In re Wyatt & McAlister PLLC
Nov
07
2013
Ruling
Lawyer sanctioned for continuing to litigate issue of ability to file petition on behalf of professional LLC which only other member opposed.
Issue(s)
Should lawyer be sanctioned for filing bankruptcy petition on behalf of LLC with permission of only one of two members and for continuing to contest dismissal.
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Court
:
Gordy v. Stafford (In re Gordy)
Oct
01
2013
Ruling
Motion for sanctions dismissed where corresponding adversary proceeding was voluntarily dismissed but debtor was still subjected to sanctions by court due to conduct.
Issue(s)
Was debtor subject to sanctions for conduct in adversary proceeding against former spouse that had been voluntarily dismissed.
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Court
:
In re Yerk
Sep
26
2013
Ruling
Court declined to exercise inherent power to sanction counsel where Rule 9011 provided adequate recourse.
Issue(s)
Was special counsel for debtor entitled to call upon bankruptcy court's inherent power to sanction opposing counsel for conduct in defending civil case.
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Court
:
In re Kwik-Way Prods.
Dec
28
2012
Ruling
Debtor awarded expenses and bank ordered to show cause why it should not be sanctioned for violating terms of chapter 11 plan.
Procedural posture
Debtor filed a petition under chapter 11 of the Bankruptcy Code, and the court approved the debtor's bankruptcy plan and closed the case. The debtor filed a motion to reopen its case and asked the court to issue an order which required a bank to show cause why it should not be sanctioned for violating the terms of the debtor's chapter 11 bankruptcy plan. The bank filed a motion for sanctions.
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Court
:
In re Pastran
Sep
20
2011
Ruling
Award of attorneys' fees and expenses against creditor mortgagees for bringing allegedly unfounded stay litigation denied in absence of bad faith.
Procedural posture
Chapter 13 debtor, by and through her counsel, filed an application of for allowance of compensation and reimbursement of expenses, pursuant to either 28 U.S.C.S. § 1927, 11 U.S.C.S. § 105(a), Fed. R. Bankr. P. 9011, to be assessed against two mortgage loan servicing creditors.
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Court
:
In re Baytarian
Jan
11
2011
Ruling
Filing motion for relief from stay without authorization of clients was not grounds for sanctions against creditors' attorney.
Procedural posture
Following the submission of a motion for sanctions by the chapter 7 debtors and an opposition by the creditors' attorney, the court issued its own order to show cause why the attorney should not be sanctioned under Fed. R. Bankr. P. 9011(c)(1)(B) for presenting a pleading for an improper purpose and for filing a substantive pleading that was not authorized by his clients.
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Court
:
Smith v. Oak Grove Util. Co. LLC (In re Smith)
Jan
16
2009
Ruling
Debtor sanctioned for failure to respond to interrogatories related to claim it had alleged was false.
Procedural posture
Plaintiff chapter 13 debtor sued defendant creditor, alleging that the acceleration of the debtor's postpetition obligations for the remaining term of a declaration for deferred water and sewer charges was a gross violation of the 11 U.S.C.S. § 362(a) automatic stay, and that the creditor's proof of claim was false, fraudulent, and not a valid debt. The creditor moved to compel discovery and for discovery sanctions.
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Court
:
In re Pearce
Oct
01
2008
Ruling
Court declined to sanction creditor that purchased claims from original creditor for filing proofs of claim.
Procedural posture
Debtor filed a petition under chapter 13 of the Bankruptcy Code and objected to four claims that were filed against her bankruptcy estate. The court sustained the debtor's objection to three of the four claims and took under advisement the question of whether one of the creditors should be sanctioned for filing its proof of claim.
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Court
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In re Withrow
Jul
03
2008
Ruling
Debtor's attorney sanctioned for failure to meet obligations to review schedules and resolve or explain contradictions and inconsistencies.
Procedural posture
The court issued an order requiring the attorney for a chapter 7 debtor to show cause why he should not, pursuant to Fed. R. Bankr. P. 9011(c)(1)(B), be sanctioned on account of alleged misrepresentations, omissions, and errors in the debtor's bankruptcy schedules, Statement of Financial Affairs, and Rebuttal of Presumption of Abuse.
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Court
:
Levey v. Kesser Cleaners Corp.
Jul
27
2007
Ruling
Creditor's attorney properly sanctioned for filing involuntary petition where it was unreasonable to believe creditor's claim was not subject to bona fide dispute.
Procedural posture
Appellant, a creditor's former attorney, sought review of an order of the bankruptcy court sanctioning appellant for violating Fed. R. Bankr. P. 9011. The bankruptcy court found that appellant filed a chapter 11 involuntary petition to obtain an advantage over a debtor in other litigation and that it was objectively unreasonable to believe that the debtor was subject to involuntary bankruptcy.
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Court
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