Amlong & Amlong, P.A. v. Denny’s, Inc.

Issue: (1) Whether the Court should resolve the conflict in circuits regarding how to determine whether attorneys are liable under 28 U.S.C. § 1927 for "unreasonably and vexatiously" multiplying proceedings, where some circuits employ a "reasonably should have known test," others require a finding of "reckless conduct," and still others, while agreeing that "bad faith" on the part of attorneys is a requirement, disagree as to whether an objective or subjective test is to be employed; and (2) if petitioners" behavior was sanctionable under " 1927, whether it was proper for the lower court, in conflict with the Fourth and Tenth Circuits, to affirm a judgment requiring payment of all fees and expenses incurred in the collateral sanctions proceeding amounting to more than 40% of the hours sought, not just the statutorily mandated "excess fees," without finding that petitioners" defense was also unreasonable and vexatious.