King v. Whitmer
CIVIL 20-13134 (E.D. Mich. Aug. 25, 2021)
24 As discussed earlier, Rule 11(c)(2) does not
require a memorandum of law or exhibits
to satisfy the safe harbor requirements. Star
Mark Mgmt., 682 F.3d at 176; Ideal
Instruments, Inc., 243 F.R.D. at 339;
Burbidge Mitchell & Gross, 622 Fed.Appx.
at 757.
And as to the claimed violations of Rule 11(b)(3),
the motion was specific as to the violative
conduct: All of the allegations discussed in the
Rule 11(b)(3) analysis below (with the exception
of one) concern supposed fraud in the processing
and tabulation of absentee ballots by the City at
the TCF Center (see infra 68-78)-just as the City
specifically identified. And the one exception
concerns a key factual allegation that was
debunked in Costantino. (See ECF No. 31-15 at
2440-41.) Moreover, in the Safe Harbor Motion,
the City expressly refers to its response to
Plaintiffs' Motion for Injunctive Relief “for a
detailed debunking of Plaintiffs' baseless factual
contentions.”25 (ECF No. 161-3 at Pg ID 6064
(citing ECF No. 39 at Pg ID 2808-2[8]33).)
25 Even if the City did not specify every
allegation in Plaintiffs' pleading lacking
evidentiary support, the same conduct
could be sanctioned (and, as found infra, is
sanctionable) under the Court's inherent
authority.
C. Sanctions Pursuant to the Court's Inherent
Authority
“Even if there are sanctions available under
statutes or specific federal rules of procedure, . . .
the ‘inherent authority' of the court is an
independent basis for sanctioning bad faith
conduct in litigation.” Dell, Inc. v. Elles, No. 072082, 2008 WL 4613978, at *2 (6th Cir. June 10,
2008) (citing Chambers v. NASCO, Inc., 501 U.S.
32, 49-50 (1991)); see also Runfola & Assocs. v.
Spectrum Reporting II, Inc., 88 F.3d 368, 375 (6th
Cir. 1996) (“In addition to Rule 11 and 28 U.S.C.
§ 1927, a district court may award sanctions
pursuant to its inherent powers when bad faith
occurs.”). To award attorneys' fees under this “bad
faith exception, ” a district court must find that (i)
“the claims advanced were meritless”; (ii)
“counsel knew or should have known this”; and
(iii) “the motive for filing the suit was for an
improper purpose such as harassment.” Big Yank
Corp. v. Liberty Mut. Fire Ins. Co., 125 F.3d 308,
313 (6th Cir. 1997) (citation omitted) (“The
district court has the inherent authority to award
fees when a party litigates in bad faith,
vexatiously, wantonly, or for oppressive reasons.”
(internal quotation marks omitted)).
The Sixth Circuit has further explained:
For a court to impose sanctions under its
inherent powers, it is not necessary that the
court find that an action was meritless as
of filing, or even shortly thereafter. It can
become apparent part-way through a suit
that an action that initially appeared to
have merit is in fact meritless; parties and
attorneys have a responsibility to halt
litigation whenever they realize that they
are pursuing a meritless suit.... [M]oreover,
a party or firm might enter an action long
after the filing of the initial complaint, but
may still be sanctionable under a court's
inherent powers if it acts in bad faith. The
“something more” that a court must find to
meet the third prong of the Big Yank test
may similarly occur at any stage of the
proceedings. A court imposing sanctions
under its inherent powers may consider the
nature and timing of the actions that led to
a finding of bad faith in determining
whether to impose sanctions on conduct
from that point forward, or instead to infer
that the party's bad faith extended back in
time, perhaps even prior to the filing of the
action.
BDT Prod., Inc. v. Lexmark Int'l, Inc., 602 F.3d
742, 753 n.6 (6th Cir. 2010) (emphasis in
original). The Supreme Court has held that “a
federal court's inherent authority to sanction a
litigant for bad-faith conduct by ordering it to pay
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