Bret Healy v. Supreme Court of South Dakota, et al.

Federal Rule of Civil Procedure 11 permits a court to sanction represented parties for violations of that rule. In Business Guides, Inc. v. Chromatic Communications Enterprises, Inc., 498 U.S. 533 (1991), this Court held that “Rule 11 imposes an objective standard of reasonable inquiry on represented parties who sign papers or pleadings.” Id. at 934–35. But this Court expressly left open “whether or under what circumstances a nonsigning party may be sanctioned.” Id. at 935 (emphasis added). The courts of appeals are in an acknowledged split on that still-open question. Two circuits hold represented, nonsigning parties to an objective standard of reasonable inquiry—i.e., negligence. On the other hand, at least five circuits require a more stringent showing—that the represented, nonsigning party have had actual knowledge of the wrongful conduct or took affirmative action that caused the violation. The question presented is: Whether Federal Rule of Civil Procedure 11 permits sanctions to be imposed on represented parties who do not sign the pleading, motion, or other paper at issue based on an objective standard of reasonable inquiry.