Geragos & Geragos, APC v. First Solar, Inc.

On September 8, 2015, the decedent’s widow signed a “Stipulation with Request for Award” to accept workers’ compensation benefits for herself and her two minor children. The Stipulation was not approved and had no legal import until February 2, 2016. On September 14, 2015, aware that plaintiffs were already receiving workers’ compensation benefits and unsure whether the instant federal action was barred, the district court ordered limited discovery and a motion for summary judgment on the workers’ compensation exclusivity issue. On January 25, 2016, a week before the Stipulation was approved, defendant filed a motion for summary judgment and a motion for Rule 11 sanctions arguing, inter alia, that plaintiffs’ claims were barred by the exclusivity of the Workers’ Compensation Act (“WCA”). The district court sanctioned counsel $110,784.15 under Rule 11 for fees incurred by defense counsel from January 7, 2016, almost a month before the Stipulation was signed and had any legal effect. The questions presented are as follows: (1) Whether a district court may impose Rule 11 sanctions on counsel for fees incurred by the opposing party prior to the date a Stipulation with Request for Award is approved by a signed order, where California Labor Code section 5001 explicitly provides that a compromise agreement is not valid until it is approved by a judge or the appeals board.