Bailey v. Papa John’s USA, 2007 U.S. App. LEXIS 13850 (June 11)
After defendant prevailed on summary judgment, it sought a large attorney’s fees award as sanctions pursuant to 28 U.S.C. 1927, alleging that plaintiff pursued a frivolous claim. The district court agreed that, following discovery, plaintiff’s counsel knew or should have known that plaintiff’s claim pursuant to the Fair Labor Standards Act lacked a factual basis. However, the court awarded only $5,000 in fees – less than 5% of defendant’s request. The Sixth Circuit affirmed the low award, explaining that “where there is no bad faith and where a claim’s lack of merit became clear only after discovery, a defendant should be awarded attorney fees only to the extent counsel for defendant worked on the claim after plaintiff knew or should have known the claim was frivolous and should be withdrawn.”
