Young v. Cruz, No. 13-6054 (8th Cir. 2014)
Annotate this CaseDefendant appealed from the bankruptcy court's order imposing sanctions and judgment, and an order denying a motion to vacate or alter or amend judgment. The bankruptcy appellate panel affirmed the bankruptcy court's decision that defendant violated Federal Rule of Bankruptcy Procedure 9011, as well as its imposition of sanctions in connection therewith, including suspension of defendant from practice for six months under Local Rule 2090-2; reversed the bankruptcy court's imposition of sanctions against defendant under 11 U.S.C. 105 and its inherent authority because defendant did not receive separate prior notice and an opportunity to be heard regarding such sanctions; and remanded to the bankruptcy court the decision regarding sanctions for alleged misrepresentations by defendant at the Order to Appear and Show Cause hearing.
Court Description: Bankruptcy Appellate Panel. In an appeal from orders imposing sanctions on an attorney, the bankruptcy court acted within its discretion when it found a Rule 9011 violation and imposed sanctions, including a fine, legal education requirements and referral to the Arkansas Office of the Committee on Professional Conduct, on Cruz for her conduct throughout the debtor's case; bankruptcy court acted within its discretion under Local Rule 2090-2 when it suspended Cruz from practicing law in the Arkansas bankruptcy court for six months; however, the bankruptcy court's imposition of sanctions under 11 U.S.C. Sec. 105 and its inherent authority was improper because Cruz did not receive separate prior notice and an opportunity to be heard regarding such sanctions. [ March 11, 2014
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