Eleventh Circuit Decides Miccosukee Tribe v. Cypress

Here is the opinion

Materials in the million dollar sanction award are here

Materials in Miccosukee’s failed effort to disqualify the judge are here.

Materials on the underlying merits of the claim are here and here.

Miccosukee Tribe and Bernardo Roman Sanctioned $1M by Federal Court in Claims against Billy Cypress, Lewis Tein LLC, and Dexter Lehtinen

Here are the materials in Miccosukee Tribe v. Cypress (S.D. Fla.):

38 Defendants Notice of Filing Motion for Sanctions

380 Lewis Tein Trial Brief re Rule 11 Motion

394 Lehtinen Supp Brief

395 Lewis Tein Supp Brief

396 Miccosukee Brief

419 DCT Order

An excerpt:

For the aforementioned reasons, it is hereby ORDERED and ADJUGDED that Defendant Lewis Tein’s Motion for Rule 11 Sanctions and Defendant Dexter Lehtinen’s Motion for Rule 11 Sanctions are GRANTED in part and DENIED in part. Plaintiff Miccosukee Tribe of Indians of Florida, Counsel Bernardo Roman, Esq., and the Law Offices of Bernardo Roman III are SANCTIONED in the amount of $975,750.00 owing to Lewis Tein and in the amount of $95,640.00 owing to Dexter Lehtinen, which represent the attorney’s fees and costs incurred in this matter, including those accrued for bringing and [50]  prosecuting the sanctions motions. See Norelus v. Denny’s, Inc., 628 F.3d 1270, 1298 (11th Cir. 2010) (“[A] district court may include costs arising from the sanctions proceedings in the sanctions award.”); Mike Ousley Prods., Inc. v. WJBF-TV, 952 F.2d 380, 383-84 (11th Cir. 1992) (“This Court has clearly held that a party can collect the expense of pursuing a Rule 11 claim.”).

I recognize the monetary sanctions imposed are sizable. However, considering that upon a finding that a party filed a pleading that has no reasonable factual basis, which unreasonably and vexatiously multiplied the proceeding, an appropriate sanction may be the compensation of attorney’s fees incurred in combating the wrongful conduct. Here, the wrongful conduct is the filing of the complaints with no reasonable factual basis to support their allegations. Following a review of the Lewis Tein’s Sealed Statement of Attorney’s Fees (ECF No. 400, SEALED) and Defendant Lehtinen’s Filing of Legal Fees and Expenses Pursuant to Court Order (ECF No. 404, SEALED), it is difficult to parse out — given the sweeping nature of the Tribe’s allegations, i.e. Defendants Lewis Tein created their law firm “for the main purpose of advancing and perfecting the plundering of the Miccosukee Tribe,” Defendants Lewis Tein devised a money laundering/kickback scheme whereby Defendants [51]  Lewis Tein “would charge exorbitant fees for fictitious, unnecessary, inflated, substandard and exaggerated legal work to funnel a part thereof to Defendant Cypress,” and Defendant Lehtinen “through a pattern of criminal activity. . .maintained control of the affairs of the [Tribe] . . . resulting in a loss of millions of dollars” — which, if any, of the legal fees incurred were not warranted by the allegations.

Materials in Miccosukee’s failed effort to disqualify the judge are here.

Materials on the underlying merits of the claim are here and here.

Miccosukee Effort to Disqualify Judge in Billy Cypress Matter Fails

Here are the materials in Miccosukee Tribe of Indians v. Cypress (S.D. Fla.):

408 Miccosukee Motion to Disqualify Judge

410 Lewis & Tein Opposition to 408

411 Lehtinen Opposition to 408

416 Miccosukee Reply in Support of 408

417 Order Denying Motion to Disqualify

A large part of the case is pending before the CA11. We posted on the lower court materials here (denial of tribe motion to reconsider), here (tribe motion to reconsider), and here (granting motion to dismiss).

Federal Court Denies Motion for Reconsideration in Miccosukee v. Cypress

Here is the order in Miccosukee Tribe of Indians of Florida v. Cypress (S.D. Fla.):

299 DCT Order Denying Motion for Reconsideration

Reconsideration materials are here.

Dismissal materials are here.

Eleventh Circuit Briefs in Miccosukee Tribe v. Morgan Stanley

Here:

Miccosukee Opening Brief

Morgan Stanley Answer Brief

Miccosukee Reply Brief

Lower court materials here.

Miccosukee Moves for Reconsideration of Dismissal of RICO Suit against Billy Cypress et al.

Here:

283 Miccosukee Motion for Reconsideration

284 Lewis & Tein Opposition

285 Lehtinen Opposition

Dismissal materials here.

Federal Court Dismisses Miccosukee Tribe’s RICO Suit against Billy Cypress, Former Leaders & Former Lawyers

Here are the updated materials:

140 Lewis Tein Reply

143 Lehtinen Reply

144 Hernandez Reply

145 Cypress Motion to Strike

146 Cypress Reply

155 Miccosuke Response to Motion to Strike

281 DCT Order Granting Motion to Strike

282 DCT Order Dismissing Complaint

An excerpt:

“No one fights dirtier or more brutally than blood; only family knows its own weaknesses, the exact placement of the heart.” Whitney Otto, How to Make an American Quilt (1991). Whitney Otto’s quote seems a particularly apt description of the emotionally and politically charged litigation, occurring in multiple judicial venues, between the named parties, whom include the following.

Motions to dismiss were here.

Miccosukee’s responses were here.

Second amended complaint here.

Opening Eleventh Circuit Brief in Miccosukee v. Morgan Stanley

Here:

Miccosukee Opening Brief

Lower court materials here.

Federal Court Grants Morgan Stanley Motion to Compel Arbitration in Cypress RICO Suit

Here are the materials in Miccosukee Tribe v. Cypress (S.D. Fla.):

DCT Order Granting Morgan Stanley Motion

Morgan Stanley Motion to Dismiss

Miccosukee Opposition to Morgan Stanley Motion

Morgan Stanley Reply

Interesting question, whether the arbitration agreement signed by the former tribal chairman who now faces RICO charges from the tribe is valid or void ab initio. From the opinion:

Plaintiff, in opposition to being compelled to arbitrate its claims against Morgan Stanley Smith Barney, contends that Defendant Cypress, as the main co-conspirator in embezzling and misappropriating millions of dollars of the Miccosukee Tribe’s funds for his personal gain, was without authority to bind the Miccosukee Tribe, absent the knowledge and consent of the Miccosukee Tribe’s General Counsel, to arbitration, which effectively closes the federal courthouse doors to its claims against Morgan Stanley Smith Barney.

But the court rejected the argument:

If there is an absence of actual authority, Defendant Cypress certainly had apparently [sic] authority.

Second Update to Materials in Miccosukee v. Cypress — Miccosukee Responses to Motions to Dismiss

Here:

Miccosukee Response to Cypress

Miccosukee Response to Hernandez

Miccosukee Response to Lehtinen

Miccosukee Response to Lewis & Tein

Miccosukee Response to Martinez

Motions to dismiss were here.

Second amended complaint here.

Additional pleading:

Tein Motion to Compel