This is an appeal from a trial in the bankruptcy court. Under bankruptcy rules, the losing party can appeal the decision to the federal district court. Here, the debtor failed to disclose an expert before trial in the bankruptcy court. The expert’s opinion was excluded. The debtor, however, in post-trial briefs, included references to the evidence that had been barred. The court sanctioned the lawyers under its inherent power, finding that they acted in bad faith and had violated a court order excluding the evidence. On appeal, the district court agreed and affirmed the sanction award.
It appears from the opinion that the Bankruptcy court considered the inclusion of excluded evidence in a post-trial submission to be sneaky and underhanded.