Cangelosi

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

OPINION

Silar Advisors, LP, Robert Leeds, Jay Gracin, and Sara Pfrommer (collectively “the Silar Parties”), and Tracy Klestadt and Klestadt & Winters, LLP, Katherine M. Windier, and Bryan Cave, LLP (collectively “Counsel”), appeal the district court’s order imposing sanctions on them pursuant to Rule 9011 of the Federal *812 Rules of Bankruptcy Procedure and the district court’s inherent powers. We must decide whether the district court’s order is immediately appealable. We hold that it is not and dismiss the appeal for lack of jurisdiction.

I

The Silar Parties are the owners and officers of Asset Resolution, LLC, which serviced loans that were funded in part by appellee lenders. Asset Resolution is the sole member and manager of fourteen special purpose limited liability companies. Asset Resolution and these special purpose companies (collectively “Debtors”) have each filed a petition in bankruptcy. The appellees here are the lenders (now creditors in the bankruptcy proceeding) and the bankruptcy trustee, both of whom were awarded sanctions against the Silar Parties…

concurring in part and in the judgment, and dissenting in part:

I concur in the majority’s holding that our jurisdiction arises solely from 28 U.S.C. § 1291 , not 28 U.S.C. § 158 (d)(1). As a result, I also must agree that we cannot examine the finality of the sanctions order under the flexible approach that typically applies to bankruptcy appeals. Cannon v. Haw. Corp. (In re Haw. Corp.), 796 F.2d 1139, 1141-42 (9th Cir. 1986). But I write separately because I disagree with the rule announced in Hawaii Corp. and because, although I agree with the majority’s finality conclusion under § 1291, I disagree with the analysis in Parts III.A-B.

A.

Six years after we decided Hawaii Corp., we reexamined and reaffirmed its holding that the flexible finality approach used in bankruptcy appeals arises under § 158(d)(1), making it unavailable for an appeal that arises solely under § 1291. Vylene Enters., Inc. v. Naugles, Inc. (In re Vylene Enters., Inc.), 968 F.2d 887, 893 (9th Cir.1992). In Vylene Enterprises, we recognized that our rule was inconsistent both with a leading treatise and with the implications of a then-recent Supreme Court decision. Id. at 892 (noting disagreement between…

concurring:

All judges on the panel, including the undersigned, agree that Ninth Circuit precedent, particularly Cannon v. Hawaii Corp. (In re Hawaii Corp.), 796 F.2d 1139 (9th Cir.1986), requires this Court to dismiss this appeal because appellants “are unable to satisfy the threshold requirement of appellate jurisdiction.” In my judgment, once appellants fail to satisfy this threshold issue, the case is concluded — subject, of course, to whether the Ninth Circuit revisits the continuing viability of In re Hawaii Corp. As to whether the rule of In re Hawaii Corp. should be revisited or changed is not for me to say. If the rule of In re Hawaii Corp. is changed en banc, the issue of appellate jurisdiction can be revisited under the facts of this particular case, which are accurately set forth in Part I of Judge Ikuta’s Opinion.

Before: SUSAN P. GRABER and SANDRA S. IKUTA, Circuit Judges, and GORDON J. QUIST, [*] Senior District Judge.

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

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. We must decide whether the district court's order is immediately appealable. We hold that it is not and dismiss the appeal for lack of jurisdiction.

The Silar Parties are the owners and officers of Asset Resolution, LLC, which serviced loans that were funded in part by appellee lenders. Asset Resolution is the sole member and manager of fourteen special purpose limited liability companies. Asset Resolution and these special purpose companies (collectively "Debtors") have each filed a petition in bankruptcy. The appellees here are the lenders (now creditors in the…