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MARS STEEL CORP. v. CONTINENTAL BANK N.A.

No. 88-1554.

880 F.2d 928 (1989)

MARS STEEL CORPORATION, Plaintiff-Appellee, v. CONTINENTAL BANK N.A., Defendant-Appellee. Appeal of William J. TUNNEY, Edward T. Joyce, Peter B. Carey, and Steven J. Rotunno, Objectors-Appellants.

United States Court of Appeals, Seventh Circuit.

Reargued June 15, 1989.

Decided July 20, 1989.

Attorney(s) appearing for the Case

Peter B. Carey (argued), Edward T. Joyce, Steven J. Rotunno, Joyce & Kubasiak, Chicago, Ill., pro se and for objectors-appellants.

Jerome H. Torshen (argued), Mark K. Schoenfield, James K. Genden, Torshen, Schoenfield & Spreyer, Chicago, Ill., for appellee Mars Steel Corp.

Howard J. Roin (argued), Lee N. Abrams, Tyrone C. Fahner, James J. Neath, Mayer, Brown & Platt, Chicago, Ill., for appellee Continental Bank.

C. Steven Tomashefsky (argued), Jenner & Block; Thomas R. Meites, Meites, Frackman & Mulder; Arthur J. Howe, Schopf & Weiss, Chicago, Ill., for amicus curiae Chicago Council of Lawyers.

William A. Montgomery (argued), William M. Hannay, Deborah A. Golden, Denise L. Jarrard, Scott C. Bentivenga, The Seventh Circuit Bar Association, Chicago, Ill.; Dennis A. Rendleman, Illinois State Bar Association, Springfield, Ill.; John R. Burns, Indiana State Bar Association, Fort Wayne, Ind.; Jennifer Duncan-Brice, The Chicago Chapter of the Federal Bar Association, Chicago, Ill.; Roy E. Hofer, Rene A. Torrado, Jr., Chicago Bar Association, Chicago, Ill., for amicus curiae.

Before BAUER, Chief Judge, and CUMMINGS, WOOD, Jr., CUDAHY, POSNER, COFFEY, FLAUM, EASTERBROOK, RIPPLE, and KANNE, Circuit Judges.

Reargued En Banc June 15, 1989.

EASTERBROOK, Circuit Judge.

For several years panels of this court have used divergent standards to review decisions about sanctions under Fed.R.Civ.P. 11. Compare R.K. Harp Investment Corp. v. McQuade, 825 F.2d 1101, 1103 (7th Cir.1987), In re Central Ice Cream Co., 836 F.2d 1068, 1072 (7th Cir.1987), and Borowski v. DePuy, Inc.,

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