28 U.S.C. § 1927 provides:
Any attorney or other person admitted to conduct cases in any court of the United States or any Territory thereof who so multiplies the proceedings in any case unreasonably and vexatiously may be required by the court to satisfy personally the excess costs, expenses, and attorneys' fees reasonably incurred because of such conduct.
A law firm acted as counsel for the defendant in connection with settlement of the action in Afflink, Inc. v. K&B Capital, LLC, 2007 U.S. Dist. LEXIS 62831 (E.D. Mich. Aug. 27, 2007). The firm, however, never filed a formal notice of appearance. As a result, it did not receive electronic notice of a motion that was left pending for several months. It also neglected imprecations from the plaintiff to effectuate the agreed-to settlement. In response to the District Judge Paul D. Borman’s inquiry as to why § 1927 sanctions were not appropriate, the firm took the position that its failure to file an appearance before the Court, despite its representing in connection with a proceeding, effectively immunized the firm from liability under § 1927. But nothing in the text of § 1927 requires the filing of an appearance, and the Court held: ‛If you provide representation in a federal court case, you are subject to Fed. R. Civ. P. 11 and 28 U.S.C. § 1927.“ Held, ‛Counsel's conduct violated 28 U.S.C. § 1927 insofar as it failed to timely communicate with Plaintiff for over a year, despite Plaintiff's many attempts to proceed with the agreed-upon settlement, thereby acting to multiply the proceedings in this case unreasonably and vexatiously.“
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