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In re Pennie & Edmonds LLP

United States Court of Appeals for the Second Circuit
323 F.3d 86 (2d Cir. 2003)


Facts

[Pennie & Edmonds LLP (P&E) was hired to represent the defendants in a trademark infringement case. P&E was aware that the defendants had previously filed a false affidavit in that case through their prior counsel. P&E subsequently submitted another affidavit on behalf of the defendants. This affidavit was also proven to be false.] The district court initiated, sua sponte, a post-trial sanction proceeding against P&E, pursuant to Rule 11 of the Federal Rules of Civil Procedure (FRCP). The district court found that, although P&E had submitted documents to the court in good faith, P&E’s submissions were objectively unreasonable. Accordingly, the district court imposed sanctions on P&E. P&E appealed, arguing that the district court should have applied a bad faith standard rather than an objective reasonableness standard.

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Issue

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Holding and Reasoning (Newman, J.)

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Dissent (Underhill, J.)

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