Weber v. SEFCU

SEFCU, a lender, appealed from the district court's reversal of an order of the bankruptcy court and remanding the case to the bankruptcy court for further proceedings. The district court concluded that SEFCU violated the automatic stay provision of the Bankruptcy Code, 11 U.S.C. 362, when, after lawfully repossessing a vehicle belonging to debtor, it failed to deliver the vehicle to him notwithstanding its knowledge of debtor's pending petition under Chapter 13 of the Bankruptcy Code. The court concluded that SEFCU "exercised control" over "property" of debtor's bankruptcy estate in contravention of section 362 when it failed to relinquish the vehicle promptly after it learned that a Chapter 13 petition was filed. Consequently, under section 362(k), SEFCU was liable for debtor's actual damages resulting from the wrongful retention, costs, and attorneys' fees. Accordingly, the court affirmed the judgment. View "Weber v. SEFCU" on Justia Law