Sanctions: Ninth Circuit Remands To District Court The Sanctions Issue In Haeger v. Goodyear “Inherent Power Of The Court” SCOTUS Decision

 

 

Dissenting Circuit Judge Would Have Affirmed Based On Waiver.

 

            On April 23, 2017, we posted on the U.S. Supreme Court’s decision in Goodyear Tire & Rubber Co. v. Haeger, 137 S. Ct. 1178 (2017), which found that a $2.7 million “inherent power of the court” sanctions award needed a restudy based on the correct “but for” causation standard albeit indicating that a waiver issue needed upfront adjudication.

            The Ninth Circuit, in Haeger v. Goodyear Tire & Rubber Co., No. 12-17718 (9th Cir. June 8, 2017) (published), ruled through a 2-0 majority decision that the district court should revisit the sanctions issue.  Circuit Judge Milan D. Smith, Jr., in dissent, found that Goodyear had admitted that only $722,406.52 of the sanctions award was tainted, such that the remaining $2 million award should simply be affirmed rather than involve any further scrutiny by the district court. 

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