Vázquez Laboy v. Doral Mortgage Corp., 647 F.3d 367

Debtors purchased property in Corozal, Puerto Rico in 1996 and had conveyance recorded defectively at Registry.
Doral loaned $25,000 and Canales, as Doral's notary, presented the mortgage deed; the mortgage was not recorded due to defects.
Debtors withdrew the defective conveyance deed in 1997, but the mortgage remained unrecorded.
Bankruptcy petition filed January 31, 2000; automatic stay triggered, jeopardizing Doral’s unperfected lien.
Doral re-presented the mortgage with a corrected conveyance in December 2000; Debtors sued in adversary proceeding in 2001.
Bankruptcy court eventually found a willful stay violation but denied damages after a hearing was not held; panel affirmed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the bankruptcy court had jurisdiction to consider damages	Vázquez Laboy argues jurisdiction existed; timely appeal lies to BAP/First Circuit	Doral/Canales contend lack of final judgment and lack of jurisdiction	Bankruptcy court had jurisdiction; we have appellate jurisdiction over final/entered orders
Whether there was a willful violation of the automatic stay	Debtors contend Doral/Canales willfully violated stay by post-petition filing	Doral/Canales dispute willfulness or argue avoidance-type rationale	There was a willful violation as a matter of law; both parties responsible
Whether Debtors were entitled to a hearing on damages	Damages are mandatory actual damages; hearing necessary to prove costs and fees	Court could determine damages without additional hearing	Remand for a damages hearing; must allow evidence on damages and costs

In re McMullen, 386 F.3d 320 (1st Cir. 2004) (willful violation liability with knowledge of bankruptcy pending)
Garzaro v. Univ. of P.R., 575 F.2d 335 (1st Cir. 1978) (order not final if monetary liability remains unresolved)
In re SPM Mfg. Corp., 984 F.2d 1305 (1st Cir. 1993) (lien perfection precedence against unsecured claimants)
In re Abdallah, 778 F.2d 75 (1st Cir. 1985) (Rule 8002 timing and appellate jurisdiction)
Riley v. Kennedy, 128 S. Ct. 1970 (S. Ct. 2008) (final judgment ends litigation; leaves nothing for court to do)
Vélez v. Awning Windows, Inc., 375 F.3d 35 (1st Cir. 2004) (damages and liability considerations in partial summary contexts)
Mass. Museum of Contemp. Art Found., Inc. v. Buchel, 593 F.3d 38 (1st Cir. 2010) (remedial considerations in damages and evidentiary hearings)
In re Dayley, 349 B.R. 825 (Bkrtcy. D. Idaho 2006) (damages proceedings in bankruptcy contexts)