7 results for 'cat:"Bankruptcy" AND cat:"Sanctions"'.
J. Oldham finds the bankruptcy court improperly held the company in civil contempt and ordered it to pay $239,000 in compensatory damages. The capital management company filed for bankruptcy and its founder objected to a $300 million unsecured claim settlement. The founder filed suit in the district court through another of his companies, alleging the company involved in bankruptcy withheld material information and engaged in self-dealing related to the settlement. The other company then moved for leave to amend to add the bankruptcy restructuring officer as a defendant. The bankruptcy court found the motion constituted “pursu[it] of a claim” against the officer in violation of his order. Fees awarded to the company involved in bankruptcy bore no connection to redressing the other company's decision to file the motion in the wrong court. Vacated.
Court: 5th Circuit, Judge: Oldham , Filed On: April 4, 2024, Case #: 22-11036, Categories: bankruptcy, Contempt, sanctions
J. Faris reverses the bankruptcy court's monetary sanctions against an attorney who told it the debtors she represented had completed their Chapter 13 plan, when, in fact, they were more than $50,000 behind on mortgage payments. It is plausible the attorney's statements were not false; however, her conduct "ranged from negligent to reckless to seriously misleading," and the bankruptcy court can consider other measures, such as a referral to the disciplinary counsel. Reversed.
Court: 9th Circuit, Judge: Faris, Filed On: December 29, 2023, Case #: CC‐23‐1112‐FLG , Categories: bankruptcy, sanctions, Attorney Discipline
J. Tjoflat finds that the district court properly upheld the bankruptcy court's order denying a motion by the debtor's creditors to disqualify the special litigation counsel and finding that the special litigation counsel's omissions with regard to pre-petition connections with the debtors or creditors did not warrant sanctions. Counsel was not disqualified from representing the trustee due to its pre-petition representation of the real estate investment trust or other entities. Counsel's representation of the investment trust did not create a dispute between the bankruptcy estate and the investment trust or create a circumstance that could be considered a bias against the bankruptcy estate.
Court: 11th Circuit, Judge: Tjoflat, Filed On: September 18, 2023, Case #: 21-10587, Categories: bankruptcy, sanctions
J. Chin finds that the district court properly upheld civil contempt sanctions and attorney fees in claims contending a debtor's attorney failed to comply with discovery orders seeking U.S. assets related to involuntary bankruptcy proceedings in Russia. The bankruptcy court had inherent authority to impose civil contempt sanctions of $1,000 per day, or $55,000, and $36,000 in attorney fees, and the attorney had ample notice of the likelihood that such would be imposed given his willful disregard of orders to turn over documents responsive to subpoenas. Affirmed.
Court: 2nd Circuit, Judge: Chin, Filed On: August 30, 2023, Case #: 21-2238, Categories: bankruptcy, sanctions, Discovery
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J. Ashe affirms a bankruptcy court ruling ordering an attorney for alleged victims of clerical sex abuse to pay $400,000 in sanctions for leaking confidential case information about an accused priest to a journalist. The court cannot condone an attorney’s deliberate decision to violate a court order, no matter how noble his motivation, so it has no reservation in upholding the bankruptcy court’s finding that the plaintiff attorney’s conduct was “contemptuous, wasteful, and warranted the imposition of sanctions.” Affirmed.
Court: USDC Eastern District of Louisiana , Judge: Ashe, Filed On: June 21, 2023, Case #: 2:22cv1740, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Contempt, sanctions
J. Vance denies a request by a creditor of a bankrupt landlord for sanctions against a commercial tenant for an allegedly “frivolous” appeal of a bankruptcy court ruling favoring the creditor for the collection of allegedly unpaid rent. The appeal was “ultimately resolved by authorities neither litigant cited, none of which was a clear, unambiguous” holding of the Fifth Circuit or the Louisiana Supreme Court. The matter is therefore distinguishable from the type of appeals that have been found to be sanctionable.
Court: USDC Eastern District of Louisiana , Judge: Vance, Filed On: May 31, 2023, Case #: 2:22cv4167, NOS: Other Fraud - Torts - Personal Property, Categories: bankruptcy, Landlord Tenant, sanctions