In Re Convenient Food Mart No. 144, Inc., Debtor. Convenient Food Mart No. 144, Inc. Robert F. Ristaneo v. Convenient Industries of America, Inc.

Convenient Food Mart (CFM) appeals the district court’s judgment affirming the bankruptcy court’s imposition of sanctions pursuant to Bankruptcy Rule 9011(a). For the reasons that follow, we reverse in part and affirm in part.

I

CFM was lessee by assignment in a lease with Convenient Industries of America (CIA) that expired of its own terms on October 31, 1989. Following expiration, CFM continued in possession of the premises pursuant to Kentucky’s holdover statute, Ky.Rev.Stat.Ann. § 383.160, which provides for a one-year leasehold interest subsequent to the expiration of leases. In June 1990…