Bankruptcy/Equity/Sanctions: Fee Recovery Affirmed And Reversed In Part In Case Involving Federal Work and Vexatious Litigant Orders

 

Some Should Have Been Sought In Federal Court, But Vexatious Litigant Sanctions And Addition Of Attorney As Judgment Debtor, Who Assisted Vexatious Litigant, Was Proper.

     Kempton v. Clark, Case No. B248713 (2d Dist., Div. 2 Sept. 25, 2014) (unpublished) is a real imbroglio involving bankruptcy adversary and state court proceedings in which vexatious litigant orders and fee recovery orders were entered, eventually with an attorney for a vexatious litigant being added as a judgment debtor for purposes of certain vexatious litigant sanctions rulings.

     The appellate court affirmed and reversed some of these orders.

     Without getting into excruciating specifics, the reviewing court found that the superior court erroneously awarded certain fees for federal court (bankruptcy adversary) work, finding the power to do so rested with the federal court. (Charlie Y., Inc. v. Corey, 446 B.R. 384, 391-393 (9^th Cir. BAP 2011).) The appellate court did affirm orders adding an attorney as a “judgment debtor” to vexatious litigant sanctions orders after finding he was the real power behind the throne as far as liability.