Opinion ID: 705215
Heading Depth: 2
Heading Rank: 2

Heading: Attorney's Fees under 11 U.S.C. Sec. 105(a)

Text: 40 Although the bankruptcy court did not cite to section 105(a) of the Bankruptcy Code as an alternative basis for awarding costs and attorney's fees to the trustee, the BAP unanimously held that, regardless of whether or not damages were available under section 362(h), they were certainly proper under section 105(a). We agree. 41 Section 105(a) states, in relevant part, that 42 [t]he [bankruptcy] court may issue any order ... that is necessary or appropriate to carry out the provisions of this title. No provision of this title providing for the raising of an issue by a party in interest shall be construed to preclude the court from, sua sponte, taking any action or making any determination necessary or appropriate to enforce or implement court orders ... or to prevent an abuse of process. 43 It is clear that, even though a trustee does not qualify as an individual for purposes of section 362(h), a trustee can recover damages in the form of costs and attorney's fees under section 105(a) as a sanction for ordinary civil contempt. See United States v. Arkison (In re Cascade Roads, Inc.), 34 F.3d 756, 767 (9th Cir.1994) (damages not otherwise available to a corporate debtor under section 362(h) for a creditor's willful violation of the automatic stay were nevertheless available under section 105(a) as a sanction for ordinary civil contempt; distinguishing In re Goodman, supra). It is equally clear that, while an award of damages under section 362(h) is mandatory, an award of damages under section 105(a) is discretionary. Id.; In re Pace, 159 B.R. at 904. 44 In In re Cascade Roads, Inc., we remanded to the bankruptcy court to allow it to exercise its discretion in deciding whether and to what extent it would impose sanctions under section 105(a). In the instant appeal, however, the BAP found that 45 [t]his case clearly warrants the granting of sanctions. Upon the egregious facts of this case, and from extensive review of the trial court record, there can be little doubt that the trial court's intention was to award sanctions for violating the automatic stay, whether under Sec. 362(h) or Sec. 105. It is absolutely clear to this Panel that the trial court felt outrage over the actions of Appellants Havelock and Strachan in violating the stay. A remand for findings to this effect would be superfluous. 159 B.R. at 904-905. 9 46 We agree with the BAP that the materials before us show great displeasure on the part of the bankruptcy court with the conduct of the Appellants. Nevertheless, and for the reasons set forth in In re Goodman, we believe that a remand is in order so that the bankruptcy court may determine the extent of any damages it may choose to impose against the Appellants.