Before Issuing Sanctions Under Family Code § 271, A Trial Court Is Required To Consider The Parties’ Incomes, Assets And Liabilities, And Cannot Impose Sanctions That Constitute An Unreasonable Financial Burden On The Sanctioned Party.
In Marriage of Luu and Avritch, Case No. A161935 (1st Dist., Div. 1 June 29, 2021) (unpublished), the trial court sanctioned ex-wife $85,000 under § 271(a) after repeatedly warning her that the relief she sought was beyond that required under the terms of the parties’ dissolution judgment, that had been entered about two years earlier, and that it would impose sanctions.
The 1/1 DCA reversed. Section 271(a) allows the trial court to award attorney fees and costs, in the form of a sanction, against a party frustrating the policy of the law to promote settlement and reduce the cost of litigation. However, while the imposition of sanctions under § 271 is left to the discretion of the trial court, § 271(a) requires the trial court to “take into consideration all evidence concerning the parties’ incomes, assets, and liabilities.” Additionally, the trial court is not permitted to impose a sanction under § 271 that would impose an unreasonable financial burden on the sanctioned party. Because evidence presented at the trial court hearing indicated that ex-wife was unable to pay the imposed sanction based on her current financial situation, and because the trial court had no evidence regarding ex-wife’s current income and assets, a remand was in order with directions that the trial court determine whether the sanction would impose an unreasonable financial burden on ex-wife.