Bankr. No.:
86-10226
Chapter:
11
Date of Decision:
October 19, 1989
Issue:
Bank. Nos. 86-10226 and 86-10227. Motion for sanctions against debtor corporations and their attorney.
Ruling:
(1) Filing of successive bankruptcy petitions poses a serious risk of the imposition of sanctions. (2) "Drop dead" clauses in agreements between debtors and creditors will be enforced according to their terms by the Court. (3) Creditor's deductions of expenses for maintenance of livestock from sale proceeds does not preclude it from recovering such expenses from debtors.
Full Bankruptcy Court Decision:
Appeal Summary:
In Weiszhaar Farms, Inc. v. Livestock State Bank, 113 B.R. 1017 (D.S.D. 1990), the district court affirmed the bankruptcy court's granting of sanctions against the attorney for the debtor corporations, but reversed the bankruptcy court’s granting of sanctions against the debtor corporations themselves.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion: