9th Circ. Says Atty Can Offload Sanction Debt In Bankruptcy
Law360 (June 11, 2020, 5:29 PM EDT) — A lawyer’s discovery sanctions are dischargeable in a federal bankruptcy, the Ninth Circuit ruled Wednesday, reversing a previous judicial take on the issue the court likened to acid-wash jeans and other “relics” of the 1980s.
In a published opinion, the court ruled in favor of suspended Orange County attorney Lenore Albert, who was hit with more than $5,700 in sanctions in a state landlord-tenant case and was later denied their discharge in a Chapter 7 proceeding.
The three-judge panel said that while precedent decisions clearly made the costs stemming from her related bar case non-dischargeable, the language of the U.S. Bankruptcy…