St. John's Law Review

In re Pennie & Edmonds: The Second Circuit Returns to a Subjective Standard of Bad Faith for Imposing Post-Trial SUA SPONTE Rule 11 Sanctions

By: Jeff Goland

Courts are ultimately responsible for sanctioning lawyers for abuse of the legal system and for filing baseless claims, pleadings, and motions.  Federal courts have both the inherent power and statutory authority to sanction lawyers for frivolous conduct.  In recent decades, however, the “weapon of choice” for judicial imposition of sanctions has been Rule 11 of the Federal Rules of Civil Procedure.  Whereas other remedies require a showing of bad faith as a prerequisite for sanctions, Rule 11 authorizes sanctions on the basis of conduct found to be unreasonable.  Since Rule 11 was amended in 1983, the general understanding among courts and commentators has been that an “unreasonable” submission will subject the offender to sanctions. Recently, however, in In re Pennie & Edmonds LLP, a majority of a panel of the United States Court of Appeals for the Second Circuit held that attorneys could not be sanctioned in a court-initiated post-trial proceeding in the absence of a showing of subjective bad faith.  According to the Second Circuit, a bad faith requirement effectively counterbalances the risk that some attorneys may withhold submissions that have plausible evidentiary and legal support out of fear that their conduct will be found unreasonable by the trial judge.

This Comment argues that the Second Circuit erred in imposing a bad faith requirement as a prerequisite for court-initiated post-trial Rule 11 sanctions.  It submits that neither the express language, historical development, purpose of Rule 11, nor the policy considerations advanced by the court support the imposition of a separate mens rea element for any subset of Rule 11 sanctions.  Application of two distinct standards for punishing the same behavior, depending on whether the sanction proceedings are on-motion or sua sponte, will bring confusion to the operation of Rule 11, encourage meritless filings, and have an adverse effect on attorneys who act in subjective good faith.  Furthermore, this Comment submits that the likely ramification of the Second Circuit’s holding is a limitation, and a possible elimination, of district courts’ power to sanction attorneys for unreasonable conduct associated with the filing of motions, pleadings, and other papers.  Such a result may hamper judges’ power to control their courtrooms and may greatly reduce the role of the judiciary in curbing unprofessional conduct.

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