Schottenstein v. Schottenstein
Schottenstein v. Schottenstein
Opinion of the Court
MEMORANDUM OPINION AND ORDER
Sarah Schottenstein (“Sarah”) brought this action against her father, Steven Schotten-stein (“Schottenstein”), and his employer, M/I Homes, Inc. (“M/I Homes”), alleging, inter alia, violations of the Eighth and Fourteenth Amendments and seeking habeas corpus relief on behalf of her two minor sisters, Ashley and Abby Schottenstein. In an Opinion and Order dated November 8, 2004, all of Sarah’s claims were dismissed for lack of subject matter or personal jurisdiction,
I. BACKGROUND
Because my Opinion of November 8, 2004, recounts the facts underlying this lawsuit, I summarize only those facts that are relevant to the present motion. In January, 1998, Schottenstein’s ex-wife, Jill Schottenstein, filed for divorce in the Court of Common Pleas for Franklin County, Ohio; that court ultimately awarded exclusive custody of Sarah and her younger sisters to Schotten-stein.
Burton, who is not admitted to practice in the Southern District of New York, represented Sarah in this action. He in turn enlisted the aid of Locker, who is admitted in this District, to sign the complaint.
Schottenstein moved to dismiss the complaint and shortly thereafter, on August 24, 2004, served on Burton and Locker a motion for Rule 11 sanctions.
II. APPLICABLE LAW
Rule 11(b) states, in pertinent part, as follows:
By presenting to the court ... a pleading, written motion, or other paper, an attorney or unrepresented party is certifying that to the best of the person’s knowledge, information, and belief, formed after a reasonable inquiry under the circumstances ... the claims, defenses, and other legal contentions therein are warranted by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law ... [and] the allegations and other factual contentions have evidentiary support or, if specifically so identified, are likely to have evidentiary support after a reasonable opportunity for further investigation or discovery.20
If after notice and a reasonable opportunity to respond, the court determines that the Rule 11 standard has been violated, the court may impose sanctions upon the attorneys, law firms, or parties.
“Rule 11 is violated when it is clear under existing precedents that a pleading has no chance of success and there is no reasonable argument to extend, modify, or reverse the law as it stands.”
III. DISCUSSION
Having carefully studied Schottenstein’s, Burton’s, and Locker’s submissions, I now conclude that Rule 11 sanctions are warranted against both Burton and Locker. I discuss below my reasons for imposing sanctions and the amount of sanctions to be imposed.
A. Reasons for Imposing Sanctions
1. Fourteenth Amendment Claim
Both the original and first amended complaints asserted a Fourteenth Amendment claim that a reasonable inquiry would have revealed had no chance of success. The third claim of both versions of the complaint alleged that the state of Ohio, at Schottenstein’s request, deprived Sarah of her liberty without due process of law in violation of the Fourteenth Amendment by placing her in Schottenstein’s custody and subsequently “forcing her ... to be locked up at the Cross Creek prison compound in Utah and the Menninger hospital in Kansas.”
It is well established that to state a claim under the Due Process Clause, a plaintiff must allege that the defendant’s conduct constituted state action.
Citing Shelley v. Kraemer;
2. Eighth Amendment Claim
The original and amended complaint also asserted a frivolous Eighth Amendment
3. Petition for Habeas Corpus Relief
Both versions of the complaint also asserted an untenable petition for habeas corpus relief on behalf of Sarah’s minor sisters.
Moreover, this Court clearly lacked jurisdiction to grant habeas relief. Only months before Burton and Locker signed the original complaint, the Supreme Court held in a high-profile case that “[t]he plain language of the habeas statute ... confirms the general rule that for core habeas petitions challenging present physical confinement, jurisdiction lies in only one district: the district of confinement.”
B. The Amount of Sanctions
1. Apportionment
The conduct of both Burton and Locker is sanctionable, but not equally so. Locker signed only the original complaint, which he had no part in drafting.
Nevertheless, Burton deserves by far the greater part of the blame. Locker had no decision-making authority.
Consequently, I apportion the award of attorneys’ fees and expenses as follows: ninety-five percent to Burton and five percent to Locker.
1. Attorneys’ Fees and Expenses Incurred by Schottenstein
Schottenstein’s attorney, David Levine of the Columbus, Ohio, office of Baker & Hostetler LLP, has submitted billing records and time entries indicating that Schottenstein incurred, in total, $74,862 in attorneys’ fees and expenses in connection with this matter.
The time entries submitted by Baker & Hostetler indicate that prior to September 3, 2004, Schottenstein incurred $52,049.00 in attorneys’ fees defending this action. This figure represents just under 206 hours of legal work by two partners and three associates and twenty-three hours of work by two law clerks and a paralegal. In addition, Schot-tenstein’s attorneys billed $591.13 in expenses during that period, for a total of $52,640.13. Having carefully reviewed Scot-tenstein’s counsels’ billing statements, I find that this amount of fees and expenses was warranted in light of plaintiffs convoluted
3. Sanctions
Schottenstein is not entitled, however, to recoup all the fees and expenses incurred in connection with defending this action. In both versions of the complaint, Sarah asserted seven claims, four of which were colorable, if barely so. I am, therefore, awarding fees amounting to forty-three percent of attorneys’ fees and expenses. Accordingly, sanctions are imposed as follows: Sarah’s counsel must pay Schottenstein forty-three percent of $52,640.13, or $22,635.25. As stated above, Burton shall pay ninety-five percent of this amount, and Locker the remaining five percent, or $21,503.50 and $1,131.75, respectively. Payment shall be made within twenty days of this Order.
IV. CONCLUSION
For the foregoing reasons, Rule 11 sanctions are imposed against Burton and Locker in the manner set forth above. The Clerk of the Court is directed to close this motion [docket # 38] and this case.
SO ORDERED:
. See Schottenstein v. Schottenstein, No. 04 Civ. 5851, 2004 WL 2534155, at *12 (S.D.N.Y. Nov.8, 2004).
. See 12/28/04 Order.
. See Schottenstein v. Schottenstein, No. 98DR01-347, slip op. at 30-31 (Ohio Ct.Com.Pl. Jan. 8, 2004) ("Custody Decision”).
. See First Amended Complaint ("Am.Compl.”) 1118. The factual allegations in the original and amended complaints are nearly identical.
. Id. ¶25.
. See id. ¶ 3. Both the original and amended complaints allege seven claims for relief: (1) false imprisonment, (2) invasion of privacy, (3) violation of procedural and substantive due process, (4) violation of the Eighth and Fourteenth Amendments, (5) intentional infliction of emotional distress, (6) conversion, and (7) habeas corpus.
. See id. ¶14.
. See 10/5/04 Letter of Locker to Court ("10/5/04 Locker Let.”) at 1.
. See id.
. See 2/21/05 Letter of Locker to Court ("2/21/05 Locker Let.”) at 2.
. See 8/17/04 Letter of David C. Levine, Counsel to Schottenstein (“Levine”), to Locker and Burton.
. Burton had in the meantime been admitted pro hac vice. See 8/5/04 Order.
. See 8/19/04 Letter of Levine to Locker and Burton.
. See 9/15/04 Letter of Levine to Court ("9/15/04 Schottenstein Let.”), at 1.
. See Fed.R.Civ.P. 11(c)(1)(A).
. See 9/15/04 Schottenstein Let.
. See 9/22/04 Order.
. See 10/8/04 Order.
. See 1/15/05 Letter of Burton to Court (“Burton Rule 11 Let.") at 3.
. Fed.R.Civ.P. 11(b).
. See Fed.R.Civ.P. 11(c).
. Corroon v. Reeve, 258 F.3d 86, 92 (2d Cir. 2001).
. Storey v. Cello Holdings, LLC, 347 F.3d 370, 387 (2d Cir. 2003).
. See Kamen v. American Tel. & Tel. Co., 791 F.2d 1006, 1011-12 (2d Cir. 1986).
. See Rodick v. City of Schenectady, 1 F.3d 1341, 1350 (2d Cir. 1993).
. Savino v. Computer Credit, Inc., 164 F.3d 81, 88 (2d Cir. 1998). See also Rule 11 Advisory Committee Note ("The court has available a variety of possible sanctions to impose for violations.”).
. See Fed.R.Civ.P. 11(c)(2) ("[T]he sanction may consist of, or include, directives of a nonmone-tary nature, an order to pay a penalty into court, or, if imposed on motion and warranted for effective deterrence, an order directing payment to the movant of some or all of the reasonable attorneys’ fees and other expenses incurred as a direct result of the violation.”).
. Complaint ("Compl.”) H 33; Am. Compl. H 32.
. See Compl. 1 35; Am. Compl. V 34. I noted in my opinion regarding Schottenstein's motion to dismiss that, as drafted, Sarah’s claims relate only to her father. See Schottenstein, 2004 WL 2534155, at *2 n. 12. Sarah contended in her opposition papers, however, that with the exception of the petition for habeas relief, all her claims were asserted against M/I Homes, as well. See id.
. See, e.g., Cranley v. National Life Ins. Co. of Vt., 318 F.3d 105, 111 (2d Cir. 2003).
. Id. (quoting American Mfrs. Mut. Ins. Co. v. Sullivan, 526 U.S. 40, 50, 119 S.Ct. 977, 143 L.Ed.2d 130 (1999)).
. Id. (quoting Brentwood Acad. v. Tennessee Secondary School Athletic Ass'n, 531 U.S. 288, 295, 121 S.Ct. 924, 148 L.Ed.2d 807 (2001)).
. 334 U.S. 1, 68 S.Ct. 836, 92 L.Ed. 1161 (1948).
. See Burton Rule 11 Let. at 2.
. Compl. ¶37; Am. Compl. ¶36.
. See, e.g., City of Revere v. Massachusetts Gen. Hosp., 463 U.S. 239, 244, 103 S.Ct 2979, 77 L.Ed.2d 605 (1983) ("[T]he State does not acquire the power to punish with which the Eighth Amendment is concerned until after it has secured a formal adjudication of guilt in accordance with due process of law.”); Weyant v. Okst, 101 F.3d 845, 856 (2d Cir. 1996).
. Both versions of the complaint also assert, in the context of a false imprisonment claim, that the "court orders allowing [Schottenstein] to imprison Sarah ... were unconstitutional in violation of the ... 8th’ Amendment.” Compl. U 27; Am. Compl. V 26. As stated above, it should have been obvious that the protections of the Eighth Amendment did not apply to Sarah because she was not subjected to any punishment as a result of a criminal conviction. It follows that a reasonable inquiry would have revealed that this legal contention was not warranted under existing law and is, therefore, sanctionable.
. See Compl. ¶¶ 46-47; Am. Compl. ¶¶45-46.
. Lehman v. Lycoming County Children's Servs. Agency, 458 U.S. 502, 511, 102 S.Ct. 3231, 73 L.Ed.2d 928 (1982).
. See Burton Rule 11 Let. at 1.
. Lehman, 458 U.S. at 512, 102 S.Ct. 3231.
. Rumsfeld v. Padilla, 542 U.S. 426, 124 S.Ct. 2711, 2722, 159 L.Ed.2d 513 (2004).
. See 10/5/01 Locker Let. at 1.
. See id.
. See 2/21/05 Locker Let. at 1.
. Fed.R.Civ.P. 11(b).
. See 10/5/01 Locker Let. at 1.
. See Individual Rules and Procedures, http://www.nysd.uscourts.gov/Individual_Prac-tices/Scheindlin.pdf, at 3.
. See, e.g., Transcript of 8/24/04 Conference at 10-12.
. See Affidavit of David C. Levine 113
. Fed.R.Civ.P. 11(c)(1)(A).
. See Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 393, 110 S.Ct. 2447, 110 L.Ed.2d 359 (1990); Caisse Nationale de Credit Agricole-CNCA, New York Branch v. Valcorp, Inc., 28 F.3d 259, 266 (2d Cir. 1994).
. See Custody Decision at 1.
Reference
- Full Case Name
- Sarah SCHOTTENSTEIN v. Steven SCHOTTENSTEIN M/I Homes, Inc. and Does I through X
- Cited By
- 1 case
- Status
- Published