UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ IN RE: GAYLE H. BAGSBY, │ Debtor. │ _______________________________________________ │ E. COVINGTON JOHNSTON, JR., │ No. 20-5497 > Appellant, │ │ v. │ │ │ HENRY E. HILDEBRAND, III, Chapter 13 Trustee; UNITED │ STATES TRUSTEE, Region 8, │ Appellees. │ ┘

On Appeal from the Bankruptcy Appellate Panel for the Sixth Circuit; No. 19-8017—Jimmy L. Croom, Jessica E. Price Smith, and Tracey N. Wise, Bankruptcy Appellate Panel Judges. United States Bankruptcy Court for the Middle District of Tennessee at Nashville; Nos. 3:19-bk-01810; 3:18-bk-01762; 3:16-bk-08631—Charles M. Walker, Judge.

Decided and Filed: July 19, 2022

Before: ROGERS, STRANCH, and DONALD, Circuit Judges.

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COUNSEL ON BRIEF: Phillip G. Young, Jr., THOMPSON BURTON PLLC, Franklin, Tennessee, Winston S. Evans, EVANS, JONES & REYNOLDS, Nashville, Tennessee, for Appellant. No. 20-5497 Johnston v. Hildebrand, et al. Page 2

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OPINION _________________

BERNICE BOUIE DONALD, Circuit Judge. Attorney E. Covington Johnston filed bare-bones Chapter 13 bankruptcy petitions on behalf of Gayle Bagsby in 2016 and 2018 at the request of Gayle Bagsby’s daughter, Elizabeth Pace Bagsby. There was only one glaring issue with this arrangement— one cannot file for bankruptcy on behalf of a deceased person and Gayle Bagsby died on February 28, 2006. Elizabeth Bagsby was Administratix of her mother’s probate estate. After the dismissal of the 2018 petition, Elizabeth Bagsby, proceeding pro se, filed three more Chapter 13 petitions on Gayle Bagsby’s behalf.

In March 2019, the Chapter 13 Trustee filed a motion to dismiss and a motion for sanctions against Elizabeth Bagsby after she filed yet another Chapter 13 petition, pro se. As a result, the bankruptcy court ordered Mr. Johnston to appear and show cause as to why he should not be subject to sanctions for filing the two Chapter 13 petitions on behalf of Gayle Bagsby, a deceased person, back in 2016 and 2018.1 After the show cause hearing, the bankruptcy court reopened the first two cases filed in Gayle Bagsby’s name and issued sanctions sua sponte against Mr. Johnston and Elizabeth Bagsby. In particular, the bankruptcy court determined that 1) Mr. Johnston failed to conduct any inquiries or legal research, 2) there was no basis in existing law to support a reasonable possibility of success, and 3) the cases were filed for the express purpose of delaying foreclosure actions. Therefore, the bankruptcy court concluded Mr. Johnston violated Rule 9011 of the Federal Rules of Bankruptcy Procedure and issued sanctions. Mr. Johnston appealed to the Bankruptcy A