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Monetary Sanctions Improperly Awarded Sua Sponte under Rule 11 Affirmed under § 1927

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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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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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