Published On: October 19, 2017

Bank of America tries to bully a bankruptcy judge, ignoring the consequences of illegal acts, but the judge is not standing for it.

October 19, 2017 – Article posted in Bloomberg.com.

Bank of America seems to think they can bully a bankruptcy judge,  like they did a California couple in a nightmare foreclosure, but the judge is not standing for it.  For several months Bank of America attorneys have attempted to convince U.S. Bankruptcy Judge Christopher Klein to erase a 107-page ruling imposed a $45 million penalty (this is now their third time before the judge).  Judge Klein is now getting upset with the bank and refuses to approve of a confidential settlement that would eliminate the penalty.  The judge said it looked to him like the bank was “holding the Sundquists hostage” by making the settlement contingent on the ruling being dismissed.

Bank of America holds homeowners hostage

In his March opinion, Klein faulted Bank of America for “institutional obstinance and dishonesty” and said its actions smacked of “cynical disregard for the law.”

“In the calculus of reprehensibility, Bank of America’s intentional conduct adds up to reckless and callous disregard for the rights of others,” Klein wrote.

The judge also said the the size of the punitive damages award against Bank of America was meant to “not be laughed off in the boardroom.”

So, why is this going on?

History: The Sundquists’ sole reason for defaulting, which they did with considerable reluctance (their credit score had been above 800), was acquiescence in Bank of America’s demand that they default as a precondition for loan modification discussions with Bank of America.  The bank failed to honor their promises which started the family on downward path the took over years to finally conclude.

Present: Bank of America offered the Sundquists undisclosed (secret) amount if they will have the judge withdraw his order.  Hence, why the judge feels Bank of America is holding the Sundquists “hostage”.  Evidently the amount will be “substantially” more than they would receive from the current award.  Obviously, the Sundquists just want to put this nightmare behind them.

If the penalty stays as originally ordered several groups who represent injured parties, such as the Sunquists, would receive $40 million of the $45 million award.  Their attorneys are pleading with the judge to not vacate the order so it can be used as precedent for other cases.


Click here to read more of the article….

‘Hero’ Judge Urged by Couple to Nix $45 Million BofA Penalty

The case is Sundquist v. Bank of America Corp., 14-02278, U.S. Bankruptcy Court, Eastern District of California (Sacramento).

MUSINGS BY DIANE:

This is just the tip of the iceberg.  Whenever institutions fail to properly supervise staff there is an increasing chance of abuse of power (Wells Fargo continues to prove this again and again), especially if the employees financial benefit by their illegal acts.

There are thousands, if not hundreds of thousands, of families who were abused by Bank of America and Wells Fargo (plus more yet to be uncovered).  They lost their homes, their savings and their family security because a bank felt they could ignore the law.

I only hope we see many more rulings like Judge Klein’s.  The problem is that many judges do not have the personal fortitude to follow Judge Klein’s path.

By |Published On: October 19th, 2017|Last Updated: May 29th, 2022|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • Published On: May 24, 2023

    “Best Experience Ever!” C.G. Answered all my questions and very knowledgeable team! Thank you  C.G.    

  • “Give her a call if you don't know where to turn.... ” B.G. Diane was an exceptionally nice lady and very courteous to my wife and I as we requested help. She [...]

  • Published On: March 20, 2023

    “You were very nice and caring. ” R.G. I cannot thank you enough Diane for taking the time to speak with me. Your website has so much information and very helpful. You [...]

  • Published On: January 24, 2023

    “ROCKSTARS Diane and Jay!!! I am so happy ” P.C. ROCKSTARS Diane and Jay!!! I am so happy to work with you again. Within a few months, you got me the BEST [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.