Haeger v. Goodyear Tire & Rubber Co.
United States Court of Appeals for the Ninth Circuit
793 F.3d 1122 (2015)
The Haegers (plaintiffs) were injured when their mobile home flipped after a Goodyear (defendant) tire failed, and they sued in federal court. During discovery, Goodyear's attorneys initially failed to search for all relevant tire tests, later obtained some of them but withheld them from the Haegers for months, and Goodyear's attorney Hancock falsely told the court that Goodyear had responded to all outstanding discovery requests. Only after settlement did the Haegers discover Goodyear had withheld still more responsive tests. The district court used its inherent power to sanction Goodyear and its attorneys over $2.7 million, based on estimated added attorney's fees the Haegers incurred after their first document request.
Whether a federal court can invoke its inherent power to impose sanctions upon finding that a sanctioned party's conduct constituted bad faith.