3. In BURLINGTON NORTHERN R. CO. v. WOODS, 480 U.S. 1, 107 S.Ct. 967, 94 L.Ed.2d 1 (1987), Woods had obtained a jury verdict against Burlington Northern in a personal injury action prosecuted in an Alabama federal district court. After the verdict had been affirmed on appeal without modification, the Court of Appeals assessed the penalty (ten percent of the damages) prescribed by Alabama law for all unsuccessful appeals of money judgments. Burlington Northern objected, arguing that Rule 38 of the Federal Rules of Appellate Procedure controlled the case and that, under Rule 38, penalties were appropriate only if, in the judgment of the appellate court, the appeal was frivolous.