Burlington Northern Railroad Co. v. Woods

Woods (plaintiffs) won a $300,000 jury verdict against Burlington Northern Railroad Co. (Burlington) (defendant) in a personal-injury suit removed to Alabama federal court on diversity grounds. The Eleventh Circuit affirmed and, applying an Alabama affirmance-penalty statute designed to deter frivolous appeals, added a 10 percent penalty. Burlington argued this conflicted with Federal Rule of Appellate Procedure 38, which lets a court of appeals award damages and costs for a frivolous appeal, and the Supreme Court granted certiorari.