White v. Goodyear Tire ( 1996 )


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  •                      UNITED STATES COURT OF APPEALS
    FIFTH CIRCUIT
    ____________
    Nos. 95-20417
    95-20754
    ____________
    STERLING WHITE,
    Plaintiff-Appellant,
    versus
    THE GOODYEAR TIRE AND RUBBER COMPANY,
    Defendant-Appellee.
    Appeal from the United States District Court
    For the Southern District of Texas
    (CA-H-94-3508)
    August 26, 1996
    Before KING, DAVIS, and EMILIO M. GARZA, Circuit Judges.
    PER CURIAM:*
    Sterling White appeals the district court’s orders granting
    The Goodyear Tire and Rubber Company’s motion for summary judgment
    and motion for costs and attorneys’ fees.              We affirm in part,
    vacate and remand in part, and reverse and remand in part.
    I
    Sterling White was employed as a baler-helper at Goodyear's
    *
    Pursuant to Local Rule 47.5, the court has determined that this opinion
    should not be published and is not precedent except under the limited
    circumstances set forth in Local Rule 47.5.4.
    Chemical Plant in Houston, Texas.                The baler-helper position
    required White to work in a non-air conditioned building with
    extremely hot rubber, fumes, and chemicals.             In October of 1991,
    White experienced a sickle cell crisis, which he alleges may have
    been caused by his work environment.1            White’s doctors recommended
    that he avoid exposure to chemicals, fumes, and excessive heat.
    Given those medical restrictions and the essential functions of the
    baler-helper position, Goodyear claimed it could not make any
    reasonable accommodations to enable White to perform the essential
    functions of his job.        In addition, Goodyear claimed that there
    were no other positions available that were appropriate for White's
    restrictions and abilities.        Therefore, Goodyear terminated White.
    White filed a charge of employment discrimination with the
    Equal Employment Opportunity Commission (“EEOC”) claiming that he
    had been discriminated against because of his disability, in
    violation of the Americans with Disabilities Act.             The EEOC issued
    White a right to sue letter for a violation of his rights under the
    Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12101.2              White
    stated in     his   deposition,    which    is   contained   in   the   summary
    1
    White argues that while he always had a genetic trait for sickle cell
    anemia, his sickle cell crisis was caused by his job environment. However, when
    White initially experienced his crisis, he stated separately on several benefit
    claim forms for his employer that his injury was not due in any way to a
    condition arising from his occupation.
    2
    The ADA protects "qualified individuals with a disability" from
    employment discrimination on account of the disability. 42 U.S.C. § 12112. A
    "qualified individual with a disability" is "an individual with a disability who,
    with or without reasonable accommodation, can perform the essential functions of
    the employment position that such individual holds or desires." § 12111(8).
    -2-
    judgment        record,      that     he    also     filed     a    complaint    of     race
    discrimination with the EEOC after he filed the complaint of
    disability discrimination.                 The summary judgment evidence does not
    indicate, however, whether the EEOC ever issued a formal charge or
    a   right       to    sue    letter    based    on        White’s   complaint     of    race
    discrimination.             Subsequently, White filed a pro se complaint in
    federal court, alleging race discrimination, in violation of 42
    U.S.C.      §        2000e    et    seq.      (“Title        VII”),    and      disability
    discrimination, in violation of the ADA.
    Eight months after the federal suit was filed, White was
    represented in federal court by an attorney for the first time.
    Simultaneous          with    her   Notice     of    Appearance,      White’s     attorney
    requested       a     jury    trial,   which        the    district   court     denied   as
    untimely.       Subsequently, White filed a FED. R. CIV. P. 39(b) motion
    requesting a jury trial,3 which the district court denied.                             White
    then filed a lawsuit in Texas state court, pursuant to TEX. LAB.
    CODE ANN. § 451.001, alleging that Goodyear terminated him in
    retaliation for his institution of a workers' compensation claim.
    Goodyear removed the state lawsuit to federal court, and the two
    actions were consolidated.
    3
    FED. R. CIV. P.39(b) provides:
    Issues not demanded for trial by jury as provided in Rule 38 shall be
    tried by the court; but, notwithstanding the failure of a party to demand
    a jury in an action in which such a demand might have been made of right,
    the court in its discretion upon motion may order a trial by a jury of any
    or all issues.
    -3-
    Goodyear filed a motion for partial summary judgment on
    White's Title VII and workers' compensation retaliation claims.
    White filed a response to Goodyear's motion for partial summary
    judgment.     The district court held a hearing on the summary
    judgment motion and dismissed all of White's claims, including his
    ADA claim.    Goodyear then filed a motion for costs and attorneys’
    fees, pursuant to 28 U.S.C. § 1927.         The district court entered an
    order and a final judgment ordering that Goodyear take $3,500 on
    its claim for costs and attorneys’ fees.            White now appeals the
    district court’s order granting summary judgment in Goodyear’s
    favor and the order awarding Goodyear costs and attorneys’ fees.4
    II
    White argues that the district court erred in sua sponte
    granting summary judgment in Goodyear’s favor on his ADA claim.              A
    district court has the power to grant summary judgment sua sponte
    as long as the nonmoving party has adequate notice that he must
    4
    The district court initially entered an "interlocutory order" stating
    that on Goodyear's motion for summary judgment, White takes nothing. The court
    left the issue of sanctions to be decided in the future. White appealed this
    "interlocutory order" in No. 95-20417. At that time, this Court requested that
    the parties brief the issue of whether we had jurisdiction over the district
    court's interlocutory order. Several months later, the district court entered
    a final judgment in the case and ordered that Goodyear take $3,500 on its claim
    for costs and attorneys’ fees, pursuant to 28 U.S.C. § 1927. White appealed the
    order for costs and attorneys’ fees in No. 95-20754. The two appeals have been
    consolidated. Even though the district court's interlocutory order was not a
    final judgment at the time that White filed the initial appeal, a final judgment
    has since been entered in the case. Therefore, this Court now has jurisdiction
    over the appeal. See Alcorn County, Miss. v. U.S. Interstate Supplies, Inc., 
    731 F.2d 1160
    , 1166 (5th Cir. 1984) (stating that “a premature notice of appeal
    properly may invoke this court’s jurisdiction . . . subject to the exceptions
    mandated by FED. R. APP. P. 4(a)(4)”).
    -4-
    come forward with his evidence.            Leatherman v. Tarrant County
    Narcotics Intell. and Coord. Unit, 
    28 F.3d 1388
    , 1397 (5th Cir.
    1994).   This notice requirement is met if the nonmoving party has
    notice that his claim may be subject to summary dismissal at least
    ten days before the actual grant of summary judgment.             FED. R. CIV.
    P. 56(c); 
    Leatherman, 28 F.3d at 1397
    . “Any reasonable doubt about
    whether [the nonmovant] received notice that its entire case was at
    risk must be resolved in [the nonmovant’s] favor.” NL Indus., Inc.
    v. GHR Energy Corp., 
    940 F.2d 957
    , 965 (5th Cir. 1991), cert.
    denied, 
    502 U.S. 1032
    , 
    112 S. Ct. 873
    , 
    116 L. Ed. 2d 778
    (1992).
    A district court’s error in not providing adequate notice may be
    considered harmless "if the nonmovant has no additional evidence or
    if all of the nonmovant's additional evidence is reviewed by the
    appellate court and none of the evidence presents a genuine issue
    of material fact." 
    Leatherman, 28 F.3d at 1398
    (internal quotation
    marks omitted).
    Goodyear argues that White had adequate notice that his ADA
    claim might be considered for summary judgment because Goodyear’s
    brief in    support   of    its   motion   for   partial   summary     judgment
    included facts sufficient to defeat White’s ADA claim.                    White
    argues that, when he received Goodyear’s motion for partial summary
    judgment,   he   believed    that   only   his   Title     VII   and   workers’
    compensation retaliation claims would be considered for summary
    judgment.   As evidence of this belief, White contends that after
    -5-
    receiving      only   a   partial      motion   for   summary        judgment,   he
    specifically elected not to depose the human resources manager
    involved in his termination who could have provided essential
    evidence for his ADA claim.         We conclude that White did not receive
    adequate notice that his ADA claim might be subject to summary
    judgment.      See NL Indus., 
    Inc., 940 F.2d at 966
    (reversing summary
    judgment which district court granted sua sponte where movant only
    requested partial summary judgment and movant’s motion did not
    provide nonmovant with adequate notice).              Additionally, we cannot
    conclude that this lack of notice was harmless.               Because White did
    not have notice that his ADA claim would be considered for summary
    judgment he did not conduct essential discovery, nor did he place
    evidence in the record to support his ADA claim.                     We therefore
    vacate   the    district     court’s    order     granting    Goodyear      summary
    judgment on White’s ADA claim.
    III
    White     argues     that   the   district    court     erred    in   granting
    Goodyear summary judgment on his Title VII claim.                     We review a
    district court’s grant of summary judgment de novo “to determine,
    viewing the evidence in the light most favorable to the nonmoving
    party, whether any genuine issue of material fact existed and
    whether the district court correctly applied the relevant law.”
    Anderson v. American Airlines, Inc., 
    2 F.3d 590
    , 593 (5th Cir.
    1993).   The moving party has the initial burden to “demonstrate by
    -6-
    competent evidence that no issue of material fact exists.”           Scott
    v. Moore, 
    85 F.3d 230
    , 232 (5th Cir. 1996).          Once this burden is
    met, the nonmoving party “must set forth specific facts showing
    that there is a genuine issue for trial.”          FED. R. CIV. P. 56(e).
    Before bringing a civil action under Title VII, a plaintiff
    must exhaust his administrative remedies by filing a charge of
    discrimination with the EEOC. Sanchez v. Standard Brands, 
    431 F.2d 455
    , 460 (5th Cir. 1970).      The district court granted summary
    judgment for Goodyear on White's race discrimination claim because
    it found that White had not exhausted his administrative remedies.
    However, our review of the summary judgment record indicates that
    Goodyear did not meet its burden of establishing through competent
    summary judgment   evidence   that   there    is   no   genuine   issue   of
    material fact of the issue of exhaustion.      See Little v. Liquid Air
    Corp., 
    37 F.3d 1069
    , 1075 (5th Cir. 1994) (en banc) (stating that
    “the party moving for summary judgment must demonstrate the absence
    of a genuine issue of material fact”) (internal quotation marks
    omitted).   Goodyear submitted the EEOC’s entire file pertaining to
    White’s ADA charge, Charge Number 330-93-1854.          Goodyear states in
    its brief accompanying its motion for summary judgment that it
    requested and received all the EEOC files pertaining to White.
    However, Goodyear’s counsel’s unsworn assertion does not constitute
    competent summary judgment evidence.         See FED. R. CIV. P. 56(e).
    The Certification of Documents from the EEOC states that it is a
    -7-
    “true and accurate” copy of the file pertaining to Charge Number
    330-93-1854, but it does not state that this is the only EEOC file
    for Sterling White.5             In sum, Goodyear’s summary judgment evidence
    does       not    establish      that    White     never    filed    a    charge   of   race
    discrimination with the EEOC.
    Additionally, we note that in his response to Goodyear’s
    motion       for      summary    judgment,        White    submitted      his   deposition
    testimony in which he stated that he filed a complaint of race
    discrimination with the EEOC after he filed the ADA charge.6                            It is
    unclear from the record whether an official EEOC charge or right to
    sue        letter         ever   resulted        from      White’s       race   complaint.
    Nevertheless, we reverse the order granting summary judgment on
    White’s Title VII claim because Goodyear has not met its burden of
    establishing           through    competent        summary    judgment      evidence     the
    absence          of   a     dispute     as   to    whether     White       exhausted     his
    administrative remedies.                See 
    id. (stating that
    “regardless of the
    nonmovant’s response” a summary judgment motion must be denied if
    the moving party fails to “demonstrate the absence of a genuine
    issue of material fact”) (internal quotation marks omitted).
    IV
    5
    Moreover, the EEOC’s letter to Goodyear’s counsel specifically
    states, “You have requested information contained in the file of Charge No. 330-
    93-1854.”
    6
    White also submitted an EEOC questionnaire, which was not properly
    authenticated for summary judgment purposes, in which he alleged that Goodyear
    discriminated against him on the grounds of race and “illness.”
    -8-
    White next argues that the district court erred in granting
    Goodyear summary judgment on his workers’ compensation retaliation
    claim, brought pursuant to TEX. LAB. CODE. ANN. § 451.001.                 The
    district court granted Goodyear’s motion for summary judgment on
    the retaliation claim because it found that White had not suffered
    an on-the-job injury.      Because White did not have an on-the-job
    injury, the district court reasoned, Goodyear could not retaliate
    against him for instituting a workers’ compensation claim asserting
    such an injury.
    Section 451.001 of the Texas Labor Code provides that an
    employer may not discriminate against an employee because he has
    (1) in good faith filed a workers’ compensation claim, (2) hired a
    lawyer to represent him in a workers’ compensation claim, (3) in
    good faith instituted or caused to be instituted a proceeding under
    the Texas    Workers’    Compensation    Act   (“the   Act”),   or   (4)   has
    testified or is about to testify in a proceeding under the Act.
    TEX. LAB. CODE. ANN. § 451.001.         Courts have liberally construed
    § 451.001 “to protect persons who are entitled to benefits under
    the Workers’ Compensation Law and to prevent them from being
    discharged by reason of taking steps to collect such benefits.”
    Gauthreaux v. Baylor Univ. Med. Ctr., 
    879 F. Supp. 634
    , 639 (N.D.
    Tex. 1994) (internal quotation marks omitted); see also Palmer v.
    Miller Brewing Co., 
    852 S.W.2d 57
    , 60 (Tex. Ct. App.))Fort Worth
    1993, writ    denied).     Therefore,     an   employee   can   recover    for
    -9-
    retaliation for taking steps to collect a workers' compensation
    claim "even when the employee was fired before filing a claim for
    compensation so long as the evidence shows that the employee took
    steps towards instituting a compensation proceeding."           
    Palmer, 852 S.W.2d at 60-61
    .    An employee takes steps towards instituting a
    compensation proceeding simply by informing his employer of the
    injury or the fact that he is seeking medical treatment for the
    injury.   Id.; 
    Gauthreaux, 879 F. Supp. at 649
    .          The plaintiff has
    the burden of proving that there is a causal link between the
    discharge and the plaintiff’s protected behavior.              Burfield v.
    Brown, Moore & Flint, Inc., 
    51 F.3d 583
    , 589-90 (5th Cir. 1995).
    Our research reveals no authority to indicate that an employee
    must have a valid workers' compensation claim, or an actual work-
    related   injury   in   order   to     sue   for    workers'   compensation
    retaliation.     Section 451.001 does require, however, that the
    employee file a workers’ compensation claim or institute a workers’
    compensation proceeding in good faith.             In light of the liberal
    construction that courts have given § 451.001, we conclude that
    § 451.001 was intended to allow employees to recover from employers
    who retaliate against them for claims filed or instituted in good
    faith, even if those claims later turn out not to be compensable
    under the Act.     In order to file or institute a claim in good
    faith, an employee must have an objectively reasonable belief that
    -10-
    she has a compensable injury under the Act.7                 See Gunn Chevrolet,
    Inc. v. Hinerman, 
    898 S.W.2d 817
    (Tex. 1995) (holding that employee
    did not have a good faith claim for workers’ compensation because
    her employer did not subscribe to the Act, employee had no reason
    to   think    that   employer      did,    and   employee    never   claimed   that
    employer was responsible for her injury).
    We note that Texas courts have adopted a similar good faith
    standard for a related employment statute, the Texas Whistle Blower
    Act. See Texas Dept. Hum. Serv. v. Hinds, 
    904 S.W.2d 629
    , 633, 636
    (Tex. 1995) (comparing the two statutes).                  The Whistle Blower Act
    prohibits “a local government from terminating an employee for
    reporting ‘a violation of law to an appropriate law enforcement
    authority if the employee report is made in good faith.’”                     Lastor
    v. City of Hearne, 
    810 S.W.2d 742
    (Tex. Ct. App.))Waco 1991, no
    writ)     (quoting   TEX.   REV.    CIV.    STAT.   ANN.   art.   6252-16a,    §   2)
    (emphasis in original).             Despite the statutory language which
    appears to require that the employee report an actual violation of
    law, Texas courts have held that “the good-faith requirement can be
    given effect only if it protects the employee from retribution for
    reporting an incident that turns out not to be a violation of law.”
    Texas Dept. Hum. Serv. v. Green, 855 S.W.2d 136,150 (Tex. Ct.
    7
    Also implicit in the good faith requirement of § 451.001, is that the
    employee filed or instituted her workers’ compensation claim for a proper
    purpose, not as a result of malice or spite. However, Goodyear’s motion for
    summary judgment did not explicitly challenge White’s motive in this case.
    -11-
    App.))Austin    1993,    writ    denied);      
    Lastor, 810 S.W.2d at 744
    .
    Therefore, it is not determinative whether the employee reports an
    actual violation of law.          Instead, the focus of the good faith
    requirement “is whether an employee’s belief that the reported
    conduct violates the law is objectively reasonable.”                
    Green, 855 S.W.2d at 151
    .
    Courts     also    employ    the    “objectively      reasonable   belief”
    standard in federal discrimination retaliation statutes.                In Payne
    v. McLemore’s Wholesale & Retail Stores, the plaintiff alleged that
    he was not “rehired in retaliation for his boycott and picketing
    activities which were, according to plaintiff, in opposition” to
    his employer’s     unlawful      employment     practice    of   discriminating
    against blacks in hiring and promotion.              
    654 F.2d 1130
    , 1135-36
    (5th Cir. 1981), cert. denied, 
    455 U.S. 1000
    , 
    102 S. Ct. 1630
    , 
    71 L. Ed. 2d 866
    (1982).      The defendant contended that the plaintiff
    had failed to establish a prima facie case of retaliation “because
    he failed to prove that defendant had committed any unlawful
    employment practices.”      
    Id. at 1137.
           The court disagreed, holding
    that a plaintiff can establish a prima facie case of retaliatory
    discharge under Title VII “if he shows that he had a reasonable
    belief   that   the    employer   was     engaged   in   unlawful   employment
    practices.”     
    Id. at 1140;
        see also Grant v. Hazelett Strip-Casting
    Corp., 
    880 F.2d 1564
    , 1569 (2d Cir. 1989) (stating that a plaintiff
    can establish a prima facie case of retaliatory discharge under the
    -12-
    Age Discrimination in Employment Act if he was retaliated against
    for opposing a practice which he had “a good faith, reasonable
    belief” was prohibited by the Act) (internal quotation marks
    omitted).
    Although the district court erred in granting Goodyear summary
    judgment on the ground that White did not suffer an on-the-job
    injury, we still affirm the summary judgment on this claim.           As we
    have stated, the relevant inquiry in this case is whether White had
    an objectively reasonable belief that he had a compensable injury
    under the Act when he informed his employer of his injury.            White
    alleges that his sickle cell crisis may have been caused by his
    work   environment,   thus   giving   rise   to   a   compensable   injury.
    However, Goodyear’s summary judgment evidence demonstrates that
    when White instituted a proceeding under the Act by notifying his
    employer of his illness, he stated that his illness was not in any
    way due to a condition of his occupation.         Accordingly, White did
    not believe, reasonably or unreasonably, that he had a compensable
    injury under the Act.        Therefore, White did not institute a
    workers’ compensation proceeding in good faith, and Goodyear is
    entitled to summary judgment on this claim.
    V
    White contends that the district court abused its discretion
    in denying his FED. R. CIV. P. 39(b) motion for a jury trial.          FED.
    R. CIV. P. 38(b) allows a party to demand a jury trial “not later
    than 10 days after the service of the last pleading."         “A party may
    -13-
    be relieved of the Rule 38(b) requirement upon motion and at the
    discretion   of   the   court   pursuant   to   FED.   R.   CIV.   P.   39(b)."
    Richardson v. Henry, 
    902 F.2d 414
    , 416 (5th Cir.), cert. denied,
    
    498 U.S. 901
    , 
    111 S. Ct. 260
    , 
    112 L. Ed. 2d 218
    (1990); Lewis v.
    Thigpen, 
    767 F.2d 252
    , 257 (5th Cir. 1985).            If a pro se litigant
    credibly alleges that he did not make a timely request for a jury
    trial because of his ignorance of the relevant procedure, “the
    trial court should exercise its discretion under Rule 39(b) to
    grant him a trial by jury in the absence of strong and compelling
    reasons to the contrary.”       
    Lewis, 767 F.2d at 259
    .       In determining
    whether a pro se litigant's claim of inadvertence is credible, the
    court can consider factors such as a pro se litigant's choice to
    represent himself and his experience with trial court procedure.
    
    Id. Disruption of
    a court’s docket or prejudice to the opposing
    party can constitute strong and compelling reasons to deny a pro se
    litigant’s   credible    claims   of   ignorance.       
    Id. at 260
      n.12.
    Moreover, even if "a party is erroneously denied a jury trial, the
    error is harmless if the evidence could not have withstood a motion
    for directed verdict."      
    Id. at 260
    .
    White claims that he did not make a timely motion for a jury
    trial because at the time the motion was due, he was proceeding pro
    se and was not aware of the jury demand requirement.8              In denying
    8
    White’s Rule 39(b) motion acknowledged:
    Although the court provided Mr. White with helpful forms to plead his
    -14-
    White’s Rule 39(b) motion, the district court did not make a
    finding as to whether White’s excuse was credible.              The district
    court did state that White began the action “through the assistance
    of a commission,” and that the court had “allowed White several
    indulgences already,” including proceeding without paying costs.
    These   statements   do   not   indicate     whether   the   district    court
    believed White’s claims of ignorance and do not indicate any other
    valid reason for denying White’s Rule 39(b) motion.
    The district court’s chief rationale for denying White's
    motion was that granting it would unfairly prejudice Goodyear
    because the company would lose a "favorable procedural status."
    The district court specifically stated:
    White argues that Goodyear is not prejudiced by being put to
    a jury trial. If having a jury that it does not want is not
    prejudice to Goodyear, then it cannot be significant to White.
    White believes that he will enjoy a substantial advantage over
    Goodyear in a jury trial; if he is correct, his advantage is
    Goodyear’s disadvantage. Having escaped a jury demand within
    the time allowed by the rules, Goodyear emphatically contends
    that it will be prejudiced))prejudiced in that it will lose a
    favorable procedural status.
    The district court’s definition of prejudice would effectively
    mandate that all opposed Rule 39(b) motions be denied on the
    grounds of    prejudice    to   the   opposing   party.      Employing    this
    causes of action, and although the court provided Mr. White with many
    useful written instructions to help him proceed, neither the forms nor the
    instructions advised him that he must specifically request a trial by jury
    to obtain one, or that such a request must be made within certain time
    limits. The complaint form provided to Mr. White contained no box or
    blank regarding jury trial.
    At this court’s urging, Mr. White ultimately obtained counsel, who
    filed a jury demand simultaneously with her Notice of Appearance.
    -15-
    definition of prejudice would frustrate our longstanding belief
    that “the right to trial by jury is a basic and fundamental feature
    of our system.”   
    Lewis, 767 F.2d at 259
    (internal quotation marks
    omitted).   Proper considerations of prejudice in the context of a
    Rule 39(b) motion include    a lack of time to prepare for an
    impending trial or significant time and resources spent preparing
    for a bench trial.   See United States v. Unum, Inc., 
    658 F.2d 300
    (5th Cir. 1981) (holding that district court did not abuse its
    discretion in denying a Rule 39(b) motion because “[f]orcing the
    plaintiff to change its trial strategy [only a few days before the
    final docket call] would have worked a substantial hardship”).
    Neither of these considerations is present in this case.
    Based on the foregoing, we hold that the district court abused
    its discretion by applying an improper standard in denying White’s
    motion for a jury trial.    Additionally, we cannot conclude that
    this error was harmless because based on the limited record before
    us, it is not clear that White’s claims cannot withstand a motion
    for judgment as a matter of law.      See Rhodes v. Guiberson Oil
    Tools, 
    75 F.3d 989
    , 994 (5th Cir. 1996) (en banc) (stating standard
    for judgment as a matter of law); Boeing Company v. Shipman, 
    411 F.2d 365
    , 374 (5th Cir. 1969) (en banc) (same).       We therefore
    vacate the district court’s order.     On remand, if the district
    court finds that White’s claim of ignorance is not credible, it
    must articulate the reasons for its findings.   Lewis, 767 F.2d at
    -16-
    260.   In addition, if there are any strong and compelling reasons
    to   deny   White’s   Rule   39(b)   motion,    the   district   court   must
    specifically state those reasons on remand.           
    Id. VI White’s
    attorney, Cynthia Thomson, argues that the district
    court abused its discretion in sanctioning her, pursuant to 28
    U.S.C. § 1927, because the court failed to make the necessary
    factual findings.      Section 1927 allows a district court to require
    an attorney to personally pay the excess costs, expenses, and
    attorneys' fees reasonably incurred as a result of the attorney's
    actions     which     unreasonably       and   vexatiously   multiply     the
    proceedings.    28 U.S.C. § 1927.        We review a district court’s award
    of fees and costs under 28 U.S.C. § 1927 for abuse of discretion.
    Browning v. Kramer, 
    931 F.2d 340
    , 344 (5th Cir. 1991).             "Section
    1927 requires a sanctioning court to do more than disagree with a
    party's legal analysis.”      F.D.I.C. v. Calhoun, 
    34 F.3d 1291
    , 1300
    (5th Cir. 1994).       The court must specifically determine that the
    attorney’s claims were unreasonable and that they were asserted for
    an improper purpose.         
    Id. In addition,
    the court must make
    findings identifying the specific conduct which unreasonably and
    vexatiously multiplied the proceedings. 
    Browning, 931 F.2d at 346
    .
    The attorney will only be responsible for the excessive fees and
    costs that the court determines were incurred by the opponents in
    responding to such claims.         
    Id. -17- The
    district court failed to identify Thomson’s unreasonable
    and vexatious conduct which multiplied the proceedings, or the fees
    and costs which Goodyear incurred as a result of this conduct.               We
    therefore hold that the district court abused its discretion in
    imposing sanctions under § 1927, and we vacate the award.                   See
    
    Calhoun, 34 F.3d at 1301
    (reversing award of sanctions where claims
    were “warranted by existing law” and district court did not make
    “separate showing of improper purpose”); F.D.I.C. v. Conner, 
    20 F.3d 1376
    , 1385 (5th Cir. 1994) (vacating award of sanctions under
    § 1927 where district court did not make a specific finding that
    the attorney’s conduct was vexatious).           “On remand, the district
    court may, if the facts warrant it, identify the conduct in which
    [Thomson] engaged that displayed the degree of recklessness, bad
    faith, or improper motive required for a finding that [Thomson] has
    multiplied the proceedings unreasonably and vexatiously.”               
    Conner, 20 F.3d at 1385
    (internal quotation marks omitted).9
    VII
    For the foregoing reasons, we AFFIRM in part, REVERSE and
    REMAND    in   part,   and   VACATE   and    REMAND   in   part   for   further
    proceedings consistent with this opinion.
    9
    Goodyear argues that White's appeal of his race and retaliation
    claims is frivolous; therefore, Goodyear should recover its attorneys' fees and
    costs incurred as a result of defending the appeal, pursuant to FED. R. APP. P.
    38. See FED. R. APP. P. 38 (stating that "if a court of appeals determines that
    an appeal is frivolous, it may, after a separately filed motion or notice from
    the court and reasonably opportunity to respond, award just damages and single
    or double costs to the appellee"). Because we have concluded that White’s appeal
    of these claims is not frivolous, we decline Goodyear’s request for sanctions.
    -18-
    

Document Info

Docket Number: 95-20754

Filed Date: 8/30/1996

Precedential Status: Non-Precedential

Modified Date: 4/18/2021

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