Commercial Litigation and Arbitration

FRAP 38 Sanctions — Standards (Third Circuit) — Court Exercises Caution to Avoid Chilling Novel Theories

From Premier Pork, LLC. V. Westin Packaged Meats, Inc., 2011 U.S. App. LEXIS 1262 (3d Cir. Jan. 19, 2011):

Federal Rule of Appellate Procedure 38 authorizes us to sanction an appellant who files a frivolous appeal by "award[ing] just damages and single or double costs to the appellee." Such damages are awarded in the case of a frivolous appeal "'as a matter of justice to the appellee and as a penalty against the appellant.'" Hilmon Co. (V.I.) Inc. v. Hyatt Int'l, 899 F.2d 250, 253 (3d Cir. 1990) (quoting Fed. R. App. P. 38 advisory committee's note). An appeal is frivolous if, applying an objective standard, it is wholly without merit. Quiroga v. Hasbro, Inc., 943 F.2d 346, 347 (3d Cir. 1991). In making this determination, a court may consider whether "the appeal was taken in bad faith with an intent to delay [or] harass, or [whether] the arguments of the appeal had no basis in law or were totally without merit." In re Hall's Motor Transit Co., 889 F.2d 520, 523 (3d Cir. 1989). While this Court is cognizant of the burden to appellees that stems from the filing of frivolous appeals, we nonetheless exercise caution in classifying appeals as frivolous "so that novel theories will not be chilled and litigants advancing any claim or defense which has colorable support under existing law or reasonable extensions thereof will not be deterred." Hilmon, iiiiiii 899 F.2d at 253.

Share this article:

Facebook
Twitter
LinkedIn
Email

Recent Posts

RICO and Injunctions: (1) State Court Actions Designed to Perpetuate and Monetize a RICO Violation Are Enjoinable under RICO, Even Though They Are Not Themselves Alleged to Be Predicate Acts [Note: Noerr Pennington Applies in RICO Actions] — (2) Although Civil RICO’s Text and Legislative History Fail to Reveal Any Intent to Override the Provisions of the Federal Arbitration Act, Arbitrations Are Enjoinable Under the “Effective Vindication” Doctrine Where They Operate As a Prospective Waiver of a Party’s Right to Pursue Statutory RICO Remedies — (3) Arbitration Findings May Be Given Collateral Estoppel Effect in a Civil RICO Action — (4) Injunction of Non-Corrupt State Court Litigations That Furthers a RICO Violation Are Enjoinable Under the Anti-Injunction Act’s “Expressly Authorized” Exception — (5) “The Irreparable Harm Requirement Is The Single Most Important Prerequisite For The Issuance Of A Preliminary Injunction” (Good Quote) — (6) When Injunction Is Based on “Serious Questions on the Merits” Rather Than “Likelihood of Success,” Court May Rely on Unverified Pleadings and Attached Exhibits to Assess the Merits, Unless the Opponent Has Raised Substantial Questions (Here, the Opponent Failed to Request an Evidentiary Hearing) — (7) Whether Amended Pleading Moots An Appeal Turns on Whether It Materially Changes the Substantive Basis for the Appeal — (8) Meaning of “In That” (“Used To Introduce A Statement That Explains Or Gives More Specific Information” About A Prior Statement)

Archives