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Rule 9011(c)

In re Meltzer

Ruling
Sanctions assessed against petitioning creditor who filed a frivolous involuntary petition to stall eviction proceeding for seeking to dismiss sanctions proceeding.
Issue(s)
Should petitioner who filed involuntary petition in bad faith against landlord to stall eviction proceeding be sanctioned for filing a motion to dismiss the subsequent sanctions proceeding?

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Consumer opinion summary, case decided on July 29, 2015 , LexisNexis #0815-139

In re Wyatt & McAlister PLLC

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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Commercial opinion summary, case decided on November 07, 2013 , LexisNexis #1213-069

Gordy v. Stafford (In re Gordy)

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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Consumer opinion summary, case decided on October 01, 2013 , LexisNexis #1013-105

In re Yerk

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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Consumer opinion summary, case decided on September 26, 2013 , LexisNexis #1213-070

In re Kwik-Way Prods.

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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Commercial opinion summary, case decided on December 28, 2012 , LexisNexis #0113-137

In re Pastran

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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Consumer opinion summary, case decided on September 20, 2011 , LexisNexis #1011-103

In re Baytarian

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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Consumer opinion summary, case decided on January 11, 2011 , LexisNexis #0211-103

McCabe v. Hermes (In re Hermes)

Ruling
Debtor sanctioned for filing frivolous motion and making false representations to court.
Procedural posture

Creditors filed a motion seeking sanctions under Fed. R. Bankr. P. 9011(c) against defendant chapter 7 debtor. As a sanction, the creditors sought the balance of their attorney fees incurred in defending the debtor's attempt to set aside a default judgment.

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Consumer opinion summary, case decided on February 23, 2010 , LexisNexis #0410-105

Smith v. Oak Grove Util. Co. LLC (In re Smith)

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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Consumer opinion summary, case decided on January 16, 2009 , LexisNexis #0309-029

In re Pearce

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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Consumer opinion summary, case decided on October 01, 2008 , LexisNexis #0109-098