In re Barbara Ann Balistreri

Summary

The United States Bankruptcy Court for the Middle District of Pennsylvania sanctioned attorney Paige Martineau under Federal Rule of Bankruptcy Procedure 9011(b)(3) for repeatedly misquoting statements made by the court and using those misquotes to allege judicial bias and impropriety. The court found that Martineau failed to conduct a reasonable investigation and did not correct the misstatements after receiving notice of the accurate statements. The court imposed a $500 monetary sanction, subject to waiver if Martineau completed three hours of qualifying continuing legal education.

Holdings

1. An attorney violates Rule 9011(b)(3) when the attorney presents factual contentions in pleadings without evidentiary support after failing to conduct at least some affirmative, reasonable investigation into their accuracy. Martineau violated the rule by attributing materially false quotations to the judge when the official transcript and audio were readily available.
2. Continued use of materially inaccurate quotations after counsel received actual notice of their falsity independently supported a Rule 9011(b)(3) sanction.
3. The Bankruptcy Court retained jurisdiction over the collateral Rule 9011 proceeding after dismissal of the underlying bankruptcy case.

Questions Presented

1. Whether counsel violated Federal Rule of Bankruptcy Procedure 9011(b)(3) by filing pleadings containing materially misquoted statements without conducting a reasonable investigation into their accuracy.
2. Whether counsel's continued repetition of the misquotations after receiving actual notice of their inaccuracy warranted a Rule 9011 sanction.

Disposition

other