United States Bankruptcy Court for the Eastern District of California
March 23, 2017, Decided
Adv. Pro. No. 14-02278, Case No. 10-35624-B-13J
ERIK SUNDQUIST and RENÉE SUNDQUIST, Plaintiffs,
v. BANK OF AMERICA, N.A.; RECONTRUST COMPANY, N.A.; BAC HOME LOANS SERVICING, LP, Defendants. In re: ERIK SUNDQUIST and RENÉE SUNDQUIST, Debtors.
Bank of America willfully violated the automatic stay by,
among other things, foreclosing on the Sundquist residence,
prosecuting an unlawful detainer action, forcing them to
move, secretly rescinding the foreclosure, failing to protect
the residence from looting, refusing to pay for Sundquist
property lost, and subjecting the Sundquists to a mortgage
modification charade. Pursuant to § 362(k)(1), Bank of
America [*102] is liable for all damages incurred between the
initial violation of the automatic stay and the time the stay
violation is fully remedied (which remedy comes in this
decision and accompanying judgment).
The actual § 362(k)(1) damages are $1,074,581.50. The
appropriate § 362(k)(1) punitive damages are $45,000,000.00.
The Sundquists are enjoined to deliver $40,000,000.00 (minus
applicable taxes) to public service entities that are important
in education in consumer law and delivery of legal services to
consumers: National Consumer Law Center ($10,000,000.00),
National Consumer Bankruptcy Rights Center
($10,000,000.00), and the five public law schools of the
University of California System ($4,000,000.00).
Bank of America may have a remittitur of $40,000,000.00 of
the punitive damages if, and only if, it contributes a total of
$30,000,000.00 (to be used only for education in consumer
law and delivery of legal services to consumers and be subject
to no other condition imposed by Bank of America) to
National Consumer Law Center ($7,500,000.00), National
Consumer Bankruptcy Rights Center ($7,500,000.00), and the
five public law schools of the University of California System
This opinion contains [*103] findings of fact and conclusions
of law. An appropriate Judgment shall be entered.