Case Summary:
Trustee brought sanctions motion against former counsel for bankruptcy debtor.  The debtor’s discharge had been denied for his conduct during the discovery process.  The trustee sought sanctions against various attorneys for their participation in “scorched earth” litigation.  These attorneys filed motions to dismiss and/or strike the sanctions request.  The court concluded that bankruptcy courts are “courts of the United States” for purposes of 28 U.S.C. § 1927 and can award sanctions pursuant to that statute.  Further, similar power exists under 11 U.S.C. § 105(a).  The motions to strike were denied, and the matter set for an evidentiary hearing.

Statue/Rule References:
11 U.S.C. § 105 -- Power of Court
28 U.S.C. § 1927 -- Counsel’s Liability for Excessive Costs
Fed. R. Bankr. P. 9011 -- Sanctions

Key Terms:
Sanctions