Opinion ID: 3019779
Heading Depth: 1
Heading Rank: 9

Heading: A.M.S. Section 433.055.

Text: Id. at 109. -3- On April 28, 1995, Trustee closed the sale of Debtor's real property in DeSoto for the purchase price of $165,500. After priority claims were paid, Trustee deposited the sum of $17,171.64 into the bankruptcy estate's bank account. Snyder sought compensation from the sale proceeds of the real property for legal services in the amount of $13,484.68. Snyder maintained that he was entitled to compensation for his services rendered both pre-petition and post-petition.4 Trustee filed a Complaint to Determine the Validity, Priority, and Extent of the Lien on June 6, 1995; a Motion for Review of Attorney Fees on July 20, 1995; and a Motion for Imposition of Sanctions Pursuant to Rule 9011 of the Federal Rules of Bankruptcy Procedure on August 31, 1995. These motions named Snyder as the defendant in each matter. The parties submitted5 these contested matters to the bankruptcy court pursuant to uncontested facts, Snyder's Motion for Summary Judgment, and legal briefs. On May 6, 1996, the Bankruptcy Court entered an Order determining that: (1) to the extent Snyder's lien was valid, it did not cover representation beyond tax matters 4 Snyder claims that Debtor and he modified the Agreement by orally agreeing that it extend to bankruptcy services. Snyder and Debtor memorialized this modification with a compensation statement, Amended Promissory Note, and Amended Deed of Trust. In addition, Snyder contends that the bankruptcy services were also independently covered within the scope of the original Agreement. See Snyder's Br., No. 97-1221, at 15. 5 Snyder claims that neither party consented to submission of the case and that the parties never agreed to the facts. After reviewing this issue, we find Snyder's contention to be without merit. By submitting a motion for summary judgment, Snyder stated that the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact. Fed. R. Civ. P. 56; see also Fed R. Bankr. P. 7056. Therefore, by submitting his motion for summary judgment and stating that no genuine issue of material fact existed, Snyder agreed to submit the case. -4- set forth in the Agreement; (2) to the extent that Snyder's lien was valid, it was extinguished on the petition date with respect to any further future advances; (3) Snyder was not entitled to receive compensation from the assets of the estate for post-petition legal services; (4) legal services rendered for pre-petition tax and other non-bankruptcy matters would be awarded in the amount of $4,348.80; and (5) compensation for legal services rendered for pre-petition bankruptcy matters would be awarded in the amount of $1,000 but reduced by the same amount as sanctions for Snyder's conflict of interest.6 The bankruptcy court entered this order without a hearing or trial. This order also did not award interest on the pre-petition lien nor any protection and collection costs. On June 24, 1996, Snyder filed his Notice of Appeal to contest the Bankruptcy Court's Order. On November 25, 1996, the District Court entered its Judgment, affirming the Bankruptcy Court's Order in its entirety. Snyder filed his Notice of Appeal to this court on December 26, 1997. On January 9, 1997, Trustee filed a Motion for Sanctions against Snyder pursuant to Fed. R. Bankr. P. 9011 for Snyder's alleged frivolous appeal to the district court. Snyder did not file a response. On March 3, 1997, the District Court entered an Order assessing sanctions against Snyder in favor of Trustee in the amount of $4,352.80. The district court denied Snyder's request to set aside this order on March 17, 1997. Accordingly, Snyder also appeals to this court arguing that the district court erred in assessing sanctions against him for filing an alleged frivolous appeal. 6 The apparent conflict of interest arose from Snyder's assertion of a lien which would decrease the amount of back taxes Debtor paid to the Internal Revenue Service out of the estate. As a creditor of the bankruptcy estate, the larger the amount of attorney fees that Snyder would have received would leave less estate funds for distribution to the taxing authorities and a larger non-dischargeable debt claim for Debtor. -5-