- 21 - reckless or in bad faith. See United States v. Associated Convalescent Enters. Inc., 766 F.2d 1342 (9th Cir. 1985); United States v. Blodgett, 709 F.2d 608 (9th Cir. 1983); Barnd v. City of Tacoma, 664 F.2d 1339, 1342-1343 (9th Cir. 1982). But cf. Reliance Ins. Co. v. Sweeney Corp., Maryland, 792 F.2d 1137, 1138 (D.C. Cir. 1986) (adopting a standard of "reckless indifference" to the merits of a claim). In Oliveri v. Thompson, supra at 1272, the Court of Appeals for the Second Circuit likened the imposition of a sanction under 28 U.S.C. section 1927 to the imposition of an award under a court's inherent power to regulate its own proceedings. The Court of Appeals identified the circumstances that might lead to a finding of bad faith as follows: This bad-faith exception permitting an award of attorneys' fees is not restricted to cases where the action is filed in bad faith. An inherent power award may be imposed either for commencing or for continuing an action in bad faith, vexatiously, wantonly, or for oppressive reasons. "'[B]ad faith' may be found, not only in the actions that led to the lawsuit, but also in the conduct of the litigation." * * * Oliveri v. Thompson, supra at 1272 (citations omitted). Respondent concedes that Messrs. Sims and McWade engaged in misconduct in the trial of the test cases. We summarized the Government misconduct in Dixon III as follows: Messrs. Sims and McWade negotiated a series of contingent settlement agreements with Mr. DeCastro in respect of the Thompsons' tax liabilities in advance of the trial of the test cases. The final Thompson settlement agreement provided for a reduction in thePage: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Next
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