$60K in Attorney Fees Shifted Against CTD Networks, Ramey’s “Receipts” an Effective Shield but No Sword
On January 13, 2025, Western District of Texas Judge Xavier Rodriguez shifted just over $60K in attorney fees in a case that CTD Networks LLC filed against Alphabet (Google) back in October 2022. In a separate order, Judge Rodriguez denied a Microsoft motion seeking a $100K sanction (under 28 U.S.C. § 1927 and Federal Rule of Civil Procedure 11) against Ramey LLP for its representation of CTD. Per the court’s 1927 analysis, “Taking unreasonable positions is not necessarily vexatious behavior”, and the evidence that Ramey LLP disregarded its client’s instructions—a “certainly troubling” declaration from CTD’s (and AiPi’s) Eric Morehouse, balanced against arguably privileged emails that Ramey attached to his papers—could not overcome the applicable, clear-and-convincing burden of proof. Ramey LLP had sought its own sanctions, but Judge Rodriguez ruled that the firm, as former litigation counsel, lacks standing to pursue them.
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