In November, this Blog reported on the Court’s award of sanctions against a plaintiff’s lawyers for unreasonably and vexatiously multiplying proceedings under 28 USC § 1927 because they alleged that the plaintiff made a purchase from a store instead of the defendant’s website which required binding arbitration agreement and a waiver of the right to pursue a class action. In December, Judge Klausner ordered the two lawyers to pay $623,738.70 as sanctions.
The Court gave short shrift to plaintiff’s opposition but discounted the time related to filing the motion to seek sanctions, 166.7 hours. The Court awarded Defendants’ sanctions measured by 842.8 hours arising from the work of 14 lawyers at rates ranging from $540 to $1,237.50/hour in the case, including a motion to dismiss, the answer, opposing class certification, drafting a Rule 23(f) Petition, discovery, and moving to decertify the class for a total of $623,738.70.
Plaintiff’s counsel recently scheduled a hearing for March 2, 2026 to attempt to stay Judge Klausner’s Order.
If you need guidance on defeating unwarranted claims, please contact Dan M. Forman or your trusted CDF attorney.
