Chambers v. NASCO, Inc.

G. Russell Chambers (defendant), who controlled a TV station, agreed to sell its facilities and broadcast license to NASCO, Inc. (plaintiff) for $18 million, subject to FCC approval, but backed out before the parties filed with the FCC. After NASCO threatened suit, Chambers and his attorneys engaged in an extended campaign of abusive, bad-faith litigation tactics meant to bully NASCO into giving up, ignoring repeated warnings and sanctions from the trial judge. The district court ultimately ruled for NASCO, the court of appeals found Chambers's appeal frivolous and remanded for sanctions, and the trial court imposed nearly $1 million in attorneys' fees and costs and disciplined two of Chambers's attorneys. Chambers appealed the sanctions, the court of appeals affirmed, and the Supreme Court granted certiorari.