An attorney represents a plaintiff in a federal lawsuit. The attorney files a complaint alleging a breach of contract but knowingly includes a claim for fraud, which is factually unsupported by the evidence the attorney possesses. The defendant files a motion for sanctions under Rule 11. What must the court consider to decide whether sanctions are appropriate?
Whether the attorney subjectively believed the fraud claim was legally plausible.
Whether the attorney conducted a reasonable inquiry into the factual basis for the fraud claim before filing.
Whether the plaintiff provided written consent for including the fraud claim in the complaint.
Whether the defendant suffered harm as a result of the unsupported fraud claim.
The correct answer is based on whether the attorney conducted a reasonable inquiry before filing and whether the claims made are objectively reasonable under Rule 11 requirements. Rule 11 requires attorneys to ensure that the filings are not made for improper purposes (such as to harass) and that legal and factual contentions have evidentiary or legal support. Filing a claim known to be unsupported violates Rule 11. Incorrect answers fail to address the reasonable inquiry standard, erroneously rely solely on the attorney's knowledge or motives, or mischaracterize the factors considered under Rule 11.
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