Monetary Sanctions Improperly Awarded Sua Sponte under Rule 11 Affirmed under § 1927
Mohtadi v. Homecomings Fin’l, LLC, 2014 U.S. App. LEXIS 2474 (9th Cir. Feb. 10, 2014):
Sanctions were warranted. Rule 11, however, does not allow the district court to impose sanctions payable to a party on the basis of a sua sponte show cause order. See Fed. R. Civ. P. 11(c)(4); Advisory Committee's Notes to the 1993 Amendments to Rule 11; see also Barber v. Miller, 146 F.3d 707, 711 (9th Cir. 1998). We uphold the district court's award of sanctions under 28 U.S.C. § 1927. The district court did not abuse its discretion in requiring Mohtadi to pay the costs Provident incurred in opposing his untimely and procedurally improper ex parte application.
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