Midwest Rubber Reclaiming Company and Hough Area Development Corporation appeal an order of the district court which reversed the decision of the bankruptcy court dismissing the claims of First Bank National Association on the basis of its attorney not having appeared at a hearing, and the bankruptcy court's subsequent denial of the bank's motion for reconsideration.

In its order, the district court noted that the bank's attorney had exercised poor judgment by not informing the bankruptcy court that he would be late for the hearing, but that the bankruptcy court's sanction for this lack of good judgment caused the bank to suffer a large financial loss. The district court went on to point out that, while some sanction might have been warranted, the one selected by the bankruptcy court was excessively harsh.

Having carefully considered the record on appeal, the briefs of the parties, and the arguments of counsel, we conclude that the district court properly reversed the orders of the bankruptcy court. Accordingly, the order of the district court, dated May 14, 1987, is affirmed upon the reasoning set out in the court's opinion of that same date, and this cause is remanded to the bankruptcy court for consideration of the merits of the bank's claim, and to determine what form of lesser sanction, if any, should be imposed.