This case illustrates an obvious principle – winning is not enough to obtain Section 1927 sanctions. Even getting a complaint dismissed is not enough to get Section 1927 sanctions.
The plaintiff brought a consumer fraud claim and lost. As the court put it, that was not enough to merit sanctions:
Here, the Court disagrees with defendant’s assessment that plaintiffs’ conduct in this litigation amounted to bad faith or that plaintiffs pursued vexatious and frivolous claims. The Court in this instance disagreed with plaintiffs on whether plaintiffs stated viable claims under the ICFA and the MMP. Simply bringing a losing case does not warrant a fee award to the prevailing defendant. Despite the unsuccessfulness of plaintiffs’ lawsuit, the Court cannot find that it was brought in bad faith or that plaintiffs pursued vexatious or frivolous claims. Thus, the Court finds that an award of attorney’s fees is not warranted under the circumstances of this case.
Source: Haywood v. MASSAGE ENVY FRANCHISING, LLC, Dist. Court, SD Illinois 2017 – Google Scholar
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