McCoy v. Iberdrola Renewables, Inc.

Ct. of Appeals assessed $50,000 as Rule 38 sanction arising out of third-party’s appeal of Dist. Ct.’s dismissal of its proposed federal antitrust counterclaims. Ct. found that said appeal was frivolous, since third-party plaintiff’s appellate arguments essentially established violation of Rule 11, where third-party plaintiff argued that: (1) its counterclaims were so weak that they were insufficient to raise federal question subject matter jurisdiction under 29 USC section 1331 so as to allow Dist. Ct. to act on said counterclaims; and (2) its own claims and procedural maneuvers that were asserted/used in Dist. Ct. were baseless. Also, Ct. imposed said sanctions on third-party plaintiff, its owner and its counsel.