Summary:
Piedmont Equine Associates, Inc., and its debt collector, Madison Credit Bureau Associates, Inc., continued to contact the Debtors about payment of a debt, not only after notice of the bankruptcy, but after it had filed a Proof of Claim. The contacts included letters, telephone calls and direct contact by their daughter’s horse trainer.
The Court found that Piedmont had violated 11usc 362 and that recovery for actual damages under § 362(k) included emotional distress. Evidence of emotion distress "need not rise to the level necessary to prove intentional infliction of emotional distress or negligent infliction of emotional distress under North Carolina law." The Court further found that punitive damages were appropriate due to the actions taken by Piedmont. All told, the Court awards $1,000 in actual damages, $7,500 in punitive damages and $2,000 in attorneys’ fees.
Commentary:
It does not appear that this case has been confirmed yet, so the obvious question about the good faith basis for continuing to pay $500 a month for their daughter’s horse may not have been resolved. The Debtors are Above Median with monthly disposable income of -$1,354.97, so strictly speaking this should not be an issue.
For a copy of the opinion, please see:
Long- Sanctions for Violation of § 362 include Emotional Distress.PDF
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