Civil Procedure — class actions

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United States Court of Appeals For the Seventh Circuit

Civil

Civil Procedure — class actions

Unethical conduct by proposed class counsel that does not undermine the integrity of the proceedings does not preclude class certification.

“[W]e emphasize our concern over the challenged actions that Anderson + Wanca attorneys have taken while investigating this case and others. McKnight warns that our outcome will incentivize and reward overly aggressive and unethical attorney conduct. But this scenario of unpunished, inappropriate attorney action results only if the litigants and fellow members of the bar fail to refer legitimate instances of attorney misconduct to the relevant bar authority for investigation. But when an ethical breach neither prejudices an attorney’s client nor undermines the integrity of the judicial proceedings, state bar authorities are generally better positioned to address the matter through disciplinary proceedings, rather than the courts through substantive sanction in the underlying lawsuit. Notwithstanding, when appropriate, a federal court retains the power to impose discipline or refer questionable conduct for further investigation.”

Affirmed.

12-2599 Reliable Money Order, Inc., v. McKnight Sales Co., Inc.

Appeal from the United States District Court for the Eastern District of Wisconsin, Callahan, Mag. J., Flaum, J.