Brewster v. Southern Pacific Transportation Co.

—Appellant James H. Davis, attorney for plaintiffs, appeals from the trial court’s imposition of sanctions against him in the amount of $184,867.08 which sum included reimbursement to respondent Southern Pacific Transportation Company for expenses of closing one line of its railroad operations.

We have determined that the expense of closing railroad operations was not the proper subject of a sanctions order and we reverse as to that amount. We have further determined that the trial court’s award of attorney fees for bringing the sanctions motion must be reversed with directions to the trial court to recalculate the award as discussed below. As to all other sanctions imposed, we affirm.

Facts

On May 12, 1989, a heavily loaded train operated by Southern Pacific Transportation Company (Southern Pacific) derailed in the Duffy Street neighborhood of San Bernardino. Less than two weeks later, on May 25, 1989, an underground Calnev pipeline carrying jet fuel ruptured and exploded in the same neighborhood causing substantial fire damage.

Appellant Davis is an attorney who had been retained by several residents in the afflicted neighborhood to represent them in actions arising…