Pratt 2008 WL 933633 (5th Cir.(Tex.))

Creditor's informal warning letters did not satisfy Rule 9011's service requirement.

Addressing an issue of apparent first impression for the circuit, the Fifth Circuit Court of Appeals has held that informal warning letters that a creditor sent to counsel for the Chapter 7 debtor prior to filing its motion for Rule 9011 sanctions with the bankruptcy court did not satisfy the service requirement of F.R.B.P. 9011. The plain language of Rule 9011 mandates that the movant serve the respondent with a copy of the motion before filing it with the court, the Court of Appeals explained, and there was no indication in Rule 9011, Rule 11, or the advisory notes to support the creditor's contention that a motion for sanctions may be filed with the court without serving the respondent with a copy at least 21 days in advance. Although the Seventh Circuit had awarded sanctions under Rule 11 even though the defendant had sent the respondent only a "letter" or "demand" and not a copy of the motion for sanctions, the Fourth, Eighth, Tenth, and Eleventh Circuits had required service of a copy of the Rule 11 motion, the Court of Appeals noted