30-10-316. Sanctions. (1) In any private action arising under this part, upon final adjudication of the action, the court shall include in the record specific findings regarding compliance by each party and each attorney representing any party with each requirement of Rule 11 of the Montana Rules of Civil Procedure as to any complaint, responsive pleading, or dispositive motion.
(2) If the court makes a finding under subsection (1) that a party or attorney violated any requirement of Rule 11 of the Montana Rules of Civil Procedure as to any complaint, responsive pleading, or dispositive motion, the court shall impose sanctions on the party or attorney in accordance with Rule 11. Prior to making a finding that any party or attorney has violated Rule 11, the court shall give the party or attorney notice and an opportunity to respond.
(3) (a) Subject to subsections (3)(b) and (3)(c), for the purposes of subsection (2), the court shall adopt a presumption that the appropriate sanction:
(i) for failure of any responsive pleading or dispositive motion to comply with any requirement of Rule 11 is an award to the opposing party of the reasonable attorney fees and other expenses incurred as a direct result of the violation; and
(ii) for substantial failure of any complaint to comply with any requirement of Rule 11 is an award to the opposing party of the reasonable attorney fees and other expenses incurred in the action.
(b) The presumption described in subsection (3)(a) may be rebutted only upon proof by the party or attorney against whom sanctions are to be imposed that:
(i) the award of attorney fees and other expenses will impose an unreasonable burden on that party or attorney and would be unjust and the failure to make an award would not impose a greater burden on the party in whose favor sanctions are to be imposed; or
(ii) the violation of Rule 11 was de minimis.
(c) If the party or attorney against whom sanctions are to be imposed meets its burden under subsection (3)(b), the court shall award the sanctions that the court considers appropriate pursuant to Rule 11.
History: En. Sec. 2, Ch. 468, L. 1997.
Structure Montana Code Annotated
Chapter 10. Securities Regulation
Part 3. Offenses, Penalties, and Immunities
30-10-301. Fraudulent and other prohibited practices
30-10-303. Unlawful representation concerning registration or exemption
30-10-304. Investigations and subpoenas
30-10-305. Injunctions and other remedies -- limitations on actions
30-10-306. Criminal liabilities
30-10-307. Civil liabilities -- limitations on actions
30-10-308. Judicial review of orders
30-10-309. Securities restitution
30-10-310. Reporting requirements
30-10-311. through 30-10-314 reserved
30-10-315. Requirements for securities fraud actions -- definition
30-10-317. Defendant's right to written interrogatories
30-10-318. Limitation on damages
30-10-319. Applicability of safe harbor for forward-looking statements
30-10-320. Prohibition of referral fees
30-10-321. Prosecution of persons aiding violations
30-10-325. Operating pyramid promotional scheme unlawful
30-10-327. Multilevel marketing company -- notice of activity -- consent to service
30-10-328. through 30-10-339 reserved
30-10-340. Governmental disclosure -- immunity