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It is Frivolous to File Same Suit Against Another Defendant After First is Dismissed
\\nDimitri Enterprises, Inc. ("Dimitri") and its attorney, Richard J. Flanagan, appealed from the district court\'s June 24, 2021 order imposing $24,675.00 in sanctions pursuant to Federal Rule of Civil Procedure 11. Dimitri, a roofing contractor, filed this lawsuit in connection with a dispute regarding insurance coverage for an employee\'s injuries on a construction project. In Dimitri Enterprises, Inc. v. Spar Insurance Agency LLC, NIF Services of New Jersey, Inc., and Scottsdale Insurance Company, No. 21-1722-cv, United States Court of Appeals, Second Circuit (October 6, 2022) the complaint asserted claims against defendant Scottsdale Insurance Company ("Scottsdale"), which was Dimitri\'s commercial general liability insurance carrier, and defendant NIF Services of New Jersey, Inc. ("NIF"), which was originally alleged to be Dimitri\'s broker.
\\nORIGINAL CLAIM DISMISSED AS TIME BARRED The district court granted NIF\'s motion to dismiss both claims against it, reasoning that the negligence claim was time-barred, and the breach of contract claim was inadequately pled because Dimitri did not allege any contractual terms that NIF breached. Dimitri then filed a second amended complaint (the "SAC") against an additional defendant, Spar Insurance Agency, LLC ("Spar"), which was the retail insurance broker for Dimitri\'s policy. In its SAC, Dimitri brought claims against Spar for negligence and breach of contract that were identical to the negligence and breach of contract claims that the district court already dismissed against NIF. The district court granted Spar\'s Motion to dismiss. In addition, the district court granted Spar\'s subsequent motion for sanctions, explaining that "plaintiff\'s counsel knew or should have known that the claims against Spar were likewise subject to dismissal" because "identical claims against NIF were previously dismissed as either time-barred or inadequately pled."
\\nDISCUSSION The Second Circuit reviewed the district court\'s imposition of sanctions pursuant to Rule 11 of the Federal Rules of Civil Procedure for an abuse of discretion. This deferential standard is applicable to the review of Rule 11 sanctions because the district court is familiar with the issues and litigants and is thus better situated than the court of appeals to marshal the pertinent facts and apply a fact-dependent legal standard. An abuse of discretion only occurs if the district court based its ruling on an erroneous view of the law or on a clearly erroneous assessment of the evidence or rendered a decision that cannot be located within the range of permissible decisions. RULE 11 SANCTIONS Rule 11 explicitly and unambiguously imposes an affirmative duty on each attorney to conduct a reasonable inquiry into the viability of a pleading before it is signed. The standard for triggering the award of fees under Rule 11 is objective unreasonableness and is not based on the subjective beliefs of the person making the statement. Under Rule 11, a litigant\'s obligations with respect to the contents of filings are not measured solely as of the time they are filed with
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