Monday, February 9, 2009

Brooks Hamilton 2009 WL 226002 (9th Cir.BAP (Cal.)), 09 Cal. Daily Op. Serv. 1382

Sanction of suspension imposed on attorney was abuse of discretion, absent consideration of relevant factors.

A bankruptcy court abused its discretion when, as a sanction for a frivolous claim objection filed by Chapter 13 debtor's attorney, it suspended the attorney from practicing before bankruptcy courts in that district for a period of six months without considering each of the factors specified by the case law as bearing on the reasonableness of the sanction. To determine an appropriate sanction for frivolous argument made by Chapter 13 debtor's attorney in objecting to a proof of claim, bankruptcy court had to consider: (1) whether the duty violated was to client, the public, the legal system or the profession; (2) whether attorney acted intentionally, knowingly, or negligently; (3) whether attorney's misconduct caused a serious or potentially serious injury; and (4) whether aggravating factors or mitigating circumstances existed. The BAP also identified specific aggravating circumstances.


Bankruptcy Case Law

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