The First Circuit upheld a sanction award against ECMC for abuse of bankruptcy process based on that lender’s continued efforts to collect a student loan that had been found to be fully satisfied prior to bankruptcy. Hann v. ECMC, No. 12-9006 (1st Cir. March 29, 2013). [Read more…] about Sanctions Upheld against ECMC for Trying to Collect Repaid Student Loan
$3 Million Punitive Damage Award Upheld against Wells Fargo
Despite repeated bludgeoning by the courts for its conduct, Wells Fargo Home Mortgage, Inc., has tenaciously and relentlessly fought against accepting responsibility for misapplying mortgage payments and charging unapproved fees. Now the district court for the Eastern District of Louisiana has upheld a punitive damages award of over $3 million against Wells Fargo. Jones v. Wells Fargo, No. 12-1362 (E.D. La. March 19, 2013). [Read more…] about $3 Million Punitive Damage Award Upheld against Wells Fargo
Attorney Fees for Litigating Damage Actions Based On Stay Violation
The Ninth Circuit decision in Sternberg v. Johnston, reared its ugly head to limit recovery of attorney fees in a stay violation action in the recent case of Check Into Cash v. Snowden (In re Snowden), No. 12-1095 (W.D. Wash. March 11, 2013). Snowden came to the district court on appeal and cross-appeal of the Bankruptcy Court’s award of damages for emotional distress and punitive damages resulting from Check Into Cash (CIC)’s violation of the automatic stay.
After affirming both the emotional distress and punitive damage awards the court rejected the debtor’s invitation to revisit its earlier decision in a previous appeal that the award of attorney fees was properly limited, under Sternberg v. Johnston, 595 F.3d 937 (9th Cir. 2010), cert. denied, 131 S. Ct. 102 (2010), to those fees pre-dating the adversary proceeding. [Read more…] about Attorney Fees for Litigating Damage Actions Based On Stay Violation
Bank is Sanctioned for Rule 3001 Violation
A bankruptcy court in Colorado sanctioned FirstBank for failure to comply with the itemization requirements of Rule 3001. In re Jimenez, No. 12-26282 (Bankr. Colo. Feb. 1, 2013). [Read more…] about Bank is Sanctioned for Rule 3001 Violation