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McDermott v. FIA Card Servs. (In re McDermott)

Defendants, a creditor, its counsel, and counsel's law firm, moved to dismiss plaintiff debtor's adversary proceeding, which sought damages, costs, and attorneys' fees for harm the debtor alleged he suffered as a result of defendants' commencement of a nondischargeability action without any intention to prosecute that action. Defendants also moved for an award of sanctions and costs in an unspecified amount pursuant to Fed. R. Bankr. P. 9011.
Ruling: 
Creditor's filing of nondischargeability proceeding without intention of going to trial was not actionable.
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Consumer case opionion summary, case decided on November 08,2010, LexisNexis #1210-066

In re Blue Pine Group Inc.

After the court dismissed a chapter 7 case on the motion of one of the debtor's shareholders, the shareholder filed a motion for sanctions against the debtor's attorney under Fed. R. Bankr. P. 9011 on the ground that the debtor's board had never authorized its bankruptcy filing.
Ruling: 
Debtor's attorney sanctioned for filing case without reasonable grounds causing damages to debtor's shareholders.
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Commercial case opionion summary, case decided on October 07,2010, LexisNexis #0111-069

In re Currency Mgmt. Co. Ltd.

A creditor moved for sanctions against counsel for a bankruptcy debtor pursuant to Fed. R. Bankr. P. 9011(b) based on the filing of allegedly false proofs of claim by counsel, and based on the filing of the bankruptcy in an alleged attempt to relitigate issues determined in a pending state-court action for breach of contract.
Ruling: 
Debtor's attorney sanctioned for filing case in bad faith solely to contest creditor's claim with evidence barred in state court.
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Commercial case opionion summary, case decided on September 03,2010, LexisNexis #1010-133

In re Hurd

After the court became aware of misrepresentations by a secured creditor's counsel on two versions of a proposed order that it filed under the court's electronic case filing (ECF) procedures, the court entered an order to show cause why it should not impose sanctions based on its inherent powers and under 11 U.S.C.S. § 105 and Fed. R. Bankr. P. 9011.
Ruling: 
Secured creditor's counsel sanctioned for misrepresentations that debtor's counsel and trustee had endorsed proposed order.
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Consumer case opionion summary, case decided on August 11,2010, LexisNexis #0910-103

In re Bethany Homes Inc.

Judgment creditors of a bankruptcy debtor sought to hold the debtor in contempt in state court for failing to cooperate in discovery in the creditors' efforts to collect the judgment, but the motion was stayed after the debtor filed its bankruptcy petition. The creditors moved for sanctions pursuant to Fed. R. Bankr. P. 9011 against the debtor, its principal, and its attorney, asserting that the bankruptcy petition was filed in bad faith.
Ruling: 
Frivolous filing to prevent foreclosure was grounds for sanctions against debtor's principal and attorney.
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Commercial case opionion summary, case decided on August 06,2010, LexisNexis #0910-138

In re Harmon

Based on claims of improper conduct on the part of a law firm that had filed various bankruptcy cases before the court, the court issued show cause orders and considered whether the evidence adduced in connection therewith afforded a sufficient basis, per Fed. R. Bankr. P. 9011, Bankr. N.D. Ga. Gen. Ord. 6-2006, or local bankruptcy court rules, to impose sanctions against the law firm, its managing partner, or lawyers affiliated with the firm.
Ruling: 
Firm sanctioned for improper actions of its lawyers in several cases.
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Consumer case opionion summary, case decided on June 03,2010, LexisNexis #0910-139

Santa Fe Minerals Inc. v. BEPCO LP (In re 15375 Meml Corp.)

Debtors brought adversary claims against defendant, an opposing party in underlying litigation. Intervenors, parties related to the debtor who faced substantial liability, up to $ 189 million, in the underlying action. Following reversal of the bankruptcy court's orders on appeal, the issue before the bankruptcy court was whether to impose sanctions against parties and lawyers, and if so, which ones.
Ruling: 
Sanctions assessed against intervenors and attorneys who misused bankruptcy process.
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Commercial case opionion summary, case decided on May 17,2010, LexisNexis #0710-102

In re Robinson

A chapter 13 trustee filed a motion to modify the debtor's previously confirmed plan. The debtor objected on the grounds that a creditor's claim was excessive because it included bankruptcy attorney fees and court costs that were not authorized by the contract attached to the creditor's proof of claim.
Ruling: 
Debtor's attorney ordered to show cause why objections to amended proofs of claim despite prior agreement to increase was not grounds for sanctions.
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Consumer case opionion summary, case decided on April 23,2010, LexisNexis #0710-136

Elmasri v. Rupp (In re Elmasri)

Plaintiff chapter 7 debtor filed an adversary proceeding against defendants, his ex-wife and her counsel, seeking a declaratory judgment that the service of the ex-wife's order to show cause (OSC) application was insufficient and that a hearing was void. The ex-wife and her counsel filed a motion to dismiss, which also sought the imposition of sanctions. The ex-wife's counsel filed a separate motion for sanctions under Fed. R. Bankr. P. 9011.
Ruling: 
Sanctions assessed against debtor for groundless claim of improper service of order to show cause.
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Consumer case opionion summary, case decided on April 19,2010, LexisNexis #0710-070

In re Nguyen

After denying the chapter 7 debtors a discharge, the court ordered their attorney to appear and show cause why his fees should not be returned, why he should not pay a monetary fine, why he should not be suspended from practice until he completed remedial education requirements, and why he should not be permanently enjoined from allowing the terrible office practices he employed to continue.
Ruling: 
Attorney fined and referred to disciplinary body for "horrific" omissions in schedules that were never signed by debtors.
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Consumer case opionion summary, case decided on April 02,2010, LexisNexis #0610-137

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