Pathe Computer Control Systems Corp. v. Kinmont Industries, Inc., Robert E. Margulies

BREYER, Chief Judge.

The district court assessed a $7500 sanction against Robert Margulies, the plaintiff’s counsel in this case, because, in the court’s view, 1) a motion to transfer the case from Massachusetts to North Carolina “was brought for the purpose of delay,” and 2) counsel’s pursuit of his client’s “fraud” claim was not in “good faith.” Fed.R.Civ.P. 11. Counsel appeals the sanctions. After reviewing the record, we conclude that the first ground — the transfer motion — provides a legally adequate basis for a sanction, but the second ground does not.

I

Background

The essential background…