A district court has subject matter jurisdiction over a claim under section 362(k) without regard to a standing order referring all bankruptcy-related cases to the bankruptcy courts, and dismissal under FRCP 12(b)(6) is inappropriate where the allegations in the complaint present a plausible explanation for the defendant’s conduct. Houck v. Substitute Trustee Services, No. 13-2326 (4th Cir. July 1, 2015). [Read more…] about District Court Has Original Jurisdiction over 362(k) Claim
In re Weidenbenner, No. 15-244 (S.D. N.Y.)
Type: Amicus
Date: June 15, 2015
Description: Whether bankruptcy court erred in ruling that Wells Fargo’s administrative freeze of Chapter 7 debtors’ bank accounts violated the automatic stay.
Result: Pending
Court Rejects Bank’s “Devil Made Me Do It” Defense
A bankruptcy court awarded almost $70,000.00 in damages for PNC’s stay violation. In re Ogden, No. 11-19841 (Bankr. D. Colo. June 1, 2015). It is easy to feel imaginary malice behind the often frustrating interactions with impersonal, computer-operated, entities with which we all find ourselves conducting business. In this case, however, the court found that the debtor’s sense of actual ill will was confirmed by testimony from PNC’s representative in its defense to the charge of stay violation. [Read more…] about Court Rejects Bank’s “Devil Made Me Do It” Defense
Order on Stay Violation Final despite Pending Issue as to Attorney Fee Award
Where the only issue left to be determined was whether the debtor had incurred attorney fees and costs in connection with the creditor’s stay violation, the order finding liability, and determining actual damages was a final, appealable order. USDA v. Sexton (In re Sexton), No. 14-453 (W.D. Va. March 31, 2015). [Read more…] about Order on Stay Violation Final despite Pending Issue as to Attorney Fee Award
Sternberg Does Not Preclude Attorney Fee Award
Where the creditor had not returned garnished funds at the time of the hearing for damages for the stay violation, the debtor was entitled to recovery of attorney fees incurred in connection with that hearing. In re Eeds, No. 14-61005 (Bankr. Mont. March 16, 2015). [Read more…] about Sternberg Does Not Preclude Attorney Fee Award
Right to Cure Preempts State Law Property Rights
Bankruptcy law enhances and expands a debtor’s state law property rights by specifying the time within which a debtor may cure a mortgage default. In re Ausburn, No. 16153 (Bankr. E.D. Ark. Feb. 10, 2015). [Read more…] about Right to Cure Preempts State Law Property Rights
American Servicing Co. v. Schwartz-Tallard, No. 12-60052 (9th Cir.)
Type: Amicus
Date: January 23, 2015
Description: Whether a debtor can obtain an award of attorney fees under section 362(k) for prosecuting stay violation. Seeking to overturn Sternberg v. Johnston, 595 F.3d 937 (9th Cir. 2010).
Result: Judgment affirmed, August 29, 2015, Petition for rehearing filed September 12, 2014; En banc decision affirming judgment of BAP and overturning Sternberg.
NACBA Weighs in on Sternberg Issue
The NACBA membership has filed an amicus brief in the Ninth Circuit case of America’s Servicing Co. v. Schwartz-Tallard (In re Schwartz-Tallard), No. 12-60052 (filed Jan. 23, 2015). The brief seeks reconsideration of that court’s 2010 decision in Sternberg v. Johnston, 595 F.3d 937 which limited the right to recover attorney fees to those incurred in the effort to terminate a stay violation, but not to the fees incurred prosecuting section 362(k) damage claims. [Read more…] about NACBA Weighs in on Sternberg Issue
Nondischargeability of Debt Not Per Se “Cause” for Lifting of Stay
The Eleventh Circuit vacated the district court’s finding that nondischargeability of a debt, standing alone, is “cause” to grant relief from stay under section 362(d)(1). Disciplinary Board of the Supreme Court of Pa. v. Feingold (In re Feingold), No. 12-13817 (Sept. 17, 2013). [Read more…] about Nondischargeability of Debt Not Per Se “Cause” for Lifting of Stay
Proceeds of Settlement for Stay Violation Part of Bankruptcy Estate
The district court for the southern district of Georgia held that settlement proceeds from post-confirmation violation of the automatic stay under section 362(k) are property of the chapter 13 estate under section 1306(a)(1). Crouser v. BAC Home Loans Servicing, No. 12-156 (S.D. Ga. Aug. 21, 2013). [Read more…] about Proceeds of Settlement for Stay Violation Part of Bankruptcy Estate