# Petitioners Brief — Roadway Express, Inc. v. Piper

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petitioners Brief
- **Published:** January 1, 1980
- **Citation:** 447 U.S. 752

## Text

Supreme Court, U.S.
age ay, le aaa tk

FEB 20 1980

IMICHAEL RODAK, JR., CLERK

IN THE

Supreme Cowt of the United States

OCTOBER TERM, 1979

No. 79-701

ROADWAY EXPRESS, INC.,
Petitioner
V.

J. D. MONK, ET AL.,
Respondents

On Writ of Certiorari to the United States
Court of Appeals for the Fifth Circuit

BRIEF FOR THE PETITIONER

MILES CURTISS MCKEE
ARMIN J. MOELLER, JR.

FUSELIER, OTT, MCKEE &
FLOWERS, P.A.

2100 Deposit Guaranty Plaza

Jackson, Mississippi 39201

(601) 948-2226
Counsel for Petitioner

TABLE OF CONTENTS

Page
Table of Cases and Authorities |... ii
ER Te ee 1
RE A I es Re Se 2
a ene 2
Question Presented 0.0.0.0... ccccccccccccccececccsececesecececeees 3
sptatement of the Came... ccc ccccccccccccccececes. 3
Summary of Argument... 6
(i EE ESD SE a oa a ee Ue 7

I. 28 U.S.C. § 1927, 42 U.S.C. § 2000e-5(k)
AND 42 U.S.C.-§ 1988 SHOULD BE EN-
FORCED ACCORDING TO THEIR
SRM EY MMMM scence ccaiecsccednssdeveserences 7

II. ASSUMING THAT SECTIONS 706(k
AND 1988 ARE INAPPLICABLE T
SECTION 1927, COURTS POSSESS IN-
HERENT POWER TO INCLUDE AT-
TORNEYS’ FEES AS COSTS UNDER
PMI III 6s cussesaseprenonscictbon pssiaceconce 19

ii

TABLE OF CASES AND AUTHORITIES

me

Page(s)
Acevedo v. Immigration & Naturalization Serv.,
te Re 0 CRP BCD oaccsess cc ssecceseseecciseascssness: 11
Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421
i goss ah alla va syanstdasenisanraars 13,15,19
Browning Debentures Holders’ Comm. v. DASA
Corp., 560 F.2d 1078 (2d Cir. 1977).................00. 19
Caminetti v. United States, 242 U.S. 470 (1917) ..... 8
Christiansburg Garment Co. v. EEOC, 434 US.
Ne ele Ugo cade exdoubceretannbconsddieheansaies> 9,10
17,18
Field v. United States, 34 U.S. (9 Pet.) 182 (1834) 13
Flaska v. Little River Marine Constr. Co., 389
F.2d 885 (5th Cir.), cert. denied, 392 U.S. 928
(RDI Set DR Goer ues cop selina dene ef oO 20
Fleischmann Distilling Corp. v. Maier Brewing
ee a Pe I oo iecsststaisrnticns pavteesvanensoisias er
18,19

Flora v. Moore, 461 F. Supp. 1104 (N.D. Miss.
ES EIS rate 0 i epve hey OP One Canes ee SPOR 10

Gamble v. Pope & Talbot, Inc., 307 F.2d 729 (3d
Cir.) (en banc), cert. denied, 371 U.S. 888

ie Roatan sets seavsesadisa tan birreitriceecsinsivs 20
Bat o. Cote, O13 UD: 8 (IG TB) 000... 0cccccccccsesccscse.s. 19
Huddleston v. United States, 415 U.S. 814 (1974)... 16
Huntington v. Attrill, 146 U.S. 657 (1892) .............. 16
Hutto v. Finney, 4387 U.S. 678 (1978) .........0. 6,15
In re Sutter, 543 F.2d 1030 (2d Cir. 1976) ............... 20
Link v. Wabash R.R., 370 U.S. 626 (1962) ............... 10,19

Mills v. Electric Auto-Lite Co., 396 U.S. 375
iia Mectc le atl Lineups gn vslnumdncisieveaneviven’ 19

iil

Page(s)
Motion Picture Patents Co. v. Steiner, 201 F. 63
LR RU enbr RAR enema coe ene tect se 6,14
15,19
National Hockey League v. Metropolitan Hockey
Club, Inc., 427 U.S. 639 (1976) (per curiam) ...... 7,20
Newman v. Piggie Park Enterprises, 390 U.S. 400
Ry CIO IID avian css cescirssvcnvvensesenvncesssnaseceess 17
Prate v. Freedman, 583 F.2d 42 (2d Cir. 1978) ....... 9,10,18
Sprague v. Ticonic Natl Bank, 307 U.S. 161
IN sha veducelcccrtustka tasne tases hea eae me 7,19
St. Louis, Iron Mt. & S. Ry. v. United States, 251
SN I Soo elas scree cheteahs a peruiastic 18
Toledo Metal Wheel Co. v. Foyer Bros. & Co., 223 F.
I sca csatesacesesssseecoce Ven vaskidesyrautiecs 16
United States v. American Trucking Ass’ns., 310
Pn I oars scauzdons vudics ded sites vonsotinnvsasudiaee nage 8,9
United States v. Missouri Pac. R.R., 278 U.S. 269
GR ER AI A RRC EC Rep PN TEL ARE Ai wks opal OIE 8
United States v. Ross, 535 F.2d 346 (6th Cir. 1976) 15
Vaughan v. Atkinson, 369 U.S. 527 (1962) 000000000... 19
Act of July 22, 1818, 3 Stat. 21 ....................0c0000c00.0.. 12,la
Act of Feb. 26, 1853, 10 Stat. 162.000.000.000... 14,1la
Po eS 14,2a
Be ee ii oe oer coidthareeaSecsmverr ccc 18
Be Ws Oe cg csi es ts cose scevisce coe vdeiocarxacss passim
42 U.S.C. § 1988 (as amended 1976) 2.00.00... passim
te Se |S eee passim
H.R. Rep. No. 50, 32d Cong., ‘st Sess. (1852) ......... 14
H.R. Rep. No. 308, 80th Cong., 1st Sess. (1947) ..... 6,14
S. Rep. No. 94-1011, 94th Cong., 2d Sess. (1976) ... 15

iv

H.R. Doc. No. 25, 27th Cong., 3d Sess. (1842) .........

Antitrust Procedural Act of 1979: Hearings on S.
390 Before the Subcommittee on Antitrust and
Monopoly, 96th Cong., Ist Sess. (1979) ................

47 Annals of Cong. 29, 48, 45, 54, 57, 60-61, 446,
Fs) RR re ORLA IS oon Bos

Cong. Globe, 32d Cong., 2d Sess. App. 207-09
IS NINE «csv iusaietencicibiedeediel pdeintsinrcenueemecaacelas ees nL ame

122 Cong. Rec. 31882, 35117, 35124 (1976)..............
125 Cong. Rec. $1343-68 (daily ed. Feb. 8, 1979)...

a Statutory Construction (C. Sands ed.
|, | RR DRINA RCO rena AN MORE le Pia y re OS 52K P

Brief of the NAACP Legal Defense Fund, Inc., as
Amicus Curiae, Christiansburg Garment Co. v.
BOC, 484 U.S. 432 (IGE) ...cusccccccccrsecricccssecceessens

Note, Attorney’s Fees and the Federal Bad Faith
Exception, 29 Hastings L.J. 319 (1977) ...............

Comment, Financial Penalties Imposed Directly
Against Attorneys in Litigation Without Resort
re the Contempt Power, 26 U.C.L.A. L. Rev. 855

POE bis sdesiavinic line dcoaiceoen alae een ee

Comment, Sanctions Imposed by Courts on At-
torneys Who Abuse the Judicial Process, 44 U.
CA Ts FRR Re CI CED vasecshchsssanasepcceeena

Page(s)

13

16
13

13
12
16

8,16,18

10

11

IN THE

Supreme Court of the United States

OCTOBER TERM, 1979

No. 79-701

ROADWAY EXPRESS, INC.,

Petitioner
Vv.

J. D. MONK, ET AL.,
Respondents

On Writ of Certiorari to the United States
Court of Appeals for the Fifth Circuit

BRIEF FOR THE PETITIONER

OPINIONS BELOW

The opinion of the court of appeals (Pet. App. A, pp.
la-8a) is reported at 599 F.2d 1378. The opinion of the
district court on rehearing (Pet. App. C, pp. lla-18a) is
not reported. The opinion of the district court (Pet. App.
D, pp. 14a-96a) is reported at 73 F.R.D. 411.

2
JURISDICTION

The judgment of the court of appeals was entered on
August 3, 1979. The petition for a writ of certiorari was
filed on October 31, 1979, and was granted on January 7,
1980. The jurisdiction of this Court is invoked under 28
U.S.C. § 1254(1).

STATUTES INVOLVED

28 U.S.C. § 1927 provides:

Any attorney or other person admitted to
conduct cases in any court of the United States
or any Territory thereof who so multiplies the
proceedings in any case as to increase costs
unreasonably and vexatiously may be required
by the court to satisfy personally such excess
costs.

Section 706(k) of Title VII of the Civil Rights Act of
1964, 42 U.S.C. § 2000e-5(k), provides:

In any action or proceeding under this
subchapter the court, in its discretion, may allow
the prevailing party, other than the Commission
or the United States, a reasonable attorney’s fee
as part of the costs, and the Commission and the
United States shall be liable for costs the same as
a private person.

42 U.S.C. § 1988 (as amended 1976) provides in part:

In any action or proceeding to enforce a
provision of sections 1981, 1983, 1985, and 1986 of
this title,... the court, in its discretion, may
allow the prevailing party, other than the
United States, a reasonable attorney’s fee as
part of the costs.

3

QUESTION PRESENTED

Whether attorneys who unreasonably and vexatiously
multiplied proceedings in an action under Title VII of the
Civil Rights Act of 1964 and 42 U.S.C. § 1981 may be
personally assessed, pursuant to 28 U.S.C. § 1927, with
attorneys’ fees as part of the “excess costs” incurred by an
opposing party as a result of such conduct?

STATEMENT OF THE CASE

I. Facts

On June 3, 1975, attorneys Robert E. Piper, Jr., Frank
E. Brown, Jr., and Bobby Stromile filed a class action on
behalf of three individuals against Roadway Express, Inc.,
the International Brotherhood of Teamsters, and Team-
sters Local No. 194. The complaint alleged violations of
Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e
to -17 (as amended 1972), and the Civil Rights Act of
1866, 42 U.S.C. § 1981 (R. 1).

Roadway subsequently moved to dismiss the com-
plaint because of the plaintiffs’ failure to make discovery
and failure to comply with an order of the court (R. 343).
On June 30, 1976, the district court dismissed the com-
plaint,’ without prejudice, pursuant to Rule 37 of the
Federal Rules of Civil Procedure (R. 704). The district
court retained jurisdiction, however, to determine wheth-
er further sanctions, namely Roadway’s costs, would be
imposed (J/d.).

II. The Decision of the District Court

On January 6, 1977, after an evidentiary hearing,
the district court awarded Roadway a portion of its costs,

'No appeal was taken from the district court’s dismissal of
the complaint.

4

including attorneys’ fees, and assessed those costs person -
ally against attorneys Piper, Brown, and Stromile (Pet.
App. D, at pp. 15a-28a). In support of the assessment, the
district court found that the three attorneys’ misconduct’
during the case had unreasonably and vexatiously multip-
lied the proceedings, and thereby had “escalated defend-
ants’ costs substantially” (Pet. App. D, at p. 19a).

The assessment was made pursuant to 28 U.S.C.
§ 1927, which the district court viewed as providing for
“an equitable shifting of responsibility for unreasonable
and vexatious costs from a party to his counsel” (Pet. App.
D, at p. 24a). The term “costs” was read by the district
court as including “only such costs as normally would be
allowed to the prevailing party” (Pet. App. D, at p. 23a).
This reading thus encompassed the language of Title VII’s
section 706(k), 42 U.S.C. § 2000e-5(k), and 42 U.S.C.
§ 1988 (as amended 1976), both of which provide that the
court may “allow the prevailing party...a reasonable
attorney’s fee as part of the costs” in actions under the
1866 and 1964 civil rights acts.

2 As later summarized by the court of appeals, the district
court
found that the forced dismissal of the plaintiffs’
claims were caused by the total and deliberate failure
of their counsel to properly prosecute them, as evi-
denced by their failure to answer Roadway’s inter-
rogatories as ordered; their failure to produce [plain-
tiff} McPherson for his deposition as previously
agreed; their failure to advise their clients of their
denomination as class representatives and the pos-
sible consequences of class representation; and their
failure to file briefs twice requested by the court
concerning this case’s relation to a class certification
entered in the Western District of Texas.

(Pet. App. A, at p. 4a)

5

On April 13, 1977, the district court denied a motion
for rehearing’ filed on behalf of the three attorneys by
their malpractice insurer (Pet. App. C, at pp. 12a-13a). On
May 5, 1977, the district court entered a judgment in
favor of Roadway against attorneys Piper, Brown and
Stromile (R. 790). On May 25, 1977, the judgment was
amended to reflect the district court’s dismissal, with
prejudice, of Roadway’s claim for costs, including at-
torneys’ fees, against the individual plaintiffs. (Pet. App.
B, at pp. 9a-10a).

III. The Decision of the Court of Appeals

A panel of the United States Court of Appeals for the
Fifth Circuit concluded that the district court’s findings of
fact were not clearly erroneous, and agreed that under
section 1927 the three attorneys “are subject to personal
liability for the excess costs generated by their unreason-
able and vexatious multiplication of the proceedings”
(Pet. App. A, at pp. 4a-5a). The court of appeals dis-
agreed, however, with the district court’s inclusion of
attorneys’ fees in the assessment.

First, recognizing that “[t]he general American rule
is that attorneys’ fees are not ordinarily recoverable as
costs” (Pet. App. A, at p. 5a), the court of appeals observed
that “[s]ection 1927’s reference to ‘costs’ neither specific-
ally includes nor specifically excludes attorneys’ fees as
allowable costs under the statute” (Jd.). Additionally,
since the statute was considered penal in nature, the court
held that section 1927 should be strictly construed (Jd.).
Relying on Fleischmann Distilling Corp. v. Maier Brewing
Co., 386 U.S. 714 (1967), the court of appeals stated that it
would not imply what was termed “an extraordinary

* Although the district court denied the motion, the court’s
January 6, 1977, opinion was amended to reflect that the
plaintiffs’ attorneys had filed a brief which the court incorrectly
had stated was not filed (Pet. App. C, at pp. 12a-13a).

° 6

remedy” (Pet. App. A, at p. 7a) from section 1927 in the
absence of statutory language or legislative history in-
dicating that the costs provided for in the statute were
intended to include attorneys’ fees.

Second, the court of appeals held that the costs provi-
sions of Title VII’s section 706(k) and 42 U.S.C. § 1988 are
inapplicable to attorneys. “Those sections provide for
attorneys’ fees awards against unsuccessful parties to a
suit, and they focus on actions which are frivolous, unrea-
sonable, and baseless in allowing awards against
unsuccessful plaintiffs” (Pet. App. A, at p. 8a) (emphasis
in original). Finally, the court of appeals concluded that
‘(njeither could the district court combine the provisions
of those statutes with those of § 1927 to produce a hybrid
result contemplated by none of the statutes” (Id.). The
judgment of the district court was vacated insofar as it
included attorneys’ fees in the section 1927 assessment
and the case was remanded for a determination of a
“proper award” (Jd.).

SUMMARY OF ARGUMENT
I.

Sections 1927, 706(k) and 1988 should be enforced
according to their plain meaning. Section 1927 provides
that “in any case” attorneys may be assessed with “costs.”
H.R. Rep. No. 308, 80th Cong., Ist Sess. A164 (1947 ) (1948
amendments to section 1927), citing Motion Picture Pat-
ents Co. v. Steiner, 201 F. 63, 64-65 (2d Cir. 1912) (section
1927 “costs” are limited to expenses “taxable as costs”).
Sections 706(k) and 1988 provide that attorneys’ fees may
be allowed to the prevailing party “as part of the costs” in
Title VII and 42 U.S.C. § 1981 actions. Hutto v. Finney,
437 U.S. 678, 696-97 (1978) (attorneys’ fees awarded
pursuant to section 1988 are “taxable costs’). Con-

case .compels the
> result reached
Section 1927 provides that “costs”
attorneys “in any case.”

7

sequently, attorneys’ fees may be incl
ment of “costs” pursuant t
42 U.S.C. § 1981 actions.

) uded in an assess-
0 section 1927 in Title VII and

II.

Assuming that the attorneys’ fees provisions in sec-

anne oes ; — are inapplicable to section 1927, an
uaa dal costs. under section 1927 may nevertheless
pa — fees. First, courts possess inherent
ee inte to assess “costs of litigation other than
Bouk ter “it taxable costs.” Sprague v. Ticonic Nat!
inherent mane Hagin (1939). Second, courts possess
sancti power ‘to impose reasonable and appropriate

ons on attorneys. In all cases the choice of sanctions

: ites = the sound discretion of the district court
pct ockey League v. Metropolitan Hockey Club, I
S. 639 (1976) (per curia Asap

m), and, parti i
pai involving attorneys, the eek of prised =
ccorded the district court must be wide. The district

7 - ironaeer of attorneys’ fees in the sanctions im
e attorneys in the instant ca

se was -

able and appropriate exercise of its discretion iia

ARGUMENT
I,

28 U.S.C. § 1927, 42 U.S.C. §
; S.C. § 2000e-5(k
a: aA U.S.C. § 1988 SHOULD BE ENFORCED
ORDING TO THEIR PLAIN MEANING

The plain meaning of the statutes involved in this

by = district court.
: may be assessed against
Sections 706(k) and 1988 provide

8

that attorneys’ fees may be allowed to the prevailing
party “as part of the costs” in actions under Title VII and
42 U.S.C. § 1981. Therefore, since attorneys fees were
“nart of the costs” in this case, the district court's in-
clusion of counsel fees in the assessment of “costs” against
the three attorneys was correct.

Statutes should be enforced according to their plain
meaning. E.g., United States v. American Trucking
Ass’ns., 310 U.S. 534, 548 (1940); United States v. Missourt
Pac. R.R., 278 U.S. 269, 277 (1929); Caminetti v. United
States, 242 U.S. 470, 485 (1917). See generally 2A Suther-
land Statutory Construction § 46.01 (C. Sands ed. 1973).
The court of appeals ignored this rule, and thereby
reached a result which defies logic, substantially neutral-
izes the deterrent effects of section 1927, and does serious
violence to the spirit and congressional intent underlying
sections 706(k) and 1988.

The best argument for adhering to the plain meaning
rule in this case is found in the exception to the rule. That
is, statutes will not be enforced according to their plain
meaning when to do so would produce “absurd or futile
results” or “merely an unreasonable one ‘plainly at vari-
ance with the policy of the legislation as a whole.’ ” United
States v. American Trucking Ass’ns., supra, 310 U.S. at
548. The exception is clearly absent from this case, and an
analysis of the reasons for its absence provides valuable
insight into the infirmities of the court of appeals’ hold-
ing.

The net result of the district court’s enforcement of
the plain meaning of the statutes was to require the three
attorneys to reimburse Roadway for the attorneys fees
incurred in defending itself against patently frivolous,
unreasonable and vexatious proceedings. But for the
district court’s findings that the three attorneys were
responsible for the abuses, Roadway’s costs, including

9

counsel fees, could have been assessed against the individ-
ual plaintiffs. Christiansburg Garment Co. v. EEOC, 434
U.S. 412 (1978).‘ Far from “absurd” or “unreasonable,”
the district court’s decision reached the eminently sensible
result of holding the perpetrators rather than the victims
of the misconduct accountable for the economic con-
sequenées of the vexatious conduct. The court of appeals’
holding, on the other hand, restricts attorneys’ fees
assessments to innocent litigants which, under the facts of

this case, would indeed have been an absurd and unrea-
sonable result.

Nor did the district court’s decision produce a result
plainly at variance with the policy of the legislation as a
whole.’” United States v. American Trucking Ass’ns.,
supra, 310 U.S. at 543. Congress intended for attorneys’
fees to be allowed “as part of the costs” to employers
forced to defend themselves against frivolous, unreason-
able and vexatious actions filed under Title VII and 42
U.S.C. § 1981. Christiansburg Garment Co. v. EEOC, supra,
434 US. at 420-21.° Yet, at the same time, Congress also
intended for such fees to be allowed only in exceptional

eee

‘Indeed, the district court might have correctly assessed
the fees against the individual plaintiffs in spite of its findings
concerning the attorneys’ responsibility for the misconduct.
Prate v. Freedman, 583 F.2d 42, 48 (2d Cir. 1978).

* Restitution and deterrence, however, are not the only
principles supporting attorneys’ fees awards to employers.

Discouraging frivolous or vexatious litigation .. . is
wholly consistent with congressional purpose, both
because no valid purpose would be furthered by such
litigation, and by discouraging it the courts would be
free to focus their attention on substantial cases

which present substantial issues arising under the
civil rights laws.

Brief of the NAACP Legal Defense Fund, Inc., as Amicus Curiae

at 15 (footnote omitted), Christiansburg Garment Co. v. EEOC,
supra.

10

cases, in order to diminish the chilling effects of potential
fee liability on the willingness of persons of limited means
to vindicate their rights. Jd. at 422. Such an intent is
totally at odds with holding plaintiffs of limited means
responsible for substantial sums of money properly
awarded to a defendant because of plaintiffs’ counsel’s
misconduct.’ It is submitted, however, that utilizing

‘ The specter of incurring attorneys’ fees liability because of
counsel’s misconduct has perhaps even a greater “chilling”
effect than simply knowing that such liability may be imposed
because of one’s own misconduct. See Note, Attorneys’ Fees and
the Federal Bad Faith Exception, 29 Hastings L.J. 319, 341-42
n.153 (1977) (noting such effects and arguing that the ABA
Code of Professional Responsibility is “not a sufficient safeguard
to deter bad faith litigation”).

* Compare Flora v. Moore, 461 F. Supp. 1104, 1122 (N.D.
Miss. 1978) (defendant’s attorneys’ fees in vexatious employ-
ment discrimination suit assessed against Legal Services Corpo-
ration representing plaintiffs where plaintiffs were “personally
unaware of the irresponsible and vexatious manner in which
their counsel were pursuing their action. ... Although § 706(k)
might be read to make plaintiffs legally liable, it would, we
think, be unjust to impose personal liability upon the plaintiffs
on a theory of vicarious responsibility under such circum-
stances.”) with Prate v. Freedman, supra, 583 F.2d at 48
(plaintiffs’ attorneys’ responsibility for frivolous Title VII ac-
tion, if anything, merely mitigates the amount of fees awarded
against the plaintiffs), citing Link v. Wabash R.R., 370 U.S. 626,
633-34 (1962) (“each party is deemed bound by the acts of his
lawyer-agent”).

The Prate result is objectionable on at least two equitable
grounds. First, the individual plaintiff is saddled with a
financial obligation which he or she is only constructively
charged with incurring. The real culprit, the attorney, would,
unless the district court’s holding in this case is reinstated,
probably escape all economic consequences. Alternatively, the
plaintiff might hire yet another lawyer and proceed with some
attempt at obtaining indemnification from the attorney, such as

(footnote continues )

1]

alternatives to direct assessments against individual
plaintiffs, such as assessments against culpable attorneys,
is totally consistent with congressional intent.’

(footnote continued )

a malpractice action. See generally Comment, Financial Penal-
ties Imposed Directly Against “ttorneys In Litigation Without
Resort to the Contempt Power, 26 U.C.L.A. L. Rev. 855, 867-68
(1979). This course often would be economically prohibitive to
Title VII plaintiffs and is certainly inefficient if responsibility
for the fees can be otherwise assessed in the proceeding relating
to the original action. See Acevedo v. Immigration & Natural-
ization Serv., 538 F.2d 918, 921 (2d Cir. 1976) (noting the
client s inability to pay costs of misconduct and “modest educa-
tion” In assessing costs against attorney under $1927). Second
reducing the fee award ignores the other victim of the mis-
conduct, the employer. If employers are prohibited from recov-
ering “excess costs,” including attorneys’ fees, under § 1927, and
are awarded “mitigated” fees against individual plaintiffs who
: srg = _ not page for the vexatious suit in the
ace, the fee award wi i i i
sc Pn thy of little aid to the employer in
*The Senate debates on § 1988 in particular re
Congress certainly did not intend for ian legislation ~anallesn
unscrupulous lawyers or encourage attorney misconduct. as
shown by the following exchange between two of the bill’s floor
managers in the Senate.

Mr. Abourezk. There has been a great deal made
here on the floor by opponents of this legislation that
it would encourage frivolous lawsuits. It has been the

lawyers’ relief bill,” as every bill has been called
when it has come up and there has been opposition to
it. But, according to the provisions of the bill itself. is
it not true that the legislation says the court, in its
discretion, may award attorneys’ fees to the pre-
vailing party, so that if the defendant in a civil rights
suit were to prevail the court could prevent a frivolous
lawsuit by having that provision available?

Mr. Hathaway. The Senator is absolutely correct.
There is adequate safeguard in the bill to protect
against frivolous lawsuits.

(footnote continues)

12

The result reached by the district court is also con-
sistent with Congress’ intent in section 1927. Passed in
1813 as part of “An Act concerning suits and costs in
courts of the United States,” Act of July 22, 1813, 3 Stat.
21,° section 1927 was apparently designed to remedy
abuses by United States Attorneys, at that time com-
pensated by statute on a per-service basis, who multiplied
proceedings in order to increase their fees.” Thus, from
the very beginning, attorneys’ fees were within the pur-
view of section 1927.

(footnote continued )

Mr. Abourezk. So if somebody thought, some
lawyer thought, he was going to make a lot of money
by bringing civil rights suits he would be subject to
being penalized himself; is that not correct?

Mr. Hathaway. The Senator is correct.

122 Cong. Rec. 31832 (1976). See also id. at 35124 (remarks of
Rep. Drinan) (“This bill is not intended, nor are the other 52
similar provisions in Federal law, to encourage groundless and
frivolous litigation or to allow lawyers or litigants or their
clients to recover unjustly from a defendant.’’). There is no
indication that Congress intended to foreclose other available
procedures under Federal law which might arise out of enforce-
ment or assessment of an attorneys’ fees award. Cf. id. at 35117
(“the defendant can take every legal remedy available to him to
reach the essence of the plaintiff’). ely

*The full text of the original provision is reproduced in
Appendix A, infra. Also‘included in Appendix A are the texts of
the provision from enactment to its current codification.

© Materials on the legislative history of § 1927 are limited.
On June 18, 1813, the Senate appointed a committee

to inquire what legislative provision is necessary to
prevent multiplicity of suits or processes, where a
single suit or process might suffice for the adminis-
tration of jusiice in any cause to which the United
States may be a party, or before any court of the
United States, and that the committee have leave to
report by bill or otherwise.
(footnote continues)

13

The statute existed in relative obscurity" until the
general recodification of the Judicial Code in 1948, when

(footnote continued )

47 Annals of Cong. 29 (1813). <A bill was reported by the
committee on July 7, 1813, id. at 43, read a second time the next
day, id. at 45, and ordered to a third reading as amended on July
15, 1813. Jd. at 54. The bill was read a third time and passed in
the Senate on July 16. Jd. at 57. The bill was submitted to the
House on July 16, id. at 446, read twice and referred for further
consideration by designated members of the House on July 17.
Id. at 456. The bill was reported with amendments and passed
the House on July 20, id. at 469, and the amendments were
concurred in by the Senate on the same day. Jd. at 60-61.
Counsel for Roadway has been unable to locate any documents
(committee reports, debates, Senate and House documents, or
any other legislative publications) strictly contemporaneous
with the enactment.

A letter from the Secretary of the Treasury to the Speaker
of the House in 1842, however, clearly suggests the purpose
outlined in the text. H.R. Doc. No. 25, 27th Cong., 3d Sess.
(1842). Other congressional materials also support this inter-
pretation, as the abuses apparently continued well into the
century. See, e.g., Alyeska Pipeline Serv. Co. v. Wilderness Soc’y,
421 U.S. 258, 250-54 & nn. 23-26 (1975) (citing and quoting
congressional materials concerning the 1842 and 1853 fee bills).
For a summary of the abuses, see Cong. Globe, 32d Cong., 2d
Sess. App. 207-09 ( 1853) (remarks of Sen. Bradbury). The
Secretary of the Treasury’s comments on § 1927 provide an
interesting view of the statute, a view not unlike that of a
modern observer. Compare H.R. Doc. No. 25, 27th Cong., 3d Sess.
21 (1842) (“The statute...to restrain the increase of costs
unreasonably and vexatiously, has been disregarded in practice;
or it is defective in its provisions, if insufficient to prevent the
abuses and mischiefs which have occurred, and which it ought to
prevent, if it [does] not.”) with Comment, Sanctions Imposed by
Courts On Attorneys Who Abuse the Judicial Process, 44 U. Chi. L.
Rev. 619, 623-29, 640 (1977) (noting the statute’s disuse and
arguing for its frequent application).

"Shortly after its enactment, this Court was presented
with a case involving § 1927. Field v. United States, 34 U.S. (9
Pet.) 182 (1834). Chief Justice Marshall, however, found it

(footnote continues)

14

the most succinct statement of congressional intent, apart
from the language of the statute itself, occurred. In 1948
Congress made minor changes in the phraseology of sec-
tion 1927 and, more importantly, inserted the word “per-
sonally” under the authority of Motion Picture Patents Co.
v. Steiner, 201 F. 63 (2d Cir. 1912). H.R. Rep. No. 308, 80th
Cong., lst Sess. A164 (1947). Steiner sets forth generally
the operative language of the statute, 201 F. at 64, and
describes with great precision both the “evident purpose

of the statute and the expenses includable in an assess-
ment of “costs” under section 1927.

The evident purpose of this section is to punish
the lawyer who vexatiously increases costs, by
making him, and not his client, liable for the
increase occasioned by his improper conduct. It
recognizes that such costs should not have been
incurred and places their payment on the person
who is responsible for them.

Id.

If, on the other hand, the defendant's expenses
are not taxable as costs, it is obvious that the

(footnote continued ) : | a
nnecessary to reach the issue: “With the question of cos

pee has nothing to do; and as the judgment is reversed for
another cause, it becomes immaterial to be considered.” Jd. at
202. .

i it i hanges in

The language of § 1927 was included with minor c

phraseology, see Appendix A, infra, in the 1853 fee bill. Act of
Feb. 26, 1853, 10 Stat. 162. The House Report on the fee bill,

tains
H.R. Rep. No. 50, 32d Cong., 1st Sess. (1852), however, con

no Seat reference to the provision. The provision thereafter
became § 982 of the Revised Statutes, again with minor
changes. See Appendix A, infra. The statute apparently was

not changed in the 1911 amendments to the Judicial Code.

15

complainant’s conduct did not increase costs to
the extent of these expenses.

Id. at 65 (emphasis added). The policies stated by the
Steiner court, of course, parallel those articulated by the
district court in the instant case. Similarly, the “costs”
assessed in this case were specifically limited to “only such
costs as normally would be allowed to the prevailing
party” (Pet. App. D, at p. 23a); that is, taxable costs.
Again, the exception to the plain meaning rule does not
surface.

There remains, of course, the argument advanced in
United States v. Ross, 585 F.2d 346, 350-51 (6th Cir. 1976),
and expanded upon by the court of appeals below, “that
the ‘costs’ provided by § 1927 should be limited to taxable
costs [and] that attorneys’ fees cannot be part of those
costs” (Pet. App. A, at p. 6a). Since the general American
rule excludes attorneys’ fees from taxable costs, e.g.,
Alyeska Pipeline Serv. Co. v. Wilderness Soc Y, 421 U.S. 240,
247 (1975), the argument is generally valid. Attorneys’
fees ordinarily may not be assessed against attorneys
under section 1927 because, in the absence of one of the
exceptions to the American rule, counsel fees are not
“taxable costs” which can be assessed against the client.
Motion Picture Patents Co. v. Steiner, supra, 201 F. at 64-
65. This general rule, however, is inapplicable to the
instant case. In this case, attorneys’ fees are taxable
costs which can be assessed against the client under

“This Court has specifically held that attorneys’ fees
awarded pursuant to § 1988 are “taxable costs,” Hutto v.
Finney, 487 U.S. 678, 696-97 (1978), noting in the process that
statutes such as § 706(k) and § 1988 are among those statutes
which “define attorneys’ fees as an element of costs, while others
separate fees from other taxable costs.” Jd. at 697 n.28, citing
Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, supra, 421 U.S. at
260-61 n.33. See also S. Rep. No. 94-1011, 94th Cong., 2d Sess. 5
(1976) (attorneys’ fees awards against state and local officials
pursuant to § 1988 should be treated “like other items of costs”’).

16

statutory exceptions to the American rule, namely sec-
tions 706(k) and 1988."

Finally, the court of appeals’ reliance on the “penal
nature” of section 1927 and on this Court’s opinion in
Fleischmann Distilling Corp. v. Maier Brewing Co., 386
U.S. 714 (1967), is misplaced. First, the fact that section
1927 may be arguably penal in nature“ does not warrant a
construction of the statute which ignores its plain mean-
ing. E.g., Huddleston v. United States, 415 U.S. 814, 831

'’Congress is presently considering an amendment to
§ 1927 which would specifically include attorneys’ fees as “costs”
available under the statute in all cases. Senate Bill 390, which
includes the amendment, was passed on July 20, 1979, and, since
July 26, 1979, when the bill was referred to a House subcom-
mittee, no further action on the legislation apparently has been
taken. See generally 125 Cong. Rec. $1343 to $1368 (daily ed.
Feb. 8, 1979); Antitrust Procedural Act of 1979: Hearings on S.
390 Before the Subcommittee on Antitrust and Monopoly, 96th
Cong., 1st Sess. (1979). The current version of § 1927 has been
described in this process as limited to “taxable costs.” E.g.,
Senate Antitrust Hearings, supra, at 27 (statement of Hon.
Charles B. Renfrew).

“4 Viewed from the client’s position, § 1927 is far from
“penal,” since it protects the client from the results of the
attorneys’ misconduct. Toledo Metal Wheel Co. v. Foyer Bros. &
Co., 223 F. 350, 358 (6th Cir. 1915). Cf. Huntington v. Attrill,
146 U.S. 657, 676-77 (1892) (statute rendering corporate offi-
cers liable for debts arising from falsification of stock certificate
penal as to officers but “clearly remedial” as to defrauded
creditors). Accordingly, § 1927 should be construed liberally,
particularly in cases where the result of a liberal construction
would further enforcement of the civil rights acts by protecting
plaintiffs while at the same time allowing the defendant to
recover its attorneys’ fees. See also 3 Sutherland Statutory
Construction, supra, § 70.01 (“One of the historic functions of
the law is to protect ind*iduals from harms inflicted by fraud,
deception and exploitativi: of unfair advantage. ... Legislation
of this character generally is construed in the way that max-
imizes its remedial effects as much as the legislative text
reasonably permits.”).

17

(1974). Furthermore, the authority for the basic award of
attorneys’ fees in this case is not section 1927. Section
1927 simply provides for a shifting of responsibility for
the payment of costs authorized by other statutes appli-
cable to the case or other authority available to the court

Consequently, whatever the result of a strict construction
of section 1927 may be, that result can have absolutely no
Impact on the question of whether a particular item is a

taxable cost” and thus whether it may be assessed
against an attorney under section 1927. That question is
answered exclusively and independently by other statutes
such as sections 706(k) and 1988. The construction ac-
corded these statutes, of course, can hardly be classified as
strict,” even when applied to defendants, see Christians-
burg Garment Co. v. EEOC, supra, 434 U.S. at 423 n.20 (“In
short, there are equitable considerations on both sides of
this question.”), and the nature of attorneys’ fees statutes
such as sections 706(k) and 1988 is far from “penal.” See
Newman v. Piggie Park Enterprises, 390 U.S. 400, 402
(1968) (per curiam) (attorneys’ fees provisions of civil
rights acts not intended as penalties but as aids to

co of public interest served by such legisla-
ion).

'* Attorneys’ fees awards to defendants
are as much a part
S —— enforcement of the civil rights acts as pret to
aintiffs.

[ W jhile it was certainly the policy of Con

Title VII plaintiffs should vindlaate “- Ay a
Congress considered of the highest priority,” Piggie
Park, supra, 390 U.S., at 402, it is equally certain that
Congress entrusted the ultimate effectuation of that
policy to the adversary process, Occidental Life Ins. Co.
v. EEOC, 482 U.S. 355. A fair adversary process
presupposes both a vigorous prosecution and a vigor-
ous defense. It cannot be lightly assumed that in
enacting § 706(k), Congress intended to distort that
process by giving the private plaintiff substantial

(footnote continues)

18

Second, the court of appeals’ reliance on Fleischmann
Distilling Corp. v. Maier Brewing Co., supra, is misplaced.
That case involved the question of whether attorneys’ fees
were properly awarded to a plaintiff as “costs of the
action” pursuant to section 35 of the Lanham Act. 15
U.S.C. § 1117 (amended 1975). Recognizing the general
American rule that “attorneys’ fees are not ordinarily
recoverable in the absence of a statute or enforceable
contract providing, therefor,” 386 U.S. at 717, this Court,
finding no exception present, id. at 720, declined to award
attorneys’ fees “without either statutory language or
legislative history to support the unusual construction.”
Id. In the instant case, of course, attorneys’ fees are
svecifically provided for by sections 706(k) and 1988,
thereby creating an express exception to the American
rule adhered to in Fleischmann Distilling Corp. Again,
section 1927 simply provides the court with a vehicle to fix
the responsibility for costs properly allowed under other
statutes and other authority available to the court.”

(footnote continued )

incentives to sue, while foreclosing to the defendant
the possibility of recovering his expenses in resisting
even a groundless action unless he can show that it
was brought in bad faith.

Christiansburg Garment Co. v. EEOC, supra, 434 US. at 419.
See also Prate v. Freedman, supra, 583 F.2d at 48 (“The
consequences of [plaintiffs’] attorneys’ mistakes should not be
visited upon the [defendant], whose participation in these suits
helped to further the salutary purposes of Title VII.”).

‘The court of appeals’ characterization of the district
court’s holding as a “hybrid result” (Pet. App. A, at p. 8a),
ignores the fact that § 706(k), § 1988 and § 1927 all concern the
same subject: “costs.” The three statutes should, therefore, be
construed in pari materia. See generally 2A Sutherland Statu-
tory Construction, supra, §§ 51.01-.04. See also St. Louis, Iron
Mt. & S. Ry. v. United States, 251 U.S. 198, 207 (1920) (“But,
Congress must be presumed to have known of its former
legislation ..., and to have passed the new laws in view of the
provisions of the legislation already enacted. These statutes
must be construed together and effect given to all of them.”).

19

II.

ASSUMING THAT SECTIONS 706(k) AND 1988
ARE INAPPLICABLE TO SECTION 1927, COURTS
POSSESS INHERENT POWER TO INCLUDE
ATTORNEYS’ FEES AS COSTS UNDER SECTION 1927

Courts possess inherent power “to manage their own
affairs so as to achieve the orderly and expeditious dis-
position of cases.” Link v. Wabash R.R., 370 U.S. 626. 630
(1962). Since courts also possess inherent equitable power
to assess “costs of litigation other than conventional
taxable costs,” Sprague v. Ticonic Nat! Bank, 307 U.S. 161
166 (1939), the district court’s award of attorneys’ fees to
Roadway was supported by the “bad faith” exception to
the American rule. E.g., Hall v. Cole, 412 US. 1 (1973);
Mills v. Electric Auto-Lite Co., 396 U.S. 375 (1970); Vau-
ghan 0. Atkinson, 369 U.S. 527 (1962). See Alysska
Pipeline Serv. Co. v. Wilderness Soc Yy, supra, 421 U.S. 240
258-59 (1975). Again, once awarded, the responsibility
for payment was properly shifted from the individual
plaintiffs to the three attorneys pursuant to section 1927
Motion Picture Patents Co. v. Steiner, 201 F. 63 (2d Cir.
1912); see Browning Debentures Holders’ Comm. v. DASA
Corp., 560 F.2d 1078, 1088-89 (2d Cir. 1977) (‘Bad faith is
personal. ...”) (citation omitted).

The assessment against the three attorneys also falls
well within the district court’s inherent power to impose
sanctions on the members of its bar.

The power of a court to discipline members
of its own bar can scarcely be doubted seriously.
An attorney is under no obligation to seek
admission to the bar of a United States district

Thus, the court of appeals’ reliance on Fleischmann Dis-

tilling Corp. v. Maier Brewing Co. : -
misplaced. & Co., 386 U.S. 714 (1967), is again

20

court. He is at liberty to abstain from member-
ship in that or any other bar. But when he does
apply and is admitted he secures certain privi-
leges and also assumes definite obligations.

-The power of a court to impose appropriate
and reasonable sanctions upon those admitted to
its bar is a familiar phenomenon and lies within
the inherent power of any court of record.

Gamble v. Pope & Talbot, Inc., 307 F.2d 729, 735 (8d Cir.)
(en banc) (Biggs, C.J., dissenting), cert. denied, 371 U.S.
888 (1962); accord, In re Sutter, 543 F.2d 1030, 1036-38 (2d
Cir. 1976); Flaska v. Little River Marine Constr. Co., 389
F.2d 885, 888 (5th Cir.), cert. denied, 392 U.S. 928 (1968)."*
The plain language of section 1927 recognizes this author-
ity. An assessment of sanctions is generally committed to
the sound discretion of the district court, National Hockey
League v. Metropolitan Hockey Club, Inc., 427 U.S. 639, 642-
43 (1976) (per curiam), and it is submitted that when
sanctions are imposed on attorneys, officers of the court,
the district court’s discretion must be accorded even
greater deference.

In light of the Fifth Circuit’s statement in Flaska that
“(t]he inherent power of a court to manage its affairs neces-
sarily includes the authority to impose reasonable and appropri-
ate sanctions on errant lawyers practicing before it,” 389 F.2d
at 888, the court’s opinion in the instant case is puzzling.
Although Roadway argued cases such as Flaska as an alterna-
tive ground for affirmance of the district court’s assessment, the
court of appeals did not discuss the issue in its opinion in this
case.

ee

21
CONCLUSION

The judgment of the court of a i i
ppeals, insofar as it
vacated that portion of the district court’s judgment

which included attorneys’ fees in the section |
ction 192 -
ment, should be reversed. —

Respectfully submitted,

MILES CurRTISS MCKEE
ARMIN J. MOELLER, JR.
JEFFREY A. WALKER

FUSELIER, OTT, MCKEE &
FLOWERS, P.A.

2100 Deposit Guaranty Plaza

Jackson, Mississippi 39201

(601) 948-2226

Counsel Petiti
February, 1980 a i

Appendices

la
APPENDIX A

An Act concerning suits and costs in courts of the United
States. ,;

Sec. 3. And be it further enacted, That whenever
causes of like nature, or relative to the same question shall
be pending before a court of the United States or of the
territories thereof, it shall be lawful for the court to make
such orders and rules concerning proceedings therein as
may be conformable to the principles and usages belong-
ing to courts for avoiding unnecessary costs or delay in the
administration of justice, and accordingly causes may be
consolidated as to the court shall appear reasonable. And
if any attorney, proctor, or other person admitted to
manage and conduct causes in a court of the United States
or of the territories thereof, shall appear to have multi-
plied the proceedings in any cause before the court so as to
increase costs unreasonably and vexatiously, such person
may be required by order of court to satisfy any excess of
costs so incurred.

Act of July 22, 1813, 3 Stat. 21.

Whenever two or more indictments, suits or proceed -
ings, are or shall be prosecuted, which should be joined, the
district attorney prosecuting them shall be paid but one
bill of costs for all of them; and if any attorney, proctor, or
other person admitted to manage or conduct causes in any
court of the United States, or of the Territories thereof,
shall appear to have multiplied the proceedings in any
cause before such court, so as to increase costs unreason-
ably and vexatiously, such person may be required, by
order of the court, to satisfy any excess of costs so
increased.

2a

Act of Feb. 26, 1853, 10 Stat. 162.

If any attorney, proctor, or other person admitted to
conduct causes in any court of the United States, or any
Territory, appears to have multiplied the proceedings in
any cause before such court, so as to increase costs unrea-
sonably and vexatiously, he shall be required, by order of
the court, to satisfy any excess of costs so increased.

Revised Stats. § 982.

Any attorney or other person admitted to conduct
cases in any court of the United States or any Territory
thereof who so multiplies the proceedings in any case as to
increase costs unreasonably and vexatiously may be re-
quired by the court to satisfy personally such excess costs. ~

28 U.S.C. § 1927.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_1178%3A04. Public record. Not legal advice.
