$20M windfall for UC law schools in wrongful foreclosure suit shrinks to $150K

- $20M windfall for UC law schools in wrongful foreclosure suit shrinks to $150K

Law Schools

A federal judge has vacated a punitive damages award against Bank of America that gave $20 million to the University of California’s five law schools in a wrongful foreclosure case.

The five law schools will now receive $150,000 as a result of a bank settlement with the plaintiffs, Erik and Renee Sundquist, the Recorder reports. Bloomberg News also has coverage.

The law schools weren’t involved in the initial litigation, but U.S. Bankruptcy Judge Christopher Klein of Sacramento had awarded them $20 million of the punitive damages last March. He had also designated $10 million for the National Consumer Law Center and $10 million to the National Consumer Bankruptcy Rights Center. The plaintiffs were to get $5 million in punitives and $1 million in actual damages.

The settlement calls for the Sundquists to receive an award of $6 million plus a multi-million dollar, undislcosed “premium,” Klein said in a Jan. 18 opinion. The Sundquists also agreed to donate $150,000 to the five law schools and $150,000 to the two consumer groups.

Klein’s opinion leaves intact his decision in which he accused the bank of a “mortgage modification charade” that created a “a Kafkaesque nightmare.” Klein said in that earlier decision that Bank of America had “willfully violated” a bankruptcy court stay by foreclosing on the Sundquists’ residence.

The bank had initially offered to settle in exchange for dismissal of the adversary proceeding “so as to vitiate” the the opinion from last March, Klein said, but he did not agree.

READ  Justice Department threatens subpoenas in showdown with sanctuary cities and states

“This was a naked effort to coerce this court to erase the record,” Klein said the opinion. “No chance. No dice.”

Be Sociable, Share!

Follow Us!

Author: Edward Lott

Edward Lott, Ph.D., M.B.A. is president and managing partner of Allentown-based ForLawFirmsOnly Marketing, Inc., a local search and digital marketing agency that offers clients lead generation, local seo and Google Maps Domination. Ed has been a digital entrepreneur since 1994, having discovered very early the opportunities the Internet offered. After having spent over two decades helping attorneys grow their practice, Ed joined the staff of ForLawFirmsOnly Marketing as President and Managing Partner, where he is expanding the agency’s cutting-edge services to the legal market. A true marketing futurist, Ed's vast experience working directly with attorneys has given him a unique perspective on law firm marketing not found in many other digital marketing agencies. Ed has reshaped the offerings of ForLawFirmsOnly to focus on growing law firms through a holistic approach to digital marketing evident in the reformulated lead generation processes now in place. Want to learn more about ForLawFirmsOnly Marketing, their lead generation programs, or just talk to Ed about his visions for helping law firms grow? Call him at 855-943-8736.

Scroll Up