In Re Rodriguez
629 F.3d 136
| 3rd Cir. | 2010Background
- Rodriguezs filed Chapter 13; Countrywide acquired their mortgage and manages escrow for taxes, insurance, and other charges.
- RESPA permits estimated escrows with a reserve, and lenders may require shortages to be deposited to remedy deficiencies.
- Rodriguezs owed $5,657.60 in escrow arrears at filing, including $1,787.69 for which Countrywide had not paid taxes/insurance.
- Bankruptcy filing treated escrow cushion as funds not yet disbursed; Rodriguezs had a projected escrow surplus despite actual negative balance.
- Countrywide recalculated post-petition escrow payments to $947.77, treating the shortage by overlooking the $1,787.69 cushion as existing funds.
- Bankruptcy Court and District Court held pre-petition escrow shortage was not a pre-petition claim; appeal challenges that ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether automatic stay bars collecting pre-petition escrow shortfalls outside bankruptcy | Rodriguezs: Countrywide had a pre-petition claim for escrow cushion. | Countrywide: no pre-petition debt; escrow cushion not a debt, only security. | Automatic stay does not bar collection if no pre-petition claim exists. |
| Whether Countrywide had a pre-petition claim for the escrow cushion | There was a pre-petition right to payment for the cushion. | Escrow cushion is not a debt; dispute over claim scope. | Yes, there was a claim for the cushion under §101(5). |
| Whether RESPA permits post-petition escrow recalculation to cover pre-petition shortages | RESPA allows recoupment via escrow adjustments. | RESPA rights do not override automatic stay; misalignment with bankruptcy. | RESPA rights may conflict with bankruptcy but are reconciled on remand. |
| Whether Countrywide violated automatic stay by demanding higher post-petition escrow outside bankruptcy | Countrywide acted to collect a pre-petition amount outside case. | Recalculation and post-petition demand follow RESPA and loan documents. | Damages issues remanded for determination. |
Key Cases Cited
- Johnson v. Home State Bank, 501 U.S. 78 (1991) (broad definition of 'claim' for right to payment)
- In re Grossman's Inc., 607 F.3d 114 (3d Cir. 2010) (broad §101(5) interpretation of 'claim' adopted en banc)
- Campbell v. Countrywide Home Loans, Inc., 545 F.3d 348 (5th Cir. 2008) (pre-petition escrow rights; automatic stay limits)