This is a case where the third party defendants moved for sanctions, apparently before they obtained a dismissal of the complaint. The court could have rejected the sanctions motion on that ground. Instead, the court rejected the motion on the ground that the case was “rare and exceptional” and did not merit sanctions. A brief quotation explains the ruling:
The Court cannot accept the Third Party Defendants’ invitation to accept they would prevail and obtain dismissal with prejudice. Even if Third Party Defendants did prevail, on this record, the Court cannot find the third party claims were sufficiently frivolous or brought for an improper purpose. See, e.g., Hochman Decl., Dkt. No. 85-1. The Court cannot find that this is the type of “rare and exceptional case” justifying the imposition of Rule 11 sanctions.