FILED
NOT FOR PUBLICATION
NOV 22 2017
UNITED STATES COURT OF APPEALS MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
In re: FAROUK E. NAKHUDA, No. 16-60017
Debtor, BAP No. 15-1149
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MEMORANDUM*
ANDREW W. SHALABY,
Appellant,
v.
PAUL MANSDORF,
Appellee.
Appeal from the Ninth Circuit
Bankruptcy Appellate Panel
Kurtz, Jury, and Wanslee, Bankruptcy Judges, Presiding
Submitted November 15, 2017**
San Francisco, California
Before: THOMAS, Chief Judge, and W. FLETCHER and PAEZ, Circuit Judges.
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
**
The panel unanimously concludes this case is suitable for decision
without oral argument. See Fed. R. App. P. 34(a)(2).
Andrew W. Shalaby appeals pro se from the Bankruptcy Appellate Panel’s
(“BAP”) judgment affirming the bankruptcy court’s disgorgement of fees paid to
Shalaby and the suspension of his electronic case filing privileges in that court but
reversing the bankruptcy court’s imposition of sanctions under Fed. R. Bankr. P.
9011. We review a bankruptcy court’s award of sanctions and its decision as to the
appropriate amount of legal fees for abuse of discretion. Hansbrough v Birdsell
(In re Hercules Enters., Inc.), 387 F.3d 1024, 1027 (9th Cir. 2004) (sanctions);
Hale v. U.S. Tr., 509 F.3d 1139, 1146 (9th Cir. 2007) (fees). We have jurisdiction
under 28 U.S.C. § 158(d)(1), and we affirm. Because the parties are familiar with
the factual and procedural history of this case, we need not recount it here.
I
The BAP properly concluded that the bankruptcy court did not abuse its
discretion when it suspended Shalaby’s electronic case filing privileges until he
had undergone electronic case filing training by the clerk’s office. The local rules
of the United States Bankruptcy Court for the Northern District of California give
the bankruptcy court the authority to impose sanctions on attorneys practicing
before it for failure to comply with the court’s local rules. Bankr. N.D. Cal. R.
9011-1. The local rules further provide that when an electronically filed document
requires the signature of a third party, such as a debtor, the document must contain
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the original ink signature of the third party or a copy of the original ink signature.
Bankr. N.D. Cal. R. 5005-2(d).
The record supports the bankruptcy court’s finding that Shalaby’s continued
failure to obtain the debtor’s original ink signature on documents electronically
filed with the court violated the local rules. The error was brought to Shalaby’s
attention, yet he continued to violate the rules. The district court did not abuse its
discretion by suspending his filing privileges until he had received training.
II
The BAP also properly determined that the bankruptcy court did not abuse
its discretion when it ordered Shalaby to disgorge the $4,000 fee paid to him by the
debtor. The bankruptcy court applied the correct legal standard, and its
determination that the fee was excessive in light of the services rendered by
Shalaby is supported by the record. 11 U.S.C. § 329.
By filing various amendments and advancing a number of arguments not
supported by bankruptcy law, Shalaby prolonged the duration of the proceedings
and delayed the debtor’s discharge, which resulted in greater cost and detriment to
the debtor and the estate. The bankruptcy court found Shalaby’s services were
neither necessary nor beneficial to the debtor. The bankruptcy court did not abuse
its discretion in ordering the disgorgement of Shalaby’s fee.
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III
We decline to address the additional issues raised by Shalaby in his opening
brief that were outside the scope of his Notice of Appeal. See Fed. R. App. P. 3(c)
(stating the notice of appeal must “designate the judgment, order, or part thereof
being appealed from”).
AFFIRMED.
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