New opinions — bankruptcy sanctions and nursing-home liability

Two opinions today.

First, CA3 upheld a bankruptcy-court order imposing over $100,000 in sanctions against debtor’s counsel for accusing creditor’s counsel of bribing a witness. To be more precise, they reversed the district court’s ruling vacating the sanctions.

The case is In re Prosser. Lucid opinion by Shwartz, joined by Chagares and Jordan. Arguing counsel were Samuel Israel of Fox Rothschild for the creditors and Norman Abood (one of the sanctioned lawyers!) for the debtor.


Today’s other case is an appeal from a civil trial in which a nursing home and its officers and directors were sued for mismanaging the home. CA3 upheld the jury’s liability verdict and the damages awarded against the officers, but vacated the punitive damages awarded against the directors because their conduct was insufficiently outrageous.

The case is In re: Lemington Home. Opinion by Vanaskie, joined by Smith and Shwartz. Arguing counsel were Michael Bowe for the trial defendants and Nicholas Krawec of Bernstein-Burkley for the plaintiff.