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Stay Violators Now Face Strict Liability In 9th Circ.

Law360, New York (January 6, 2016, 12:55 PM EST) -- On Oct. 14, 2015, the U.S. Court of Appeals for the Ninth Circuit addressed, in the reported decision America's Servicing Co. v. Schwartz-Tallard (In re Schwartz-Tallard), 803 F.3d 1095 (9th Cir. 2015), a split in the circuits regarding the application of 11 U.S.C. §362(k). That section states that a debtor injured by a willful violation of the automatic stay "shall recover actual damages, including costs and attorneys' fees, and, in appropriate circumstances, may recover punitive damages" in a lawsuit against a third party. The Ninth Circuit...
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