Rule 9011

In re Wardley Corp.

A creditor filed an involuntary petition under chapter 7 of the Bankruptcy Code against debtor corporation, and a trustee was appointed to administer the debtor's bankruptcy estate. The court issued an order to the creditor to show cause why she should not be sanctioned under Fed. R. Bankr. P. 9011 for filing a pro se motion which sought removal of the bankruptcy trustee.
Ruling: 
Pro se creditor sanctioned for meritless motion to remove trustee in involuntary chapter 7 case.
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Commercial case opionion summary, case decided on November 09,2012, LexisNexis #1212-034

Dye v. Sachs (In re Flashcom Inc.)

Moving defendants, who were alleged to have benefitted from certain preferential transfers, sought the imposition of sanctions against plaintiff, the chapter 11 liquidating trustee, and her prior counsel, pursuant to Fed. R. Bankr. P. 9011. The trustee had filed a vexatious motion in limine seeking to deprive the moving defendants of the right to raise a defense to the trustee's preference complaint.
Ruling: 
Trustee sanctioned for filing vexatious motion in limine seeking to reargue failed preference proceeding.
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Commercial case opionion summary, case decided on October 11,2012, LexisNexis #1112-068

Felger v. Zaidi (In re Zaidi)

Following an entry of judgment in favor of defendant chapter 7 debtor in a complaint for nondischargeability of debt pursuant to 11 U.S.C.S. § 523(a)(2)(A), the debtor filed a motion for sanctions pursuant to Fed. R. Bankr. P. 9011(b) against plaintiff creditor.
Ruling: 
Sanctions awarded against judgment creditor attorney for willful filing of baseless nondischargeability proceeding.
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Consumer case opionion summary, case decided on September 10,2012, LexisNexis #1012-070

In re Sponhouse

Debtors' former attorney was ordered to show cause why sanctions should not be imposed against him concerning his filing of two deficient chapter 7 bankruptcy petitions for the debtors.
Ruling: 
Debtor's former attorney ordered to disgorge fees for filing of two deficient chapter 7 petitions on behalf of debtor.
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Consumer case opionion summary, case decided on August 27,2012, LexisNexis #1212-102

In re Dickson Props. LLC

The court issued an order directing counsel for the debtor to appear and show cause why sanctions should not be imposed.
Ruling: 
Counsel sanctioned for representing two debtors, LLC and its sole member, in separate cases, as well as creditors, creating insoluble conflict.
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Commercial case opionion summary, case decided on June 05,2012, LexisNexis #0612-138

In Spickelmier

In a chapter 13 bankruptcy case, the court issued an order to the debtors' counsel to show cause why counsel should not be sanctioned pursuant to Fed. R. Bankr. P. 9011 for filing a second amended motion to vacate the court's order dismissing the debtors' case after the court had already denied counsel's earlier motion to vacate the court's order.
Ruling: 
Debtor's counsel sanctioned for filing second amended motion to vacate dismissal due to prior failure to appear and unpreparedness.
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Consumer case opionion summary, case decided on April 09,2012, LexisNexis #0512-033

In re Flowers

A United States Trustee ("UST") filed an application for an order to show cause why an attorney who filed four chapter 7 bankruptcy petitions on behalf of unrelated debtors should not be sanctioned pursuant to Fed. R. Bankr. P. 9011 and 11 U.S.C.S. § 105. The court issued the order and held a hearing to determine if the attorney should be sanctioned.
Ruling: 
Attorney sanctioned for electronically filing four petitions in the name of another attorney.
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Consumer case opionion summary, case decided on March 22,2012, LexisNexis #0412-105

In re Canoe Mfg. Co.

Movant, acting pro se, filed a motion, purportedly on behalf of the corporate debtor, to reopen a chapter 7 case that was closed in 1995. The motion under 11 U.S.C.S. § 350(b) was opposed by an attorney and his law firm, the likely defendants in an adversary proceeding if the case was reopened.
Ruling: 
Debtor's CEO's motion to reopen 1995 case to relitigate issues ruled on in state court denied.
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Commercial case opionion summary, case decided on February 01,2012, LexisNexis #0312-068

In re Obasi

On a motion by the United States Trustee (UST), the court ordered defendant, a lawyer and his firm, to show cause why they should not be held in contempt or otherwise sanctioned under Fed. R. Bankr. P. 9011 ( for allowing the electronic signing of a bank's proof of claim in debtor's chapter 13 and the filing of that proof of claim (POC) without reviewing the same.
Ruling: 
Submission of proofs of claim without review by attorney whose electronic signature was affixed violated Rule 9011.
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Consumer case opionion summary, case decided on December 19,2011, LexisNexis #0212-070

First Weber Group Inc. v. Horsfall (In re Horsfall)

Debtor obtained a judgment that a debt to creditor was dischargeable, and the debtor moved for sanctions on the ground that the creditor brought the nondischargeability proceeding for an improper purpose. The creditor moved for sanctions on the ground that the debtor's answer denied established facts which improperly extended the litigation.
Ruling: 
Cross-motions for sanctions by debtor and creditor relating to nondischargeability proceeding denied.
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Consumer case opionion summary, case decided on November 17,2011, LexisNexis #0112-032

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