United Stars Industries, Inc. v. Plastech Engineered Products, Inc.
Docket: Nos. 07-2919, 07-3052, 07-3106, 07-3107
Court: Court of Appeals for the Seventh Circuit; May 28, 2008; Federal Appellate Court
Jones Day's request for clarification is effectively a motion for rehearing concerning the district court's order for sanctions against them, which has already been affirmed. They argue that the sanctions should be directed to the clerk of court, necessitating a modification of both the judgment and the appellate opinion. Under Federal Rule of Civil Procedure 11(c)(4), sanctions may be awarded to a litigant if imposed on motion, while sanctions under Rule 11(c)(3) generally require payment to the clerk unless imposed on motion. In this instance, there was a motion from the opposing party that led to the sanctions. Although this court considers Rule 11(c)(3) to be the more appropriate basis over 28 U.S.C. 1927, the existence of the motion impacts the payment requirement. Consequently, Rule 11(c)(4) does not mandate that the sanctions be paid to the clerk, and the petition for rehearing is denied.