DISCLAIMER: The following unofficial case summaries are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
136054P.pdf 03/12/2014 In the Matter of Kathy A. Cruz v.
U.S. Court of Appeals Case No: 13-6054
U.S. Bankruptcy Court for the Western District of Arkansas - Hot Springs
[PUBLISHED] [Schermer, Author, with Kressel and Shodeen, Bankruptcy
Judges]
Bankruptcy Appellate Panel. In an appeal from orders imposing sanctions on
an attorney, the bankruptcy court acted within its discretion when it
found a Rule 9011 violation and imposed sanctions, including a fine, legal
education requirements and referral to the Arkansas Office of the
Committee on Professional Conduct, on Cruz for her conduct throughout the
debtor's case; bankruptcy court acted within its discretion under Local
Rule 2090-2 when it suspended Cruz from practicing law in the Arkansas
bankruptcy court for six months; however, the bankruptcy court's
imposition of sanctions under 11 U.S.C. Sec. 105 and its inherent
authority was improper because Cruz did not receive separate prior notice
and an opportunity to be heard regarding such sanctions.