An early version of Rule 11 was recognized in some of the early cases explicitly cited as such in 1 DENNIS J. WALL, LITIGATION AND PREVENTION OF INSURER BAD FAITH § 2:7, at n. 9 (Thomson Reuters West Publishing Co. Third Edition, with 2025 Supplements). Modern procedure under Federal Rule of Civil Procedure 11 is set out in the case of Johnson v. Nationstar Mort. LLC, No. 1:25-cv-00855-JRR, 2025 WL 2938356, at *3 (D. Md. Oct. 16, 2025):
Federal Rule of Civil Procedure 11 requires attorneys (and unrepresented parties) "to certify, on the basis of a reasonable inquiry, that any pleading or paper they file with a district court (1) is not filed 'for any improper purpose'; (2) is 'warranted by existing law'; and (3) alleges facts that 'have evidentiary support.' " Lokhova v. Halper, 30 F.4th 349, 354 (4th Cir. 2022) (quoting FED. R. CIV. P. 11(b)). This court may, in its discretion, impose sanctions for violations of Rule 11. FED. R. CIV. P. 11(c). "[I]n exercising that discretion to impose sanctions for a pleading or paper's lack of legal support, the court must apply an objective standard, inquiring whether 'a reasonable attorney in like circumstances could not have believed his actions to be legally justified.' " Lokhova, 30 F.4th at 354 (quoting Hunter v. Earthgrains Co. Bakery, 281 F.3d 144, 153 (4th Cir. 2022)). To be sanctionable, a legal argument must have "absolutely no chance of success under the existing precedent." Hunter, 281 F.3d at 153.
In the Johnson v. Nationstar case, the Court denied the Plaintiff's motion for Rule 11 sanctions because the record did not show that the Defendants' "counsel made sanctionable legal arguments or otherwise violated Rule 11." Johnson, 2025 WL 2938356, at *3. Further, the motion for sanctions "does not relate to a paper filed in this court[.]" Johnson, 2025 WL 2938356, at *3.
As to a party Defendant, Progressive, the Court noted that once again the Plaintiff's motion for sanctions under Rule 11 related to matters outside the record, "not a filing made with the court for an improper purpose or without basis." Johnson, 2025 WL 2938356, at *4.
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