Hadges v. Yonkers Racing Corp. P274

P claimed that the race tracks and various state agencies had caused him to be out of work for 5 years because of a boycott and secret agreements. D produced documents showing P had raced 12 times in the past 5 years. Trial judge imposed Rule 11 sanction on P and censured the attorney. Second Circuit court reversed because of a failure to comply with the procedural requirements of the revised version of Rule 11. D had denied P the safe harbor period in which he could have withdrawn his complaint. Also Rule 11 specifically prohibits the imposition of money sanctions in this situation.

Chambers v. Nasco, Inc. 501 U.S. 32 (1991) P277

Inherent power to sanction. The district court imposed sanctions on Chambers of $1,000,000 for attempt to deprive the court of jurisdiction by acts of fraud, as well as other conducts (Chambers attempted to transfer property outside the reach of the court before the restraining order could be issued – after receiving notice that a RO would be issued). Court of Appeals and the Supreme court upheld these sanctions. The federal courts have the discretionary, inherent power to punish bad-faith litigation conduct.

Willy v. Coastal Corp. 503 U.S. 131 (1992) p284

Although it was later determined that the district court did not have subject matter jurisdiction in a case in which Rule 11 sanctions in the amount of $22,625 were imposed, this is immaterial because "the interest in having rules of procedure obeyed does not disappear upon a subsequent determination that the court was without subject-matter jurisdiction."