Scott v. Anderson, No. 20-6024 (8th Cir. 2021)
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Debtors' claims relate to matters stemming from the 2018 foreclosure sale of their home. Mila Homes, represented by its counsel, purchased the property at the foreclosure sale.
The Bankruptcy Appellate Panel affirmed the bankruptcy court's orders denying debtors' motions for sanctions against Mila's counsel; to alter or amend the order denying the request for sanctions and for additional findings of fact and conclusions of law; and seeking to disqualify the bankruptcy judge. The panel concluded that the bankruptcy court did not err by denying debtors' sanctions request based on counsel's statements on behalf of Mila Homes in the Mila Stay Motion. In this case, the bankruptcy court provided debtors with a hearing, listened patiently to their arguments, read methodically through the Bankruptcy Sanctions Motion, and addressed in detail why nothing in the Mila Stay Motion violated Rule 9011. Finally, the panel denied debtors' requests for judicial notice and awarded Mila's counsel $3,000 in sanctions from debtors. The panel concluded that the bankruptcy court did not err in denying debtors' fifth motion for disqualification of recusal and that debtors' appeal is frivolous.
Court Description: [Schermer, Author, with Nail, Chief Judge, and Saladino, Bankruptcy Judge] Bankruptcy Appellate Panel. The bankruptcy judge did not err in denying debtors' motion to impose sanctions against Ms. Anderson, the lawyer for the party who purchased debtors' property at a foreclosure sale, based on her act of moving for relief from the automatic stay after debtors filed for Chapter 13 relief; the bankruptcy court judge did not err in denying debtors' fifth motion for disqualification or recusal. Debtors' appeal is frivolous, and the court grants Anderson's motion for sanctions and awards her $3,000. [ April 15, 2021 ]
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