Scotiabank de Puerto Rico v. Medina Lorenzo (In re Medina)

Scotiabank v Marcelo Junior Medina Lorenzo 2016 U.S. App. LEXIS 6049(In re Lorenzo, 2016 U.S. App. LEXIS 6049 (1st Cir. Apr. 1, 2016)(In re: Marcelo Junior Medina Lorenzo, 15-09010);(1st. Cir. 2016) April 1, 2015
Per Curiam: Creditor's failure to attend a confirmation hearing after having objected to the plan will render the objection disallowed for failure to prosecute the same. Debtor's requests for sanctions under Federal Rule of Appellate Procedure 38 is denied, but the court warned Scotiabank that some of the arguments were frivolous, that all were without merit and that the brief filed with the court was unacceptable.
Procedural context:
Affirming the Bankruptcy Appellate Panel for the First Circuit which affirmed the decision of the Bankruptcy Court for the District of Puerto Rico that heard and granted Debtor's objection to Scotiabank's claim, denied Scotiabank's amended claim and confirmed Debtor's plan when Scotiabank failed to attend the confirmation hearing.
Even though Scotiabank, as creditor, objected to the confirmation of the plan, it failed to appeared at the confirmation hearing because understood that appearance was not needed. The Puerto Rico Local Bankruptcy Rule 3015-2(h)(2) provides that any creditor who objects to the confirmation of a plan shall attend the contested confirmation if the objection is not resolved or withdrawn prior to the hearing. The court may overrule the objection for failure to prosecute the same if the creditor fails to appear. Debtor asked for sanctions against Scotiabank as the appeal was frivolous.
Torruella, Lynch and Thompson

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