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2nd Circle Rules Bankruptcy Court May Award Attorney Fees

By Clarice Silber (May 18, 2022, 4:43 p.m. EDT) — A Second Circuit panel overturned a district court’s ruling and referred a Chapter 7 complaint to the bankruptcy court, finding that a bankruptcy judge has the power to award damages and attorneys’ fees.

The three-judge panel said that because bankruptcy judges have the power to impose contempt penalties, they also have the jurisdiction to award these other costs.

“The bankruptcy court has the power to impose contempt penalties, which traditionally includes the power to award damages and attorneys’ fees,” U.S. Circuit Judge Richard J. Sullivan wrote for the panel in the decision released Tuesday. “With this authority comes…

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