Sam Giebelhaus Charlotte Giebelhaus v. Spindrift Yachts R. Anthony Bell World Trader Yachts, Inc. John Frederick Roberts Elizabeth Marlene Roberts

Sam and Charlotte Giebelhaus appeal from the district court’s order denying their motion for Fed.R.Civ.P. 11 sanctions against attorney Lawrence Kaye. Kaye represented World Trader Yachts, Inc., John Roberts, and Elizabeth Roberts, named defendants in the Giebelhauses’ suit asserting ownership of a yacht named “Bonus Baby”. This court has jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm the judgment of the district court.

BACKGROUND

In July, 1986, the Giebelhauses entered a written agreement with Spindrift Yachts for the purchase of a yacht, later named “Bonus Baby”. The yacht was to be built in Taiwan and shipped to the United States for delivery to the Giebelhauses. By June 1987, when the yacht was constructed and ready for shipment, Spindrift contacted World Trader Yachts, Inc. (“WTY”), and sought financing for the yacht. On July 14,1987, WTY arranged for the issuance of a letter of credit for the purchase price of the yacht in favor of the Taiwanese yacht builder. The yacht arrived in the United States on July 20, 1987, and was placed in Spindrift’s possession.

Anthony Bell, the proprietor of Spindrift, fled the country in November 1987, apparently because of his…