Keitel v. D'Agostino, Sr.

Background

Frederick J. Keitel, III, proceeding without a lawyer, and three entities—Florida Capital Management LLC, FJK Properties, Inc., and FJK III Properties, Inc.—brought the case against more than thirty defendants. The second amended complaint was 282 pages long, contained more than 890 paragraphs, and asserted twenty-six causes of action, including claims under the Racketeer Influenced and Corrupt Organizations Act and state-law claims. The suit arose from real-estate transactions in Florida and included claims brought on behalf of FJK IV Properties, Inc.

The court had previously disqualified Spencer Robbins from representing FJK IV after Robbins acknowledged that he lacked authority to represent it. The court later dismissed all claims with prejudice, finding that the complaint did not satisfy the basic pleading requirements, repeated its causes of action, failed to identify which facts supported which claims against which defendants, and contained vague and inflammatory accusations. The court denied Keitel’s later request for reconsideration and ordered him to explain why sanctions should not be imposed. Keitel missed the initial deadline but later filed responses; Robbins was given permission to respond but did not do so.

Sanctions Against Keitel

The court considered sanctions under Rule 11 of the Federal Rules of Civil Procedure and the court’s inherent authority. Because Keitel was representing himself, the court concluded that 28 U.S.C. § 1927—which permits sanctions against an attorney who unreasonably and vexatiously multiplies proceedings—could not be used against him.

The court found clear evidence of bad faith. It relied on Keitel’s history of repeated accusations against judges, attorneys, defendants, and government officials; earlier sanctions and warnings; continued inflammatory filings in this case; and claims that lacked a legal or factual basis. In particular, the court found his Racketeer Influenced and Corrupt Organizations Act allegations about an enterprise and more than seventy supposed unlawful acts to be conclusory. It also found that Keitel sued on behalf of FJK IV even though he knew he lacked authority to represent that entity.

The court concluded that attorneys’ fees and costs were an appropriate sanction because Keitel’s conduct forced the defendants to spend money defending against frivolous and excessively long claims. It also imposed a $1,000 sanction payable to the Clerk of Court for the offensive statements in Keitel’s reconsideration motion.

The court further imposed non-monetary sanctions. Keitel was required to file a copy of the opinion and order in every pending case in which he was involved and to provide proof of filing in this case. Before filing in this court any action against a defendant from this case that relates to the subject matter of this lawsuit, Keitel must obtain the court’s permission and submit the proposed complaint and a copy of the opinion and order. In any future action against one of those defendants in another court, Keitel must attach a copy of the opinion and order when he files the case. The court rejected the defendants’ broader request to bar Keitel from filing such suits in any court without permission from this court.

Sanctions Against Robbins

The court concluded that sanctions against Robbins were warranted under either its inherent authority or Section 1927. Robbins had purported to represent FJK IV despite lacking authority and continued to identify himself as representing that entity after the court disqualified him. He also allowed Keitel to file documents using Robbins’s electronic filing credentials. Under the court’s electronic filing rules, those credentials functioned as Robbins’s signature, making him responsible for the contents of the filings.

The court therefore ordered Keitel and Robbins to be jointly and severally liable for the defendants’ attorneys’ fees and costs. This means the defendants may seek the full amount from either one, subject to the court’s later determination of the fees and costs reasonably incurred.

Disposition

The court imposed sanctions on both Keitel and Robbins. Keitel was ordered to pay $1,000 within fourteen days, docket the opinion and order in every pending case within thirty days, obtain permission before filing covered actions in this court, and attach the opinion and order to covered actions filed in any court. The defendants were ordered to submit an accounting of their relevant attorneys’ fees and costs with billing records, after which Keitel and Robbins could respond. The court directed the Clerk of Court to terminate the defendants’ sanctions motion.