Also known as:sanctio · sanctions · sanctioned · sanctioning · sanctionable · sanctiones · penalty · authorization
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
1
penalty
A penalty or coercive measure imposed for failure to comply with a law, rule, or order. The sanction may require payment to the court or an opposing party and serves to deter repetition of the conduct.
2
Sense 1
1
penalty
A penalty or coercive measure imposed for failure to comply with a law, rule, or order. The sanction may require payment to the court or an opposing party and serves to deter repetition of the conduct.
Examples4
Mortgage Satisfaction After Payment
Simon Stern paid the full balance on his mortgage to Sapphire Holdings. When the lender failed to record the satisfaction, the court imposed a monetary sanction on the lender to compel release of the lien and clear title.
Prior Inconsistent Statement Sanction
Serena Soto testified at trial in a manner inconsistent with her earlier deposition given under penalty of perjury. The court sanctioned Soto for the inconsistency by admitting the deposition to impeach her testimony.
Sense 2
2
authorization
Official approval or authorization of a proposal or action. The sanction confirms that the conduct or document satisfies applicable legal requirements.
Examples2
Receiver Appointment Priority
Sentinel Security held a senior mortgage with a rents clause while Silverline Industries held a junior mortgage without one. The court sanctioned the senior mortgagee's request for a receiver over the junior request under the priority rule.
Veil Piercing to Prevent Injustice
Seth Shapiro commingled funds and undercapitalized his corporation, using it to avoid personal obligations. The court sanctioned the fiction of separate existence to prevent fraud and allowed creditors to reach his personal assets.
Official approval or authorization of a proposal or action. The sanction confirms that the conduct or document satisfies applicable legal requirements.
Each sense below has its own examples, sources, and questions.
Unenforceable Liquidated Damages
Sydney Santos and Sterling Manufacturing agreed to a contract clause setting damages at ten times the anticipated loss. The court refused to enforce the clause, treating it as an impermissible penalty rather than a valid sanction for breach.
Conversion by Unauthorized Use
Samuel Soto authorized Sabrina Shah to use his equipment for a single project. When Shah used it for an unrelated commercial purpose that seriously interfered with Soto's control, the court sanctioned Shah for conversion.
Frequently Asked4
What is the difference between a sanction as a penalty and as authorization?+
A sanction as a penalty is a coercive measure imposed for violating a rule or order, such as a fine or evidentiary consequence. A sanction as authorization is official approval confirming that conduct complies with legal requirements.
When may a court impose monetary sanctions under Rule 11?+
A court may impose monetary sanctions under Rule 11 when a party files a motion describing specific conduct that violates the certification requirements and the opposing party fails to withdraw or correct the paper within the safe-harbor period.
Does a liquidated damages clause become unenforceable if it functions as a penalty?+
Yes. A term fixing unreasonably large liquidated damages is unenforceable on public policy grounds when the amount is disproportionate to the anticipated or actual loss and the difficulties of proof.
What procedural requirements apply to a motion for sanctions?+
A motion for sanctions must be made separately from any other motion, describe the specific conduct at issue, and be served but not filed until twenty-one days after service to allow correction.
Frequently Asked1
How does a court decide whether to sanction veil piercing?+
A court sanctions veil piercing when unity of interest and ownership shows the corporation and owner are alter egos and adherence to the corporate fiction would sanction fraud or promote injustice.
410 U.S. 113 (1973)Constitutional Law
…the initial period. "This Act does not contain any provision relating to medical review committees or prohibitions against sanctions imposed upon medical personnel refusing to participate in abortions because of religious or other similar reasons, or the like. Such provisions, while related, do not directly pertain to…