Complex Lit Blog

Caselaw Split as to Whether to Permit Discovery of Financial Information Relevant to a Determination of Punitive Damages Prior to Summary Judgment

Pasternak v. Kim, 275 F.R.D. 461 (S.D.N.Y. 2011): The question then becomes whether the time is right for the discovery Pasternak seeks. As Magistrate Judge Francis recently noted, "[c]ourts in this circuit are split on the issue of allowing pretrial disclosure of financial information relevant to a determination of punitive damages. ...

Pasternak v. Kim, 275 F.R.D. 461 (S.D.N.Y. 2011): The question then becomes whether the time is right for the discovery Pasternak seeks. As Magistrate Judge Francis recently noted, “[c]ourts in this circuit are split on the issue of allowing pretrial…

Only U.S. Citizenship of Dual Citizen Counts for Diversity — No General Duty under Rule 11 to Withdraw (Just Not to Reassert), but Failure to Withdraw within Safe Harbor Exposes Target to Costs of Motion

Fuerst v. Fuerst, 2011 U.S. Dist. LEXIS 141873 (E.D.N.Y. Dec. 9, 2011): Wolfgang Fuerst ("Wolfgang" or "the Plaintiff") commenced this action against his now former wife Hannelore Fuerst ("Hannelore" or "the Defendant") seeking economic and emotional damages based on her alleged misconduct during their divorce proceeding. The Defendant ...

Fuerst v. Fuerst, 2011 U.S. Dist. LEXIS 141873 (E.D.N.Y. Dec. 9, 2011): Wolfgang Fuerst (“Wolfgang” or “the Plaintiff”) commenced this action against his now former wife Hannelore Fuerst (“Hannelore” or “the Defendant”) seeking economic and emotional damages based on her…

Simple Mutual Releases of Parties Do Not Release Sanctions Liability of Counsel — Ethics Implications of Negotiating a Release of Sanctions Exposure

Ferguson v. Valero Energy Corp., 2011 U.S. App. LEXIS 24167 (3d Cir. Dec. 6, 2011): John Ferguson died tragically from nitrogen asphyxiation while working as a boilermaker at an oil refinery. A wrongful death and survival action ensued against Valero Energy Corporation and Premcor Refining Group, Inc. The District Court made several evid ...

When an Unexplained Sanctions Ruling Does, or Does Not, Suffice to Permit Meaningful Appellate Review

Two Decisions 1. Arugu v. City of Plantation, 2011 U.S. App. LEXIS 22647 (11th Cir. Nov. 8, 2011) (Rule 11 and § 1927 sanctions): We review for abuse of discretion a district court's decision to deny sanctions, costs, and attorney's fees. *** "A district court abuses its discretion if it applies an incor ...

Two Decisions 1. Arugu v. City of Plantation, 2011 U.S. App. LEXIS 22647 (11th Cir. Nov. 8, 2011) (Rule 11 and § 1927 sanctions): We review for abuse of discretion a district court’s decision to deny sanctions, costs, and attorney’s…

Affidavit Authenticating Website Evidence Must State that Affiant Visited Site and Screen Shots Accurately Portray What Witness Saw — Authentication of Internet Archive Evidence

Sam’s Riverside, Inc. v. Intercon Solutions, Inc., 790 F. Supp. 2d 965 (S.D. Iowa 2011): An affidavit used to oppose a motion for summary judgment "must be made on personal knowledge, set out facts that would be admissible in evidence, and show that the affiant . . . is competent to testify on the matters stated." Fed. R. Civ. P. 56(c)( ...

Sam’s Riverside, Inc. v. Intercon Solutions, Inc., 790 F. Supp. 2d 965 (S.D. Iowa 2011): An affidavit used to oppose a motion for summary judgment “must be made on personal knowledge, set out facts that would be admissible in evidence,…

Reasonable Application of Governing Legal Standard to the Facts Satisfies Abuse-of-Discretion Standard

Doe v. Elmbrook School Dist., 658 F.3d 710 (7th Cir. 2011): "An abuse of discretion occurs if the district court reaches erroneous conclusions of law or premises its holding on a clearly erroneous assessment of the evidence." Gastineau v. Wright, 592 F.3d 747, 748 (7th Cir. 2010) (internal quotation marks omitted). In Pruitt v. Mote, 503 ...

Doe v. Elmbrook School Dist., 658 F.3d 710 (7th Cir. 2011): “An abuse of discretion occurs if the district court reaches erroneous conclusions of law or premises its holding on a clearly erroneous assessment of the evidence.” Gastineau v. Wright,…

Securities — Required Elements of Proof on Class Certification — Must Plaintiff Prove Materiality? Circuit Split

From Conn. Retirement Plans & Trust Funds v. Amgen, 2011 U.S. App. LEXIS 22540 (9th Cir. Nov. 8, 2011): To obtain class certification in a 10b-5 securities fraud case, the plaintiff, as required by Federal Rule of Civil Procedure 23(b)(3), must convince the district court that the element of reliance is common to the class. The Supreme ...

Appeal from Denial of Motion to Compel Arbitration Does Not Divest District Court of Jurisdiction to Proceed to Merits — Circuit Split

Weingarten Realty Inv. v. Miller, 2011 U.S. App. LEXIS 23649 (5th Cir. Nov. 1, 2011): Whether an appeal from a denial of a motion to compel arbitration divests the district court of jurisdiction to proceed to the merits is the subject of a circuit split. The Second and Ninth Circuits have held that a stay is not automatic. ...

Order Stating that Counsel’s Conduct Warranted Rule 11 Sanctions but Expressly Declining to Impose Any Is Not Appealable

Omega Claims Solutions, Inc. v. N’Site Solutions, Inc., 2011 U.S. App. LEXIS 23282 (5th Cir. Nov. 18, 2011): At the end of that order [confirming an arbitration award], the district court stated about Omega's counsel, Scott Rothenberg: As a final matter, and for the reasons discussed above, Omega has forced N'S ...

Reconsideration under Rule 60(b)(1) — Circuit Split as to When Mistake, Inadvertence, Surprise or Excusable Neglect by the Court Itself Permits Relief from Judgment

Peak v. Ellis, 2011 Bankr. LEXIS 4322 (9th Cir. BAP Aug. 1, 2011): Peaks contend the bankruptcy court abused its discretion in denying their Motion to Reconsider because it clearly erred by not considering less drastic sanctions, citing FRCP 60(b)(1). While the circuits are split, the Ninth Circuit permits FRCP 60(b)(1) relief from j ...

Commercial Litigation and Arbitration

Caselaw Split as to Whether to Permit Discovery of Financial Information Relevant to a Determination of Punitive Damages Prior to Summary Judgment

Only U.S. Citizenship of Dual Citizen Counts for Diversity — No General Duty under Rule 11 to Withdraw (Just Not to Reassert), but Failure to Withdraw within Safe Harbor Exposes Target to Costs of Motion

Simple Mutual Releases of Parties Do Not Release Sanctions Liability of Counsel — Ethics Implications of Negotiating a Release of Sanctions Exposure

When an Unexplained Sanctions Ruling Does, or Does Not, Suffice to Permit Meaningful Appellate Review

Affidavit Authenticating Website Evidence Must State that Affiant Visited Site and Screen Shots Accurately Portray What Witness Saw — Authentication of Internet Archive Evidence

Reasonable Application of Governing Legal Standard to the Facts Satisfies Abuse-of-Discretion Standard

Securities — Required Elements of Proof on Class Certification — Must Plaintiff Prove Materiality? Circuit Split

Appeal from Denial of Motion to Compel Arbitration Does Not Divest District Court of Jurisdiction to Proceed to Merits — Circuit Split

Order Stating that Counsel’s Conduct Warranted Rule 11 Sanctions but Expressly Declining to Impose Any Is Not Appealable

Reconsideration under Rule 60(b)(1) — Circuit Split as to When Mistake, Inadvertence, Surprise or Excusable Neglect by the Court Itself Permits Relief from Judgment

Recent Posts

Supreme Court: Notice of Appeal Filed After The Original Deadline But Before Reopening by The District Court Is Timely — It Relates Forward to The Date of The Order Making The Appeal Possible — Second Notice of Appeal After Reopening Unnecessary

Rule 37 Default Judgment: Second Circuit’s Four-Factor Test for Imposing Defaults and Three-Factor Test for Lifting Them

RICO: Cover-Up Within Limitations Period of Untimely RICO Violation “Was Merely A Continuation” Of The Original Injury And Could Not Be Used “As A ‘Bootstrap’ To Salvage [The] Time-Barred Claims–Declining to Apply Pinkerton Doctrine to Civil RICO Claims

Inherent Power — Circumstantial Evidence — Fact That Bad Faith May Be Shown by Establishing That Conduct Was So Egregious It Was Necessarily Committed in Bad Faith Does Not Mean That Bad Faith Must Be The Sole Explanation for The Bad Conduct

RICO Causation: Testing Labs’ Misstatements As to Alcohol Tests’ Efficacy Not Communicated to Plaintiffs’ Employers Did Not Cause Plaintiffs’ Professional Harm

Rule 37(d) Sanctions — For Failure to Serve Answers, Objections, Or Written Response to Discovery Requests — Are Not Limited to Intentional Misconduct; Even Innocent Mistakes May Be Covered

Sanctions: (1) Rule 11 Does Not Apply to Litigation Papers Initially Filed in State Court — Only Reaffirmance in Federal Court Post-Removal Is Subject to Sanction — (2) “The Fact That A Legal Theory Is A Long-Shot Does Not Necessarily Mean It Is Sanctionable” (Good Quote)

Supreme Court: Relief under Rule 60(b)(6) Requires Extraordinary Circumstances Even If It Is Invoked to Allow Amendment of The Complaint–Rule 15’s Liberal Approach to Amendment Does Not Change That (Reversing Second Circuit)

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