KLESTADT & WINTERS, LLP v. CANGELOSI

Nos. 10-16970, 10-16972, 10-16974.

672 F.3d 809 (2012)

KLESTADT & WINTERS, LLP; Tracy L. Klestadt, Petitioners-Appellants, v. Donna CANGELOSI; Certain Direct Lenders, Respondents-Appellees, and William A. Leonard, Chapter 7 Trustee, Trustee-Appellee. Bryan Cave LLP; Katherine M. Windler, Petitioners-Appellants, v. Donna Cangelosi; Certain Direct Lenders, Respondents-Appellees, and William A. Leonard, Chapter 7 Trustee, Trustee-Appellee. Silar Advisors, LP; Sara Pfrommer; Robert Leeds; Jay Gracin, Petitioners-Appellants, v. Donna Cangelosi; Certain Direct Lenders, Respondents-Appellees, and William A. Leonard, Chapter 7 Trustee, Trustee-Appellee.

United States Court of Appeals, Ninth Circuit.

Filed March 6, 2012.


Attorney(s) appearing for the Case

Stanley J. Panikowski (argued), DLA Piper LLP, San Diego, CA, for petitioners-appellants Klestadt & Winters, LLP and Tracy Klestadt.

J. Stephen Peek , Holland & Hart LLP, Las Vegas, NV, for petitioners-appellants Bryan Cave LLP and Katherine Windler.

J. Thomas Beckett (argued), Mark W. Dykes , Parsons Behle & Latimer, Salt Lake City, UT, for petitioners-appellants Silar Advisors LP, et al.

Robert M. Millimet (argued), Michael J. Collins , Bickel & Brewer, Dallas, TX; Janet L. Chubb , Armstrong Teasdale LLP, Reno, NV; Lisa A. Rasmussen , Las Vegas, NV, for respondents-appellees Donna Cangelosi and Certain Direct Lenders.

Opinion by Judge IKUTA; Concurrence by Judge QUIST; Partial Concurrence and Partial Dissent by Judge GRABER.


OPINION

IKUTA, Circuit Judge:

Silar Advisors, LP, Robert Leeds, Jay Gracin, and Sara Pfrommer (collectively "the Silar Parties"), and Tracy Klestadt and Klestadt & Winters, LLP, Katherine M. Windler, and Bryan Cave, LLP (collectively "Counsel"), appeal the district court's order imposing sanctions on them pursuant to Rule 9011 of the Federal Rules of Bankruptcy Procedure and the district court's inherent powers...

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