Twist It Up, Inc. v. Annie International, Inc.

Summary

The Central District of California issued an order to show cause concerning allegedly nonexistent and improperly used legal citations in an opposition to a motion to strike deposition corrections. The court ordered attorney John D. Tran and any other responsible attorney to appear at a hearing and address potential monetary sanctions against Rhema Law Group PC and possible disciplinary referral under Federal Rule of Civil Procedure 11.

Holdings

1. Citing nonexistent legal authority and citing cases that do not support the propositions for which they are cited is improper under Federal Rule of Civil Procedure 11 and may provide grounds for sanctions after notice and a reasonable opportunity to respond.
2. The court may sua sponte impose monetary sanctions under Rule 11 when it first issues a show-cause order under Rule 11(c)(3) before voluntary dismissal or settlement of the claims made by or against the party to be sanctioned.

Questions Presented

1. Whether citing nonexistent legal authority and citing authorities that do not support the propositions for which they are offered violate Federal Rule of Civil Procedure 11.
2. Whether the court could issue a sua sponte order to show cause concerning monetary sanctions against responsible attorneys and their law firm under Federal Rule of Civil Procedure 11.

Disposition

other