In re: Sundquist v. Bank of America, NA | Bank of America Hit with $45 Million in Punitive Damages for Stay Violations

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.

Conclusion

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 ($3,000,000.00 each). This opinion contains [*103] findings of fact and conclusions of law. An appropriate Judgment shall be entered.