Bankr. No.:
91-40183
Chapter:
11
Date of Decision:
March 6, 1992
Issue:
Whether Bankruptcy Rule 9011 sanctions should be imposed on a corporate debtor, its principal, and its bankruptcy attorney for filing a Chapter 11 petition the Court dismissed as a bad faith filing.
Ruling:
The Court imposed a joint and severable sanction of $10,000.00 on the debtor, its principal, and its bankruptcy attorney because they had not made a reasonable investigation of the law or facts and because the petition was improperly filed to delay or circumvent other legal proceedings in Wyoming.
Full Bankruptcy Court Decision:
Appeal Summary:
The district court affirmed most of the bankruptcy court’s decision, but reversed that part requiring the debtor’s attorney to return any compensation paid in connection with the case. In Grunewaldt v. Mutual Life Insurance Company of New York (In re Coones Ranch, Inc.), 7 F.3d 740 (8th Cir. 1993), the Court of Appeals reversed that part of the district court’s decision overturning the bankruptcy court’s disgorgement order, but affirmed the district court in all other respects.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion:
Full Eighth Circuit Court of Appeals Opinion: