Cinema Service Corporation v. Edbee Corporation

OPINION OF THE COURT

WEIS, Circuit Judge.

The Bankruptcy Rules, like the Federal Rules of Civil Procedure encourage the use of sanctions to put a damper on litigation tactics that pervert the judicial system. In this case, after finding that a chapter 11 petitioner had wrongfully invoked the court’s process, a bankruptcy judge directed the payment of counsel fees to a creditor. We agree with the district court that the order was proper and will affirm.

After dismissing appellant Edbee’s chapter 11 reorganization petition, the bankruptcy judge conducted a hearing to determine if sanctions should…