upjohn had to spend money for costs and attorney’s fees. It should be reimbursed for those costs. Where one of two innocent parties has to suffer, it should be the one who puts the wheels in motion, and in this case that was the plaintiff. Where the issue is dismissing as to an inappropriately named defendant, under the circumstances presented here, I would prefer to see resolution by using Rule 41(a)(2) as opposed to the imposition of a sanction unless it is clear that a violation of Rule 11 has occurred. I recognize, of course, that there are many situations in which this method of disposition would not be appropriate or applicable. However, it would appear to me to fit perfectly the situation with which we are here dealing.

. The parties and the court are in agreement that the standard used in evaluating an alleged Rule 11 violation is an objective one. Therefore, a court does not need to find willfulness as such. However, the trial court’s analysis of where the alleged offending party’s conduct falls on a continuum ranging from simple negligence to willfulness will undoubtedly be part of the equation.