Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-almb-1_05-ap-01153/USCOURTS-almb-1_05-ap-01153-0/pdf.json

Parties Involved:
Cathy Skipper Lisenby
Plaintiff
J.A. Cambece Law Office, P.C.
Defendant
Arrow Financial Services, LLC
Defendant

Document Text:

UNITED STATES BANKRUPTCY COURT

MIDDLE DISTRICT OF ALABAMA

In re Case No. 05-12336-DHW

Chapter 7

CATHY SKIPPER LISENBY,

 Debtor.

____________________________

CATHY SKIPPER LISENBY,

Plaintiff,

v. Adv. Proc. No. 05-1153-DHW

J.A. CAMBECE LAW OFFICE, P.C. and

ARROW FINANCIAL SERVICES, LLC,

Defendants.

MEMORANDUM OPINION

On December 1, 2005, plaintiff, Cathy Skipper Lisenby, filed a

complaint against J. A. Cambece Law Office, P.C. and Arrow Financial

Services, LLC for damages for violation of the automatic stay and

violation of the Fair Debt Collection Practices Act. 

On January 23, 2006, Lisenby filed an application for entry of

default and a motion for default judgment. On February 9, 2006, the

clerk entered default, and on February 15, 2006, an evidentiary hearing

was held on the sole issue of damages.

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Jurisdiction

The court’s jurisdiction in this adversary proceeding is conferred

by 28 U.S.C. § 1334 and by the United States District Court for this

district’s order referring all title 11 matters to this court. 

Findings of Fact

Lisenby is a chapter 7 debtor who filed for bankruptcy protection

in this court on October 10, 2005. Defendant Arrow Financial Services,

LLC, is a third-party debt collector, and the Cambece Law Office, P.C.

is Arrow’s agent. Prior to Lisenby’s filing for bankruptcy relief, the

defendants drafted funds each month from her Wachovia Bank checking

account to collect a debt owed by Lisenby to Providian Bank. 

On October 12, 2005, two days after the bankruptcy case was

filed, Lisenby’s attorney wrote to the Cambece Law Office. That

correspondence is Plaintiff’s Exhibit 4. He advised Cambece of

Lisenby’s bankruptcy filing and provided other particulars such as the

date of filing, the case number, and the name of court where the case

was pending. Further, Lisenby’s counsel noted that the debt being

collected was that of Providian Bank c/o Arrow Financial Services. This

letter was faxed to the Cambece Law Office. Plaintiff’s Exhibit 5

evidences confirmation that the fax transmission was received by the

Cambece Law Office.

Further, Lisenby’s schedule of unsecured creditors (Schedule F),

which was filed with her bankruptcy petition, lists Providian and

reflects that Arrow Financial Services and J.A. Cambece Law Office

represent Providian. The Clerk of Court gave notice of the

commencement of Lisenby’s case to Providian and to these two

defendants. Plaintiff’s Exhibit 6 is the Certificate of Service of the

Notice of the Commencement of the Case. The certificate reflects that

notice was given to the defendants on October 13, 2005.

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On October 17, 2005, the Cambece Law Office drafted $150 from

Lisenby’s checking account. See Plaintiff’s Exhibit 1. The money has

not been returned to the debtor. As a result of the draft, there were

insufficient funds in Lisenby’s checking account to cover three check

card purchases, and Lisenby was assessed $90 in overdraft service

charges by her bank. Plaintiff’s Exhibit 2 evidences those bank charges.

Lisenby earns $9.50 per hour. She took off work for one hour to

deal with the bank overdraft charges. Later, fearing that more funds

would be drafted by the defendants, she took off another hour from

work to close her checking account. Lisenby has also missed 3 hours

work to confer with her attorney regarding this matter and to testify at

the evidentiary hearing. In all, her lost wages total $47.50. 

Lisenby testified that the strain of these events has caused her to

suffer physically and emotionally. She got sick at her stomach and felt

helpless and betrayed. She felt “lost” as to solving this predicament.

Conclusions of Law

In this adversary proceeding, Lisenby asserts one count for willful

violation of the automatic stay and a second count for violation of the

Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et. seq. (“FDCPA”).

Lisenby seeks actual and punitive damages for violation of the

automatic stay and maximum statutory damages and attorney’s fees for

violation of the Fair Debt Collection Practices Act.

Fed. R. Civ. Proc. 55 is made applicable to this adversary

proceeding by Fed. R. Bankr. Proc. 7055. When the defendants failed

to plead or otherwise defend, the clerk entered default pursuant to

Fed. R. Civ. Proc. 55(a). However, because the plaintiff’s claim was

not for a sum certain, the clerk could not enter a default judgment.

See Fed. R. Civ. Pro. 55(b)(1). Instead, the court set an evidentiary

hearing for the purpose of determining the plaintiff’s damages. See SEC

v. Smyth, 420 F.3d 1225, 1231-32 (11th Cir. 2005)(stating that “default

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 $1,000 punitive damage is approximately 31⁄2 times the actual

damages in this case. The actual damages do not include damages for

physical or emotional injury.

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is entered upon the defendant’s failure to plead or otherwise defend,

Fed.R.Civ.P. 55(a), but if an evidentiary hearing or other proceedings

are necessary in order to determine what the judgment should provide,

such as the amount of damages that the defaulting defendant must pay,

those proceedings must be conducted before the judgment is

entered.”)

Based upon the evidence adduced at the evidentiary hearing, the

court finds that Lisenby suffered damages as a result of the defendant’s

willful violation of the automatic stay. Lisenby suffered, exclusive of

any physical or emotional damage, actual damages of $287.50. That

amount comprises the $150 paid to the defendants post-bankruptcy

from Lisenby’s checking account, $47.50 in lost wages, and $90 in bank

overdraft fees. 

In addition to actual damages, punitive damages are available to

a plaintiff for a willful violation of the automatic stay. See 11 U.S.C.

§ 362(h). The defendants have not returned the funds withheld

postpetition from Lisenby’s checking account. That fact, coupled with

their failure to respond to this adversary proceeding, indicates a callous

disregard for the rights of the debtor or of the bankruptcy estate

thereby warranting the imposition of $1,000 punitive damages.1 

Further, the court finds that the plaintiff is entitled to statutory

damages of $1,000 against each defendant for violation of the Fair Debt

Collection Practices Act. See 15 U.S.C. § 1692k.

Finally, both 11 U.S.C. § 362 and 15 U.S.C. § 1692k allow the

prevailing plaintiff to recover reasonable attorney’s fees. The plaintiff

filed a motion and accompanying affidavit to support an award of

attorney’s fees, costs, and expenses.

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The plaintiff requests $2,644.55 attorney’s fees for 12.67 hours of

work, $259.70 paralegal fees, and $27.20 costs and expenses for a total

of $2,931.45. Upon review of the motion and affidavit, the court

concludes that this amount is reasonable. 

Conclusion

For these reasons, plaintiff’s motion for default judgment is due

to be granted. Pursuant to Fed. R. Bankr. Proc. 9021, a default

judgment consistent with this memorandum opinion will enter

separately.

Done this the 22nd day of February, 2006.

/s/ Dwight H. Williams, Jr.

United States Bankruptcy Judge

c: Cathy Skipper Lisenby, Plaintiff

 David G. Poston, Attorney for Plaintiff

 J.A. Cambece Law Office, P.C., Defendant

 Arrow Financial Services, LLC, Defendant

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