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CAROLIN CORP. v. MILLER

No. 88-1545.

886 F.2d 693 (1989)

CAROLIN CORPORATION, Plaintiff-Appellant, v. Robert J. MILLER, Jr., Defendant-Appellee.

United States Court of Appeals, Fourth Circuit.

Decided September 28, 1989.

Attorney(s) appearing for the Case

David Farrer Meschan (Harold A. Lloyd, Tuggle, Duggins, Meschan & Elrod, P.A., Greensboro, N.C., on brief), for plaintiff-appellant.

Bonnie Kay Donahue (Charles M. Ivey, III, Greensboro, N.C. and Robert L. McClellan, Summerfield, N.C., Ivey, Ivey & Donahue, Greensboro, N.C., on brief), for defendant-appellee.

Before ERVIN, Chief Judge, and WIDENER and PHILLIPS, Circuit Judges.

PHILLIPS, Circuit Judge:

This appeal requires us first to decide whether and, if so, by what standard, a bankruptcy court may dismiss a voluntary Chapter 11 bankruptcy petition at the very outset because it was not filed "in good faith." It then requires us to decide whether the petition here in issue was properly dismissed for that reason.

On the first issue we hold that a bankruptcy court may dismiss such a petition for want of good faith in its filing,...

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