Greene v. Alan Waxler Group Charter Services, LLC
Filing
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ORDER Denying 185 Plaintiff's Motion for Sanctions re Discovery as to the portion requesting sanctions pursuant to 28 U.S.C. section 1927. Signed by Judge James C. Mahan on 06/26/2014. (Copies have been distributed pursuant to the NEF - AC)
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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ROBERT GREENE,
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2:09-CV-748 JCM (NJK)
Plaintiff,
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v.
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ALAN WAXLER GROUP CHARTER
SERVICES, LLC dba AWG CHARTER
SERVICES, et al.,
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Defendants.
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ORDER
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Presently before the court is the plaintiffs’ motion for sanctions, (doc. # 185), due to
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vexatious and unreasonable multiplication of proceedings. The defendants responded in opposition,
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(doc. # 190), and the plaintiffs replied, (doc. # 194).
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I.
Background
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This motion arises out of a wage-and-hour collective action lawsuit brought by current and
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former limousine drivers against their employer, Alan Waxler Group, Inc. Magistrate Judge Koppe
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recently entered an order denying the plaintiffs’ request for sanctions pursuant to Federal Rule of
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Civil Procedure 37. (Doc. # 197). At issue is whether the defendants should be sanctioned under 28
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U.S.C section 1927 for unreasonably multiplying the proceedings in this action. The plaintiffs are
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seeking attorneys’ fees reasonably incurred in order to oppose the defendants’ motions to reopen
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discovery, to amend their answer, to reconsider summary judgment, to decertify the class, and to
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reconsider the magistrate judge’s sanction order. (Doc. # 185).
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James C. Mahan
U.S. District Judge
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II.
Legal Standard
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Section 1927 authorizes the imposition of sanctions upon any attorney who “multiplies the
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proceedings in any case unreasonably and vexatiously.” 28 U.S.C. § 1927. A district court's order
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must contain “specific factual support for [a] finding of vexatiousness . . . [in order] to sustain the
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imposition of section 1927 sanctions.” Blumberg v. Gates, 152 F. App’x 652, 653-54 (9th Cir. 2005).
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(“[D]istrict courts are nonetheless required to develop detailed factual findings regarding
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unreasonability, vexatiousness and bad faith.”); Primus Auto. Fin. Servs., Inc. v. Batarse, 115 F.3d
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644, 649 (9th Cir. 1997) (“The district court has broad fact-finding powers with respect to sanctions,
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and its findings warrant great deference, but [the appellate court] must know to what it defers.”)
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Imposition of costs and fees under § 1927 may be made only on a finding that the attorney
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acted “recklessly or in bad faith.” See, e.g., United States v. Associated Convalescent Enters., 766
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F.2d 1342, 1346 (9th Cir. 1985). The Ninth Circuit has “emphasize[d] that only conduct rising to
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the level of maliciousness, vexatiousness or bad faith warrants section 1927 sanctions;
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negligence-even gross negligence-is not enough.” Blumberg, 152 F. App’x at 654; see also Estate
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of Blas v. Winkler, 792 F.2d 858, 860 (9th Cir. 1986) (“[B]ad faith is present when an attorney
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knowingly or recklessly raises a frivolous argument, or argues a meritorious claim for the purpose
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of harassing an opponent.”). Therefore without specific evidence of maliciousness, vexatiousness,
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or bad faith, the court must decline to impose sanctions. Furthermore, “notice and a hearing should
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precede imposition of a sanction under § 1927.” T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors
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Ass'n, 809 F.2d 626, 638 (9th Cir. 1987) (citing United States v. Blodgett, 709 F.2d 608, 610).
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III.
Discussion
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In the instant case, the plaintiffs point to numerous motions filed by the defendants, but make
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no specific allegations and point to no evidence demonstrating malice, bad faith, or intent to harass.
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Therefore, the plaintiffs' arguments are unpersuasive. Indeed, the fact that one of the motions in
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question was granted by the court undermines the plaintiffs’ claim that the motions were vexatious
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or unreasonable. (See doc. # 163).
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...
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James C. Mahan
U.S. District Judge
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IV.
Conclusion
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Accordingly,
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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the portion of the
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plaintiffs’ motion, (doc. # 185), requesting sanctions pursuant to 28 U.S.C. section 1927 be, and the
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same hereby is, DENIED.
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DATED June 26, 2014.
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UNITED STATES DISTRICT JUDGE
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James C. Mahan
U.S. District Judge
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