In Re Douglas E. Miller, Debtor. Bonnie G. Snavely v. Douglas E. Miller, Debtor-Appellee

Appellant Bonnie Snavely appeals from the order of the district court for the District of Montana affirming the order of the bankruptcy court for the District of Montana (“Montana bankruptcy court”) awarding debtor-in-possession Douglas Miller $90,000 in attorney’s fees based on Ms. Snavely’s breach of her fiduciary duties as trustee of a trust of which Mr. Miller was a beneficiary. Ms. Snavely filed a petition for bankruptcy in the bankruptcy court for the Western District of Washington (‘Washington bankruptcy court”) on March 15, 2002. She argues that the Montana bankruptcy court’s order, issued on March 26, 2002, violated the automatic stay triggered by the earlier filing of her bankruptcy petition in the Washington bankruptcy court. We reverse because we conclude that the automatic stay enjoined the Montana bankruptcy court from entering an award of attorney’s fees until after the expiration or lifting of the stay.

I

On March 19, 2001, Douglas E. Miller filed for protection under Chapter 11 of the Bankruptcy Code in the Montana bankruptcy court. On July 19, 2001, Ms. Snavely filed a proof of claim in Mr. Miller’s chapter 11 case in the amount of $603,906.12 on behalf of the…