An involuntary petitioner whose claim was paid after filing is still counted as an involuntary petitioner, the Ninth Circuit BAP says.
Eighth Circuit panel disagrees about whether federal preemption bars state law claims for dismissal of an involuntary petition.
Reversing the BAP, the Ninth Circuit held that counsel’s oral waiver of sovereign immunity did not bind the state.
Motions for fees must be made within 14 days of the entry of judgment.
The circuits are split on whether a creditor has an ‘unfettered’ right to join as an involuntary petitioner.