- Case Type:
- Case Status:
- No. 20-6024 (8th Circuit, Apr 16,2021) Published
- BAP for 8th Circuit affirmed ruling of bankruptcy court (WD Missouri - KC) denying debtors' motions for (1) sanctions against attorney for creditor; (2) to alter or amend the order denying the motion for sanctions, and (3) seeking to disqualify the bankruptcy judge. Bankruptcy court acted within its discretion by denying debtors' fifth motion to disqualify judge. Debtors dissatisfaction with rulings of bankruptcy judge were not proper basis for disqualification. BAP assessed sanctions against Debtors for frivolous appeal. Debtors' arguments lacked merit and understanding of the law.
- Procedural context:
- Bankruptcy court (WD Missouri - KC) denied debtors' motions for (1) sanctions against attorney for creditor; (2) to alter or amend the order denying the motion for sanctions, and (3) seeking to disqualify the bankruptcy judge. Debtors appealed to BAP for 8th Cir.
- Entity purchased debtors' residence at foreclosure sale, then commenced unlawful detainer eviction action in Missouri state court, but failed to name debtors' by name. State court entered unlawful detainer judgment. Debtors appealed without stay, while Entity pursued writ of restitution. After being served with writ of restitution for possession, debtors filed bankruptcy under chapter 13. Hours after the bankruptcy filing, the Sheriff changed the locks to the home. Entity filed motion for annulment of automatic stay. Debtors countered with motion for sanctions for stay violation. Bankruptcy court concluded that under state law, debtors had no possessory right to home at time of bankruptcy filing, and granted Entity's motion and denied debtors'. The district court affirmed; the 8th Circuit dismissed debtors' appeal for failure to prosecute. After Missouri Court of Appeals denied debtors' appeal of unlawful detainer judgment, Debtors filed motion in bankruptcy court for sanctions under FRBP 9011 against Entity's attorney, alleging attorney made false statements in relief from stay motion.
- Nail, Schermer, Saladino
Jared C. Walters, Trustee v. Jeanne A. Gallegos, et al.
Summarizing by David Treacy
3586 in the system
10 Being Processed