Sanctions: Ninth Circuit Affirms District Court’s Vacating Of Bankruptcy Court Daily Sanctions Until Date Violating Party Knew Sanctions Would Fall

 

Due Process At Work In This One.

In In re Icenhower, Case No. 12-56329 (9th Cir. June 26, 2014) (published), a bankruptcy court imposed contempt sanctions against defendants for failing to transfer a Mexican coastal villa to plaintiff. The district court, however, vacated $25,000 daily sanctions for failure to vacate on the basis that the defense had not been given clear notice that sanctions would be imposed for earlier points in time before a certain date where sanctions were known to fall on the defense. The Ninth Circuit agreed, on due process grounds.

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