Rinaldi v. HSBC Bank USA, N.A. (In re Rinaldi)

(7th Cir. Feb. 11, 2015)

The Seventh Circuit affirms the bankruptcy court’s dismissal of the debtors’ adversary claims against the mortgage holder and the bankruptcy court’s order sanctioning the debtor’s attorney for frivolous court filings. The debtors asserted fraud, breach of contract, tortious interference, and related claims against the mortgage holder, all of which were dismissed by the bankruptcy court. The debtors appealed, and the district court affirmed. The debtors appealed to the circuit court and then dismissed their bankruptcy case, stating they intended to now bring the dismissed claims in state court. The attorney filed numerous motions that the district court held were frivolous, rambling, and not compliant with court rules. The court entered an order holding that any further frivolous filings would result in an award of sanctions. The attorney then filed a motion to withdraw as counsel and intervene as a party in the case. The court allowed the withdraw but held she had no standing to intervene, and then entered the sanctions order. The Seventh Circuit holds that it will not dismiss the appeal for mootness but instead affirms the orders below, including the award of sanctions. Opinion below.

2015-02-11 – in re rinaldi

A second opinion was issued on the same day, sanctioning the same attorney for behavior in a foreclosure case. That opinion can be found here:

2015-02-11 – in re nora

Author: Matt Lindblom

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