Boca Raton Bankruptcy Attorney Gets Clients Actual And Punitive Damages in Wrongful Collection Case

Mar 24, 2015

OUTCOME: 77,305.23 Punitive Damages

Klein Law Group has obtained a victory in a wrongful collection case he filed on behalf of their clients in The United States Bankruptcy Court, Southern District of Florida. Judge Erik P. Kimball found ... that the Respondents, Exquisite Home Products and International Financial Services Group, Inc., willfully violated the automatic stay within the bankruptcy code and ordered them to pay the Debtors a total of $85,894.70 which is comprised of $8,589.47 in actual damages and $77,305.23 in punitive damages. In November 2014, Klein Law Group filed a motion for damages for creditor misconduct stating that Exquisite Home Products and International Financial Services Group, Inc. used aggressive, unlawful collection efforts against his clients after they had filed for bankruptcy protection. The creditor’s coercion tactics included threats of arrest and property seizure which resulted in a post-petition loss of $1,007.97 to his clients. Klein Law Group argued that Exquisite Home Products’ blatant disregard for the automatic stay clause of the bankruptcy law and deplorable use of deceit necessitated punitive damages in addition to actual damages. “Exquisite Home Products’ egregious violation of the automatic stay warrants punitive damages under 11 U.S.C. § 362(k)…To recover damages under section 362(k) a debtor must show that (1) the debtor is an individual, (2) the respondent knew or should have known of the debtor’s bankruptcy case, (3) the respondent acted intentionally, and (4) the respondent’s act is prohibited by section 362(a). In the present action, the firm’s clients are individuals. Exquisite Home Products was given notice of the bankruptcy case at the time of filing and again during multiple conversations with our clients. Despite repeated notice, Exquisite Home Products took affirmative action to deceive our clients. The result was the successful violation of 11 U.S.C. § 362(a) and our clients’ loss of $1,007.97.“ Judge Kimball agreed that the creditors willfully violated the automatic stay with inappropriate collection attempts and ordered them to pay the actual damages incurred by the debtors as well as punitive damages.