ELLEN SEGAL HUVELLE, District Judge.
Yet again, this Court must confront the issue of sanctions arising from the litigation brought by Wade Robertson against Dr. William Cartinhour. This time the issue is whether to impose sanctions against Ty Clevenger for filing excessive and frivolous pleadings on behalf of his client, Wade Robertson, in violation of 28 U.S.C. § 1927. To date, in related litigation, Clevenger has been sanctioned by the D.C. Circuit in orders issued on October 19 and December 14, 2010;
This Court's involvement in Robertson's suits against Cartinhour dates back to 2009 when Robertson unsuccessfully sued Cartinhour, which ultimately resulted in a jury verdict in favor of Cartinhour for $7 million, including punitive damages of $3.5 million. The tortured history relating to
Understandably with this history as backdrop, Cartinhour has now moved for sanctions against Clevenger for attorney's fees and costs incurred in Robertson II in the amount of $158,954.28. (See Cartinhour Mot. For Sanctions Against Ty Clevenger, Esq. ("Cartinhour Mot.").)
Cartinhour seeks sanctions under 28 U.S.C. § 1927, which provides that an attorney who "so multiplies the proceedings in any case unreasonably and vexatiously may be required by the court to satisfy personally the excess costs, expenses, and attorneys' fees reasonably incurred because of such conduct." 28 U.S.C. § 1927. The purpose of § 1927 is to allow the Court "to assess attorney's fees against an attorney who frustrates the progress of judicial proceedings." United States v. Wallace, 964 F.2d 1214, 1218 (D.C.Cir.1992).
The District of Columbia "`has not yet established whether the standard [for unreasonable and vexatious conduct under section 1927] should be recklessness or the more stringent bad faith.'" Huthnance v. Dist. of Columbia, 793 F.Supp.2d 177, 181 (D.D.C.2011) (quoting LaPrade v. Kidder Peabody & Co., 146 F.3d 899, 905 (D.C.Cir.1998)) (some internal quotation marks omitted); see also Wallace, 964 F.2d at 1218-19. However, it is clear that, to warrant such a sanction, the attorney's conduct must be "at least `reckless.'" Id. at 1217. This means that there must be a "`conscious choice of a course of action, either with knowledge of the serious danger to others involved in it or with knowledge of facts which would disclose this danger to any reasonable man.'" Id. at 1220 (quoting Restatement (Second) of Torts § 500 cmt. g (1964)). That is, the movant must show that the attorney in question acted recklessly or deliberately "in the face of a known risk." Wallace, 964 F.2d at 1220.
According to Cartinhour, Clevenger has "multiplie[d] the proceedings ... unreasonably and vexatiously" in two ways. First, Clevenger filed Robertson II knowing that it was meritless and, second, he persisted in vigorously litigating Robertson II even after the jury's findings in Robertson I made clear that the allegations in Robertson II were baseless. These acts, Cartinhour contends, show a "serious and `studied disregard for an orderly judicial process'" which was intended to evade this
The D.C. Circuit has interpreted § 1927 to "impose[ ] a continuing obligation on attorneys by prohibiting the persistent prosecution of a meritless claim." Wallace, 964 F.2d at 1220-21 (citing Thomas v. Capital Sec. Servs., Inc., 836 F.2d 866, 875 (5th Cir.1988) (en banc)). In multiple cases, it has found § 1927 sanctions appropriate where "the attorney's behavior has been repeated or singularly egregious," for example where the attorney "`repeatedly took actions which required [the defendant] to expend unnecessary time and money, even though he had no intention of pursuing this litigation.'" Wallace, 964 F.2d at 1220-21 (quoting Fritz v. Honda Motor Co., 818 F.2d 924, 925 (D.C.Cir. 1987) (alteration in original)); see also Reliance Ins. Co. v. Sweeney Corp., Maryland, 792 F.2d 1137, 1139 (D.C.Cir.1986) ("With so many worthy claims waiting to be resolved, we cannot tolerate unfounded and undeveloped claims. Sanctions for this behavior are clearly appropriate."); see also The Jolly Group, Ltd. v. Medline Indus., Inc., 435 F.3d 717, 720 (7th Cir. 2006) ("We have also interpreted § 1927 to impose a continuing duty upon attorneys to dismiss claims that are no longer viable.") (internal quotation marks omitted).
Applying these standards, the Court has no difficulty concluding that sanctions are appropriate. First, Clevenger's decision to file Robertson II in the Southern District of New York, while Robertson I was pending in this Court, served to multiply proceedings, and, as recognized by this Court and the judge in the Southern District of New York, it was done for the improper purpose of forestalling litigation in Robertson I. Neither Cartinhour nor the Kearney Attorneys had any contacts with New York, and as had been set forth in Robertson II, Robertson was invited to amend (but chose not to do so) his complaint in Robertson I to include many of the very claims he subsequently sought to bring in Robertson II. See Robertson II, 867 F.Supp.2d at 46-48. Rather than bringing his claims in the suit he had initiated in this Court, he sought to enjoin litigation here by invoking the jurisdiction of both the Southern District of New York and the Bankruptcy Court. Id. at 45-48. In particular, several months before trial was to commence in Robertson I, Clevenger filed a rambling, 149-paragraph complaint that, although it was styled as a RICO action, centered on many of the same facts and claims as were presented in Robertson I. Cartinhour sought an anti-filing injunction against Robertson, which this Court denied without prejudice, but in its Memorandum Opinion, the Court discussed Robertson's blatant misconduct in Robertson I, and although it declined at that time to enter an injunction, it stated:
Mem. Op. at 5-6, Robertson I, December 30, 2010 (internal citations and quotations omitted, internal footnotes added).
Following the completion of the trial in Robertson I and the entry of a judgment of $7 million against Robertson, Judge Swain in the Southern District of New York transferred Robertson II to this Court, finding that having entered judgment in the underlying D.C. Action and having presided over that jury trial, this Court is in the best position to review any further briefing and make res judicata determinations. Robertson II, 2011 U.S. Dist. LEXIS 126030, at *13. She also recognized the improper purpose of the suit filed by Clevenger:
Id.
Following the transfer of this case to the undersigned in November 2011, and while
Then, on March 16, 2012, the Court issued its Memorandum Opinion dismissing Robertson II in its entirety. Robertson II, 867 F.Supp.2d at 42-43. As is clear from that opinion, this second action was not only wasteful and duplicative, it was foreclosed as a matter of law. Id. at 48-52 (explaining the effect of Robertson I — that the majority of the claims were barred by the doctrines of res judicata, judicial estoppel and the requirement of using the appeal process for correction of alleged trial errors). And, as further explained, there were a host of other reasons for throwing out the remaining claims. Id. at 51-60.
Given the Court's rejection of the claims in Robertson II as being flatly inconsistent with Robertson's claims in Robertson I, the jury's verdict for $7 million in that case, and Clevenger's course of conduct throughout this litigation, the Court is convinced, as were Judges Swain and Lamberth, that Robertson II was brought for no legitimate purpose but rather for harassment and delay. See Order at 7, In re W.A.R., L.L.P., No. 11-cv-1574 (D.D.C. Apr. 2, 2012); see also Katzman v. Victoria's Secret Catalogue, 167 F.R.D. 649, 661 (S.D.N.Y.1996) ("The total lack of substance in the plaintiff's RICO claims and the egregious and unjustified neglect of the required statutory elements give rise to the inference that the action was filed for improper purposes."), aff'd, 113 F.3d 1229 (2d Cir.1997) (mem.). Most importantly, the jury unanimously found that Robertson had breached his fiduciary duties to Cartinhour and, therefore, there could be no basis in law or fact for Clevenger's allegations in Robertson II that Cartinhour and others had conspired to defraud Robertson. By pursuing Robertson II after the verdict in Robertson I, Clevenger was far more than recklessly indifferent; he acted in bad faith and with utter disregard for the judicial system.
In reaching this decision, the Court rejects Clevenger's argument that the Court is prohibited from imposing sanctions for conduct that occurred in this case, but while it was pending before a different judge in the Southern District of New York. (Clevenger Opp'n at 4.) To be sure, courts generally refrain from imposing sanctions for actions in other cases before other judges, but that principle is inapplicable here. Raymark Indus. v. Baron, No. 96-7625, 1997 WL 359333, at *7 n. 10, 1997 U.S. Dist. LEXIS 8871, at *23 n. 10
In a similar case, John Akridge Company v. Travelers Companies, 944 F.Supp. 33, 34 (D.D.C.1996), the plaintiff had originally filed a lawsuit in the District of Columbia which was dismissed. He then filed a second suit based on the same underlying facts in the Circuit Court for Montgomery County, Maryland, which was removed to federal court in Maryland. There, the judge recognized that the plaintiff was engaged in "blatant forum-shopping" and transferred the case back to the judge in D.C. Id. (quotation marks omitted). That judge imposed sanctions because the plaintiff had filed suit in Maryland "with the specific intent of circumventing this Court's dismissal of its earlier suit" and ordered him to pay the attorney's fees that had been incurred in both the Maryland and District of Columbia cases. Id.; see also BDT Products, Inc. v. Lexmark Int'l, Inc., 602 F.3d 742 (6th Cir.2010) (explaining that the Kentucky district court imposed sanctions for a frivolous action filed in California state court, removed to a district court in California, and ultimately transferred to Kentucky); In re Auction Houses Antitrust Litig., No. 00-cv-0648, 2004 WL 2624896, at *8, 2004 U.S. Dist. LEXIS 23351, at *26-28 (S.D.N.Y. Nov. 17, 2004) (sanctioning plaintiffs' attorney for filing an action in California which was later removed to a district court in California and transferred to the Southern District of New York for "caus[ing] defendants to incur excess costs, expenses and attorney's fees in defending against the Second ... Action and having the matter properly brought before the Court, where it should originally have been brought."); Pentagen Techs. Int'l. Ltd. v. United States, 172 F.Supp.2d 464, 473-74 (S.D.N.Y.2001) (finding § 1927 sanctions appropriate where litigant filed successive lawsuits that were "designed to evade previous rulings" and that caused "needless occupation of judicial resources"). Ultimately, Clevenger's attempt to cloud the issue fails because the Court is imposing sanctions based only on his conduct in this case.
Finally, Clevenger's professed inability to pay is irrelevant to a sanctions award under § 1927. See Shales v. Gen. Chauffeurs, Sales Drivers and Helpers Local Union No. 330, 557 F.3d 746, 750 (7th Cir.2009) ("No court would say, in a medical-malpractice action, that a doctor whose low standards and poor skills caused a severe injury should be excused because he does not have very many patients. No more is a bad lawyer excused because he has few clients."); accord Hamilton v. Boise Cascade Express, 519 F.3d 1197, 1205-06 (10th Cir.2008).
Clevenger may file a response to this filing within 7 calendar days from the date of filing of the documentation for fees and costs, and Cartihour may file a reply within 5 calendar days from the date of filing a response.
Having set this schedule, the Court is compelled to address at this time many of the roadblocks that Clevenger has tried to erect so as to protract this litigation further. (See Clevenger's Mot. to Compel Discovery; Mot. for Extension of Time.)
Clevenger's requests to take burdensome discovery, including the deposition of Cartinhour, will be denied since there are no "extraordinary circumstances." McLaughlin, 803 F.2d at 1205. There is no basis for his persistent and fanciful suggestion that the Kearney Attorneys have manipulated Cartinhour or that the time spent by Cartinhour's lawyers was not for his benefit. Clevenger sued both Cartinhour and the Kearney Attorneys. By making this tactical decision, he forced Cartinhour to hire a new set of attorneys so he cannot complain that
For the foregoing reasons, the Motion for Sanctions is GRANTED to the extent that Cartinhour is entitled to recover the fees and costs incurred by the Yuzek attorneys between February 25, 2011 and March 31, 2012, for time spent litigating Robertson II in the district courts of the Southern District of New York and the District of Columbia. Within 10 days of the date of this order, the attorneys shall file unredacted copies of the bills for which they are seeking compensation but no other discovery will be permitted by Clevenger. Clevenger may file a response within 7 calendar days of the date of filing of the documentation and Cartinhour may file a reply within 5 calendar days after that. No motions for continuances or for reconsideration by Clevenger will be permitted.
McLaughlin v. Bradlee, 803 F.2d 1197, 1205 (D.C.Cir. 1986) (quoting Advisory Committee Note (1983) to Fed.R.Civ.P. 11) (emphasis added).