Certiorari Granted With Consolidated Case On September 29, 2016.
On September 29, 2016, the United States Supreme Court granted certiorari in The Goodyear Tire & Rubber Co. v. Haeger, No. 15-1406 (U.S.), a Ninth Circuit 2-1 decision [discussed in our July 21, 2015 post], and consolidated it with Musnuff v. Haeger, No. 15-1491 (U.S.). The Ninth Circuit decision, over a dissent by Circuit Judge Watford, affirmed a $2.7 million sanction award granted under the “inherent authority of the court” without requiring a causal connection between the sanctioned conduct and civil monetary sanction imposed. The Ninth Circuit majority decided that no precise linkage was required between the harm and compensatory sanctions awarded where the sanctionable conduct was frequent and severe. Here is the issue presented for review in this case: Whether a federal court is required to tailor compensatory civil sanctions imposed under inherent powers to harm directly caused by sanctionable misconduct when the court does not afford sanctioned parties the protections of criminal due process.