The $20,000 in sanctions leveled by the bankruptcy court against a lawyer has to be vacated on procedural grounds, the U.S. Court of Appeals for the Third Circuit has held in a split opinion, but the case will be remanded to allow the initial judge to consider other avenues for possible sanctions.
After Gregory and Tammy Miller filed for bankruptcy — still owing just over $20,000 of a $43,000 bill to their former lawyer, Neil Ettinger — the bankruptcy court judge granted them their motion for sanctions against him and his lawyer for filing an adversarial complaint alleging fraud during their bankruptcy proceedings and awarded them $20,000 under Rule 9011, according to the opinion in Ettinger & Associates v. Miller.
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