Six v. Generations Federal Credit Union

The Fourth Circuit affirmed the district court's order sanctioning three attorneys and their law firms under both its inherent authority and 28 U.S.C. 1927. The court held that the district court did not abuse its discretion in awarding compensatory sanctions totaling $150,000. In this case, the sanctioned attorneys' objections to the authenticity of certain documents abused the judicial process both because they lacked a good faith basis and because the attorneys made repeated misrepresentations to the court in order to sustain these objections. Furthermore, under section 1927, the district court found that the attorneys engaged in bad-faith conduct and that this conduct multiplied the proceedings unreasonably and vexatiously. The court held that the district court correctly articulated the applicable legal standards, made appropriate factual findings, and supported its conclusions with ample evidence from the record. View "Six v. Generations Federal Credit Union" on Justia Law