3rd Circ. Nixes Atty Sanctions In Bankrupt Client Fee Row

Law360, New York (September 16, 2013, 6:44 PM EDT) -- The Third Circuit on Monday nixed a $20,000 sanction on an attorney who had objected to the discharge of legal fees owed by a bankrupt couple his firm had represented, finding the Pennsylvania bankruptcy court that imposed the sanctions had violated a procedural "safe harbor" provision.

In a precedential decision, a three-judge panel of the Third Circuit affirmed a Pennsylvania district court's decision vacating the bankruptcy court’s sanctions order against Neil Ettinger and his attorney Demetrios H. Tsarouhis. The Third Circuit found that the order violated the...
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