In re: Marshall’s Vista Ltd; Marshall’s Harbor Ltd v. Vestin Mortgage, Inc.

* Pursuant to 5TH CIR. R. 47.5, the court has determined
that this opinion should not be published and is not precedent
except under the limited circumstances set forth in 5TH CIR.
R. 47.5.4.
United States Court of Appeals
Fifth Circuit
F I L E D
June 15, 2007
Charles R. Fulbruge III
Clerk
IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
No. 06-50673
IN RE: MARSHALL’S VISTA LTD; MARSHALL’S HARBOR LTD,
Debtors.
KEMP W. GORTHEY,
Appellant,
v.
VESTIN MORTGAGE, INC.,
Appellee.
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Appeal from the United States District Court
for the Western District of Texas, Austin
USDC No. 1:05-CV-648
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Before GARWOOD, SMITH, and DeMOSS, Circuit Judges.
PER CURIAM:*
The United States Bankruptcy Court for the Western District
of Texas, Austin Division, issued an order of sanctions against
Appellant, Kemp Gorthey, who is lead counsel for Point
Construction, Inc. Gorthey subsequently appealed to the United
States District Court for the Western District of Texas, and the
district court affirmed the sanctions order. Gorthey timely
appeals to this Court.
The facts of this case are fully set forth in the memorandum

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opinions of both the bankruptcy court and district court. A
bankruptcy court’s decision to impose sanctions is discretionary,
therefore appellate review is for an abuse of discretion. In re
First City Bancorporation, 282 F.3d 864, 867 (5th Cir. 2002).
The bankruptcy court determined that (1) the claims raised
by Gorthey for a constitutional and/or statutory lien had no
basis in fact or law; (2) the caselaw cited by Gorthey did not
support a reasonable argument for the extension of existing law;
(3) Gorthey’s claims were objectively frivolous and raised only
for the improper purpose of delay; and (4) Gorthey failed to
adequately review the facts and evidence supporting his claims.
After considering the oral arguments and reviewing the
briefs and record on appeal, we are not persuaded that the
bankruptcy court abused its discretion by issuing sanctions
against Gorthey. Accordingly we AFFIRM.
AFFIRMED.

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