In Re Bayport Equities Corp.

MEMORANDUM OF DECISION RE SANCTIONS

Pasadena Thrift and Loan Association seeks an order imposing sanctions upon the debtor and its attorneys Edgell & Edgell. The motion, in effect, asserts that the debt- or Bayport Equities Corp. together with its attorneys filed multiple Chapter 11 cases in bad faith causing Pasadena Thrift and Loan Association to have to employ counsel to obtain four separate orders for relief of stay in order to complete their foreclosure upon a single parcel of real property. I agree that there has been an abuse of the bankruptcy process, violations of the court rules, and bad faith filings and that sanctions should be imposed.

FACTS

Bayport filed its first Chapter 11 case numbered 83-00860 on February 24, 1983 and the case was assigned to Judge Phelps. Ross Edgell, Jr. signed the debtor’s petition which was accompanied by a list of creditors, but no formal schedules or statement of affairs. Pasadena filed its complaint, adversary number 83-0886 for relief of stay in order to foreclose upon the family home of James Shipley. Shipley is the President of the debtor. In the adversary proceeding a stipulation for judgment was entered into providing that the stay…