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TRULIS v. BARTON

Nos. 94-55024, 94-55049, and 94-55234.

67 F.3d 779 (1995)

Thomas TRULIS; Eamon J. McClory; Erv Grosch; Thomas Swarthout; Al Simon; Tom Ewing; Michael Barrack, Plaintiffs-Appellants, v. J. Porter BARTON; Jon T. Brown; Phillip R. Jacoby, Jr., et al., Defendants, and Myron Sukut; Carl Berg; Clyde Berg; Berg & Berg Developers; Baccarat Electronics, Inc., Defendants-Appellees. Thomas TRULIS; Eamon J. McClory; Erv Grosch; Thomas Swarthout; Al Simon; Tom Ewing; Michael Barrack, Plaintiffs-Cross-Appellees, v. J. Porter BARTON; Myron Sukut; Jon T. Brown; Phillip R. Jacoby, Jr., et al., Defendants, and Carl Berg; Clyde Berg; Berg & Berg Developers; Baccarat Electronics, Inc., Defendants-Cross-Appellants. Thomas TRULIS; Eamon J. McClory; Erv Grosch; Thomas Swarthout; Al Simon; Tom Ewing; Michael Barrack, Plaintiffs-Cross-Appellees, Daniel J. Callahan, Cross-Appellee, v. J. Porter BARTON, Defendant, and Carl Berg; Clyde Berg; Berg & Berg Developers; Baccarat Electronics, Inc., Defendants-Cross-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided September 27, 1995.

Attorney(s) appearing for the Case

Jeffrey S. Benice, Anton M. Rosandic, Benice & Associates, Irvine, California, for appellants-cross-appellees.

Allan Gabriel, Dean B. Herman, Peter Schwartz, Gabriel, Herman & Peretz, Los Angeles, California, for appellees-cross-appellants Carl Berg, Clyde Berg, Berg & Berg Developers and Baccarat Electronics, Inc.

Kathlene W. Lowe, J. Russell Taylor, Jr., Brobeck, Phleger & Harrison, Newport Beach, California, specially appearing for attorney Brobeck, Phleger & Harrison.

Jeffrey S. Benice, Benice & Associates, Irvine, California, specially appearing for Jeffrey S. Benice.

Daniel J. Callahan, Callahan & Gauntlett, Irvine, California, specially appearing for Daniel J. Callahan.

George Dale, Carrick & Dale, Los Angeles, California, for Myron Sukut.

Before FLETCHER, BRUNETTI, and T.G. NELSON, Circuit Judges.

BRUNETTI, Circuit Judge:

In the primary appeal, we are called on to put an end to a lawsuit that a bankruptcy court in a collateral proceeding has already held is released and barred. In the cross-appeal, we consider how much attorney misconduct a court should tolerate before imposing sanctions.

I.

This case began with the bankruptcy of the Marbella Golf and Country Club (the Country Club), which had operated at a loss since its opening. To fund...

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