The Federal Circuit affirmed the district court's order requiring Moarbes, LLP to pay fifty percent of a $46,438.60 sanctions award imposed for repeated failures to comply with court orders in patent litigation between FrenchPorte IP LLC and C.H.I. Overhead Doors, Inc. Moarbes did not challenge the propriety or amount of the underlying sanctions, but contended it should bear no responsibility for them. Moarbes argued the district court improperly relied on an ex parte letter from FrenchPorte's CEO in allocating responsibility for the sanctions between counsel and client.
The court reviewed whether the district court had actually relied on the disputed ex parte letter, noting that Moarbes conceded its appeal failed absent such reliance. The district court had expressly stated it did not consider the CEO's letter and instead based its allocation on Moarbes's own filings, which established that Moarbes had received at least some funding to comply with court orders yet repeatedly failed to do so. Applying abuse of discretion review, the panel found no error in the district court's even apportionment of sanctions responsibility between law firm and client based on the record before it.