BCLP Global Restructuring & Insolvency Developments

Global Restructuring & Insolvency Developments

civil contempt

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Taggart v. Lorenzen, The State Of Bankruptcy Contempt Power Eight Months Later

February 9, 2020

Authors

William Easley

Taggart v. Lorenzen, The State Of Bankruptcy Contempt Power Eight Months Later

February 9, 2020

by: William Easley

So you (allegedly) violated a bankruptcy court order. Whether the debtor alleges you violated the terms of a confirmed plan, failed to provide certain notices required by the bankruptcy rules, violated the discharge injunction, or any other court order, you may be wondering what potential redress the debtor may seek. Although many violations of bankruptcy court orders and rules do not provide for a private right of action, many debtors seek to have their rights vindicated (in the form of the greatest vindicator, cash) through an action for contempt. These civil and criminal contempt actions allow debtors to collect their damages caused by a violation of a court order, provide courts the means to coerce compliance with their orders, and allow courts to punish

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Ninth Circuit Declines To Decide When Contempt Sanction Becomes Punishment

July 25, 2018

Authors

Julie Birk

Ninth Circuit Declines To Decide When Contempt Sanction Becomes Punishment

July 25, 2018

by: Julie Birk

Bankruptcy courts have authority to hold in civil contempt one who refuses to comply with a bankruptcy court order, including incarceration and/or daily fines until the offender complies.[1]  But when does civil contempt[2] cross into criminal contempt, which is punitive and outside the scope of the bankruptcy court’s powers?[3]  While a bright-line rule is wanting, the 9th Circuit’s silence on a recent case implied that three years of incarceration plus a $1,000 daily fine to coerce compliance does not implicate criminal due process concerns and, therefore, is within the bounds of permissible bankruptcy court authority.

Kenny G Enterprises, LLC’s Chapter 11 case (which dealt with a developer named Kenny G, and not the world’s favorite saxophonist) was converted to Chapter 7, triggering a

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