United States Second Circuit

In creditors' appeal from a district court's affirmance of the bankruptcy court's order granting former debtors' motion to reopen Chapter 11 proceedings, impose sanctions against creditors, and award costs and fees to debtors, the order is affirmed in part where: 1) proper service on creditors' law firm constituted proper service on them; and 2) the district court did not err in concluding that the debtor's Enforcement Motion did not seek a new injunction but, rather, sought to enforce an injunction already in place -- one that was created by sections 1141 and 524 of the Bankruptcy Code and the express terms of the Plan and Confirmation Order. However, the order is reversed in part where creditors were not holders of pre-confirmation claims discharged in bankruptcy who would normally be bound by the provisions of the Plan, and thus the sanctions awarded against them were improper.

Appellate Information

• Argued 10/29/2009
• Decided 04/08/2010
• Published 04/08/2010

Judges

• MINER, Circuit Judge:, Before: MINER, RAGGI, and HALL, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• David M. Gossett, Richard Ben-Veniste, Mayer Brown LLP, Washington, DC, for Appellants., Sheldon H. Solow and Steven M. Cherniak, Joan M. Secofsky, Howard D. Ressler, Diamond McCarthy LLP, New York, NY, for Appellants Evergence Capital Advisors, Inc., and Sheila M. Gowen, Chapter 11 Trustee of Dreier LLP.


• For Appellees:
  
• Randy M. Mastro, Gibson Dunn & Crutcher LLP, New York, NY, for Appellees Peter S. Kalikow and Kalikow Real Estate Co.