In re Smith
May
30
2012
Ruling
Failure of debtor's personal injury lawyers to turn over documents until subpoenaed was not grounds for sanctions.
Procedural posture
Debtor filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's bankruptcy estate. The trustee filed a motion for an order requiring a law firm that represented the debtor in a personal injury action to disgorge fees it received, and requested sanctions in the form of payment of attorney's fees and expenses the trustee incurred to obtain information from the law firm.
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Court
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