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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