Snowden v. Check Into Cash of Washington Inc. (In Re Snowden)
769 F.3d 651
| 9th Cir. | 2014Background
- Snowden obtained a $575 payday loan from Check Into Cash (CIC).
- Snowden filed Chapter 7 bankruptcy and listed CIC as an unsecured creditor with a $575 claim; CIC cashed the secured check, violating the automatic stay.
- CIC conducted harassing calls to Snowden at work and continued collection despite the stay.
- The bankruptcy court awarded Snowden emotional distress, damages, punitive damages, and attorneys’ fees, but limited fees to those incurred before CIC’s May 20, 2009 email offer.
- The May 2009 email from CIC offered to repay the loan and fees with conditions, which Snowden rejected; on remand, the court reconsidered emotional distress, punitive damages, and fees, and the district court treated the email as a tender.
- On appeal, the court held that Sternberg’s limit on attorney’s fees applies, but reversed and remanded to recalculate fees relating to remedying the stay violation; the court affirmed emotional distress and punitive damages and sanctions while remanding for a fee calculation consistent with the stay-remedy focus.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether fees incurred remedying the stay violation are recoverable after a conditional offer | Snowden seeks fees for post-offer work | CIC argues fees after end of stay are not recoverable | Fees recoverable to remedy stay; remanded for proper calculation |
| Whether emotional distress damages were properly awarded under §362(k) | Snowden suffered significant emotional harm | CIC contends harm not clearly significant | Emotional distress damages affirmed |
| Whether punitive damages were proper under §362(k)(l) | Snowden entitled to punitive damages for reckless conduct | CIC contends standard misapplied | Punitive damages affirmed |
| Sanctions under inherent authority or §105(a) in light of stay violation | Sanctions warranted for misconduct | No sanctionable conduct found | Sanctions denial affirmed; §105(a) remedy unavailable where §362(k) exists |
Key Cases Cited
- Dawson v. Dawson, 390 F.3d 1139 (9th Cir. 2004) (emotional distress standard under § 362(k))
- Sternberg v. Johnston, 595 F.3d 937 (9th Cir. 2010) (limits attorney’s fees to remedying stay; stay proceeds as shield)
- In re Schwartz-Tallard, 765 F.3d 1096 (9th Cir. 2014) (fees for defending appeal; stay as shield; end of stay)
- In re Repine, 536 F.3d 512 (5th Cir. 2008) (contrasts fee recovery scope across circuits)
- Pavon v. Swift Transp. Co., Inc., 192 F.3d 902 (9th Cir. 1999) (reckless/disregard standard for punitive damages)