ADO FINANCE, AG v. McDonnell Douglas Corp.

ORDER IMPOSING MONETARY SANCTIONS AGAINST ADO FINANCE, AG AND ITS COUNSEL OF RECORD, MORGAN, LEWIS & BOCKIUS

Defendant and Counterclaimant McDonnell Douglas Corporation (“McDonnell”) filed a motion for sanctions against Plaintiff and Counterclaim Defendant ADO Finance, AG (“ADO”) and its attorneys of record, James Wawro, Anthony Russo, James Stewart, and the law firm of Morgan, Lewis & Boekius LLP (“Morgan, Lewis”). It argued that ADO made misrepresentations to the Court. On April 25, 1996, the Court granted the sanctions motion, ordering remedial sanctions against ADO and setting a briefing schedule on the issue of monetary sanctions. It now orders ADO and Morgan, Lewis to pay McDonnell $138,970.55 for attorney's fees that it incurred as a result of the misrepresentations. It also orders ADO and Morgan, Lewis to pay into the Court $10,000 in sanctions.

I. BACKGROUND

A The Lawsuit

McDonnell contracted with ADO for the sale of MD-11 aircraft. According to ADO, the MD-lls that McDonnell provided could not meet the performance guarantees included in the contract. It filed the instant lawsuit on May 13, 1993, alleging breach of contract, deceit, negligent misrepresentation, fraud,…