Cinema Serv. Corp. v. Edbee Corp., 774 F.2d 584 (3rd Cir. 1985). · Go Syfert
Cinema Serv. Corp. v. Edbee Corp., 774 F.2d 584 (3rd Cir. 1985). Cases Citing This Book View Copy Cite
107 citation events (22 in the last 25 years) across 35 distinct courts.
Strongest positive: In re: Hanna Jesionowska Practice LLC (nysb, 2026-05-14)
Treatment trajectory · 1985 → 2026 · click a year to view as-of
1985 2005 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
cited Cited as authority (rule) In re: Hanna Jesionowska Practice LLC
Bankr. S.D.N.Y. · 2026 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir. 1985); Cohoes, 931 F.2d at 228 .
cited Cited as authority (rule) J & J Pizza, Inc
Bankr. D.N.J. · 2021 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985) (“The text of the Rule tracks Fed.
cited Cited as authority (rule) Glassman v. Feldman
E.D.N.Y · 2020 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985)).
cited Cited as authority (rule) In re: Dennis Baham
9th Cir. BAP · 2020 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 586 (3rd Cir. 1985); Dubrowsky v. Estate of Perlbinder (In re Dubrowsky), 244 B.R. 560, 579 (E.D.N.Y. 2000). 13 CONCLUSION Based on the foregoing, we AFFIRM. 14
cited Cited as authority (rule) Theokary v. Abbatiello
Bankr. E.D. Pa. · 2012 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985)). 33 .
cited Cited as authority (rule) Santa Fe Minerals, Inc. v. BEPCO, L.P. (In Re 15375 Memorial Corp.)
Bankr. D. Del. · 2010 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3d Cir.1985).
cited Cited as authority (rule) Walker Ex Rel. Aphton Corp. v. Sonafi Pasteur (In Re Aphton Corp.)
Bankr. D. Del. · 2010 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3d Cir.1985). 94 .
cited Cited as authority (rule) Hannon v. Countrywide Home Loans, Inc. (In Re Hannon)
Bankr. M.D. Penn. · 2009 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985).
cited Cited as authority (rule) Crippen v. Stites (In Re Crippen)
Bankr. E.D. Pa. · 2006 · confidence medium
London v. Hunt, 977 F.2d 829 , 833 n. 3 (3d Cir.1992); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985).
cited Cited as authority (rule) Griffin v. Beaty (In Re Griffin)
Bankr. W.D. Ark. · 2005 · confidence medium
Sullivan Co., 843 F.2d 596, 598 (1st Cir.1988); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
cited Cited as authority (rule) In Re Jazz Photo Corp.
Bankr. D.N.J. · 2004 · confidence medium
Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
cited Cited as authority (rule) In Re Nicola
Bankr. E.D. Pa. · 2001 · confidence medium
See Landon v. Hunt, 977 F.2d 829 (3d Cir.1992); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985).
cited Cited as authority (rule) In Re Collins
Bankr. N.D. Ill. · 2000 · confidence medium
The debtor and creditor had been “bickering and squabbling for years in the state courts.” Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985).
cited Cited as authority (rule) Dubrowsky v. Estate of Perlbinder (In Re Dubrowsky)
E.D.N.Y · 2000 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
discussed Cited as authority (rule) In Re Shar (2×) also: Cited "see, e.g."
Bankr. D.N.J. · 1999 · confidence medium
In support of their argument that the Debtors’ filed in bad faith, the Judgment Creditors cite case law standing for the proposition that a debtor’s petition for reorganization should be dismissed where “there is no possibility of successful reorganization without inordinate delay and when the debtor entered the bankruptcy *630 process without any real intention of reorganizing.” Judgment Creditors’ Brief, supra, at p. 12 (citing Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985); In re Newark.
cited Cited as authority (rule) Gordon v. Mendelsohn (In Re Who's Who Worldwide Registry, Inc.)
E.D.N.Y · 1999 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
cited Cited as authority (rule) Norwalk Savings Society v. Peia (In Re Peia)
Bankr. D. Conn. · 1996 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3rd Cir.1985).
cited Cited as authority (rule) Cub Cadet Corp. v. Rosage (In Re Rosage)
Bankr. W.D. Pa. · 1995 · confidence medium
Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
discussed Cited as authority (rule) In Re Felberman
Bankr. S.D.N.Y. · 1995 · confidence medium
Weiszhaar Farms, Inc. v. Livestock State Bank, 113 B.R. 1017, 1020 (D.S.D.1990); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3d Cir.1985); Roberts v. Heim, 184 B.R. 814, 818 (N.D.Cal.1995); In re Huerta, 137 B.R. 356, 369 (Bankr.C.D.Cal.1992); In re Trina Associates, 128 B.R. 858, 872 (Bankr.E.D.N.Y.1991).
discussed Cited as authority (rule) In Re SB Properties, Inc.
E.D. Pa. · 1995 · signal: cf. · confidence medium
Cf. Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3d Cir.1985) (bankruptcy court did not abuse its discretion in assessing sanctions against party that invoked court’s process for purpose of delay and not for reorganization purpose).
discussed Cited as authority (rule) Roberts v. Heim
N.D. Cal. · 1995 · confidence medium
See In re King, 83 B.R. 843, 847 (Bankr.M.D.Ga.1988) (“Filing a bankruptcy petition simply to forestall and delay a state court action, with no intention to effectuate a legitimate reorganization, constitutes an abuse of the Bankruptcy Code”); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3d Cir.1985) (upholding imposition of sanctions under Federal Rule of Bankruptcy Procedure 9011 7 on party which “did not file its [Chapter 11 bankruptcy] petition for the purpose of reorganization but solely for delay”); In re Trina Assocs., 128 B.R. 858, 872 (Bankr.E.D.N.Y.1991) (pointi…
discussed Cited as authority (rule) Midlantic National Bank v. Kouterick (In Re Kouterick)
Bankr. D.N.J. · 1994 · confidence medium
Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3d Cir.1985) (quoting Fed.R.Bankr.P. 9011 advisory committee’s note.) Rule 9011 provides in pertinent part: If a document is signed in violation of this rule, the court on motion or on its own initiative, shall impose on the person who signed it, the represented party, or both, an appropriate sanction, which may be include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the document, including a reasonable attorney’s fee.
cited Cited as authority (rule) Haymaker v. Green Tree Consumer Discount Co.
Bankr. W.D. Pa. · 1994 · confidence medium
Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
cited Cited as authority (rule) In Re KTMA Acquisition Corp.
Bankr. D. Minn. · 1993 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985); Putnam Trust Co. of Greenwich v. Frenz (In re Frenz), 142 B.R. 611 , 613 n. 1 (Bankr.D.Conn.1992).
discussed Cited as authority (rule) In Re Joseph Gioioso Carol Jean Gioioso, Debtors. Chester J. Stuebben Westfield Home News Service, Inc. v. Joseph Gioioso Carol Jean Gioioso (2×)
3rd Cir. · 1992 · confidence medium
Corp., 774 F.2d at 586 (looking to Rule 11 advisory committee note for guidance in a Rule 9011 case). 21 We conclude that the bankruptcy court abused its discretion by refusing to impose any sanction against the debtors in the present case.
cited Cited as authority (rule) In Re Peia
Bankr. D. Conn. · 1992 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3rd Cir.1985).
discussed Cited as authority (rule) Putnam Trust Co. of Greenwich v. Frenz (In Re Frenz) (2×) also: Cited "see"
Bankr. D. Conn. · 1992 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3rd Cir.1985). 2 .
cited Cited as authority (rule) California Federal Bank, FSB v. Douglas (In Re Douglas)
Bankr. N.D. Ga. · 1992 · confidence medium
Id.; See Lawrence P. King et al., Collier on Bankruptcy *256 ¶ 9011.03, f.n. 1 (15th ed. 1990); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985).
discussed Cited as authority (rule) Marker v. Marker (In Re Marker)
Bankr. W.D. Pa. · 1991 · confidence medium
In providing for sanctions, Rule 9011 discourages in bankruptcy proceedings the same type of conduct which FED.R.CIV.P. 11 proscribes.” Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3rd Cir.1985).
cited Cited as authority (rule) Express America, Inc. v. Tamko Asphalt Products, Inc. (In Re Express America, Inc.)
Bankr. W.D. Pa. · 1991 · confidence medium
Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3rd Cir.1985).
cited Cited as authority (rule) Dorsey v. Dakota Rail, Inc. (In Re Dakota Rail, Inc.)
D. Minnesota · 1991 · confidence medium
Sullivan Co., 843 F.2d 596, 598 (1st Cir.1988); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
cited Cited as authority (rule) In the Matter of Cohoes Industrial Terminal, Inc., Debtor. Leon C. Baker, Cross-Appellee v. Latham Sparrowbush Associates, Cross-Appellant
2d Cir. · 1991 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
cited Cited as authority (rule) In Re Borg
Bankr. D. Mont. · 1989 · confidence medium
Contractors Association, 869 F.2d 1235 (9th Cir.1989); Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3rd Cir.1985); In re Morgan, 85 B.R. 622, 623 (Bankr.M.D.Fla.1987).
cited Cited as authority (rule) GEIBank Industrial Bank v. Martin (In Re Martin)
Bankr. N.D. Ga. · 1989 · confidence medium
Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3rd Cir.1985); In re Morgan, 85 B.R. 622, 623 (Bankr.M.D.Fla.1987); In re French Gardens, Ltd., 58 B.R. 959, 964 (Bankr.S.D.Texas 1986).
cited Cited as authority (rule) In Re Chisum
9th Cir. · 1988 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
cited Cited as authority (rule) Mortgage Mart, Inc. v. Rechnitzer
9th Cir. · 1988 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir.1985).
discussed Cited as authority (rule) Albert J. Gaiardo and Patricia Gaiardo, His Wife v. Ethyl Corporation, A/K/A Ethyl Corporation, Visqueen Division
3rd Cir. · 1987 · confidence medium
As we said in Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985), “ ‘Greater attention’ by the courts to ‘pleading and motions abuses and the imposition of sanctions when appropriate, should discourage dilatory or abusive tactics and help to streamline the litigation process by lessening frivolous claims or defenses.’ ” Against this background we now turn to the merits of the appeal before us.
cited Cited as authority (rule) Shmavonian v. Lewis (In Re Lewis)
9th Cir. BAP · 1987 · confidence medium
Corp. v. Edbee Corp., 774 F.2d 584 585 (3d Cir.1985) Thus, courts considering sanctions under Rule 9011 have relied extensively on cases considering sanctions under FRCP 11.
cited Cited as authority (rule) Mortgage Mart, Inc. v. Rechnitzer (In Re Chisum)
9th Cir. BAP · 1986 · confidence medium
Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585-86 (3d Cir.1985); In re Jones, supra, 41 B.R. at 267 .
cited Cited as authority (rule) In Re Eighty South Lake, Inc.
Bankr. C.D. Cal. · 1986 · confidence medium
Cinema Service Corp. v. Edbee Corp. (In Re Edbee), 774 F.2d 584, 586 (3rd Cir.1985).
cited Cited "see" Y.J. Sons & Co. v. Anemone, Inc. (In Re Y.J. Sons & Co.)
D.N.J. · 1997 · signal: see · confidence high
See id. at 2 (citing In re Brown, 951 F.2d 564 ).
cited Cited "see" In Re I-95 Technology-Industrial Park, L.P.
Bankr. D.R.I. · 1991 · signal: see · confidence high
See Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985).
discussed Cited "see" Matter of Jones (2×)
Bankr. N.D. Ind. · 1990 · signal: see · confidence high
See Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3rd Cir.1985); In re Walker, 102 B.R. 612, 615 (Bankr.N.D.Ohio 1989); Matter of King, 83 B.R. 843, 847 (Bankr.M.D.Ga.1988).
discussed Cited "see" In Re Nahas
Bankr. W.D. Pa. · 1989 · signal: see · confidence high
See Edbee Corp., supra. We find that abstention is the best course of action in this case 1 and will enter an order dismissing the bankruptcy without prejudice to refiling, if appropriate, once all state court matters now pending have been resolved.
cited Cited "see" Matter of King
Bankr. M.D. Ga. · 1988 · signal: see · confidence high
See Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 586 (3d Cir.1985); In re Whitten, 11 B.R. 333, 338 , 7 Bankr.Ct.Dec. 902, 904 , 4 Collier Bankr.Case.2d 817, 824-25 (Bankr.D.C.1981). 12 .
cited Cited "see" Haardt v. Funk (In Re Haardt)
Bankr. E.D. Pa. · 1987 · signal: see · confidence high
See Cinema Service Corp. v. Edbee Corp., 774 F.2d 584 (3d Cir.1985).
cited Cited "see" In Re Indian Rocks Landscaping of Indian Rocks Beach, Inc.
Bankr. M.D. Fla. · 1987 · signal: see · confidence high
See, for example, Cinema Service Corp. v. Edbee Corp., 774 F.2d 584 (3d Cir.1985); In re Bellew, 71 B.R. 72 (M.D.Fla. 1987); In re French Gardens, Ltd., 58 B.R. 959 (Bankr.
cited Cited "see" In Re Hargis
Bankr. N.D. Tex. · 1987 · signal: see · confidence high
See Cinema Service Corp. v. Edbee Corp., 774 F.2d 584 (3d Cir.1985).
cited Cited "see" Communications Workers, Local No. 11500 v. Akridge (In Re Akridge)
Bankr. S.D. Cal. · 1987 · signal: see · confidence high
See Cinema Service Corp. v. Edbee Corp., 774 F.2d 584, 585 (3d Cir. 1985).
cited Cited "see" Dubin v. Jakobowski (In Re Stephen W. Grosse, P.C.)
Bankr. E.D. Pa. · 1987 · signal: see · confidence high
See Cinema Service Corp. v. Edbee Corp., 774 F.2d 584 (3d Cir.1985).
Retrieving the full opinion text from the archive…
CINEMA SERVICE CORPORATION, Appellee,
v.
EDBEE CORPORATION, Appellant
Robert 0. Lampl, David Fleming Taylor, Janice L. Morison, Pittsburgh, Pa., for appellant., Jon Hogue, Darlene M. Nowak, Titus Marcus & Shapira, Pittsburgh, Pa., for ap-pellee.
Adams, Gibbons, Weis.
Cited by 77 opinions  |  Published

OPINION OF THE COURT

WEIS, Circuit Judge.

The Bankruptcy Rules, like the Federal Rules of Civil Procedure encourage the use of sanctions to put a damper on litigation tactics that pervert the judicial system. In this case, after finding that a chapter 11 petitioner had wrongfully invoked the court’s process, a bankruptcy judge directed the payment of counsel fees to a creditor. We agree with the district court that the order was proper and will affirm.

After dismissing appellant Edbee’s chapter 11 reorganization petition, the bankruptcy judge conducted a hearing to determine if sanctions should be imposed. Finding that Edbee had filed the petition for the purpose of delay and not for reorganization, the bankruptcy judge directed the debtor to pay as a sanction the sum of $3,000 in attorneys’ fees to its creditor Cinema Service. The district court, on appeal, affirmed the order of the bankruptcy judge.

The debtor Edbee is a Pennsylvania corporation, having as its sole asset a movie theater which it leased to Cinema Service in 1971 for a term of twenty years. Edbee assigned the lease to its mortgagee, the Union National Bank, and Cinema thereafter paid a portion of the rent equal to the mortgage payments to the Bank. The remainder was remitted to Edbee.

When Cinema’s demands for repairs were not resolved to its satisfaction, it began withholding the portion of the rental payments due Edbee. A series of suits and countersuits in the state court followed over a period of years, with each party securing judgments against the other. Cinema sought and obtained execution on its judgment, and the theater was scheduled for a sheriff’s sale on Monday, February 6, 1984. However, Edbee filed its[*585] chapter 11 petition on Friday, February 3, 1984, automatically staying the sale.

Both Cinema and the Bank urged the bankruptcy judge to dismiss the petition under 11 U.S.C. § 305, and Edbee asked for the appointment of an auditor to examine Cinema’s records. The bankruptcy judge was determined not to allow the proposed audit to “be a collateral attempt to open the state court judgment.” He therefore directed debtor to post a bond in the amount of the judgment. The bond was imposed to “simulate the circumstances which the debtor would be required to meet under a [reorganization] plan.” The petition was dismissed on April 30, 1984 when Edbee was unable to secure a bond.

In May 1984, Edbee filed a petition in the state court to stay execution and apply setoff. The Common Pleas Court reduced the amount of Cinema’s judgment, and the Pennsylvania Superior Court affirmed that order.

In June 1984, the bankruptcy judge held a hearing on Cinema’s request for attorneys’ fees and costs in the amount of $4,000. Cinema argued that sanctions were appropriate because Edbee had “filed its petition only to harass and delay its secured creditor in the exercise of its lawful collection rights ... it had absolutely no realistic possibility of reorganizing ... was not operating a business ... and had no unsecured business creditors.”

In a Memorandum Opinion, the bankruptcy judge reviewed the history of the proceedings. In discussing the automatic stay provisions of chapter 11, he wrote, “When this stay is used for purposes other than reorganizing, this judicial process has been abused.” He continued, “The court concludes in this case that the debtor filed this ease for purposes of delay and not for the purpose of reorganizing. Delay is not a proper purpose and it has served to increase the costs of petitioners.” The bankruptcy judge then ordered debtor to pay the sum of $3,000 as an appropriate sanction under the circumstances.

Determining that the bankruptcy court’s findings were not clearly erroneous, the district court affirmed the order awarding attorneys’ fees. The district judge concluded that Bankruptcy Rule 9011 authorizes the payment of the adversary’s fees when a bankruptcy petition is filed for improper purposes.

Edbee has appealed, as stated in its notice, from the order “awarding attorneys’ fees to Cinema Service Corporation in Ed-bee’s bankruptcy case.” In its brief in this court, Edbee raises several contentions which could be read as challenges to other orders of the bankruptcy judge, including the one directing the posting of a bond as a precondition to an audit. On this appeal, however, we consider only the propriety of the order for sanctions under Bankruptcy Rule 9011. [1] We have, nevertheless, reviewed the bankruptcy case in its entirety as background for the invocation of Rule 9011.

The Committee Note to the Bankruptcy Rule 9011 is quite terse, stating that “the last sentence of this subdivision [a] authorizes a broad range of sanctions.” The text of the Rule tracks Fed.R.Civ.P. 11, with only such modifications as are appropriate in bankruptcy matters. In providing for sanctions, Rule 9011 discourages in bankruptcy proceedings the same type of conduct which Fed.R.Civ.P. 11 proscribes, particularly through its amendments adopted in 1983.

The 1983 amendments to Rule 11 provide that “the signature of an attorney or party constitutes a certificate by him that he has read the pleading, motion, or other paper ... and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation.” In addition, Bankruptcy Rule 9011 includes as a[*586] document “a petition” and as one of the prohibited purposes “to cause delay or to increase the cost of litigation.” Both rules provide that on violation, “the court on motion or on its own initiative shall impose on the person who signed [a document], the represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred ... including a reasonable attorney’s fee.”

The Committee Note to Rule 1.1 states that the rule is intended to reduce the reluctance of courts to impose sanctions. “Greater attention” by the courts to “pleading and motions abuses and the imposition of sanctions when appropriate, should discourage dilatory or abusive tactics and help to streamline the litigation process by lessening frivolous claims or defenses.” The Note also emphasizes the rule’s use of words such as “shall impose” to “focus the court’s attention on the need to impose sanctions for pleading and motion abuses.”

In the case at hand, the bankruptcy judge was presented with a situation where Edbee and Cinema Service had been bickering and squabbling for years in the state courts. Edbee’s filing of the chapter 11 petition was precipitated, not by a desire, or need for reorganization, but simply to stave off a sheriff’s sale on Cinema’s state court judgment. As the bankruptcy judge was well aware, the automatic stay granted in chapter 11 petitions is intended to give the debtor “breathing room” to facilitate reorganization. An attempt to stop a sheriff’s sale, if undertaken pursuant to a legitimate effort at reorganization, is not reprehensible and is in accord with the aim of the Bankruptcy Code. Similar considerations apply in a chapter 7 proceeding. We point out, however, that we are not here confronted with a situation where existing or threatened claims may constitute an actual, substantial danger to the economic viability of a corporation.

As the bankruptcy judge found, however Edbee did not file its petition for the purpose of reorganization but solely for delay. Indeed, Edbee’s counsel conceded before the bankruptcy judge that “all that the debtor attempted to achieve down here was a reconciliation of what it owed. Of course it was to stop the sheriff but that is one of the benefits of filing a Chapter 11. When there is a reorganization in a Chapter 11, you get a stay. It [debtor] wanted to reconcile its difficulties and pay the balance in some acceptable manner.”

As the record demonstrates, the proper way to clarify the amount due was to petition the state court for a stay of the sheriff’s sale so that a hearing on the claim of setoff could be set. After the bankruptcy court dismissed the petition, Edbee followed precisely that procedure in the state court and was able to secure a reduction in the amount owed to Cinema.

On a record such as this we cannot say that there was error, let alone clear error, in the bankruptcy judge’s factual finding that the bankruptcy process had been abused through the filing of the chapter 11 petition. Ascertainment of the correct standing of accounts between two parties, particularly when both hold state judgments, is a matter for resolution in state court. The controversy did not involve any other creditor of the debtor, and the dispute clearly was not a proper subject for invocation of a bankruptcy proceeding.

The bankruptcy judge did not abuse his discretion in assessing sanctions, but followed the intent and spirit of Rule 9011. Accordingly, the judgment of the district court affirming the order of the bankruptcy judge will in turn be affirmed.

1

. Dismissal of a bankruptcy proceeding under § 305(a), the provision used by the bankruptcy judge here, is not reviewable on appeal. See 11 U.S.C. § 305(c).