Compliance with federal and state procedures and timeliness are the crux of the legal profession. Failure to comply with procedures and failure to timely file pleadings will often lead to detrimental consequences from the court. Recently, the U.S. Bankruptcy Court for the Northern District of West Virginia denied a motion for sanctions based on the party’s failure to comply with Federal Rule of Bankruptcy Procedure 9011 and failure to timely file the motion for sanctions. See In Re: Panthera Enterprises, L.L.C., 2021 WL 1235788 (U.S. Bankr. N.D.W. Va.).
In Panthera, Panthera Training alleged that counsel for Panthera Enterprises, LLC (the “Debtor”), filed a complaint in bad faith and advanced it without first conducting a reasonable investigation. Panthera Training assumed operation of a facility pursuant to a lease, which required Panthera Training to pay the Debtor $52,000 a month in “base rent” as well as additional rent according to a formula described in the lease. The Debtor filed a voluntary Chapter 11 petition and a complaint for turnover and possession of real and personal property and for preliminary injunction against possession of property, which commenced an adversary proceeding.