Sanction Order Without Monetary Component is Appealable: Seventh Circuit | Practical Law

Sanction Order Without Monetary Component is Appealable: Seventh Circuit | Practical Law

In Martinez v. City of Chicago, the US Court of Appeals for the Seventh Circuit held that orders imposing sanctions for attorney misconduct that lack monetary components are appealable because they would likely inflict reputational harm that could lead to financial consequences.

Sanction Order Without Monetary Component is Appealable: Seventh Circuit

Practical Law Legal Update w-002-4987 (Approx. 3 pages)

Sanction Order Without Monetary Component is Appealable: Seventh Circuit

by Practical Law Litigation
Published on 24 May 2016 • USA (National/Federal)
In Martinez v. City of Chicago, the US Court of Appeals for the Seventh Circuit held that orders imposing sanctions for attorney misconduct that lack monetary components are appealable because they would likely inflict reputational harm that could lead to financial consequences.
On May 23, 2016, in Martinez v. City of Chicago, the US Court of Appeals for the Seventh Circuit held that orders imposing sanctions for attorney misconduct that lack monetary components are appealable because they would likely inflict reputational harm that could lead to financial consequences (Nos. 15-2752, 15-3410 (7th Cir. May 23, 2016)).
In a suit against the City of Chicago and others for malicious prosecution, the plaintiffs subpoenaed certain documents from the Cook County State's Attorney's Office (the Office). The lawyers representing the Office, including Mary McClellan, insisted that the documents sought no longer existed. The documents were found when the court ordered that the Office allow the plaintiffs' lawyers to inspect boxes of documents that were stored in a warehouse. The plaintiffs moved to sanction McClellan and her colleagues.
Several months after the suit ended in the plaintiffs' acceptance of an offer of judgment, the court granted the sanctions motion, citing McClellan's recklessness and bad faith with respect to producing the documents. It ordered McClellan and the Office to pay the plaintiffs $35,522.94 in fees and costs. McClellan appealed to the Seventh Circuit, and during the pendency of the appeal the office paid the entirety of the monetary sanction. McClellan did not drop her appeal, and the plaintiffs moved to dismiss the appeal for lack of jurisdiction.
The Seventh Circuit held that the lack of a remaining monetary element to the sanction order did not make it unreviewable because:
  • The order contained language that was critical of McClellan's conduct in the case, which would likely inflict harm on her professional reputation and could lead to financial consequences.
  • The negative comments provided justification for the sanctions and were part of a formal order.
  • The lack of an appellee did not preclude McClellan's right to appeal, because McClellan suffered an injury that a reversal would remedy, therefore giving her standing.