After reviewing the briefs, hearing oral argument, and relying on pertinent por *519 tions of the record, we affirm the district court judgment denying defense coverage to Willie J. Perkins, Sr., William J. Perkins, Jr., and Sheriel Perkins, Appellants, by Allstate Insurance Company. However, we vacate the sanction award against Willie Perkins, Sr., because it was not based on wilful misconduct or bad faith and therefore was an abuse of discretion. Natural Gas Pipeline Co. of Am. v. Energy Gathering, Inc., 2 F.3d 1397, 1410-11 (5th Cir. 1993) (upholding a court’s inherent power to sanction bad faith conduct); Pressey v. Patterson, 898 F.2d 1018, 1021 (5th Cir. 1990) (“We have confined sanctions under the district court’s inherent power to instances of bad faith or willful abuse of the judicial process.”) AFFIRMED IN PART AND VACATED IN PART. See 5th Circuit Loc. Rule 47.6.