2nd Circ. Rules Bankruptcy Court Can Award Attorney Fees

By Clarice Silber (May 18, 2022, 4:43 PM EDT) -- A Second Circuit panel has overturned a district court's decision and sent a suit filing for Chapter 7 back to bankruptcy court, finding that a bankruptcy judge has the authority to award damages and attorney fees.

The three-judge panel said that because bankruptcy judges have the power to impose contempt sanctions, they also have the jurisdiction to award those other fees.

"Bankruptcy court has the power to impose contempt sanctions, which traditionally includes the authority to award damages and attorneys' fees," U.S. Circuit Judge Richard J. Sullivan wrote for the panel in the ruling, released on Tuesday. "This authority carries with...

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