TJOFLAT, Circuit Judge:
Valinda S. Kornhauser brought this lawsuit to challenge the decision of the Commissioner of Social Security denying her claim for disability benefits. The District Court referred the case to a Magistrate Judge for a report and recommendation ("R&R") on the merits of Kornhauser's challenge. On receiving the referral, the Magistrate Judge entered an order stating that the case would be adjudicated on the basis of the Commissioner's administrative record and directing each party to submit a memorandum of law supporting its position.
After receiving and considering these memoranda, the Magistrate Judge issued an R&R recommending that the District Court vacate the Commissioner's decision and remand the case to the Commissioner for further proceedings. In his R&R, the Magistrate Judge, in addition to explaining why Kornhauser was entitled to a vacatur, observed that the memorandum her attorney had submitted failed to comply with Middle District of Florida Local Rule 1.05(a). Rule 1.05(a) states:
M.D. Fla. R. 1.05(a). The non-compliance, according to the Magistrate Judge, consisted of "smaller margins than authorized" by the rule and "footnotes ... smaller than ten-point type."
On July 14, 2010, the District Court entered an order adopting the R&R, vacating
Following the entry of judgment, Kornhauser petitioned the District Court for an award of attorney's fees under the Equal Access to Justice Act ("EAJA"), 28 U.S.C. § 2412(d),
The District Court referred Kornhauser's petition and the parties' stipulation to the Magistrate Judge for a recommendation. After considering the petition, the Commissioner's response, and the stipulation, the Magistrate Judge issued an R&R recommending that the District Court award attorney's fees in the sum of $4,037. He reduced the stipulated figure of $5,000 by $963 as a sanction against Kornhauser's lawyer for having previously submitted a memorandum on the merits that "had smaller margins than authorized by Local Rule 1.05(a), and also contained footnotes that appeared to be smaller than the ten-point type required by the local rule." R&R 6, Nov. 4, 2010. In recommending the sanction, the Magistrate Judge acknowledged that, in stipulating to an award of $5,000, the Commissioner intended that Kornhauser's attorney be awarded attorney's fees of $5,000. The Magistrate Judge gave that intent no weight, however, because "it is the court that ultimately determines the amount of a reasonable fee, and the court has an important interest in the enforcement of its rules." Id. at 7.
Kornhauser's attorney filed an objection to the R&R, asking the District Court not to adopt the Magistrate Judge's sanctions recommendation. She put her request thus:
Kornhauser's Objection to Nov. 4, 2010 R&R at 2.
The District Court overruled Kornhauser's objection and imposed the sanction the Magistrate Judge recommended, concluding that "[t]he sanction [was] a reasonable exercise of the Magistrate Judge's disciplinary authority." Kornhauser v. Comm'r of Soc. Sec., No. 8:09-cv-1638-T-23TGW, slip op. at 1, 2010 WL 4828141 (M.D.Fla. Nov. 22, 2010). Commensurate with this ruling, the court reduced the attorney's fees the parties had agreed to, and awarded fees of $4,037, ordering that the fees will be payable to Kornhauser's attorney "after the Commissioner determines that the plaintiff owes no federal debt."
Kornhauser now appeals the District Court's sanctions decision.
The legal authority the District Court drew upon for sanctioning Kornhauser's attorney was the court's inherent power to manage the orderly and efficient disposition of the cases before it. Chambers v. NASCO, Inc., 501 U.S. 32, 43, 111 S.Ct. 2123, 2132, 115 L.Ed.2d 27 (1991). This "inherent power ... can be invoked even if procedural rules exist which sanction the same conduct." Id. at 49, 111 S.Ct. at 2135. In this case, we find no procedural rule that sanctions the conduct involved.
The District Court's inherent power should be exercised with caution and its invocation requires a finding of bad faith. Id. at 50, 111 S.Ct. at 2136; see also In re Mroz, 65 F.3d 1567, 1575 (11th Cir. 1995) ("Invocation of a court's inherent power requires a finding of bad faith."). In exercising its inherent power to impose sanctions, a court must "comply with the mandates of due process, both in determining that the requisite bad faith exists and in assessing fees." Chambers, 501 U.S. at 50, 111 S.Ct. at 2136. When the individual being sanctioned is an attorney before the court, as is the situation here, complying with the mandates of due process means that the attorney must, first, be afforded "fair notice that [her] conduct may warrant sanctions and the reasons why," and, second, "be given an opportunity to respond, orally or in writing, to the invocation of such sanctions and to justify [her] actions."
We review the District Court's exercise of its inherent power to sanction counsel for abuse of discretion. Pedraza v. United Guar. Corp., 313 F.3d 1323, 1328 (11th Cir.2002). This means that "unless we find that the district court has made a clear error of judgment, or has applied the wrong legal standard," we will not disturb its decision. Aldana v. Del Monte Fresh Produce N.A., Inc., 578 F.3d 1283, 1288 (11th Cir.2009) (quoting United States v. Frazier, 387 F.3d 1244, 1259 (11th Cir. 2004) (en banc)) (internal quotation marks omitted).
The District Court abused its discretion in this case by failing to "comply with the mandates of due process." Chambers, 501 U.S. at 50, 111 S.Ct. at 2136. The only notice Kornhauser's attorney received, which informed her that she might be sanctioned for failing to comply with Local Rule 1.05(a), came in the form of a footnote to the Magistrate Judge's R&R issued on June 25, 2010 addressing the merits of Kornhauser's challenge to the Commissioner's decision. The Magistrate Judge never asked Kornhauser's attorney for a response; he didn't need a response because he had already decided sua sponte to recommend, when the attorney applied for an award for attorney's fees, that the District Court sanction the attorney for violating Local Rule 1.05(a). Thus, in the July 14, 2010 R&R he sent to the District Court on the EAJA fees issue, he did not recommend that the District Court issue an order requiring the attorney to show cause why she should not be sanctioned. The Magistrate Judge did not recommend the issuance of an order to show cause because he had already branded counsel's violation of the local rule "intentional" and worthy of sanction — no explanation could suffice to excuse the violation.
Had the Magistrate Judge recommended, and the District Court issued, an order requiring the attorney to show cause why she should not be sanctioned and then, after receiving her response, met with her face-to-face, the court might have concluded that striking the memorandum would have been the simplest, and more appropriate, sanction for failing to comply with Local Rule 1.05(a).
For the foregoing reasons, the EAJA award order is VACATED. The District Court is instructed, upon receiving our
SO ORDERED.