IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA
| NETBULA, LLC, | No. C06-0711 MJJ (EMC) | |
|---|---|---|
| v. | Plaintiff, | ORDER ADOPTING MAGISTRATE JUDGE’S JUNE 11, 2007 ORDER ONPLAINTIFF’S MOTION FOR |
| SANCTIONS | ||
BINDVIEW DEVELOPMENT CORPORATION, et al.,
Defendants.
/
Before the Court is Plaintiff Netbula, LLC’s (“Plaintiff”) Objection to the Magistrate’s Order Denying Plaintiff’s Motion For Sanctions.1 For the following reasons, the Court ADOPTS the magistrate judge’s order.
On March 14, 2007, Plaintiff served Birdview Devellopment Corporation, Symantec Corporation, and Eric J. Pulaski (“Defendants”) with a Rule 11 motion. On April 3, 2007, counsel for Defendants sent a letter to Plaintiff, refusing to withdraw any of the statements or contentions on which Plaintiff based its motion. On April 6, 2007, Plaintiff filed its Rule 11 motion with the Court. On April 24, 2007, the Court referred the motion to Magistrate Judge Chen. On May 16, 2007, Defendants filed an opposition to Plaintiff’s motion as well as a motion for attorneys’ fees. After a
1Docket No. 193
June 6, 2007 hearing, Magistrate Judge Chen issued a June 11, 2007 order that denied the Rule 11 motion on the grounds that it was untimely. In addition, he granted Defendants’ attorneys $20,000 in attorneys’ fees.
The district judge to whom the case is assigned shall consider such objections and shall modify or set aside any portion of the magistrate judge’s order found to be clearly erroneous or contrary to law. Fed. R. Civ. P. 72(a). “A judge of the court may reconsider any pretrial matter . . . where it has been shown that the magistrate judge’s order is clearly erroneous or contrary to law.” 28 U.S.C. § 636(b)(1)(A). The “clearly erroneous” standard applies to the magistrate judge's findings of fact; legal conclusions are freely reviewable de novo to determine whether they are contrary to law. Wolpin v. Philip Morris Inc., 189 F.R.D. 418 (1999). “[A] magistrate’s order is ‘clearly erroneous’ if, after considering all of the evidence, the district court is left with the definite and firm conviction that a mistake has been committed, and the order is ‘contrary to law’ when it fails to apply or misapplies relevant statutes, case law or rules of procedure.” Yent v. Baca, 2002 WL 32810316, at *2 (C.D. Cal. 2002); See also 32 Am. Jur. 2d Federal Courts § 143 (2007).
ANALYSIS
Because Magistrate Judge Chen denied Plaintiff’s motion for sanctions on the grounds that it was untimely, a chronology of the events leading to the motion is instructive.
First, Plaintiff’s claims that Defendants’ statements in its motions to dismiss justify sanctions by the Court. Plaintiff claimed that Defendants mischaracterized its fraud claim and improperly argued that it lacked the right to sue. Defendants filed motions to dismiss on June 15, 2006, based on Plaintiff’s failure to state a claim and the Court’s lack of personal jurisdiction over Defendants. Plaintiff filed oppositions to those motions on July 26, 2006, and Defendants filed reply briefs on August 1, 2006. In an August 23, 2006 order, the Court granted in part and denied in part Defendants’ motions. Plaintiff served its Rule 11 motion on Defendants on March 14, 2007, over six months later.
Second, Plaintiff also moves under Rule 11 to sanction claims that Defendants made in their
2
opposition to Plaintiff’s October 10, 2006 motion to strike. In that opposition, according to Plaintiff’s motion, Defendants made a frivolous argument regarding Plaintiff’s copyright registration, mischaracterized Plaintiff’s licensing and pricing procedures, and offered a meritless affirmative defense of unclean hands. On November 17, 2006, the Court ruled on the motion to strike, issuing an order that granted in part and denied in part the motion. Plaintiff served its Rule 11 motion on Defendants on March 14, 2007, nearly four months later.
Third, Plaintiff also raises grounds for sanctions arising out of Defendants’ September 29, 2006 joint case management statement, alleging that Defendants falsely accused Plaintiff of failing to produce necessary documents at a conference. In addition, Plaintiff argues that in their December 6, 2006 seconded amended answer, Defendants repeated their misstatement of Plaintiff’s pricing of its products. The March 14, 2007 service of the Rule 11 motion on Defendants came over five months after the joint case management statement and over three months after the seconded amended answer.
Magistrate Judge Chen concluded that Plaintiff’s Rule 11 motion was untimely based on Advisory Committee Notes that accompany the rule. He applied the standard that “[o]rdinarily [the] motion should be served promptly after the inappropriate paper is filed, and, if delayed too long, may be viewed as untimely.” Fed. R. Civ. P. 11(b) and (c), 1993 Advisory Committee Notes. The magistrate judge’s order properly applied appropriate law. He reasonably concluded that the motion was untimely because “it was not filed until may months after Defendants’ offending contentions were made and long after the presiding judge had already considered or ruled upon the papers containing the offending contentions.” (Ord. Denying Pl.’s Mot. for Sanctions and Grant. Defs’ Mot for Atty.’s Fees, p. 2.) The Plaintiff admits in its objection that a determination of timeliness is discretionary; the magistrate judge acted within this discretion.
Plaintiff points out that the magistrate judge erroneously found that the Rule 11 motion did not involve pleadings, since Plaintiff did request that the Court impose sanctions on Defendants for claimed mischaracterizations in their second amended answer. However, this argument does not undermine the conclusion that the motion is untimely. “Plaintiff pointed out that . . . sanctions for violations in pleadings are determined at the end of case.” (Pl.’s Obj. to Mag. Judge’s Ruling, p. 5.)
3
Therefore, Rule 11 motion for sanctions arising from Defendants’ pleading was untimely because Plaintiff filed it too early by not awaiting the end of the case. Because Magistrate Judge Chen’s order denying Plaintiff’s request for sanctions is not in clear error nor is it contrary to law, the Court declines to set aside his order.2
A court has discretion to award attorney’s fees to the party that prevails on the motion. Fed.
R. Civ. P. 11(c)(1)(A). Plaintiff relies on a Supreme Court case that interpreted the attorney fee shifting provisions of the Fair Housing Amendments Act and of the Americans with Disabilities Act to define “prevailing party.” See Buckhannon Board & Care Home, Inc. v. West Virginia Dept. of Health and Human Resources, 532 U. S. 598, 605 (2001). This case does not inform an analysis of Rule 11. The magistrate judge provided authority for imposition of attorney’s fees on the party that successfully defends against a Rule 11 motion. See EEPC v. Tandem Computers, 159 F.R.D. 224
(D. Mass. 1994). Since Defendant was the prevailing party on the Rule 11 motion, the magistrate judge had discretion to award it attorney’s fees. The award was neither clearly erroneous nor contrary to law.
CONCLUSION The Court DENIES Plaintiff’s objection to the magistrate judge’s June 11, 2007 order on Plaintiff’s Motion for Sanctions.
Dated: August___, 2007 _________________________________ MARTIN J. JENKINS UNITED STATES DISTRICT JUDGE
2 Because the order denied sanctions based on the untimeliness of Plaintiff’s motion, the Court does not reach Plaintiff’s objections to Magistrate Judge Chen’s dicta on the merits of Plaintiff’s claims for sanctions.
4