Mark Industries, Ltd. v. Sea Captain's Choice, Inc.

Gregory L. Bertram, Esq. (Bertram), appeals the district court’s orders imposing Rule 11 and inherent power sanctions for entering into and filing a stipulated order of dismissal without the consent of his client, Mark Industries, Ltd. (Mark Industries). We affirm on the basis that the district court had inherent powers to sanction Bertram for his conduct, but vacate and remand regarding the amount of the sanction.

I. FACTUAL AND PROCEDURAL BACKGROUND

On July 27, 1990, Bertram filed a civil complaint against Sea Captain’s Choice in the Western District of Washington on behalf of Mark Industries, Ltd. Bertram directed the case through substantial discovery. Trial was set for September 29, 1992.

Slightly more than one month before trial Bertram moved to withdraw, primarily because of disputes over fees. Judge William Dwyer denied the motion on September 18, 1992. Four days later, on September 22, 1992, Bertram lodged with the court a stipulated dismissal of Mark Industries’ complaint and defendant’s counterclaims, without prejudice. The following day Bertram’s client filed a motion pro se to vacate the dismissal because he had not been consulted about the dismissal. At a hearing…