Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1
Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.
Second Circuit Makes Taggart Applicable to All Contempt Citations in Bankruptcy Court
Even for egregious, repeated violations of Bankruptcy Rule 3002.1, the bankruptcy court may only award recovery of economic losses, never punitive damages.
Seventh Circuit Limits Punitive Damages to Total Compensatory Damages of $582,000
Despite atrocious mortgage servicing, the circuit court cut a jury’s $3 million award of punitive damages to $582,000.