Case Name: Jayne SHINKO, Appellant, v. William MIELE, Chief; William Miele, P.C.; Merrill Lynch; Jayne Shinko, Appellant, v. William Miele Rentals
Court: United States Court of Appeals for the Third Circuit
Jurisdiction: United States
Decision Date: 2002-03-19
Citations: 29 F. App'x 890
Docket Number: Nos. 01-3179, 01-3180
Parties: Jayne SHINKO, Appellant, v. William MIELE, Chief; William Miele, P.C.; Merrill Lynch. Jayne Shinko, Appellant, v. William Miele Rentals.
Judges: 
Reporter: West's Federal Appendix
Volume: 29
Pages: 890–891

Head Matter:
Jayne SHINKO, Appellant, v. William MIELE, Chief; William Miele, P.C.; Merrill Lynch. Jayne Shinko, Appellant, v. William Miele Rentals.
Nos. 01-3179, 01-3180.
United States Court of Appeals, Third Circuit.
Submitted Under Third Circuit LAR 34.1(a) March 4, 2002.
Opinion Filed March 19, 2002.
Before: ALITO, RENDELL, and HALL, Circuit Judges.

Opinion:
OPINION OF THE COURT
PER CURIAM.
This is an appeal from a District Court Order affirming the Bankruptcy Court's dismissal of Appellant's Involuntary Chapter 7 Petition and imposition of sanctions against Appellant. Because we write for the parties only, the background of the case need not be set out.
The Bankruptcy Court properly dismissed the appellant's involuntary bankruptcy petitions against The Law Center and Shinko-Miele Rentals because the appellant's petitions did not satisfy the statutory requirements and because the petitions were filed in bad faith. The Bankruptcy Court found that the only debt alleged in the petitions was one alleged by the appellant that she had reason to know was the subject of a bona fide dispute.
According to the relevant portion of 11 U.S.C. § 303(b), "[a]n involuntary case against a person is commenced by the filing with the bankruptcy court of a petition under chapter 7 . by . a holder of a claim against such person that is not . the subject of a bona fide dispute." 11 U.S.C. § 303(b) (emphasis added). The Bankruptcy Court correctly concluded that the alleged claim was clearly the subject of a bona fide dispute, one that had been seriously contested in many rounds of state court litigation. Because of this conclusion, the Bankruptcy Court properly dismissed the involuntary petition under 11 U.S.C. § 303(h).
Moreover, the Bankruptcy Court was similarly justified in dismissing the peti tion under this Circuit's case law permitting dismissal when petitions are filed in bad faith, which was specifically found in this case. See In re Tamecki, 229 F.3d 205 (3d Cir.2000); In re SGL Carbon Corp., 200 F.3d 154 (3d Cir.1999); In re Lilley, 91 F.3d 491 (3d Cir.1996).
Finally, the Bankruptcy Court properly exercised its discretion to impose reasonable attorney's fees and costs under 11 U.S.C. § 303(i)(l) and punitive damages under 11 U.S.C. § 303(i)(2).
We have considered all of the appellant's arguments and see no basis for reversal. The judgment of the District Court is therefore affirmed.