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Rector v. Approved Federal Savings Bank

United States Court of Appeals for the Fourth Circuit
265 F.3d 248 (4th Cir. 2001)


Facts

Rector (plaintiff) sued Approved Federal Savings Bank (Approved) (defendant) asserting various causes of action. The district court dismissed the case, but allowed Rector to file an amended complaint. Approved then filed a motion for sanctions under Fed.R.Civ.P. 11 (Rule 11) based on Rector’s allegations in the amended complaint. The district court held in favor of Approved and ordered Rector to pay Approved’s attorney’s fees. Rector did not object to the motion on the basis of Approved’s failure to comply with Rule 11’s 21-day safe harbor provision. The 21-day safe harbor provision normally requires a party moving for Rule 11 sanctions to notify the adverse party of its intent to move for sanctions before submitting the motion to the court, in order to provide the adverse party time to remedy its frivolous allegations.

Rule of Law

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Issue

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Holding and Reasoning (Gregory, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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Dissent (King, J.)

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