Opinion ID: 550367
Heading Depth: 1
Heading Rank: 2

Heading: Statutory Authority to Exercise Civil Contempt Power

Text: 10 While bankruptcy courts do not have inherent civil contempt power, see Plastiras v. Idell (In re Sequoia Auto Brokers, Ltd.), 827 F.2d 1281, 1284 (9th Cir.1987), we conclude that Congress has granted them civil contempt power by statute. This statutory authority derives from 11 U.S.C. Sec. 105 and 28 U.S.C. Sec. 157. Section 105 provides in pertinent part: 11 (a) The court may issue any order, process, or judgment 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 rules, or to prevent an abuse of process. 12 Like the Fourth Circuit, [w]e see no reason to read into th[e] language [of section 105(a) ] anything other than its plain meaning that a court of bankruptcy has authority to issue any order necessary or appropriate to carry out the provisions of the bankruptcy code. Burd v. Walters (In re Walters), 868 F.2d 665, 669 (4th Cir.1989). An order like that entered by the bankruptcy court below, which compensates a debtor for injuries suffered as a result of a creditor's violation of the automatic stay, is both necessary and appropriate to carry out the provisions of the bankruptcy code and to enforce or implement a previous court order. 13 When statutory language is not ambiguous, it is controlling. See Roberts v. United States (In re Roberts), 906 F.2d 1440, 1442 (10th Cir.1990); Miller v. Commissioner, 836 F.2d 1274, 1280-85 (10th Cir.1988). While we are mindful of the opinion of the Ninth Circuit in In re Sequoia Auto Brokers, Ltd., 827 F.2d at 1289-90, that civil contempt powers should not be implied from section 105(a), based on the legislative history of the bankruptcy statutes, we disagree that the language of section 105(a) is ambiguous, and, therefore, we do not think the Ninth Circuit's reasoning is sufficient to overcome the plain language of the section. See In re Walters, 868 F.2d at 669. 14 Furthermore, the weight of authority supports our holding that section 105(a) empowers bankruptcy courts to enter civil contempt orders. See, e.g., Id.; Kellogg v. Chester, 71 B.R. 36, 37 (N.D.Tex.1987); Better Homes of Va., Inc. v. Budget Serv. Co. (In re Better Homes of Va., Inc.), 52 B.R. 426, 428-30 (E.D.Va.1985), aff'd on other grounds, 804 F.2d 289 (4th Cir.1986); Dubin v. Jakobowski (In re Stephen W. Grosse, P.C.), 84 B.R. 377, 385-86 (Bankr.E.D.Pa.1988), aff'd, 96 B.R. 29 (E.D.Pa.), aff'd, 879 F.2d 856 (3d Cir.) (table), cert. denied, --- U.S. ----, 110 S.Ct. 501, 107 L.Ed.2d 504 (1989); Miller v. Mayer (In re Miller), 81 B.R. 669, 676-77 (Bankr.M.D.Fla.1988); In re Haddad, 68 B.R. at 948-49. 15 A bankruptcy court's powers under section 105(a) are limited by the provisions of Title 28. 11 U.S.C. Sec. 105(c). 3 Section 157 of Title 28 provides in pertinent part:(a) Each district court may provide that any or all cases under title 11 and any or all proceedings arising under title 11 or arising in or related to a case under title 11 shall be referred to the bankruptcy judges for the district. 16 (b)(1) Bankruptcy judges may hear and determine all cases under title 11 and all core proceedings arising under title 11, or arising in a case under title 11, referred under subsection (a) of this section, and may enter appropriate orders and judgments, subject to review under section 158 of this title. 17 Civil contempt proceedings arising out of core matters are themselves core matters. See Better Homes of Va., Inc., 804 F.2d at 292; Haile v. New York State Higher Educ. Servs. Corp., 90 B.R. 51, 54 (W.D.N.Y.1988); Kellogg v. Chester, 71 B.R. at 38; In re Stephen W. Grosse, P.C., 84 B.R. at 386; In re Miller, 81 B.R. at 677; but see In re Sequoia Auto Brokers, Ltd., 827 F.2d at 1289; Omega Equip. Corp. v. John C. Louis Co. (In re Omega Equip. Corp.), 51 B.R. 569, 574 (D.D.C.1985). Civil contempt proceedings not involving punishment with imprisonment have been referred to the bankruptcy courts in the District of Utah in accordance with 28 U.S.C. Sec. 157. 4 Therefore, the bankruptcy court below had the power to enter monetary sanctions against appellant for civil contempt. 5 18