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Brown v. Wilshire Credit Corp.
Citation: 229 F. App'x 612Docket: No. 05-15607
Court: Court of Appeals for the Ninth Circuit; April 26, 2007; Federal Appellate Court
Ronald Ellett of the Ellett Law Offices, P.C. successfully appeals the district court's affirmation of sanctions imposed by the bankruptcy court for violating Bankruptcy Rule Procedure 9011. The appellate court reverses the sanctions, stating that the district court had previously been incorrect in ruling it lacked jurisdiction over the bankruptcy court’s decisions regarding cross-motions for summary judgment. Upon remand, the district court will reassess those rulings. The court clarifies that the trustee's sale occurred post-bankruptcy stay and was not fully unwound until Ellett filed a lawsuit on behalf of Brown against Wilshire for breaching the automatic stay. This filing occurred before all unwinding actions were completed, indicating that Brown's lawsuit, although potentially unsuccessful for damages, was not frivolous. The ruling is reversed, and the disposition is non-publishable and non-precedential except as specified by 9th Cir. R. 36-3.