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GREAT AMERICAN INSURANCE COMPANY,
Plaintiff-Appellee,
v.
E.L. BAILEY & COMPANY, INC.; EDWARD L. BAILEY,
Defendants-Appellants.
   No. 15-2149
Appeal from the United States District Court
for the Eastern District of Michigan at Detroit.
No. 2:12-cv-13033—Arthur J. Tarnow, District Judge.
Argued: September 28, 2016
Decided and Filed: November 7, 2016
Before: GILMAN, GIBBONS, and STRANCH, Circuit Judges.


_________________________
OPINION
_________________________

JANE B. STRANCH, Circuit Judge. The State of Michigan contracted with E.L. Bailey & Company, Inc., a general contractor, to construct a prison kitchen. After delays, Bailey and the State sued each other for breach of contract in the Michigan Court of Claims. As required by Michigan law, Bailey had obtained surety bonds guaranteeing its performance from Great American Insurance Company (GAIC) in exchange for which Bailey agreed to assign GAIC the right to settle claims related to the construction project if Bailey allegedly breached the construction contract. Exercising this right, GAIC negotiated with the State to settle Bailey’s claims without Bailey’s knowledge. GAIC then sought a declaratory judgment from the district court recognizing its right to settle. The district court granted summary judgment to GAIC. On appeal, Bailey’s sole argument is that GAIC settled Bailey’s claims against the State in bad faith. Because Bailey presented insufficient evidence of bad faith, we AFFIRM.



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In re: EARL BENARD BLASINGAME; MARGARET GOOCH BLASINGAME,
Debtors.
__________________________________________

CHURCH JOINT VENTURE, L.P.; FARMERS & MERCHANTS BANK,
Plaintiffs-Appellees,

EDWARD L. MONTEDONICO, JR.,
Plaintiff,
v.
EARL BENARD BLASINGAME, et al.,
Defendants,

MARTIN A. GRUSIN,
Appellant.
   No. 14-8046
Appeal from the United States Bankruptcy Court
for the Western District of Tennessee at Memphis.
No. 08-28289—Jennie D. Latta, Judge.
Argued: March 1, 2016
Decided and Filed: November 7, 2016
Before: HARRISON, HUMPREY, and PRESTON, Bankruptcy Appellate Judges.


_________________________
OPINION
_________________________

C. KATHRYN PRESTON, Chief Bankruptcy Appellate Panel Judge. Attorney Martin A. Grusin (“Grusin”) appeals the bankruptcy court’s orders imposing sanctions against him. Sanctions were separately awarded against attorney Tommy L. Fullen (“Fullen”), but he did not appeal. The bankruptcy court imposed monetary sanctions pursuant to Federal Rule of Bankruptcy Procedure 9011 and 28 U.S.C. § 1927 in the form of attorney fees and expenses that Chapter 7 Trustee Edward L. Montedonico (“Trustee”) and creditors Church Joint Venture (“CJV”) and Farmers and Merchants Bank, Adamsville, TN (“FMB”) (together, “Church Joint Venture”), incurred relating to Debtors’ bankruptcy case and litigation arising in that case.

. . .

For the reasons set forth herein, the Panel concludes that the bankruptcy court erred in awarding Rule 9011 sanctions because Church Joint Venture did not comply with the safe harbor provision and the exception to the safe harbor provision does not apply to Grusin’s actions. Additionally, the Panel concludes that the bankruptcy court erred in awarding sanctions pursuant to 28 U.S.C. § 1927 because the bankruptcy court’s factual findings do not support the conclusion that Grusin vexatiously multiplied the proceedings. Accordingly, the Order Granting Motion for Sanctions entered by the bankruptcy court on July 16, 2014 and the Amended Order Setting Amounts of Additional Sanctions entered by the bankruptcy court on August 5, 2015 are vacated to the extent that they impose sanctions against Grusin.