PNC Bank’s Warning Shot Misses Mark for Sanctions

PNC Bank N.A. isn’t entitled to a sanctions award because its “warning shot” letters didn’t offer the “safe harbor” period federal rules require, the U.S. Court of Appeals for the Seventh Circuit ruled March 10 (N. Ill. Telecom, Inc. v. PNC Bank, N.A., 2017 BL 76211, 7th Cir., No. 15-2142, 3/10/17).

Federal Rule of Civil Procedure 11(c)(2) requires a party seeking sanctions to serve the opposing party with a proposed sanctions motion and to provide “at least 21 days to withdraw or correct” a frivolous claim or defense.

The Seventh Circuit allows mere “substantial compliance” ...