News and Events
Fourth Circuit Affirms $1 Million Sanction Award for Misconduct in Direct Defiance of District Court's Authority
Kramon & Graham P.A., a premier Maryland-based law firm, achieved a significant victory for its client, the Keyes Law Firm, LLC, in the United States Court of Appeals for the Fourth Circuit. The court affirmed a $1 million sanction award granted by the United States District Court for the District of Maryland against Paul Napoli, Esquire, and a collection of law firms controlled by him. In Keyes Law Firm, LLC v. Napoli, et al., the Keyes Law Firm filed suit against the defendants for their refusal to pay the Keyes Law Firm amounts due pursuant to association agreements that governed the joint representation of 2,174 asbestos injury clients. After a jury verdict in favor of the Keyes Law Firm, the District Court awarded sanctions based on the misconduct of Mr. Napoli and his law firms, which included the filing of two separate actions in New York State court that sought to challenge the District Court's authority in the federal case.
"In every practical sense Napoli asked a state court in New York to overrule a federal district court in Maryland," according to the Fourth Circuit's published opinion. This opinion reinforces the authority of district courts to manage and protect their proceedings from external interference. The panel cited longstanding Supreme Court precedent confirming a district court's inherent authority to impose sanctions against parties attempting to undermine its jurisdiction.
Kramon & Graham attorneys Jean E. Lewis and David J. Shuster represented the Keyes Law Firm through the jury's verdict. Louis Malick joined Ms. Lewis and Mr. Shuster in connection with the defendants' appeal of that verdict (which was affirmed by the Fourth Circuit) and in this most recent second appeal. The $1 million sanction award was in addition to a pretrial sanctions award of more than $300,000 for earlier misconduct..jpg)
"The Fourth Circuit's Napoli opinion is well-reasoned and sends the unmistakable message to certain members of the profession that federal district judges are well within their authority to sanction the kind of misconduct that was on display throughout our case," said Ms. Lewis.
"The Napoli decision is the most recent published opinion on the scope of the district court's inherent authority to sanction and has already attracted the attention of federal court practitioners," according to Mr. Shuster.
With decades of experience in representing clients in complex litigation, Kramon & Graham continues to deliver outstanding results, focusing on strategic advocacy and adherence to the highest standards of legal practice.
About Kramon & Graham, P.A.
Kramon & Graham is a full-service law firm recognized for its success in complex litigation and commitment to excellence in legal representation. The firm's attorneys bring both knowledge and experience across various practice areas, including appellate, commercial disputes, professional liability, and white-collar litigation.
