Clarence A. Heckethorn, Tr. of the Clarence A. Heckethorn Living Trust, & Lionel, Sawyer & Collins v. Sunan Corp., a Nevada Corp., 992 F.2d 240 (9th Cir. 1993). · Go Syfert
Clarence A. Heckethorn, Tr. of the Clarence A. Heckethorn Living Trust, & Lionel, Sawyer & Collins v. Sunan Corp., a Nevada Corp., 992 F.2d 240 (9th Cir. 1993). Cases Citing This Book View Copy Cite
“we need not decide the other issues raised by plaintiffs, e.g. whether 28 a district court can impose conditions under rule 41(a)(2) when the dismissal is with prejudice.”
31 citation events (21 in the last 25 years) across 12 distinct courts.
Treatment trajectory · 1995 → 2026 · click a year to view as-of
1995 2010 2026
Top citers, strongest first. 22 distinct citers. How cited ↗
discussed Cited as authority (quoted) Xfinity Mobile, et al. v. Globalgurutech LLC, et al.
D. Ariz. · 2025 · signal: see also · quote attribution · 1 verbatim quote · confidence low
we need not decide the other issues raised by plaintiffs, e.g. whether 28 a district court can impose conditions under rule 41(a)(2) when the dismissal is with prejudice.
cited Cited as authority (rule) Spartan Capital Securities, LLC v. Vicinity Motor Corp
N.D. Cal. · 2024 · confidence medium
P. 41(a)(2) that an attorney could be sanctioned by authority of this rule alone.” Heckethorn 9 v. Sunan Corp., 992 F.2d 240, 242 (9th Cir. 1993).
discussed Cited as authority (rule) Amin v. Subway Restaurants, Inc.
N.D. Cal. · 2023 · confidence medium
P. 41(a)(2) in itself is not ‘specific statutory authority’ for the imposition of 4 sanctions against an attorney,” Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir. 1993). 5 Subway offers only 28 U.S.C. § 1927 and the Court’s inherent authority as bases for an 6 award of attorney’s fees.
discussed Cited as authority (rule) Kamal v. Eden Creamery, LLC
S.D. Cal. · 2021 · confidence medium
Courts can condition dismissal upon the payment of costs and fees only where justified by a statute or exception to the American Rule.”) (citing Zambrano v. City of Tustin, 885 F.2d 1473 , 1481 n.25 21 (9th Cir. 1989)); Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir. 1993); see also Alyeska Pipeline Serv.
discussed Cited as authority (rule) Woytenko v. Ochoa
D. Ariz. · 2021 · confidence medium
Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir.1993). 25 In Stevedoring, the appellate court addressed the factors considered by the district 26 court, as follows: 1) whether the action was taken in good faith, 2) whether the defense 27 costs incurred were not undertaken unnecessarily, 3) whether such awards would 28 discourage future voluntary dismissals, and 4) whether the award of fees and costs would 1 produce an anomalous result if defendants could not recover costs and attorney fees if they 2 prevailed at trial.
discussed Cited as authority (rule) United States of America, ex rel. v. Association of Behavior Consultants
N.D. Cal. · 2020 · confidence medium
Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir. 1993). 8 In her opposition to the motion for voluntary dismissal ofthe counterclaim, Relator argues 9 that she should be awarded her attorneys’ fees of more than $150,000.
discussed Cited as authority (rule) Wells Fargo Bank, NA v. Younan Properties, Inc.
7th Cir. · 2013 · confidence medium
See, e.g., Colón Cabrera v. Esso Standard Oil Co. 4 No. 13‐1365 (Puerto Rico), Inc., 723 F.3d 82 , 87–88 (1st Cir. 2013); Hecke‐ thorn v. Sunan Corp., 992 F.2d 240, 241 (9th Cir. 1993); McCants v. Ford Motor Co., 781 F.2d 855 , 860–61 (11th Cir. 1986); see also United States v. Criden, 648 F.2d 814 , 817–18 (3d Cir. 1981); Henry J.
discussed Cited as authority (rule) Wells Fargo Bank, N.A. v. Younan Properties, Inc.
7th Cir. · 2013 · confidence medium
See, e.g., Colón Cabrera v. Esso Standard Oil Co. (Puerto Rico), Inc., 723 F.3d 82, 87-88 (1st Cir.2013); Heckethorn v. Sunan Corp., 992 F.2d 240, 241 (9th Cir.1993); McCants v. Ford Motor Co., 781 F.2d 855, 860-61 (11th Cir.1986); see also United States v. Criden, 648 F.2d 814, 817-18 (3d Cir.1981); Henry J.
cited Cited as authority (rule) Steven Richardson v. Brother International Corp
9th Cir. · 2010 · signal: cf. · confidence medium
Cf. Heckethorn v. Sunan Corp., 992 F.2d 240, 241-42 (9th Cir.1993).
discussed Cited as authority (rule) MR Crescent City, LLC v. Draper (In Re Crescent City Estates, LLC)
4th Cir. · 2009 · confidence medium
See Amlong & Amlong, P.A. v. Denny’s, Inc., 500 F.3d 1230, 1238 (11th Cir. 2007) (42 U.S.C. § 2000e-5(k)); Steinert v. Winn Group, Inc., 440 F.3d 1214, 1222 (10th Cir.2006) ( 42 U.S.C. § 1988 ); Foster v. Mydas Assocs., Inc., 943 F.2d 139, 142 (1st Cir.1991) ( 42 U.S.C. § 1988 ); Brown v. Borough of Chambersburg, 903 F.2d 274 , 276-77 (3d Cir.1990) ( 42 U.S.C. § 1988 ); Healey v. Chelsea Res., Ltd., 947 F.2d 611, 624 (2d Cir.1991) (§ 11(e) of the Securities Act, 15 U.S.C. § 77k(e)); Pfingston v. Ronan Eng’g Co., 284 F.3d 999 , 1005-06 (9th Cir.2002) (False Claims Act, 31 U.S.C. § 37…
cited Cited as authority (rule) Hyde v. Midland Credit Management, Inc.
9th Cir. · 2009 · confidence medium
Indeed, there is a general “presumption *1141 that an attorney is generally not liable for fees unless that prospect is spelled out.” Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir.1993).
discussed Cited as authority (rule) Hyde v. Midland Credit
9th Cir. · 2009 · confidence medium
Indeed, there is a general “presumption that an attorney is generally not lia- ble for fees unless that prospect is spelled out.” Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir. 1993). [5] Just as in the FCA, Congress in the FDCPA failed to indicate any intention to authorize the award of attorney’s fees and costs against attorneys representing debtors.
discussed Cited as authority (rule) In Re Dailey
Bankr. D. Mont. · 2003 · confidence medium
Sterling Federal Systems, Inc. v. Goldin, 16 F.3d 1177, 1183 (Fed.Cir.1994); Modzelewski v. Resolution Trust Corp., 14 F.3d 1374, 1379 (9th Cir.1994); Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir.1993); Phoenix Newspapers, Inc. v. Phoenix Mailers Union Local 752, International Brotherhood of Teamsters, 989 F.2d 1077, 1084 (9th Cir.1993); Bank of Los Angeles v. Official PACA Creeditors’ Committee (In re Southland + Keystone), 132 B.R. 632, 643 (9th Cir. BAP 1991).
discussed Cited as authority (rule) Bailey v. Dart Container Corp. of Michigan
D. Mass. · 1997 · confidence medium
Courts differ, however, with respect to the standard of conduct required to support the imposition of monetary sanctions on an attorney or a litigant. 12 Compare United States v. Claros, 17 F.3d at 1046 (dicta noting disinclination to assume that local rule assessing monetary sanctions required finding of bad faith, recklessness or wilful misconduct); Dillon v. Nissan Motor Company, Ltd., 986 *591 F.2d 263, 267 (8th Cir.1993) (citing Harlan v. Lewis, 982 F.2d 1255 (8th Cir.), cert, denied, 510 U.S. 828 , 114 S.Ct. 94 , 126 L.Ed.2d 61 (1993), as holding “that a showing of bad faith is not nec…
discussed Cited as authority (rule) Esquivel v. Arau
C.D. Cal. · 1996 · confidence medium
Id. at 242 (reversing district court’s order requiring plaintiff’s counsel to pay defendant’s attorneys’ fees under Rule 41(a)(2)).
discussed Cited as authority (rule) Alvarado v. Walsh (In Re LCO Enterprises, Inc.)
9th Cir. BAP · 1995 · confidence medium
Sterling Federal Systems, Inc. v. Goldin, 16 F.3d 1177, 1183 (Fed.Cir.1994); Modzelewski v. Resolution Trust Corp., 14 F.3d 1374 , 1379 (9th Cir.1994); Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir.1993); Phoenix Newspapers, Inc. v. Phoenix Mailers Union Local 752, International Brotherhood of Teamsters, 989 F.2d 1077, 1084 (9th Cir. 1993); Bank of Los Angeles v. Official PACA Creeditors’ Committee (In re Southland + Keystone), 132 B.R. 632, 643 (9th Cir. BAP 1991).
cited Cited "see" Youssif Kamal v. Eden Creamery, LLC
9th Cir. · 2023 · signal: see · confidence high
See id.
cited Cited "see" Walden v. State of Nevada
D. Nev. · 2020 · signal: see · confidence high
See Heckethorn 17 v. Sunan Corp., 992 F.2d 240, 242 (9th Cir. 1993).
discussed Cited "see" The Board of Trustees v. Noorda
D. Nev. · 2019 · signal: see · confidence high
See ECF No. 79 at 6. 22 32 ECF Nos. 72, 73, 78. 23 33 ECF No. 79. 34 Id. 1 impose sanctions.35 And, although courts retain jurisdiction to impose sanctions after a 2 voluntary dismissal,36 because this sanction was imposed before the dismissal, it does not appear 3 that the court’s discretion to condition the voluntary dismissal under Rule 41(a)(2) is implicated. 4 This sanction was imposed under Rule 37(b)(2)(c), which “authorizes sanctions for 5 failure to comply with discovery orders” in the form of attorneys’ fees assessed against the party 6 who failed to comply with the discovery…
cited Cited "see" Syfu v. Cooke
9th Cir. · 2003 · signal: see · confidence high
See Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir.1993).
discussed Cited "see" Stephen E. Duffy Sue Ann Duffy v. Ford Motor Company (2×)
6th Cir. · 2000 · signal: see · confidence high
See Heckethorn v. Sunan Corp., 992 F.2d 240, 242 (9th Cir. 1993).
cited Cited "see" La Habra Products, Inc. v. Patio Industries (In Re Patio Industries)
C.D. Cal. · 1996 · signal: see · confidence high
See Heckethorn v. Sunan Corp., 992 F.2d 240, 241-242 (9th Cir.1993). 2 .
Retrieving the full opinion text from the archive…
Clarence A. HECKETHORN, Trustee of the Clarence A. Heckethorn Living Trust, Plaintiff, and Lionel, Sawyer & Collins, Appellant,
v.
SUNAN CORP., a Nevada Corporation, Et. Al., Defendants-Appellees
91-16532.
Court of Appeals for the Ninth Circuit.
Jul 2, 1993.
992 F.2d 240
David N. Frederick, Lionel, Sawyer & Collins, Las Vegas, NV, for the appellant., John W. Cotton, LeBoeuf, Lamb, Leiby & MacRae, Los Angeles, CA, for defendants-appellees.
Pregerson, Boochever, Beezer.
Cited by 23 opinions  |  Published
1 passage pin-cited by 1 case
Pinpoint authority: bottom 77%
Citer courts: D. Arizona (1)
BEEZER, Circuit Judge:

Lionel, Sawyer & Collins (LSC), former counsel for plaintiffs, challenges the district court’s conditions to a voluntary dismissal order entered pursuant to Fed.R.Civ.P. 41(a)(2). Plaintiffs accepted the conditions.

The first condition required that LSC pay $12,000 in attorney’s fees to Sunan Corporation (Sunan). LSC contends that the district court can neither condition a voluntary dismissal on former counsel’s payment of attorney’s fees when there is no independent stat[*241] utory basis, nor impose such condition when the voluntary dismissal was with prejudice. LSC contends the district court abused its discretion in imposing this condition on these facts, when the filing of the complaint was not frivolous and the factual allegations were confirmed by discovery.

LSC also challenges the district court’s second condition which required LSC to submit to depositions to determine the factual basis for the suit.

We determine that both conditions were improperly imposed and we reverse.

I

LSC’s clients were minority shareholders of Las Vegas Sun, Inc. Sunan Corporation owned the majority of the outstanding Las Vegas Sun, Inc., shares. Sunan initiated a short-form merger of the Las Vegas Sun into Sunan. Under Nevada law, the merger procedure allowed Sunan to buy the minority shareholders’ shares, subject to the minority shareholders’ appraisal' rights. Sunan offered $9 per share for the Las Vegas Sun shares held by minority shareholders.

LSC’s clients, the minority shareholders, brought suit in state court, seeking an appraisal and made claims for breach of fiduciary duty and tortious breach of contract. Subsequently, LSC filed in district court, claiming that Sunan violated 15 U.S.C. 78j (which prohibits manipulative and deceptive devices in connection with the purchase or sale of securities), and made pendent state claims. Upon motion made by LSC, the minority shareholders dismissed the claims in state court except for the appraisal claim.

Because of a conflict of interest, LSC withdrew as counsel for the minority shareholders and was replaced by another firm, Jones, Jones, Close & Brown (JJCB). Initially, the district court denied Sunan’s motion to dismiss and refused to stay the state court appraisal action. After discovery, JJCB on behalf of the minority shareholders moved to dismiss the action under Fed.R.Civ.P. 41(a)(2). After initially .dismissing without prejudice, the court considered Sunan’s objections and ordered dismissal with prejudice (as requested by the minority shareholders) on the condition that the minority shareholders and their attorneys pay Sunan’s costs and attorney’s fees. LSC and JJCB were also ordered to submit to depositions so that any lack of factual basis for the suit could be shown. Several key allegations about the value of the shares made in the complaint drafted by LSC may have been made without reasonable investigation and may have been beyond the knowledge of the minority shareholders.

Upon application of Sunan, the district court ordered LSC to pay $12,000 in fees. Sunan’s counsel had requested over $253,000 but were awarded only $16,000, of which $12,000 was imposed on LSC. The basis of the fee was that LSC and JJCB’s actions forced Sunan to spend time and money to no avail: the same claims were dismissed once in the state and again in this action. LSC was held responsible because “the LSC firm instituted this action and was thereby responsible for causing the initial expenditures including the motion to dismiss filed by defendants.”

II

We first address, sua sponte, whether we have jurisdiction over this appeal. Unioil, Inc. v. E.F. Hutton & Co., Inc., 809 F.2d 548, 554 (9th Cir.1986). There is no question the Fed.R.Civ.P. 41(a)(2) order here was a final order. Id. at 554-55. Rather, the issue is whether the order is “adverse” to LSC. “To be appealable, an order must be adverse to the appealing party.” Id. at 555. An order is adverse when it “creates sufficient prejudice in a legal sense.” Id. (quoting Coursen v. A.H. Robins Co., 764 F.2d 1329, 1342 (9th Cir.), corrected, 773 F.2d 1049 (9th Cir.1985)).

We held in Unioil that a “condition of costs and attorneys’ fees” does not constitute “legal prejudice.” Unioil, 809 F.2d at 556. Unlike in Unioil, where the district court conditioned a voluntary dismissal on “plaintiffs!”] and/or their counsel’s]” reimbursement of defendants’ fees, the monetary conditions here were imposed “solely upon counsel.” Id. at 553, 556. LSC’s conduct in filing a claim in two fora which was eventually dismissed in both fora motivated the imposi[*242] tion of the condition. Though the district court indicated its order was not punitive, the condition imposes a monetary obligation on LSC and so is equivalent to a sanction against LSC. See Zambrano v. City of Tustin, 885 F.2d 1473, 1475 n. 6 (9th Cir.1989) (determining jury fees assessed against counsel to be “sanction” though they were la-belled “costs”). A district “court’s imposition of sanctions is plainly adverse” to the sanctioned attorney. Unioil, 809 F.2d at 556.

Ill

Fed.R.Civ.P. 41(a)(2) provides:

(2) By Order of Court____ [A]n action shall not be dismissed at the plaintiffs instance save upon order of the court and upon such terms and conditions as the court deems proper.

Whether a rule gives the district court the authority to sanction attorneys is reviewable de novo. Westlake North Property Owners v. Thousand Oaks, 915 F.2d 1301, 1304 (9th Cir.1990).

The threshold issue here is whether Fed.R.Civ.P. 41(a)(2) provides an independent base of authority for sanctioning lawyers. We conclude that it does not. We have noted, in Zambrano, “the federal courts cannot, absent specific statutory authority or one of the three enumerated exceptions listed by the Supreme Court, alter the uniform system of cost-bearing created by Congress.” Zambrano, 885 F.2d at 1481. See also International Video Corp. v. Ampex Corp., 484 F.2d 634, 637 (9th Cir.1973) (“an award of attorney’s fees is ordinarily improper in the absence of a statute or under the most unusual circumstances”); Healey v. Chelsea Resources, Ltd., 947 F.2d 611, 624 (2d Cir.1991) (“When a fee-shifting statute that authorizes the courts to award attorneys’ [sic] fees to prevailing parties does not mention an award against the losing party’s attorney, the appropriate inference is that an award against attorneys is not authorized.”). We recognized in Zambrano that “Congress has not ‘extended any roving authority to the [j]udi-ciary to allow counsel fees as costs or otherwise wherever the courts might deem them warranted.’” Zambrano, 885 F.2d at 1481 (citing Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 260, 95 S.Ct. 1612, 1623, 44 L.Ed.2d 141 (1975)).

Fed.R.Civ.P. 41(a)(2) in itself is not “specific statutory authority” for the imposition of sanctions against an attorney. There is no “explicit Congressional authorization” for the attorney sanctions. Zambrano, 885 F.2d at 1482; Healey, 947 F.2d at 624. See also Harris v. Marsh, 679 F.Supp. 1204, 1371 (E.D.N.C.1987) (“it is clear that Rule 41(a)(2) alone does not provide an independent basis for the imposition of fees”), aff'd in part, rev’d in part, 914 F.2d 525 (4th Cir.1990), cert. denied, — U.S. -, 111 S.Ct. 1580, 113 L.Ed.2d 645 (1991). Cf. Westlake, 915 F.2d at 1304 (court reversed district court which had imposed sanctions under Fed. R.Civ.P. 71, holding that the rule did not “suggest ... an independent basis for administering sanctions against an attorney”). Given the presumption that an attorney is generally not liable for fees unless that prospect is spelled out, it would be incongruous to conclude from the broad language of Fed. R.Civ.P. 41(a)(2) that an attorney could be sanctioned by authority of this rule alone. [1]

Nor was there another basis for the award of fees in this case. The district court explicitly denied reliance on the authority of Fed. R.Civ.P. 11 or 28 U.S.C. § 1927. Of the three exceptions to the American Rule set out in Alyeska, the only exception possibly applicable here is that concerning “bad faith or abusive litigation.” Zambrano, 885 F.2d at 1481 n. 25, 1482. Not only was there no finding of bad faith or abusive litigation in the instant case, but the district court explicitly recognized that there was no basis on the record before it for use of its inherent powers. Chambers v. Nasco, Inc., — U.S. -, 111 S.Ct. 2123, 2134, 115 L.Ed.2d 27 (1991); Zambrano, 885 F.2d at 1482.

Because we hold that Fed.R.Civ.P. 41(a)(2) does not provide a basis in itself for sanctioning attorneys, we need not decide the other[*243] issues raised by LSC, e.g. whether a district court can impose conditions under Fed. R.Civ.P. 41(a)(2) when the dismissal is with prejudice. See Beard v. Sheet Metal Workers Union, 908 F.2d 474, 477 n. 2 (9th Cir. 1990).

IV

LSC also challenges the district court’s order that LSC submit to depositions by Sunan in connection with a Fed.R.Civ.P. 11 motion by the defendants. At oral argument, counsel for Sunan represented that there was no pending motion for sanctions against LSC under Fed.R.Civ.P. 11. There is, accordingly, no basis for the district court’s order that LSC submit to depositions on the issue.

The fee award against LSC is REVERSED. The district court’s order that LSC submit to depositions is REVERSED.

1

. Sunan’s reliance on our opinion in Unioil, Inc. v. E.F. Hutton & Co., Inc., 809 F.2d 548 (9th Cir.1986), is misplaced. We did not address this issue in Unioil as we determined that we had no jurisdiction to review the district court’s condition. Id. at 556.