Patsy's Brand, Inc. v. I.O.B. Realty, Inc.
United States District Court for the Southern District of New York
2002 WL 59434 (S.D.N.Y. Jan. 16, 2002)
After defendant Brija's first affidavit (claiming a sauce label design dated to 1993) was conclusively shown false and disavowed by I.O.B.'s original counsel, new counsel P&E (defendant's firm), aware of this history, still submitted a second affidavit from Brija repeating the same false claim in opposing Patsy's (plaintiff's) summary judgment motion; the district court found the second affidavit undeniably false and granted summary judgment for Patsy's, then issued an order to show cause why P&E should not be sanctioned under Rule 11.
Whether an attorney may avoid Rule 11 sanctions based on a good-faith but unreasonable reliance on a client's representations.