Trials & Litigation

Unbowed by 9th Circuit contempt order, ex-billionaire's lawyer says he 'feels like Gandhi'

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A California lawyer apparently was not daunted by a contempt order issued Tuesday by a federal appeals court panel.

Responding to 9th U.S. Circuit Court of Appeals findings that he had pursued a frivolous appeal and attempted to “smear” the reputation of a bankruptcy judge to “wriggle out of” an adverse ruling, attorney Michael Flynn accused the three-judge panel of retaliating against him for his criticism of the bankruptcy judge. He said he intends to appeal the contempt ruling to the en banc 9th U.S. Circuit Court of Appeals and, if necessary, the U.S. Supreme Court, reports the Associated Press.

“I feel like Gandhi fighting the Brits,” Flynn said. “Truth is on my side. The power is on their side. Ultimately, the truth will prevail.”

The Tuesday order (PDF) also held Flynn’s client, onetime billionaire real estate entrepreneur Timothy Blixseth, in contempt, due to the “utter frivolousness” of the appeal. Each man was ordered to pay $500 to the court clerk, and reimburse opponents in the Montana case for the as-yet-undetermined cost of defending the appeal. “Flynn’s conduct has been unprofessional throughout the proceedings,” the order stated, adding that Flynn displayed a “propensity for distortion” throughout the trial and the appeal.

Four other lawyers involved in the appeal on Blixseth’s side were warned by the 9th Circuit panel “to act more responsibly in the future” but were not required to pay sanctions.

While the quartet “allowed their names to be placed on briefs that presented frivolous and inflammatory arguments,” they also responded to the contempt case by explaining how the appellate argument was supported, saying that they had acted in good faith and emphasizing their limited role, the 9th Circuit wrote. “They don’t attack the bankruptcy judge or this panel, nor do they regurgitate Flynn and Blixseth’s conspiracy theories.”

Blixseth has been jailed since April for contempt, because he has not explained to a federal district judge’s satisfaction what happened to $13.8 million he got from selling a Mexican resort.

Related coverage:

ABAJournal.com: “On Forbes 400 list before 2008 business bankruptcy, ex-billionaire has paid $141.07 to trustee”

ABAJournal.com: “Federal judge jails ex-billionaire for contempt until he explains where $13.8M from resort sale went”

Seattle Weekly: “How to Lose $1 Billion”

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