In re Pennie & Edmonds LLP

Pennie & Edmonds LLP (P&E) represented defendants in a trademark case and, despite knowing the defendants had already filed one false affidavit through prior counsel, submitted a second affidavit on their behalf that was also proven false. The district court initiated a post-trial Rule 11 sanctions proceeding against P&E on its own motion and, applying an objective-reasonableness standard, found P&E's submissions objectively unreasonable (even though made in good faith) and imposed sanctions. P&E appealed, arguing the court should have applied a bad-faith standard instead.