by Prof. Drew Dawson, ABI Resident Scholar
On March 23, 2017, Bankruptcy Judge Christopher Klein (C.D. Cal.) slapped Bank of America with $45 million in punitive damages for willful and repeated violations of the automatic stay, in addition to actual damages of slightly more than $1 million. Such a large punitive damage award was necessary, according to the court, because this tale was not one of low-level corporate incompetence but instead “one of corporate culture...driven by direction from senior management.” The court’s opinion opens with a reference to Franz Kafka as it begins to recount the nightmarish tale of Bank of America’s conduct toward a California couple over the course of nearly eight years. Click here to read the analysis.
