Court-Imposed Terms or Sanctions
If liability is determined to be clear, the courts may impose terms or sanctions. In several recent cases, courts have proposed sanctions, including substantial attorneys’ fees, against clients (as opposed to attorneys) who cause papers or pleadings to be filed in connection with litigation that was not “well founded in fact” or was “for the purpose of delay or harassment.” Anderson v. Pasadena Independent School District, 184 F. 3d 439, 137 Ed.
Law Rep. 141, 15 IER Cases 718 (5th Cir. 08/05/1999). Such sanctions could be assessed against insurance companies.
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