In Re W. David Weston, Debtor.herbert Stoltenberg, Appellant, v. Harold Masunaga, Dr.; Yukio Ayabe, Appellees, 105 F.3d 668 (9th Cir. 1997)

Before: BROWNING, SKOPIL, and BRUNETTI, Circuit Judges.

MEMORAMDUM^* 

Herbert Stoltenberg and other judgment creditors of Chapter 7 debtor W. David Weston, appeal from the district court's order vacating the bankruptcy court's order for contempt and sanctions against appellees Harold Masunaga, Yukio Ayabe and Richard Bigelow.

Initially, we hold that the district court erred in holding that the bankruptcy court lacked subject matter jurisdiction to sanction the appellees. See In re Rainbow Magazine, Inc., 77 F.3d 278, 285 (9th Cir. 1996) (holding that bankruptcy courts possess authority to sanction parties). In addition, the district court erroneously relied upon evidence not before the bankruptcy court in making extensive additional findings of fact. See In re Hall, Bayoutree Assocs., Ltd., 939 F.2d 802, 805 (9th Cir. 1991) ("If the bankruptcy court's factual findings are silent or ambiguous as to a material factual question, the district court must remand the case to the bankruptcy court for the necessary factual determination; the district court may not make its own independent factual findings.") (emphasis added). Therefore, the district court's entire order is vacated.