Easley v. Collection Service of Nevada, No. 17-16506 (9th Cir. 2018)
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The Ninth Circuit reversed the district court's denial of debtors' motion under 11 U.S.C. 362(k) for attorneys' fees incurred on appeal in successfully challenging the bankruptcy court's award of attorneys' fees to debtors for a willful violation of an automatic stay. The panel held that section 362(k) also authorizes attorneys' fees and costs to the debtor incurred on appeal in successfully challenging an initial award made pursuant to section 362(k).
The panel also held that the district court abused its discretion by denying the motion on the alternative ground that debtors failed to comply with a local rule. In this case, the memorandum of points and authorities filed with the district court sufficiently clarified the attorneys' fees and costs. The panel remanded for further proceedings.
Court Description: Bankruptcy The panel reversed the district court’s order denying bankruptcy debtors’ motion under 11 U.S.C. § 362(k) for attorneys’ fees incurred on appeal in successfully challenging the bankruptcy court’s award of attorneys’ fees to debtors for a willful violation of the automatic stay. The panel held that, in addition to authorizing the court to award reasonable attorneys’ fees and costs incurred on appeal in defending a judgment rendered pursuant to § 362(k), § 362(k) also authorizes attorneys’ fees and costs that the debtor incurred on appeal in successfully challenging an initial award made pursuant to § 362(k). The panel also held that the district court abused its discretion in denying the motion for attorneys’ fees on the alternative ground that the debtors failed to comply with a local rule requiring the filing of points and authorities. The panel concluded that the memorandum of points and authorities filed with the district court sufficiently clarified the attorneys’ fees and costs sought in debtors’ motion. The panel reversed the order of the district court and remanded to the district court with instructions to remand to the bankruptcy court to calculate appellate attorneys’ fees and costs.
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