Sanctions

Sanctions are court-imposed penalties for litigation misconduct, including frivolous pleadings, discovery abuse, and violations of court orders. Texas civil-practice sanctions operate under multiple overlapping authorities: Rule 13 (frivolous pleadings), Rule 215 (discovery sanctions), Tex. Civ. Prac. & Rem. Code Chapter 9 (frivolous pleadings and claims), and Chapter 10 (frivolous pleadings and motions). The constitutional due-process framework, limiting the most severe sanctions to misconduct that justifies the penalty, is established by TransAmerican Natural Gas Corp. v. Powell, 811 S.W.2d 913 (Tex. 1991).

Rule 13, groundless pleadings

Rule 13 imposes sanctions on parties or attorneys who sign and file pleadings, motions, or other papers that are (1) groundless and brought in bad faith or (2) groundless and brought for the purpose of harassment. "Groundless" means having no basis in law or fact and not warranted by good-faith argument for the extension, modification, or reversal of existing law. The court must give notice and hold a hearing, courts presume that papers are filed in good faith, and the sanction order must state the particulars of the good cause for the sanction.

Rule 215, discovery sanctions

Rule 215 authorizes sanctions for discovery abuse, ranging from minor monetary sanctions for failure to attend a deposition to case-dispositive sanctions for repeated, bad-faith failures to comply with discovery orders. Categories: (1) Rule 215.1, sanctions on motion to compel; (2) Rule 215.2, sanctions for failure to comply with discovery orders, including: prohibition of certain claims/defenses, designated facts taken as established, prohibited evidence, striking of pleadings, dismissal, default judgment, contempt. The most severe Rule 215 sanctions are subject to TransAmerican's due-process framework.

The TransAmerican framework

TransAmerican Natural Gas Corp. v. Powell, 811 S.W.2d 913 (Tex. 1991), establishes constitutional due-process limits on case-dispositive sanctions (dismissal, default judgment, striking pleadings). The court held that a just sanction must meet two standards: (1) a direct relationship must exist between the offensive conduct and the sanction imposed, and (2) the sanction must not be excessive, which requires the court to consider whether less stringent sanctions would fully promote compliance. Sanctions that prevent a decision on the merits are improper unless a party's hindrance of discovery justifies a presumption that its claims or defenses lack merit, and they should not be assessed absent flagrant bad faith or counsel's callous disregard of discovery obligations. Sanctions imposed without proper TransAmerican analysis are subject to reversal.

Chapter 9 and Chapter 10 statutory sanctions

Chapter 9 (Frivolous Pleadings and Claims) reaches pleadings that are groundless and brought in bad faith, for harassment, or for another improper purpose. It applies only to certain tort and damages actions, and its sanction provision does not apply to any proceeding to which Rule 13 or Section 10.004 applies, so it has little independent reach. The available sanctions are striking the pleading, dismissing a party, and an order to pay the opposing party's reasonable expenses, including attorney's fees. Chapter 10 (Sanctions for Frivolous Pleadings and Motions) covers ground similar to Rule 13 on different standards. Its certification tracks federal Rule 11, a violation does not require bad faith, a sanction must be limited to what is sufficient to deter repetition, and the order must describe the conduct and explain the basis for the sanction. Chapter 10 has no 21-day safe harbor like the one in federal Rule 11(c)(2); it requires notice of the allegations and a reasonable opportunity to respond. Rule 13 and Chapter 10 motions are often brought and decided together, but the standards differ.

Proportionality, Low v. Henry

Low v. Henry, 221 S.W.3d 609 (Tex. 2007), remanded a $50,000 Chapter 10 penalty because the record did not show how the trial court arrived at the amount. The court held that a sanction must not be excessive, that a Chapter 10 penalty must be limited to what is sufficient to deter, and that the trial court should consider relevant factors, such as those in the ABA's nonexclusive list, starting from the costs and fees the conduct caused. It also held that Rule 13 monetary sanctions are limited to expenses, court costs, and attorney's fees.

Rule 91a, dismissal of baseless claims

Rule 91a (added 2013) authorizes dismissal of causes of action that have no basis in law or fact, providing a mechanism for early dismissal of meritless claims similar to federal Rule 12(b)(6) but with bilateral attorney's-fee provisions. Except in an action by or against a governmental entity or public official, the court may, but need not, award the prevailing party costs and reasonable and necessary attorney's fees in actions commenced on or after September 1, 2019. The award was mandatory under the original rule. Rule 91a is sometimes characterized as a sanctions tool but is technically a dismissal mechanism with fee-shifting consequences; the standards for dismissal are different from sanctions standards.

Common sanctions categories

Recurring sanctions categories in Texas commercial litigation: (1) discovery abuse, withholding documents, evasive responses, abusive deposition conduct; (2) spoliation, destruction of relevant evidence; (3) frivolous filings, claims without legal or factual basis; (4) harassment filings, pleadings filed for purpose of harassment or delay; (5) violation of court orders, protective orders, scheduling orders, gag orders; (6) perjurious testimony, when discovered during litigation; (7) improper communications with represented parties or jurors.

Full entry: Sanctions