Lomas & Nettleton Co. v. Johnson (In Re Johnson)

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

This case presents a classic example of the frustration which mortgagees often encounter in bankruptcy proceedings. Unfortunately, the case also demonstrates the potential for misuse of the bankruptcy system by debtors’ counsel inherent in such cases. The plaintiff in this matter obtained a default judgment against the debtor in an adversary proceeding. The judgment incorporated an award of counsel fees to the plaintiff on the basis that counsel for the debtor had vexatiously prolonged the litigation before this Court. Counsel for the debtor filed…