08-4317, 09-4009 & 10-1456 In re Busson-Sokolik

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Bankruptcy
Sanctions

Where most of an attorney’s errors in a bankruptcy proceeding were procedural errors rather than the result of bad faith, a sanction of more than $60,000 is excessive.

“Notwithstanding the reasonableness of the decision to award sanctions and the reasonableness of MSOE’s fees , we do not find that the full amount awarded in 5 the district court was necessary to achieve the deterrent purposes of Fed. R. Bankr. P. 8020. As such, we exercise this court’s own discretion to reduce the sanctions imposed by half. In so doing, we acknowledge that ‘[w]hile an award of attorney’s fees may be necessary to fulfill the deterrent purposes of Rule 8020, the award should not subject Appellant to financial ruin.’ In re Bonfield, 2005 WL 2810702 at *1 (W.D. Wash.). The fees accrued in this case are sizeable and would be difficult for many litigants to pay. Recognizing that Busson- Sokolik is a student who has filed for bankruptcy and finding no evidence of bad faith on the part of Busson- Sokolik or his attorney, we conclude that a reduction in sanctions is warranted in this case.”

Affirmed in part, and Vacated in part.

08-4317, 09-4009 & 10-1456 In re Busson-Sokolik

Appeals from the United States District Court for the Eastern District of Wisconsin, Clevert, J., Bauer, J.

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