Commercial Litigation and Arbitration

Sanctions — 21 Day Safe Harbor Inapplicable to § 1927 Sanctions

From In Re Hannaford Bros. Co. Customer Data Security Breach Litig., 2008 U.S. Dist. LEXIS 99891 (S.D.N.Y. Dec. 10, 2008):

Section 1927 does not include an express requirement that the party seeking sanctions provide notice and an opportunity to correct the sanctionable action. [Footnote 29. Cf. Fed. R. Civ. P.11(c)(2) (requiring a twenty-one-day notice period between service and filing with the court).] Nevertheless, "notice and an opportunity to respond is necessary prior to the imposition of 'any kind of sanctions.'" [Footnote 30. In re Stein, 127 F.3d 292, 294 (2d Cir. 1997) (quoting Ames Dep't Stores, Inc. v. Zayre Cent. Corp., 76 F.3d 66, 70 (2d Cir. 1996)). Accord Schoenberg v. Shapolsky Publishers, Inc., 971 F.2d 926, 936 (2d Cir. 1992) (directly addressing section 1927 sanctions), abrogated on other grounds, Bassett v. Mashantucket Pequot Tribe, 204 F.3d 343 (2d Cir. 2000).]

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