Is a bankruptcy court's decision whether to award attorney's fees reviewed for abuse?

federal, United States of America

The following excerpt is from Moon v. Rushmore Loan Mgmt. Servs., LLC (In re Moon), BAP No. NV-20-1199-BFL (B.A.P. 9th Cir. 2021):

The bankruptcy court's decision whether to award attorney's fees is reviewed for abuse of discretion. See Easley v. Collection Serv. of Nev., 910 F.3d 1286, 1289 (9th Cir. 2018). However, when the principal issue raised on appeal is legal in nature, we review the bankruptcy court's award de novo. See id.

The bankruptcy court abuses its discretion if it applies the wrong legal standard or its findings of fact are clearly erroneous. Olomi v. Tukhi (In re Tukhi), 568 B.R. 107, 112-13 (9th Cir. BAP 2017) (citing United States v. Hinkson, 585 F.3d 1247, 1261-62 & n.20 (9th Cir. 2009) (en banc)).

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