Weaver, Uncle Nearest Receiver Say They Acted Reasonably

In two different documents filed with the judge overseeing the Uncle Nearest Inc. receivership, the financially challenged firm's attorneys and Fawn Weaver, its founder/CEO, rejected accusations their conducted justifies sanctions be imposed by the courst.

The first reponse to receiver Phillip G. Young's petition for sanctions says, in so many words, the motion for sanctioins against Uncle Nearet's attorneys fails to identify a proper legal basis for sanctions against counsel.. It "relies on conclusory assertions that the conduct was “willful” or “unauthorized,” without tying those assertions to the elements required under any applicable sanctioning framework. That is insufficient." The reciever's motion lacks a specific finding of bad faith, it adds. Existing case law in the Sixth Circuiy supports the idea the bankruptcy filing was made in good faith, it says. "At the most, this is a legal dispute, not sanctionable conduct, the filing says.

Founder/CEO Fawn Weaver's response built upon those argument and added another: "Ms. Weaver’s exercise of rights embodied in the Constitution are not restricted by any orders of this Court and do not provide a basis for sanctions against her."

The issue for purposes of the sanctions motion is not whether the dismissal of the bankruptcy cases was appropriate, but whether the petition itself was proper. The Bankruptcy Court