Justia Legal Ethics Opinion Summaries

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

Verisign filed suit against XYZ, alleging false advertising based on a false "gold rush" scheme involving domain names. The district court ultimately granted summary judgment for XYZ, but denied it attorney fees under the Lanham Act, 15 U.S.C. 1117(a). The Fourth Circuit held that a prevailing party need only prove an exceptional case by a preponderance of the evidence, rather than by clear and convincing evidence. The court further clarified that a prevailing party need not establish that the losing party acted in bad faith in order to prove an exceptional case. Therefore, the court remanded for the district court to consider the motion under the appropriate legal and evidentiary standards. View "Verisign, Inc. v. XYZ.Com LLC" on Justia Law

Intervening defendants could not be required to pay a portion of prevailing plaintiffs' attorneys fees and costs, awarded under 42 U.S.C. 1988(b) and 52 U.S.C. 10310(e), when intervening defendants were not charged with any wrongdoing and could not be held liable for the relief that plaintiffs sought. In Independent Federation of Flight Attendants v. Zipes, 491 U.S. 754 (1989), the Supreme Court precluded the assessment of attorneys fees and costs against intervenors who were "blameless," meaning that they were not charged as wrongdoers and legal relief could not have been obtained from them. In this racial gerrymandering case, the Fourth Circuit held that Zipes was controlling and that the Commonwealth could not be held liable for attorneys fees and costs incurred by plaintiffs in litigating against the entry of Intervening Congressmen or against Intervening Congressmen's positions. Under the traditional American rule, plaintiffs must bear those intervention-related fees. Accordingly, the court vacated the district court's order awarding attorneys fees and costs, remanding for reconsideration of plaintiffs' petitions for fees. View "Brat v. Personhuballah" on Justia Law

Intervening defendants could not be required to pay a portion of prevailing plaintiffs' attorneys fees and costs, awarded under 42 U.S.C. 1988(b) and 52 U.S.C. 10310(e), when intervening defendants were not charged with any wrongdoing and could not be held liable for the relief that plaintiffs sought. In Independent Federation of Flight Attendants v. Zipes, 491 U.S. 754 (1989), the Supreme Court precluded the assessment of attorneys fees and costs against intervenors who were "blameless," meaning that they were not charged as wrongdoers and legal relief could not have been obtained from them. In this racial gerrymandering case, the Fourth Circuit held that Zipes was controlling and that the Commonwealth could not be held liable for attorneys fees and costs incurred by plaintiffs in litigating against the entry of Intervening Congressmen or against Intervening Congressmen's positions. Under the traditional American rule, plaintiffs must bear those intervention-related fees. Accordingly, the court vacated the district court's order awarding attorneys fees and costs, remanding for reconsideration of plaintiffs' petitions for fees. View "Brat v. Personhuballah" on Justia Law