Bank of New York Mellon v. City of Richmond, California et al

Filing 55

MOTION for Sanctions filed by City of Richmond, California, Gordian Sword LLC, Mortgage Resolution Partners L.L.C., Richmond City Council. Motion Hearing set for 12/13/2013 10:00 AM in Courtroom 6, 17th Floor, San Francisco before Hon. Charles R. Breyer. Responses due by 11/22/2013. Replies due by 12/2/2013. (Attachments: # 1 Declaration of Stacey Leyton, # 2 Exhibit A to Leyton Decl, # 3 Exhibit B to Leyton Decl, # 4 Exhibit C to Leyton Decl, # 5 Exhibit D to Leyton Decl, # 6 Proposed Order Prop Order)(Leyton, Stacey) (Filed on 11/8/2013)

1 STEPHEN P. BERZON (SBN 46540)
SCOTT A. KRONLAND (SBN 171693)
2 STACEY M. LEYTON (SBN 203827)
ERIC P. BROWN (SBN 284245)
3
Altshuler Berzon LLP
4 177 Post Street, Suite 300
San Francisco, CA 94108
5 Tel: [phone]
Fax: [phone]
6 E-mail: [e-mail]
Attorneys for Defendants City of Richmond, Richmond
7
City Council, Mortgage Resolution Partners LLC and
8 Gordian Sword LLC
WILLIAM A. FALIK (SBN 53499)
9 BRUCE REED GOODMILLER (SBN 121491)
City Attorney
100 Tunnel Rd
10 CARLOS A. PRIVAT (SBN 197534)
Berkeley, CA 94705
Assistant City Attorney
Tel: [phone]
11 CITY OF RICHMOND
Fax: [phone]
450 Civic Center Plaza
E-mail: [e-mail]
12
Richmond, CA 94804
Attorney for Defendants
Mortgage Resolution Partners LLC
13 Telephone: [phone]
Facsimile: [phone]
and Gordian Sword LLC
14 E-mail: [e-mail]
Attorneys for Defendants City of Richmond and
15
Richmond City Council
16
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
17
18 THE BANK OF NEW YORK MELLON (f/k/a The
Bank of New York) and THE BANK OF NEW
19 YORK MELLON TRUST COMPANY, N.A. (f/k/a
The Bank of New York Trust Company, N.A.), as
20 Trustees; U.S. BANK NATIONAL ASSOCIATION,
21 as Trustee; and WILMINGTON TRUST COMPANY
and WILMINGTON TRUST, NATIONAL
22 ASSOCIATION, as Trustees,
23
24

Case No. CV-13-3664-CRB
[PROPOSED] ORDER GRANTING
MOTION FOR RULE 11 SANCTIONS
Date: December 13, 2013
Time: 10:00 a.m.
Judge: Honorable Charles R. Breyer
Courtroom 6, 17th Floor

Plaintiffs,
v.

CITY OF RICHMOND, CALIFORNIA, a
25 municipality; RICHMOND CITY COUNCIL;
26 MORTGAGE RESOLUTION PARTNERS LLC, a
Delaware limited liability company; and
27 GORDIAN SWORD LLC, a Delaware limited
liability company,
28
Defendants.
ORDER GRANTING MOTION FOR RULE 11 SANCTIONS
Case No. CV-13-3664-CRB

1

On December 13, 2013, the parties appeared for a hearing on the Motion for Rule 11

2 Sanctions filed by Defendants. Based upon all papers on file with the Court and the arguments of
3 counsel, the Court grants the motion for sanctions.
4

A district court may impose sanctions under Federal Rule of Civil Procedure 11 upon an

5 attorney who files a frivolous pleading with the court. A reasonable and competent inquiry would
6 have revealed that the claims asserted by Plaintiffs’ Second Amended Complaint are legally
7 baseless because they seek to challenge legislative action that has not yet occurred, and may not
8 occur, and so they are constitutionally unripe. Accordingly, these claims are frivolous, and the
9 imposition of Rule 11 sanctions is appropriate. The Court further concludes that the pleading was
10 filed for an improper purpose and so sanctions are appropriate on that ground as well.
11

The Court finds that the non-monetary and monetary sanctions requested by Defendants

12 are warranted to deter future Rule 11 violations of this nature by Plaintiffs, Plaintiffs’ counsel and
13 others. The claims asserted by Plaintiffs in the Second Amended Complaint are hereby dismissed
14 with prejudice. Plaintiffs and Plaintiffs’ counsel are ordered to pay ___________ in reasonable
15 attorneys’ fees and expenses incurred by counsel for Defendants for (1) reviewing the Second
16 Amended Complaint and materials related to this case; (2) drafting, filing, briefing, and arguing its
17 Motion to Dismiss and accompanying papers; and (3) drafting, filing, briefing, and arguing the
18 present motion.
19

IT IS SO ORDERED.

20
21 Dated: ____________________________
22
23
24

_________________________________________
HON. CHARLES R. BREYER
UNITED STATES DISTRICT JUDGE

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1

ORDER GRANTING MOTION FOR RULE 11 SANCTIONS
Case No. CV-13-3664-CRB