Attorney Properly Sanctioned for Suing Bankruptcy Trustee

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By Bernie Pazanowski

An attorney was properly sanctioned for suing a bankruptcy trustee to prevent the liquidation of his client’s interests, the U.S. Court of Appeals for the Ninth Circuit held Nov. 24.

The sanction under Federal Rule of Civil Procedure 11 was appropriate because the attorney didn’t seek leave of the court before challenging the bankruptcy plan, the court said in an unpublished opinion ( Wavetronix, LLC v. Myers , 2017 BL 422185, 9th Cir., No. 15-35106, unpublished 11/24/17 ).

But a separate sanction issued after the attorney filed an appeal challenging the Rule 11 sanction was improper because the court didn’t find the appeal was filed recklessly or in bad faith, the appeals court said.

Judges Ferdinand F. Fernandez, William A. Fletcher, and Marsha J. Pechman, sitting by designation, were on the panel.

Atkin Law Offices PC represented the attorney. Duke Scanlan & Hall represented the trustee.

To contact the reporter on this story: Bernie Pazanowski in Washington at bpazanowski@bloomberglaw.com

To contact the editor responsible for this story: Jessie Kokrda Kamens at jkamens@bloomberglaw.com

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