Eskanos & Adler, P.C. v. Leetien

309 F. 3d 1210 (2002)

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Eskanos & Adler, P.C. v. Leetien

United States Court of Appeals for the Ninth Circuit
309 F. 3d 1210 (2002)

  • Written by Jody Stuart, JD

Facts

Somkiat Leetien (debtor) filed a Chapter 7 bankruptcy petition on August 18, 2000. First Select, Inc. (Select) (creditor) received notice of Leetien’s petition on August 23. Eskanos & Adler, P.C. (Eskanos) was Select’s legal counsel and collection agent. On August 28, Eskanos filed a collection action on behalf of Select in California district court. On September 6, Eskanos received notice of Leetien’s bankruptcy petition. Eskanos dismissed the state collection action on September 29. Eskanos attributed the delay in dismissing the state action to problems with Eskanos’s process server. The bankruptcy judge jointly sanctioned Eskanos and Select for willfully violating the automatic stay in federal bankruptcy law. The district court affirmed. Eskanos appealed, arguing that there was no affirmative duty under federal bankruptcy law to discontinue postpetition state collection actions.

Rule of Law

Issue

Holding and Reasoning (Hug, J.)

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