Bankruptcy Wizard
I'm just reading the case of a Massachusetts debtor that was, quite frankly, harassed by Verizon after she had filed for bankruptcy. She continued to receive bills and threats of termination of service. They actually did, at one point, terminate her service until the Attorney intervened. The attorney, in her case, immediately filed a stay violation because of a letter demanding she pay and a phone call insisting the same. This was even after the attorney responded that they would not provide any more information.
Before the hearing on the first stay violation, Verizon issued yet another bill and demand for payment. Verizon didn't show up for the first hearing on the matter, but the debtor's attorney was unable to get a ruling since there was new evidence (at this "non-evidentiary" hearing). So, Verizon responded after some delays. Before the matter went for an evidentiary hearing, they settled. It was "not disclosed".
The best part!!! The parties submitted a "stipulated" dismissal of the charges due to a settlement. The judge set the matter for a final hearing. At the final hearing, the judge asked the amount and Verizon's attorney basically "refused" to answer. The dialogue is priceless!!!
The opinion can be read here. It's a PACER document, but since it's an opinion, it's free to view. https://ecf.mab.uscourts.gov/doc1/094016158190
Yes, $20,000 for a very simple stay violation. It turned out to be $9.221 in attorney fees and the rest to the Debtor. Do you want to know what the bill was for, from Verizon? The bill as approximately $1,340.
I'm not saying that we should do this just to make some money. I am saying that if we continue to IMMEDIATELY file motions for sanctions for stay violations as soon as they occur, then, perhaps, the violators will get a message. This case was really about Verizon trying to cover up their mess up. The fact that they paid $20K in this particular case, is rather astounding.
(Note: I did something similar with a utility company. The facts were almost identical in this case. I too settled with the company. I did not get $20K probably because I didn't have $9K in attorney fees, but I did ask for a sum certain of $12K in my complaint. However, I went the complaint route rather than the motion/contest matter route.)
Before the hearing on the first stay violation, Verizon issued yet another bill and demand for payment. Verizon didn't show up for the first hearing on the matter, but the debtor's attorney was unable to get a ruling since there was new evidence (at this "non-evidentiary" hearing). So, Verizon responded after some delays. Before the matter went for an evidentiary hearing, they settled. It was "not disclosed".
The best part!!! The parties submitted a "stipulated" dismissal of the charges due to a settlement. The judge set the matter for a final hearing. At the final hearing, the judge asked the amount and Verizon's attorney basically "refused" to answer. The dialogue is priceless!!!
MR. BERLINER (Debtor's Attorney): It got settled with a payment of a sum certain.
THE COURT: Okay, well, it’s nice that it was certain. How much money was it?
MR. WEISS (Verizon Attorney): Your Honor, Steven Weiss on behalf of Verizon New England. The settlement agreement did provide for a confidentiality agreement. And I would prefer that it not be disclosed in open court.
THE COURT: Okay. Well, it’s rejected then, and the stipulation of dismissal is struck. So when are you ready to go to trial?
MR. BERLINER: I think we’re ready to disclose the amount, Your Honor, if the Court would consider it.
THE COURT: Okay.
MR. BERLINER: $20,000.
Source: PACER Massachusetts Bankruptcy Court https://ecf.mab.uscourts.gov/doc1/094115552550 (FYI, this is a PACER document and there may be a cost to retrieve this transcript.)
THE COURT: Okay, well, it’s nice that it was certain. How much money was it?
MR. WEISS (Verizon Attorney): Your Honor, Steven Weiss on behalf of Verizon New England. The settlement agreement did provide for a confidentiality agreement. And I would prefer that it not be disclosed in open court.
THE COURT: Okay. Well, it’s rejected then, and the stipulation of dismissal is struck. So when are you ready to go to trial?
MR. BERLINER: I think we’re ready to disclose the amount, Your Honor, if the Court would consider it.
THE COURT: Okay.
MR. BERLINER: $20,000.
Source: PACER Massachusetts Bankruptcy Court https://ecf.mab.uscourts.gov/doc1/094115552550 (FYI, this is a PACER document and there may be a cost to retrieve this transcript.)
Yes, $20,000 for a very simple stay violation. It turned out to be $9.221 in attorney fees and the rest to the Debtor. Do you want to know what the bill was for, from Verizon? The bill as approximately $1,340.
I'm not saying that we should do this just to make some money. I am saying that if we continue to IMMEDIATELY file motions for sanctions for stay violations as soon as they occur, then, perhaps, the violators will get a message. This case was really about Verizon trying to cover up their mess up. The fact that they paid $20K in this particular case, is rather astounding.
(Note: I did something similar with a utility company. The facts were almost identical in this case. I too settled with the company. I did not get $20K probably because I didn't have $9K in attorney fees, but I did ask for a sum certain of $12K in my complaint. However, I went the complaint route rather than the motion/contest matter route.)
Good for the debtor!
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