In Re: HVI Cat Canyon, Inc.

JS-

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CV 21-8390 DSF

Bk. Ct. No. 9:19-bk-11573 MB

IN RE HVI CAT CANYON, INC.,

Debtor. OPINION

Appellant GIT, Inc. appeals the Bankruptcy Court’s order granting $275,000 in fees and expenses to the Chapter 7 Trustee, Appellee Brad D. Krasnoff, as a contempt sanction for a failure to comply with a Bankruptcy Court discovery order. GIT does not appeal the finding of contempt itself; it appeals only the amount of sanctions and the Bankruptcy Court’s authority to impose sanctions under its inherent authority without an explicit finding of bad faith or willful misconduct. “The sanctions imposed as a result of a contempt finding are reviewed to determine whether the [lower] court abused its discretion.” Whittaker Corp. v. Execuair Corp., 953 F.2d 510, 515 (9th Cir. 1992). Review for abuse of discretion is a two-step inquiry. First, the appellate court conducts a de novo review of whether the lower court identified the correct legal rule to apply. If it did, the lower court’s decision will be upheld unless application of the legal standard was illogical, implausible, or without support in inferences that may be…