NV COURT RECORD: Law firm solicited Debtor for loan mod services. After verbal agreement & payment in full, they said the loan couldn't be modified unless she filed bankruptcy. After filing the Bk Petition, they converted her liquid assets into "fees & services" to "make her eligible" for Bk without her knowledge, & ceased communication. No factual plan or modification was filed.
They were dismissed as counsel & ordered to comply with NRPC 1.16(d) (return Debtor property, surrender complete bk & loan mod files, & refund advance/unearned fees). They refused. A 2nd judge ordered compliance. They refused. Debtor testified & plead to non-compliance. Trustee testified that Debtor would seek sanctions. Motions had not yet been filed when bankruptcy was dismissed (3 years w/no Plan). The Court dismissed the case to free Debtor to pursue Malpractice cause; Trustee concurred. Trustee cannot force the firm to reimburse as the Court Order did not specify the $ amount.
SINCE DISMISSAL: Metro advised Debtor to ask the Judge if, 1) they should execute a Standby before or after filing, & if 2) the Bk Court could issue a Bench Warrant &/or garnishment. Debtor did. The Court/Trustee won't advise, but are anticipating Debtor' filing.
QUESTION: I am filing Motion for Reconsideration to compel compliance w/Court Orders. But what exactly do I ask for - bench warrant, injunction, garnishment, imprisonment? What authorities? I would also like to seek sanctions, but don't want to muddy the waters (Trustee will support as long as no shadow cast on them) or damage/limit the impending Malpractice cause.
Finally, this case is extremely well evidenced & recommendations for the highest profile legal malpractice attorney are greatly appreciated.
1 Answer from Attorneys
Talk to Jeffrey Cogan, he is the best bankruptcy litigator I know, having worked as a law clerk for R Clive Jones when he was the bankruptcy judge here in LV.
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