New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.

Commercial Litigation and Arbitration

New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.
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Sanctions — Rule 11 Does Not Apply on Appeal and FRAP 38 Does Not Apply to Appellees

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Caldwell v. Pesce, 2016 U.S. App. LEXIS 6739 (2d Cir. Apr. 14, 2016):

Plaintiffs-appellants Ken and Lisa Caldwell, proceeding pro se, appeal the District Court's March 2, 2015, judgment sua sponte dismissing their complaint with prejudice pursuant to 28 U.S.C. § 1915(e)(2). In their complaint, plaintiffs-appellants allege, inter alia, that defendants-appellees--who consist of attorneys, law firms, a state court clerk, and state court judges--violated 42 U.S.C. §§ 1983 and 1985 in connection with prior litigation stemming from a landlord-tenant dispute. We assume the parties' familiarity with the underlying facts, the procedural history of the case, and [*2]  the issues on appeal.

We review de novo a district court's dismissal pursuant to 28 U.S.C. § 1915(e)(2). Giano v. Goord, 250 F.3d 146, 149-50 (2d Cir. 2001). To survive dismissal, the complaint must plead "enough facts to state a claim to relief that is plausible on its face," Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007), and "allow[ ] the court to draw the reasonable inference that the defendant is liable for the misconduct alleged," Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).

Here, based on an independent review of the record, we conclude, substantially for the reasons set forth by the District Court in its thorough and well-reasoned opinion, see Caldwell v. Pesce, 83 F. Supp. 3d 472 (E.D.N.Y. 2015), that the District Court appropriately dismissed plaintiffs-appellants' complaint with prejudice pursuant to 28 U.S.C. § 1915(e)(2)(B)(ii)-(iii).

Additionally, we deny plaintiffs-appellants' motion for sanctions as meritless. Plaintiffs-appellants rely on Federal Rule of Civil Procedure 11 as the basis for the requested sanctions. But "[o]n its face, Rule 11 does not apply to appellate proceedings." Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 406 (1990); see also Fed. R. Civ. P. 1 (stating that the Federal Rules of Civil Procedure "govern the procedure in all civil actions and proceedings in the United States district courts" (emphasis added)). To the extent plaintiffs-appellants meant to move for sanctions pursuant to Federal Rule of Appellate Procedure 38, 28 U.S.C. § 1927, or the Court's inherent authority, the motion is also meritless. Rule 38 does not authorize the imposition of sanctions against an [*3]  appellee, see Fed. R. App. P. 38, and in the circumstances presented here sanctions are not appropriate under § 1927 or our inherent authority because, based on the record before us, none of the appellees have acted in bad faith, unreasonably, or vexatiously, see 28 U.S.C. § 1927; Ransmeier v. Mariani, 718 F.3d 64, 68 (2d Cir. 2013).

CONCLUSION

We have considered all of plaintiffs-appellants' arguments and find them to be without merit. Accordingly, we AFFIRM the March 2, 2015, judgment of the District Court, and we DENY plaintiffs-appellants' motion for sanctions.

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Criminal Spoliation Can Be A Due Process Violation — Defendant Must Show That (1) The Evidence Had Exculpatory Value Before It Was Destroyed, (2) Defendant Is Unable to Obtain Comparable Evidence by Reasonable Means, and (3) Bad Faith Failure to Preserve

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3 Prerequisites for Inherent Power and § 1927 Sanctions in Second Circuit: (1) Bad Faith, (2) Conduct That Is Entirely Without Color [Thus, An Ill-Motivated Colorable Position Appears to Be Protected in the Second Circuit], and (3) Improper Purpose— “To Gain A Strategic Advantage” Is An Improper Purpose — Due Process Satisfied by Opponent’s Motion and Multiple Court Conferences, After Which Target Was Allowed to Submit Additional Letters

Inherent Power Sanctions — Untimeliness as Laches — Laches Properly Applied to Deny Sanctions Motion — Note Waived Defenses to Laches

Rule 37(c)(1) Sanctions: Substantial Justification or Harmless Error (Ninth Circuit Factors) — Erie: When State Supreme Court Has Not Squarely Addressed an Issue, Circuit Must Predict How It Would Rule, Using Intermediate Appellate Decisions, Decisions from Other Jurisdictions, Statutes, Treatises And Restatements for Guidance

(1) Appellate Review of Inherent Power Sanctions (7th Circuit): Factual Findings Reviewed for Clear Error, Choice of Sanction for Abuse of Discretion — 4-Element Test for Reversal; (2) Sanctions and Class Actions: Monetary Sanctions Properly Imposed on Defendants for Improper Communications with Class Members (Represented Parties) — “[I]f The Class And The Class Opponent Are Involved In An Ongoing Business Relationship, Communications From The Class Opponent To The Class May Be Coercive” (Good Quote); (3) Monetary Sanctions under Goodyear v. Haeger: If Same Fact-Gathering Would Have Been Conducted Absent The Misconduct, No But-For Causation — But Only “Rough Justice” Required, “Not Accountant-Like Precision” (Good Quote) — Once Misconduct Is Clear, Time Spent Ferreting It Out Compensable under Goodyear; (4) Goodyear Did Not Overrule Long-Standing Rule That Courts May Impose Modest Civil Monetary Sanctions to Curb Litigation Abuse; (5) Appellate Jurisdiction Lacking Where Sanctioned Attorney Fails to File Notice of Appeal and Lawyer’s Intent to Appeal Not Apparent from Client’s Notice; (5) Rule 11 Improper Purpose — Party May Have Many Purposes for Pursuing Claim — As Long As Claim Is Supported by Good Faith Belief in the Merits, “A Parallel Reason Does Not Violate Rule 11” — To Deny A Motion for Sanctions, The District Court Need Not Address Every Argument: “Arguments Clearly Without Merit Can, And For The Sake Of Judicial Economy Should, Be Passed Over In Silence” (Good Quote); Non-Monetary Sanction on Counsel: Complete Twice The Required Amount Of Professional Responsibility Hours For Her Next Continuing Legal Education Cycle Imposed By The State Bar

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New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.
New York Attorneys JHA handles range the gamut of complex financial and commercial litigation and arbitration, including securities, RICO, corporate and contract disputes, credit default swaps, derivatives, and class, mass, and derivative actions. The firm also represents law firms in major disputes.

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