In the Matter of: Lisse

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
Nos. 18-1866 & 18-1889 Cons.
Decision Date: 
April 1, 2019
Federal District: 
W.D. Wisc.
Holding: 
Affirmed

Dist. Ct. did not err in entering sanctions order that held debtor’s attorney and debtor jointly and severally liable to creditor for $1,837.50 under Fed. R. Bankr.8020 and 28 USC section 1927. Bankruptcy Ct. could properly find that debtor’s attorney filed separate Chapter 13 petitions for improper purpose of thwarting debtors’ creditors, rather than paying them, where intent on filing said petitions was to re-litigate one creditor’s successful state-court foreclosure judgment on debtor’s home. Also, sanctions were appropriate, where debtor’s attorney never presented argument as to why Bankruptcy Ct.’s determination was clearly erroneous, and debtor’s attorney failed to file any opening brief in appeal of dismissal of debtor’s petition, even though appeal had been pending for 16 months. Moreover, counsel improperly used automatic stay provision in 11 USC section 362(a) as litigation ploy to drag out state-court foreclosure proceedings and filed series of last-minute extension requests to further delay proceedings. Also, Dist. Ct. did not err in eventually suspending counsel’s law license to practice in W.D. Wis., where said suspension was based on Wis. Supreme Ct. order suspending counsel’s law license for one year. Ct. further observed that suspension would also have been appropriate if based on counsel’s actions taken in this and other federal court cases.