Appeal Sanctions: Ninth Circuit Sanctions Appellant And His Lead Attorney For Appealing Denial Of Motion To Disqualify Bankruptcy Judge

 

Sanctions Assessed Under Fed. R. App. P. 38 and 28 U.S.C. § 1927.

    The Ninth Circuit, in Blixseth v. Yellowstone Mountain Club, LLC, No. 12-35986 (9th Cir. Aug. 4, 2015) (published), did not take kindly to the pursuit of a frivolous appeal of a denial of a motion to disqualify a bankruptcy judge, especially given the ad hominem assaults and unfounded conspiratorial allegations targeted at the bankruptcy judge.  It was also not impressed by counsel’s reference to emails from client’s ex-wife without disclosing ex-wife had filed affidavits and documents which were found to be forged.  That led to the imposition of sanctions against appellant and his lead counsel (although four other attorneys for client distanced themselves so as to just receive a warning) under Fed. R. App. 38 (frivolous appeal rule) and 28 U.S.C. § 1927 (against an attorney, for multiplying the proceedings in any case in unreasonable, bad faith fashion).  The Ninth Circuit Appellate Commissioner was ordered to determine the appropriate amount of sanctions against client and lead attorney and in favor of appellees for defending against the appeal.  The Ninth Circuit also ordered that client and lead attorney each pay $500 damages to the clerk of the court as reimbursement for the costs incurred during the appeal.

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