Opinion

Brown v. Wilshire Credit Corp.

  • 229 F. App'x 612
Court
Court of Appeals for the Ninth Circuit
Filed
Apr 26, 2007
Status
Published
Cited by
0 cases

The opinion

MEMORANDUM **

Ronald Ellett of the Ellett Law Offices, P.C., appeals from the district court’s order affirming the bankruptcy court’s award of sanctions for violation of Bankr.R. Proc. 9011. We reverse.

In a separate opinion contemporaneous with this Memorandum, we reversed the district court’s ruling that it lacked jurisdiction over the bankruptcy court’s rulings on the cross-motions for summary judgment. On remand, the district court will get the first stab at the correctness of those rulings. Regardless, the imposition of sanctions against Ellett and his firm was erroneous.

There is no dispute that the trustee’s sale occurred after the bankruptcy stay was in place and that the sale did not get completely unwound until after Ellett, on Brown’s behalf, sued Wilshire for a violation of the automatic stay. In other words, Brown’s lawsuit was filed before all steps had been taken to unwind the sale, and may have succeeded in prodding Wilshire to promptly finish the unwinding the following day. Even if Brown’s suit for damages for willful violation of the stay turns out to be a loser, it was not frivolous.

REVERSED.

This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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