Tuesday, April 18, 2017
Today the Supreme Court issued a unanimous decision in Goodyear Tire & Rubber Co. v. Haeger. Justice Kagan’s opinion begins:
In this case, we consider a federal court’s inherent authority to sanction a litigant for bad-faith conduct by ordering it to pay the other side’s legal fees. We hold that such an order is limited to the fees the innocent party incurred solely because of the misconduct—or put another way, to the fees that party would not have incurred but for the bad faith. A district court has broad discretion to calculate fee awards under that standard. But because the court here granted legal fees beyond those resulting from the litigation misconduct, its award cannot stand.
Justice Gorsuch took no part in the decision.