Thursday, April 13, 2017

bankruptcy - automatic stay - willful violation - emotional distress damages

In re Landsaw – 3d Cir. – April 10, 2017


The filing of a bankruptcy petition operates as an automatic stay of debt collection activities outside of bankruptcy proceedings. 11 U.S.C. § 362(a).  If “an individual [is] injured by any willful violation of [the] stay,” that individual “shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.” Id. § 362(k)(1).

In the present case, a creditor committed several willful violations of the automatic stay arising from the debtors’ bankruptcy petition. Because of these violations, the Bankruptcy Court awarded the debtors  emotional-distress damages as well as punitive damages under § 362(k)(1).  The District Court affirmed the awards.

We conclude that § 362(k)(1) authorizes the award of emotional-distress damages and that the debtors presented sufficient evidence to support such an award. We also conclude that the debtors were properly awarded punitive damages.
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Tuesday, April 11, 2017

UC - late appeal - misleading information

Greene v. UCBR – Cmwlth. Court – March 10, 2017


Claimant denied nunc pro tunc late appeal in spite of the fact that he was incorrectly advised that he could not collect UC benefits while receiving severance pay, since there were “no statements attributable to compensation authorities that address the availability, timing or need for an appeal.”  The Court held that “not every misstatement by an apparently authoritative person will justify a nunc pro tunc appeal; rather, the misinformation must relate to the availability, timing or need for an appeal. “

Dissent
The question of whether permission to appeal nunc pro tunc should be granted is one which lies in equity. See Bass v. Bureau of Corrections, 401 A.2d 1133 (Pa. 1979); see also, Schofield v. Department of Transportation, Bureau of Driver Licensing, 828 A.2d 510, 512 (Pa. Cmwlth. 2003).

This case involved a simple matter of fairness. There is no question that misleading information by a governmental entity was provided to Claimant. This information, at the very least, influenced (if not outright controlled) Claimant's decision-making process about whether and when to appeal, and created an impediment to the timely filing of the appeal. Submitting the equitable question to the standard employed by the Majority places such a noose around it as to choke it of all sense of fairness.