Levinson

Barry Levinson appeals the district court’s award of sanctions under Federal Rule of Civil Procedure 11 to (1) John Baldwin; (2) Michael and Linda Newell, Hard Money, Inc., and the John Kevin Baldwin Irrevocable Trust (hereinafter “the Newell defendants”); and (3) the Community Bank of Nevada (hereinafter “Community Bank”). In total, the district court ordered Levinson to pay $12,000 in sanctions. Levinson also appeals the district court’s decision denying sanctions against the Newell defendants and Community Bank. The Newell defendants cross-appeal the amount of the sanctions as insufficient. We affirm the district court’s award of Rule 11 sanctions to John Baldwin and the Newell defendants, but reverse the award of sanctions to Community Bank. We also affirm the district court’s denial of sanctions to Levinson.

FACTS AND PROCEDURAL BACKGROUND

This appeal centers on the appropriateness of Rule 11 sanctions against an attorney who filed a legally baseless complaint. On February 7, 2002, Levinson, counsel for Deborah and Robert Holgate, filed the complaint at issue in federal district court. In this complaint, the Holgates alleged federal civil rights and RICO violations, as well…