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PACIFIC DUNLOP HOLDINGS, INC. v. BAROSH

Nos. 93-2200, 93-2551.

22 F.3d 113 (1994)

PACIFIC DUNLOP HOLDINGS, INCORPORATED, a Delaware corporation, Plaintiff, v. Robert F. BAROSH, Francis X. Beaudette, Stanley N. Gaines, et al., Defendants-Third Party Plaintiffs-Counterdefendants-Appellees, v. PACIFIC DUNLOP GNB CORPORATION, a Delaware corporation, and GNB Incorporated, a Delaware corporation, Third Party Defendants-Counterplaintiffs, Appeal of GARDNER, CARTON & DOUGLAS, attorneys for Plaintiff Pacific Dunlop Holdings, Incorporated.

United States Court of Appeals, Seventh Circuit.

Decided March 4, 1994.

Opinion April 25, 1994.

Attorney(s) appearing for the Case

Peter J. Meyer, Gordon B. Nash, Jr. (argued), Michael J. Koenigsknecht, Daniel J. Sheridan, Deena S. Newlander, Gardner, Carton & Douglas, Chicago, IL, for Pacific Dunlop Holdings, Inc., Pacific Dunlop GNB Corp., GNB, Inc. in No. 93-2200.

Peter J. Meyer, Gordon B. Nash, Jr. (argued), Michael J. Koenigsknecht, Daniel J. Sheridan, Deena S. Newlander, David J. Gilmartin, Thomas More Schippers, Gardner, Carton & Douglas, Chicago, IL, for Pacific Dunlop Holdings, Inc., Pacific Dunlop GNB Corp., GNB, Inc. in No. 93-2551.

Laurence H. Lenz, Jr., Donald E. Egan (argued), Andrew M. Varga, Paul A. Haskins, Katten, Muchin & Zavis, Chicago, IL, for defendants-appellees.

Before POSNER, Chief Judge, ROVNER, Circuit Judge, and MIHM, District Judge.

MIHM, District Judge.

This is an appeal from the district court's award of $138,015.11 in legal fees and costs to Appellees under Federal Rule of Civil Procedure 11 and 28 U.S.C. § 1927. For the reasons stated below, we reverse.

I. FACTUAL BACKGROUND

In May 1984, the General Services Administration ("GSA") awarded GNB Batteries ("GNB") a three-year contract to supply batteries and related parts to GSA. In early 1987, GSA conducted an audit of...

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