Anderson et al v. Bank of America, No. 6:2012cv00017 - Document 5 (W.D. Va. 2012)

Court Description: MEMORANDUM OPINION. Signed by Judge Norman K. Moon on July 11, 2012. (sfc)
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CUERK' orFt u..nl . counr B c: s sr xh k IN THE U NI TED STATESD I STRI C OURT w ''AT..YNGH:URA VA CT LED i , FI FoR THE W ESTERN D I STRI OF V I NI CT RGI A J 112 1 UL 92 . LYNCHBURG D I SI VI ON B ' j r t'g % c eR A %j9 -x Dggg kggx N o. 12 v-00017 6: -c K EVI SCOTT A NDERSON a N nd SHANNON PAI ANDERSON, GE Appelant, l s M EM ORANDUM O PI ON NI J udge N or a K .M oon m n BANK OFA MERI CA, Appelee. l Thi m a t r i be or t Cour o a al of a fna de s on of t U nied St t s te s f e he t n ppe i l ci i he t a es Ba upt y Cour f t W e t r D it i tof V igi a by whi h Appe l nt 'M oton f D ef ul nkr c t or he s e n s rc r ni , c la s i or a t J udgm e w a de e Or ar enthas no be r que t d,a pur ua t t Ban up c nt s ni d. al gum t en e s e nd s nt o he kr t y Brei Noi ( ke no.3) lwildecde t mat on t s si . Fort r a ons ifng tce doc t , l i he ter he ubmisons he e s e a ned bel ,1w ila fr t de i i oft ba upt y c t xpl i ow l f im he c s on he nkr c our . 1.BACKGROUND OnFe r ay 25 2 0 Ke i a S n o An e s n (l eAn e s ns' rç peln s' b u r , 01 , vn nd ha n n d ro th d ro 'o Wp la t' t ) tl d a vol a y Cha er 1 ba u c pe ii i t Unie Stt Ba upt y Cour f t ie unt r pt 3 nkr pt y tton n he t d a es nkr c t or he W es e n D i ti t o Vi gi a. Thei ca e w as c ve t d t a Chapt r 7 ca e on J nua y 24, 2011. t r s r c f r ni r s on r e o e s a r On or a bout Fe ua y 1 2011 t Ande s tl a St t ment o I e i , i whi h t y br r 4, , he r ons ied ae f nt nton n c he s r r d t r Gl dsone,Vigi a r i nc Att ttm e Ba ofAmerca (t le ' urende e hei a t r ni esde e. ha i , nk i t Appele' ) hel as c e de on t r sde i t a ountof$1 467. d e ur d bt he e i nce n he m 39, 00 . On Apr l27,2011 pur ua t 11 U .S. j 5 t Ande s wer gr nt d adic ge i , s nt o C. 24,he rons e a e shar of al of t r di cha ge e de s i l ng t de ow e t Appe l e. A s l e a n i m or 1 hei s r abl bt , nc udi he bt d o le xpl i n e d ti b lw,ti d shag o rtd a a ij n to a an tc ran a t t r c v rd bsa eal eo h s ic r e peae s n nu cin g is e ti cs o e o e e t s pe s ronallabiii oft Anderons Des t t r dic ge on or a i ltes he s . pie hei s har , bout M a 1 2011 t y , , he An e s n rc ie a sae n fo BAC Ho Lo nsS r ii ,LP (h G d ro s e ev d ttme t r m me a e vcng t e t S ae n ', BAC ttme f) c s e ha f nk i a, nd c c di o he W hi h w a s nton be l ofBa ofA m erc la whi h, a cor ng t t A nde s ,vi a e r ons ol t d ted shag ij n to h ic r e n u cin. Bec us ispr cie c e ss r e a t e ie bassoft Ande s 'Compl i ,1wil a e t e s ont nt e v s he ntr i he r ons ant l quot t BA C St t m en r t r c pl t y. Pa 1 of t BA C St t m e com pr s t ee e he a e t a he om e el ge he a e nt i es hr f i l ditnctpori a ry s i tons t t m i e,a boto . The t por i pr vi : he op, ddl nd t m op ton o des FO R I FO R M A TI N PU R PO SE S N O I PO R TA N T NO Tl M CE2 l you do not wa us t s nd your m o hl sa e f nt o e nt y t t ment i t f t e,pl as s n he ' ur u e e cont us at 1. 669. act 800. 5224. Thi s a em e i bei f ni hed f r i o tona pur es onl a s d not s t t nt s ng ur s o nf nna i l pos y nd houl be c tued a a a t pt t c l c a ns you pe s ly. W hie your ons r s n tem o ole t gai t r ona l l oblga i t BAC Home LoansSe vi ng,LP ma bedic r d by oper ton of i ton o r ci y s ha ge ai l w ,BA C H o e Loa Se vi i LP has r t ned t abiiy t e or e is rght a m ns r c ng, e ai he lt o nf c t i s a i tt pr ry s trng t sl n s d t r beade a t gans he ope t ecli hi oa houl he e f ul. l you ar pr e l i ve i a Cha e 1 pr e ng,pl as be ad s d t t f e es nty nvol d n pt r 3 oce di e e vie ha yo a e r uie t obey al or s oft Cour,i udi t e c imi or u r eq r d o 1 der he t ncl ng hos onfr ng modiyi t t nns of your r pa e pl You ma dir gar t pa nt f ng he e e ym nt an. y s e d he yme i o m ai n/ upon bel t t e e i conti t wih a or rorr r nt nf r to co ow o he xtnt t l cs t ny de equieme oft Co t he ur . Thi i notasa e e oft a mtne es a y t pa of yo l n. ss t t m nt he mot c s r o y f ur oa Ande s ns Compl Ex. .Them i epori n, he pr de abaanc . Ada e t oaQ ro ' . A ddl to t n, ovi s l e jc n t t E HOM LOAN SUM M ARY' he ng i aEprncpa Ba a e a of04/ 2011'lse i t a o of ' adi s t i i l l nc s 28/ ' it d n he m unt 1As sae i t Anderons'M e a t td n he s mor ndum i Suppor of t i M oton f Def tJ n t her i or aul udgme i t nt n he bank upty c t BAC Ho eLoa Ser ci , LP s r c t de f Bn ofAme ia. r c our m ns vi ng evied he bt or nk rc 2 The tI PORTANT NOTI 'pr so i s t of fom t pr di C <M CE' oviin s e f r he ece ng TOR I NFORM ATI ON PUR POSES'pr sonby a en ie lneofbule poi s. ' ovii n tr i lt nt t$155, 39. f The botom pori afe gi ng no i e t t c l may be monio e a $ 031. 5 J. ' t ton, tr vi tc ha als t r d nd desrbi afef r t nedorrj ce pa nt,notfest r ci entt tt ci ng e or eur ee td yme s ii he e pi ha û HomeLoa BAC ns Se v ci LP i r r d b l t i or you t tt s c m uni a i i f om a de c l c or' r i ng, s equie y aw o nf m ha hi om c ton s r bt ole t .' 1 I a s pr dese e s E d. t lo ovi xpr s é PAYM ENT I NSTRUCTI ONS,'i or i t r ci en how t ' nf m ng he e pi t o makeoutche ksa whe et s nd t m .1 Furher a t rghtsdeoft botom pori t c nd r o e he d. t , t he i i he t ton, he d c n st o t d t ,t / /01 , a j c n t whih i a 1 8 2.05 i u e f . P g 2o o ume t es u a ae & 012 1' d a e t o c s n : 9 5 'fg r . # a e f 05 5 $ t BAC St tm e pr desc a ti or ton f Ba ofAmerca a des i t pr s he ae nt ovi ont c nf ma i or nk i , nd crbes he oce s by w hi h Ba ofA m e i a w ilpos an pa e t m a . 1 c nk rc l t y ym n s de d. I t i Co pl ntbef e t ba u c c t t Ande s ,i pa t r l ntt t n her m ai or he nkr pt y our, he r ons n rs eeva o he i tn a p a,came ta Ap le ha wilul vo ae te d shag ij n to e tr d i nsa t p e l li d h t pele d lf l ilt d h ic r e n u cin nee n y t Andes ns ba upty c eptrua t 11U. C.j5 a t ts h vi ai c tt e he ro ' nkr c as ls nt o S. 24, nd ha uc olton onsiutd c emptoft ba pty cour' o de s I s t t Ande s al ged t t by s ndi t ont he nknz c ts r r . n hor, he r ons le ha , e ng he a bove-ef r nce saeme ,Ba ofAm e i s r e e d t t nt nk rca oughtt c lc on a debta trlwf ldic r o ole t fe a u s ha ge, a dta s c a atmp viltdt ed shag ij n to n h t u h n te t oae h ic r e nu cin. Ba ofAm e i f l t r s nk rca aied o e pond t t Compli t a t clr e e e de a t The o he a n , nd he e k nt r d f ul. An e s n t e s u h d ful j d me t b tt e b n r p c c u tf t t a ç ohng i t d ro s h n o g t ea t u g n , u h a k u ty o r omd h t û ti n he n lngua oft ( a ge he BAC Sttme l...c d posi y be c t ed asa atmptt c lc t ae nt oul sbl onsnz n te o ole t he De ta ap ro lla ii o t ePlitfs'a is e j dg n i f v ro Ba k o Ameia b s e s na iblt f h anif, nd su d u me t n a o f n f rc . y ' The i t nt a a f l ed. 1 obs r e t t up t a i udi t tm e of t s wrtng, ns a ppe l olow e v ha , o nd ncl ng he i hi ii Appe l ha notpari pat d i t s c s . lee s tci e n hi a e lI STANDARD oF R EVI . EW diti cou t r e ng a fnal de i i of a ba pt c r m us e uae t srct r eviwi i c son nknl cy ou t t val t he ba upt y c ts t i ngs of f tf c e r e r a is l lconc us ons de novo.' K i ls h nkr c our ' t ndi f ac or l a r or nd t ega l i ' e ic v Ed c Cr dtMg . Cop. (n r Kil c ) 25 F.d 31 ,31 ( t Ci.2 01 ( u tn . u . e i mt r 1 e ei h , 8 3 5 9 4 h r 0 ) q o ig s Deuc thmanv I 1 2 F.d457,459( hCi.1 ) . RS, 9 3 4t r 999). 11 DI 1. SCUSSI ON S cin 5 4 a( o t e Ba k u ty Co e p o i e t a a dic a g i b n r p c e to 2 ()2) f h n r p c d rvd s h t s h r e n a k u ty d p r ts a a ij n to a an t t e c mme c me t o c n iuai n o a a to te t eae s n n u cin g is h o n e n r o tn to f n cin, h o e pl e of pr es , o a ac , t c l c , r ove o of s t a s h de a a pe s l m oym nt oc s r n t o ole t ec r r f e ny uc bt s r ona la ii o ted b o . .. 1 U. C. 5 4 a () V i t r e ssn p i t rg to a to iblt f h e t r . ' 1 S. j 2 ()2 . l hee xit o rvae ih f cin y ' e f ravilto o j5 4 a ( ) Cu t v fa al Nat Ba k(nr Cu t ) 3 2B. 47 , 8 n 1 o oain f 2 ()2 , ri . s l 1 n I e ri , 2 R. 0 4 4 .7 s e s ( nkr D.Mas .2005) j 1 oft Ba u c Codea horze aba upty c tt hol a Ba . s , 05 he nkr pty ut i s nkr c our o d pary i ci lc e f vi ai aprvi or r s Bu d v Wale s (n r Waler),868 t n vi ontmpt or oltng e ous de , ee r . tr I e t s F. 665,669 (t Ci.1 ,i udi adic r or r s eI r Bar r 77 B. 530,532 2d 4h r 989) ncl ng shage de , e n e bou , R. ( nkr E. N. 1 7) Ba . D. C. 98 . A pa t s ki t hol a t r i c e pt f vi a i a di c r or r ha t r y ee ng o d no he n ont m or ol tng s ha ge de s he bur n ofs de howi t t r wasa vi ai n,a t tt vi a i w a wilul Se Che r v ng hat he e ol to nd ha he olton s lf . e ry . Ar endal (nr Cher),247 B. 1 1 ( nkr E. N. 1 .Thewilul s i r i l 1 e ry R. 76, 87 Ba . D. C. 987) lf ne s nquiy,n t c e of t vi a i of a di c r or r i s m ia t t w il u ne s i r i t he ont xt he ol ton s ha ge de , s i l r o he lf l s nqui y n he co e o a vi ai oft a omai sa pr so of 11 U. C.j362. 1 Ca e ha ntxt f olton he ut tc ty oviin S. d. s s ve esabls d t t a c e t r wiluly vi aes a a o ai sa m e el by c t ihe ha r dio lf l ol t n ut m tc t y ry omm itng a ti n i e i na ac w ih k w l nt nto l t t no edge of t a o a i s a 1 . a 1 ( ttons o te . Thus t he ut m tc t y. d t 88 ciai mitd) ,o d mo tae wilun s i t e c ne to a ds h r e ij ncin a plitf mu ts o t ta e nsrt lf le s n h o tx f ic a g nu to , an if s h w ha ce tr c rdio ommitd a i e i ac wih knowl te n ntntonal t t edge of t dic r ij to And t he shage nuncin. o demonsr t t ta vol i oft dichage ij nci occ r apli ifmus s t a tae ha i aton he s r n u ton ured, antf t how hat cediorsç ci consiut la lc ...oc lc ...ghemorga l nla aperona la lt r t ' s tons tt el n a t t ole t t a t ge oa s s l ibiiy 4 oft debt .' Kr ge v U S.Bank N A.(n r Kr e r 2001Ba .LEXI 21 at*1 he or'' ee r . 1 e ege), nkr S 93, 0- 1 ( n r W . Va 2 01 ( l rto si o ii a)( u tn 1lU. C.j5 4()2 ) 1 Ba k . D. . 0 ) at ain n rg n l q o ig e S. 2 a ( ). Puli t a lng he bove r r e s t he ,t n,Appe l nt m us dem ons r t t Bank of equiem nt oget r he la s t ta e hat Ameias n teBAC S ae n wi k o e g o t ed sh r eijmcin, ndta t eBAC rc e t h ttme t t n wld e f h ic a g n t to a h t h h Stt me c tt e an a tm ptt c l c t debta a pe s a e nt onsiutd te o ole t he s r onalla lt oft Appe lnt . l ibiiy he la s t a ppea s t be tu - a i has not bee diput d t t Ba of Am e ia wa i l r o r e nd t n s e - ha nk rc s ncuded a a s c e t on Appela s s hedul a maii m arx, a t Ba of Amerca kne t t r dior l nt ' c e nd lng ti nd hus nk i w ha Appel nt ha fl d f ba upty. The s ndi oft BAC St t m e wasalo undoubt l la s d ie or nkr c e ng he a e nt s ed y i t ntona , s t c ii al i uiy bec es w he he t l t r r pr s nt a vi a i of t n e i l o he r tc nq r om t r he ete e e e s ol ton he dshag ij n to . ic r e n u cin Appe lnt s i t t sae e s ntby Ba of Am e i a de a la s ubm t hat he t tm nt e nk rc m nded pa e of a ym nt de t tw as di c r i t i Cha er 7 ba r pt y. Spe fca l t Ande s poi ou bt ha s ha ged n he r pt nk u c cii ly, he r ons nt t t tt BA C St t e : ha he a em nt ( )dema 1 nded pa ntof $89 50 by M a 1 2011;( cli t prncpal yme 2. y , 2) amed he i i balnc o by t Andes t be $1 03139 a o Aprl28,2011;( a e wed he rons o 55, . s f i 3) r q rd t tc e ksb ma e p ya l t BAC Ho Lo ns S r iig LP;( ) e uie ha h c e d a be o me a e vcn , 4 i ld dt ea d e st whiht ep y n wa t b sn ; 5 e pli dt a 1al ncu e h d r s o c h a me t s o e e t ( ) x ane h t $ )1 ( ac e e paym e s of pr nc pa a i e es w il be a i d t t l nge t c pt d nt i i l nd nt r t l pple o he o s outtndi i t lmen due unl sot wi ee e sy pr bie by l w. I you sa ng nsa l t , es her s xpr s l ohi t d a f s i a a ount i addii t your s dul m o hl a ol t w e w il a y ubm t n m n ton o che ed nt y m m l ppl yourpa nt asf l :()t ousa ngmonhl pa nt ofprncpal(nd) yme s olows i o ttndi t y yme s i i a i eet (i e cow defce e ,(i)lt c r sand ot a mt you owei ntrs, i) s r iincis ii ae ha ge her mot s n c cin wihyourl n a (v)t rducet outt ng prncpa balnceof onne to t oa nd i o e he sandi i i l a yourl ni' ( sae t tEhi communiai i fom adebtcolecor' oa 'and 6) ttd ha i s t c ton s r l t .' Br ofAppelant 5 . l s -6. By cii onl t f egoi pr sons of t BAC St t m e , how e r A ppelant tng y he or ng ovii he a e nt ve , l s i ed ot s gniicant portons t eof The t pori of t A nde s gnor her i t i her . op ton he r ons' BAC St t m e a e nt i or t m t tt l trSs d notbe consr d asa atmptt cole tagans (heml nf ms he ha he ete çhoul tue n te o lc i t t pe s l ' ronaly. ' l alo a s e t Ande s t s s ur s he r ons t t t ha hey ç a dir r t payme ç y sega d he m nt i or a i c nf m ton/ oupon bel t t ext nti confi t w ih any or or r r e oft Cour .' ow o he e t lc s t der equiem nt he t' Thi i or a i n i a 1c a ne on t c e of Pa 1 of t BA C St t m ent A ddii ly, s nf m to s 1 ont i d he ent r ge he ae . tona l t f tt tt BA C St t m e i i e d û R I FO R M A TI N PU R PO SE S' i a r nt he ac ha he a e nt s nt nde t FO N O ' s ppa e noto y f om t f tt tt s h w or a e bol d,c pia i ed,unde lne and c nt r a t nl ' r he ac ha he uc ds r de a t lz r i d, e e ed t he t p of Pag 1,but alo f om t f c t t t s e c w or a e i l d aga n i t s c o e s r he a t ha he e xa t ds r nc ude i n he e ond s nt e oft s a e en is l . e enc he t t m t t e f I t e wa , t i t nt c e dif r s gnii nty f om H ar an v Ros nbe g dr n hes ys he ns a as f e s i fca l r l . e r As ocats (nr Haran 402B. 703t kr W . Va.2009)a Cu tsv fasaleNatonal s i e I e l ), R. Ban . D. nd ri . l i Ba k (n r Cu ts,3 2 B. 47 ( n r D. a s 20 5 , o h o whih Ap eln sdic s i n 1 e ri 2 R. 0 Ba k . M s . 0 ) b t f c p l t s u s n ) a t rBre s The sa e e a is i Cu ts c aned a notfcai t ,ii yourl n wa i hei if . tt m nt t s ue n r i ont i ii ton hat tf oa sn ba up c t sl te i f notfcai pur esonl ' a t t i t û e yme o i to nkr t y, hi et r s or ii ton pos y, nd ha , f he l pa nt blgai ns ' r ha be dic r i a Chapt 7 c s t s i no a a tm ptt i ve en s ha ged n er a e, hi s t n te o mpos pe s e r onallabiiy on i lt yo ' 3 2 B. a 4 4 n 1 . l ra ty h we e,te Cu t n tfc to wa So n te u. 2 R. t 8 . 8 mpo tn l, o v r h ' ri o iiain s i l h s l ba ksdeoft fr tpa oft ...lte ,a wihoutt c piall t r a bol prntempl c i he is ge he e tr nd t he a t ete s nd d i oyed f ot r s c i of t l te . or he e tons he e t r 1 Si ia l , i Ha ln,tthel n i iain t a gh d. m l ry n ra ûj o e ndc to h t t e g lndeqwa onl atmptngt enf c isi rm rg si e ddedi rgulrf i t mi e e r s y te i o ore t n e iht s mbe n e a ont n he ddl oft s ond pa ag a .... 402 B. a 707. he ec r r ph ' ' R. t Addii ly,a Unied St t s Ba upt y J tonal s t ae nkr c udge Ande s o e v , t s a em e a r on bs r ed he t t nt t is i t s a al E ovi s t t no m on hl sa e t woul be s i t f t e i t s ue n hi ppe ç pr de ha t y t t men d ent n he u ur f he ( p la t)wo d smp y ma o e tl-re tlp o e c l' t a n e t a wa s p id Ap eln s ul i l ke n o lfe ee h n al o umb r h t s u pl ' e . Anderon v Bank o s . fAmerc (n r Ande s ),CaeNo.11 1 t ia 1 e r on s -061 7 Bankr W D .V a.Jan.27, . . 201 . W hiet BAC St eme doe i d pr deprncpa baa es estm at d paym ent, 2) l he at nt s ndee ovi i i l lnc , i e s 6 payme i tuc i ,i onna i on how Baz ofAm e i a wilpos a pa e sm a ,a nt nsr tons nf ton lk rc l t ny ym nt de nd Ot r r m a ks t t c d s e y be c tued,by t m s ves a a t m pt t colec a ale yhe e r ha oul ur l ons r he el , s te s o l t n r ad ds h r e d b , fndta t o epo t n o t esae n , e ve di c nu cinwihte ic ag d e t l i h t h s ri s f h ttme t wh n iwe n o j n to t h o ot r ad s me s I ha a r ad dic s d, do not r pr e a vi aton of t dic r he vie nt ve le y s us e e es nt ol i he s ha ge ij n to u d rj5 4() nu cin n e 2 a. I . C ONCLUSI V ON For t r s 1 ha ex ai d, 1 wil a tr t de ii beow ,hol ng t t t he ea ons ve pl ne l fi m he c son l di ha he sae e t t Appe le s t Appelant doe no c tt e vi a i of t dic g t tm nt ha le ent o l s s t onsiut olton he s har e ij n to nu cin. The Clr oft Cour i die t d t s nd a co oft sM e or ndum Opi on a t ek he t s rce o e py hi m a ni nd he ac ompan ng Or rt a 1c c yi de o 1 ouns ofr co d. el e r E trdti l ,A'a o Jl, 0 2 nee hs $. dy fuy 2 1 . . . - > NO AN K.M OO UNII STATES DI 'ED ' STRI J CT UDGE 7