(6th Cir. B.A.P. Mar. 3, 2016)
The Sixth Circuit B.A.P. reverses the bankruptcy court’s sanctioning of a lawyer under Bankruptcy Rule 9011. The bankruptcy court sua sponte entered a show cause order to address whether the bankruptcy court should find the attorney in violation of Rule 9011. Following a hearing, the court entered an order holding the attorney liable for $26,000 in attorney fees and revoking his ECF privileges. The B.A.P. reviews the record and finds that the bankruptcy court relied on clearly erroneous factual findings to support the sanctions order and that attorney fees could not be awarded because the show cause order was issued sua sponte. Opinion below.
Author: Matt Lindblom