A lawsuit accusing high-flying plaintiffs attorney Willie Gary and his law firm of legal malpractice and racketeering was dismissed in 2016. Maria Sperando, one of the attorneys named in the suit, sought more than $560,000 in sanctions against her accusers after leaving Gary's firm. 

U.S. District Judge Amy Totenberg in Atlanta agreed to award sanctions to Sperando, who claimed she was smeared with baseless accusations and online “rants.” But the judge awarded only $2,000, saying the amount she wanted was “unduly harsh and unreasonable.”

The U.S. Court of Appeals for the Eleventh Circuit agreed, saying Sperando “may disagree with the court's reasoning, but she has fallen well short of showing an abuse of discretion.”

The case is rooted in a lawsuit filed nearly two decades ago in New York by black music promoters Leonard Rowe and Lee King against the William Morris Agency and several other booking and talent agencies.

The plaintiffs, who claimed the white-owned and controlled defendant companies conspired to discriminate against black artists and fans in violation of federal civil rights and antitrust laws, were represented by Gary and his firm.  

Some of the smaller promoters settled their claims, but the litigation continued against William Morris until it was dismissed on summary judgment in 2005.   

In 2015, Rowe, King and their promotion companies sued Gary, his firm and a half-dozen of its lawyers in the Northern District of Georgia, including Sperando, who is now in private practice in Jensen Beach. Gary's firm, Gary Williams Parenti Watson & Gary, is headquartered in Stuart.

The complaint accused the lawyers of taking bribes from the talent agency defendants to “sabotage” the case and asserted claims including racketeering, fraud and legal malpractice.

The defendants filed a collective motion to dismiss, while Sperando filed a separate dismissal motion and included a motion for sanctions against Rowe, King and their attorneys for filing frivolous claims.

Totenberg ultimately dismissed the suit on jurisdictional grounds in 2016, a ruling the Eleventh Circuit upheld in a separate opinion.

She also declined to award Sperando sanctions, writing the claims were not “inherently frivolous, and the court will not entertain a motion for sanctions by any of the defendants. There is no doubt that plaintiffs, though belated and arguably misguided in their efforts here, were deeply impacted by their professional experiences and by the loss of their landmark case in which they believed they would prevail, in reliance on the representations of their counsel at the Gary firm.”

Sperando appealed that ruling as well, and the appeals court remanded the case in 2017, ruling Totenberg failed to apply an “objective standard” in her order and “explain why the legal theories or factual allegations in the complaint were not objectively frivolous.”

On remand, Sperando argued the racketeering claims were “frivolous and an attempt to 'shake down' the defendants for money.”

She requested $2,255 for her costs defending herself against the frivolous claims and a fine of $562,000, calculated by multiplying Sperando's hourly rate of $500 by the 1,124 hours she claims to have spent defending herself in this court and on appeal.

Sperando also sought “an admonishment by the court; 'a public apology by plaintiffs on every form of media on which they and their cohorts have disparaged Sperando'; and 'a public disavowal by Rowe and King of their cronies' blistering and baseless internet rants' ” against her.

Totenberg granted the motion for sanctions but fined the plaintiffs and their lawyers $2,000, finding  Sperando did not show they “engaged in dilatory or vexatious litigation tactics after filing suit” and “did not act in bad faith in pursuing their claims.”

She also ordered the opposing party and their counsel to reimburse Sperando for the costs of traveling to the oral argument for her motion to dismiss the complaint and reprimanded counsel.

In affirming Totenberg, the appellate panel of Judges Beverly Martin and Kevin Newsom and Senior Judge Frank Hull said the judge had not abused her discretion.

In imposing these sanctions, the court explained Sperando's suggested fine was ”unduly harsh and unreasonable” and Sperando had not filed a timely bill of costs or any details about the expenses of her defense. 

The per curiam opinion also said the judge was within her authority to impose only $2,000 in sanctions.

“Sperando describes the $2,000 fine as 'meager,' 'arbitrarily chose[n]' and an insufficient deterrent,” it said. “The district court thought differently.”

Sperando declined to comment. Lead plaintiffs attorney Edward Griffith of New York's Griffith Firm did not respond to inquiries.

CORRECTION: An earlier version of this article mistakenly reported that attorney Willie Gary faced a small penalty in connection with a malpractice suit in an appeal to the U.S. Court of Appeals for the Eleventh Circuit.