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941 F.3d 625
2d Cir.
2019
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Background

  • In Sept. 2013, attorney Kenneth Rosellini filed a Chapter 7 petition for client Alba Sanchez in the E.D.N.Y. and then failed to prosecute the case.
  • The bankruptcy court issued multiple orders to show cause for Rosellini’s failures; he did not comply.
  • The bankruptcy court imposed a $1,000 monetary sanction against Rosellini, citing its inherent power to manage its docket and courtroom.
  • Rosellini moved to vacate and for reconsideration; the bankruptcy court denied relief.
  • The district court (Block, J.) affirmed; Rosellini appealed to the Second Circuit.
  • The Second Circuit (per curiam) addressed, as a matter of first impression in the Circuit, whether bankruptcy courts possess inherent sanctioning power and affirmed the $1,000 sanction.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether bankruptcy courts possess inherent sanctioning power Rosellini did not contest existence but challenged exercise; implicitly argued sanction improper Bankruptcy court/district relied on precedent supporting inherent powers Bankruptcy courts do possess inherent sanctioning powers, like Article III courts
Whether inherent power extends to non‑compensatory sanctions on attorneys Rosellini argued the sanction was unwarranted here Court: inherent power permits relatively minor non‑compensatory attorney sanctions to manage docket Court affirmed that such minor sanctions are within bankruptcy courts’ inherent authority
Whether the bankruptcy court properly exercised its inherent power in this case (sanction amount $1,000) Rosellini sought vacatur and reconsideration of the sanction Bankruptcy court justified sanction for failure to prosecute and comply with show‑cause orders Second Circuit affirmed the $1,000 sanction as appropriate
Standard of review and scope of appellate review Rosellini sought reversal; argued lower courts erred on merits Appellee/district court treated bankruptcy order under plenary review limited to the authority invoked Court applied plenary review limited to the inherent‑power question and affirmed

Key Cases Cited

  • Law v. Siegel, 571 U.S. 415 (recognizes that bankruptcy courts may possess inherent sanctioning authority)
  • Chambers v. NASCO, Inc., 501 U.S. 32 (establishes federal courts’ inherent powers to manage their affairs and sanction misconduct)
  • In re Kalikow, 602 F.3d 82 (2d Cir.) (discusses limits on sanction awards and the need to identify invoked authority)
  • Casse v. Key Bank Nat’l Ass’n (In re Casse), 198 F.3d 327 (2d Cir.) (notes bankruptcy courts can police dockets via inherent powers)
  • Charbono v. Sumski (In re Charbono), 790 F.3d 80 (1st Cir.) (collects appellate recognition that bankruptcy courts may impose inherent‑power sanctions)
  • United States v. Seltzer, 227 F.3d 36 (2d Cir.) (recognizes imposition of sanctions on attorneys)
  • Wilder v. GL Bus Lines, 258 F.3d 126 (2d Cir.) (per curiam) (acknowledges courts’ ability to impose non‑compensatory sanctions on attorneys)
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Case Details

Case Name: In Re: Alba Sanchez
Court Name: Court of Appeals for the Second Circuit
Date Published: Oct 30, 2019
Citations: 941 F.3d 625; 18-679
Docket Number: 18-679
Court Abbreviation: 2d Cir.
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    In Re: Alba Sanchez, 941 F.3d 625