In what circumstances will a court impose sanctions on a plaintiff for refusing to accept the Consent Decree?

We have recently reviewed in considerable detail, in the context of Consent Decree litigation, the varied sources for the imposition of sanctions upon litigants and their counsel, and the rules and criteria applicable to each such source. See United States v. IBT, 948 F.2d 1338, 1343-47 (2d Cir.1991). No such detailed review is required, however, in this case.

The district court imposed sanctions here because Commercial Carriers insisted upon pursuing a "baseless" position. We have concluded, however, that the assertedly "baseless" position was in fact legally correct, so Commercial Carriers cannot be sanctioned for advancing it. See New York State Nat'l Org. for Women v. Terry, 961 F.2d 390, 400 (2d Cir.1992).