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IN RE SOUTHERN CALIFORNIA SUNBELT DEVELOPERS, INC.

Nos. 08-56570, 08-56576, 08-56580, 08-56587.

608 F.3d 456 (2010)

In the Matter of SOUTHERN CALIFORNIA SUNBELT DEVELOPERS, INC., Debtor, Orange Blossom Limited Partnership; Pear Tree Limited Partnership; Banyan Limited Partnership; Don W. Grammer; Trails End Limited Partnership; Showthunder Inc.; Hampton Limited Partnership; David Tedder; Birch International Limited Partnership; Van Dan Limited Partnership; CTM Limited Partnership; DTG Limited Partnership; Gallery I Inc.; Key Enterprises Inc.; Slevin Limited Partnership, Appellants, v. Southern California Sunbelt Developers, Inc., Appellee. In re IBT International, Inc. Don Grammer; Banyan Limited Partnership; Pear Tree Partnership; Orange Blossom Limited Partnership; David Tedder; Birch International Limited Partnership; Van Dan Limited Partnership; CTM Limited Partnership; DTG Limited Partnership; Gallery I Inc.; Hampton Limited Partnership; Key Enterprises, Inc.; Slevin Limited Partnership; Showthunder Inc.; Trails End Limited Partnership, Plaintiffs-Appellants, v. IBT International, Inc., Defendant-Appellee. In the Matter of IBT International, Inc., Debtor, Don Grammer; Banyan Limited Partnership; Pear Tree Partnership; Orange Blossom Limited Partnership; David Tedder; Birch International Limited Partnership; Van Dan Limited Partnership; CTM Limited Partnership; DTG Limited Partnership; Gallery I Inc.; Hampton Limited Partnership; Key Enterprises, Inc.; Slevin Limited Partnership; Showthunder Inc.; Trails End Limited Partnership, Appellants, v. IBT International, Inc., Appellee. In the Matter of Southern California Sunbelt Developers, Inc., Debtor, Don W. Grammer; Banyan Limited Partnership; Pear Tree Limited Partnership; Orange Blossom Limited Partnership; David Tedder; Birch International Limited Partnership; Van Dan Limited Partnership; CTM Limited Partnership; DTG Limited Partnership; Gallery I Inc.; Hampton Limited Partnership; Key Enterprises Inc.; Slevin Limited Partnership; Showthunder Inc.; Trails End Limited Partnership, Appellants, v. Southern California Sunbelt Developers, Inc., Appellee.

United States Court of Appeals, Ninth Circuit.

Filed June 9, 2010.

Attorney(s) appearing for the Case

Thomas W. Dressler (argued), the Dressler Law Group, LLP, Los Angeles, CA, Stella A. Havkin, Litwak & Havkin, Woodland Hills, CA, for the appellants.

William Miles Burd, Burd & Naylor, Santa Ana, CA, C. Michael Chapman, Laguna Niguel, CA, Todd Carl Ringstad (argued), Ringstad & Sanders LLP, Irvine, CA, for the appellees.

Before: MARY M. SCHROEDER, RAYMOND C. FISHER and N. RANDY SMITH, Circuit Judges.

FISHER, Circuit Judge:

Thirteen entities filed involuntary bankruptcy petitions against two alleged debtors. After the petitions were dismissed, the alleged debtors filed motions against the petitioning creditors for costs, attorney's fees and punitive damages under § 303(i) of the Bankruptcy Code, 11 U.S.C. § 303(i). The United States Bankruptcy Court for the Central District of California, Judge Robert W. Alberts presiding, awarded $745,000 in costs and...

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