Tag: Rule 9011

E.D.N.C.: Spoor v. Barth- Denial of Sanctions and Vexatious Multiplication of Litigation

Summary:

Mr. Barth commenced an adversary proceeding seeking a declaratory judgment that various state court actions by Mr. Spoor could have been brought by the bankruptcy trustee, who had previously signed a release of such actions, and that Mr. Spoor should be required to dismiss those actions. The bankruptcy court instead dismissed Mr. Barth’s adversary proceeding on the grounds that such relief was prohibited by the Anti-Injunction Act, 28 U.S.C. § 2283. The bankruptcy court declined, however, to award the sanctions sought by Mr. Spoor pursuant to North Carolina Rule of Civil Procedure 11, 28 U.S.C. § 1927, 11 U.S.C. § 105, and Bankruptcy Rule 9011, against Mr.… Read More

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Bankr. E.D.N.C.: In re Sessoms- Lack of Evidence of Default and 9011 Sanctions

Summary:

Ocwen filed a Motion for Relief from Stay.  At the hearing, the Debtor testified she was under a loan modification with Ocwen and provided copies of the loan modification agreement and bank account statements showing that payments under the loan modification had been made.  Ocwen provided absolutely no evidence to support its position that the Debtor was in default.

In addition to denying the Motion for Relief from Stay, sua sponte, the Bankruptcy Court has ordered Ocwen to show cause why it should not be sanctioned pursuant to Rule 9011(c)(1)(B) for filing a baseless motion.

Commentary:

Because this order to show cause is from the Court, and not on the motion of the Debtor, this motion cannot just be settled by Ocwen. … Read More

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