C & C Jewelry Mfg., Inc. v. Laxmi Jewel Inc.

MEMORANDUM

In this bankruptcy case, Debtor C & C Jewelry Manufacturing, Inc., argues that the bankruptcy court, which the Bankruptcy Appellate Panel (BAP) affirmed, abused its discretion by denying fees and costs and erred by refusing to award damages. We review the BAP’s decision de novo. Sofris v. Maple-Whitworth, Inc. (In re Maple-Whitworth, Inc.), 556 F.3d 742, 745 (9th Cir.2009). We review the bankruptcy court’s findings of fact for clear error and its decision regarding attorney fees and costs for abuse of discretion. Higgins v. Vortex Fishing Sys., Inc., 379 F.3d 701 , 705 (9th Cir.2004). We affirm in part and vacate and remand in part.

1. Debtor, which achieved dismissal of the petitioning creditors’ involuntary petition on summary judgment, was eligible for an award of attorney fees and costs under 11 U.S.C. § 303 (i). It was “the petitioning creditors’ burden to establish, under the totality of the circumstances, that factors exist which overcome the presumption” that Debtor should receive fees and costs. Id. at 707 (internal quotation marks omitted). Higgins set out several factors that the court should consider, along with any other relevant factors. Id. at…