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Judge Urged by Homeowners to Nix $45 Million BofA Penalty
A California couple who were dragged through a Bank of America Corp. foreclosure called “brazen” and “heartless” by a bankruptcy judge have joined the lender’s request to be spared from a $45 million punishment, Bloomberg News reported. Bankruptcy Judge Christopher Klein in Sacramento must now decide whether to approve a settlement that would rescind both the penalty and the scathing 107-page decision that accompanied it in March. While Judge Klein said that the size of the punitive damages award against Bank of America was meant to “not be laughed off in the boardroom,” the couple who endured what the judge described as a “Kafkaesque nightmare” say the deal they’ve struck will leave them better off and avoid years more litigation and appeals.

Circuit Split on Wage Garnishments Underpins a Certiorari Petition
Seventh Circuit Opines on Method for Calculating ‘New Value’ Defense
Judge Throws Out Livan Hernandez’s Bankruptcy Case
A federal judge in Miami has thrown out the bankruptcy of former Miami Marlins star Livan Hernandez because, despite his voluntary chapter 13 filing in June, the World Series hero pitcher didn’t file any supporting documents, the Miami Herald reported today. Hernandez, who carried the 1997 Marlins to World Series greatness through his record strikeouts, claimed he owed up to $1 million in debts with no way to pay them. He claimed less than $50,000 in assets. Hernandez’ debtors, the paperwork shows, included a slew of banks, Mercedes-Benz and Puerto Rico’s power company. When the time came to show proof, however, the 42-year-old Cuban expat turned in no paperwork, according to federal records. He even failed to hand over his financial affidavit, a key form for those in need of protection from creditors. After several extensions, Judge John Olson dismissed the case yesterday.