Hoover v. Jones (In re Jones)

OPINION

C. KATHRYN PRESTON, Chief Bankruptcy Appellate Panel Judge.

An attorney who was sanctioned pursuant to Federal Rule of Bankruptcy Procedure 9011 (“Rule 9011”) filed an .appeal asserting error by the bankruptcy court when it awarded opposing counsel attorneys’ fees pursuant to Rule 9011(c)(2). Additionally, the attorney argued that the bankruptcy court abused its discretion by levying sanctions based on clearly erroneous factual findings. For the reasons stated below, the Panel holds that the bankruptcy court erred as a matter of law in awarding attorney fees as sanctions on a sua sponte…