Sixth Circuit largely upholds sanctions against ‘Kraken’ lawyers

CINCINNATI (CN) — The Sixth Circuit issued a decision Friday easing, but largely upholding, sanctions issued against a stable of Donald Trump-allied lawyers who sought to overturn the results of the 2020 election through a series of lawsuits filed around the U.S.

The federal appellate court ruled that a Michigan federal judge had incorrectly found that the entirety of a complaint filed by Texas attorney Sidney Powell and the group of lawyers she called “the Kraken” was sanctionable. While the complaint’s allegations of an international conspiracy to rig the 2020 elections were variously “refuted by the plaintiffs’ own exhibits,” “arose from facially unreliable expert reports” or “simply baseless,” Circuit Judge Raymond Kethledge wrote, the lower court’s finding that the attorneys filing suit were “motivated by improper purposes” was not adequately supported. 

A three-judge panel, consisting of George H.W. Bush appointees Ketheledge and Helene White and Ronald Reagan appointee Danny Boggs, reduced attorneys’ fees awards granted by U.S. District Judge Linda Parker of the Eastern District of Michigan to the city of Detroit, Michigan Governor Gretchen Whitmer and Secretary of State Jocelyn Benson by about $22,000 to a total of around $152,000, and completely reversed sanctions against attorneys Emily Newman and Stephanie Junttila. 

The portion of those attorney fees due to Whitmer and Benson was also reversed as to Wood, who has claimed throughout the sanctions dispute that he did no work on the lawsuit and was not aware that his name was on the complaint — but claimed otherwise on social media during its filing. 

Parker’s referral of all nine attorneys to their respective state bar associations for disciplinary proceedings remained in place for all but Newman and Juntilla, who escaped sanctions because, as Kethledge wrote, Parker had not made adequate factual findings to support the contention that they were involved in drafting or advocating frivolous claims. 

“The district court awarded fees for a number of tasks that bore little connection to sanctionable conduct in this case,” Kethledge wrote in defense of his reduction of fees. As to the district court’s non-monetary sanctions, including disciplinary referrals and legal education, Kethledge found no issue with Parker’s ruling. While the issue was not moot, as Whitmer and Benson argued, Kethledge found that a local rule governing disciplinary referrals “permits such referrals rather than proscribes them” and that the sanctions did not violate the First Amendment. 

The disciplinary proceedings Parker called for could, but will not necessarily, lead to disbarment for the remaining seven attorneys. The State Bar of Texas has already initiated an action against Powell, which is scheduled to go to trial in October. 

Powell’s constellation of suits collected a wide variety of conspiracy theories related to the 2020 election, with “expert” opinions from leading her to become a defendant in a defamation suit brought by Dominion Voting Systems. 

Neither Powell nor an attorney representing Wood responded for requests for comment Friday evening. 

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