Inherent-power sanction reversed

Originally published by David Coale.

The Fifth Court reversed an award of sanctions, based on the trial court’s exercise of its inherent power, in In re Estate of Powell: “The trial court’s orders reflect that it made the attorney’s fees award as a sanction for Douglas’s and Putnam’s bad faith violation of the rule 11 agreement. Although there is some evidence supporting the trial court’s finding that Douglas and Putnam acted in bad faith, the trial court did not also find or conclude that Douglas’s and Putnam’s bad faith conduct significantly interfered with the court’s ‘legitimate exercise of its core functions.’ Consequently, we conclude the trial court abused its discretion by imposing the sanction against Douglas and Putnam.” No. 05-19-00689-CV (Aug. 4, 2020) (mem. op.) (citations omitted) (applying Union Carbide Corp. v. Martin, 349 S.W.3d 137 (Tex. App.–Dallas 2011, no pet.)

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