What are the consequences of a district court's ruling on a motion for sanctions for abuse of discretion?

MultiRegion, United States of America

The following excerpt is from Comlab, Corp. v. Tire, 18-2872-cv (L), 19-1724-cv (Con) (2nd Cir. 2020):

We review a district court's ruling on a motion for sanctions for abuse of discretion. See Klipsch Grp. v. ePRO E-Commerce Ltd., 880 F.3d 620, 627 (2d Cir. 2018). "A district court abuses its discretion if it (1) bases its decision on an error of law or uses the wrong legal standard; (2) bases its decision on a clearly erroneous factual finding; or (3) reaches a conclusion that, though not necessarily the product of a legal error or a clearly erroneous factual finding, cannot be located within the range of permissible decisions." Id. (quoting EEOC v. KarenKim, Inc., 698 F.3d 92, 99-100 (2d Cir. 2012)). ComLab argues that the district court abused its discretion by basing its decision on clearly erroneous factual findings and dismissing the action without considering lesser sanctions. We disagree.

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