Cornwall v. Robinson

Citation654 F.2d 685
Decision Date07 July 1981
Docket NumberNo. 81-1007,81-1007
PartiesHenry CORNWALL, an individual, and Sherwin McMichael, an individual, Plaintiffs-Appellees, v. David R. ROBINSON, an individual, Defendant-Appellant. John Hadden Publishers, Inc., an Oklahoma corporation; and Interstate Book Company, a Kansas corporation, Defendants.
CourtUnited States Courts of Appeals. United States Court of Appeals (10th Circuit)

James M. Sturdivant and John Henry Rule of Gable, Gotwals, Rubin, Fox, Johnson & Baker, Tulsa, Okl., for defendant-appellant.

James L. Kincaid, J. David Jorgenson and Keith P. Ellison of Conner, Winters, Ballaine, Barry & McGowen, Tulsa, Okl., for plaintiffs-appellees.

Before DOYLE, McKAY and LOGAN, Circuit Judges.

McKAY, Circuit Judge.

After examining the briefs and the appellate record, this three-judge panel has determined unanimously that oral argument would not be of material assistance in the determination of this appeal. See Fed.R.App.P. 34(a); Tenth Cir. R. 10(e). The cause is therefore ordered submitted without oral argument.

Appellants, defendants below, filed a petition to remove this action to the United States District Court on June 5, 1980. A co-defendant, Interstate Book Company, did not join in the petition for removal and the petition was thus procedurally defective. See Tri-Cities Newspapers, Inc. v. Tri-Cities Pressmen Local 349, 427 F.2d 325 (5th Cir. 1970). Five days after filing the petition for removal the removing defendants filed an application and notice for an order remanding the action to the state court. Plaintiffs concurred in the view that the matter had been improperly removed and also urged the trial court to tax attorney's fees and costs to defendants. Plaintiffs seek to avoid the traditional American rule which disfavors the allowance of attorney's fees by invoking the exception to that rule which sanctions an award of attorney's fees when a party's opponent acts " 'in bad faith, vexatiously, wantonly, or for oppressive reasons.' " Hall v. Cole, 412 U.S. 1, 5, 93 S.Ct. 1943, 1946, 36 L.Ed.2d 702 (1973) (quoting 6 J. Moore, Federal Practice P 54.77(2), p. 1709 (2d ed. 1972)). See also Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 258-59, 95 S.Ct. 1612, 1622, 44 L.Ed.2d 141 (1975).

The trial court found, with adequate support in the record, that "(t)his case was removed improvidently and frivolously because it was obvious that this Court was fully without removal jurisdiction of this action either on federal question grounds or on diversity grounds." Record, vol. 1, at 146. The court awarded attorney's fees in the amount of $6,000.

We have said that a trial court which awards attorney's fees under the "bad faith, vexatious, wanton, or oppressive" exception to the American rule "will be reversed only in circumstances which do not show a reasonable ground for the conclusion that vexatiousness existed." Ryan v. Hatfield, 578 F.2d 275, 277 (10th Cir. 1978). Yet here we do not even have a finding of vexatiousness. Notwithstanding a request by plaintiffs to find bad faith, the trial court found only that "removal of this action was improvident and frivolous." Record, vol. 1, at 147. Although "a case can be so frivolous as to reflect impermissible conduct," Americana Industries, Inc. v. Wometco de Puerto Rico, Inc., 556 F.2d 625, 628 (1st Cir. 1977), the trial court did not indicate that its interpretation of frivolous was to be equated with the intent-laden terminology of "bad faith, vexatious, wanton, or oppressive." In fact, the trial court seemed to be advocating a negligence standard for the award of attorney's fees when it interpreted "frivolous" at the hearing: "I have come to the conclusion that the commencement of this proceeding in this court was frivolous in that if counsel had carefully reviewed the applicable law counsel would have known that this court would not have jurisdiction." Record, vol. 4, at 31.

An award of attorney's fees under the bad faith exception to the American rule "is punitive, and the penalty can be imposed 'only in...

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    • United States
    • United States District Courts. 10th Circuit. District of New Mexico
    • October 31, 2015
    ...court remand the case.” Brady v. Lovelace Health Plan, 504 F.Supp.2d 1170, 1172–73 (D.N.M.2007) (Smith, J.) (citing Cornwall v. Robinson, 654 F.2d 685, 686 (10th Cir.1981) ). Courts generally refer to the requirement that all defendants served at the time of filing must join in the notice o......
  • Parsons v. Velasquez
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    • July 30, 2021
    ...Cir. 1998) (stating that the general removal rule "require[s] all defendants to join in the removal petition"); Cornwall v. Robinson, 654 F.2d 685, 686 (10th Cir. 1981) ("A co-defendant, Interstate Book Company, did not join in the petition for removal and the petition was thus procedurally......
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    ...requires that the district court remand the case." Brady v. Lovelace Health Plan, 504 F. Supp. 2d at 1172-73 (citing Cornwall v. Robinson, 654 F.2d 685, 686 (10th Cir. 1981)). Courts generally refer to the requirement that all defendants served at the time of filing must join in the notice ......
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    ...bad faith exception is punitive, a court can impose the penalty "only in exceptional cases and for dominating reasons of justice." Cornwall, 654 F.2d at 687 (citing United States v. Standard Oil Co., 603 F.2d 100, 103 (9th Cir.1979) and quoting 6 J. Moore, Federal Practice p 54.77 at 1709-1......
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