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"Attorneys Fees Alone – Without Actual Damages or Ongoing Stay Violation – Do Not Warrant Sanctions for Violations of the Automatic Stay," American Bankruptcy Institute

November 16, 2016
Graham Mitchell , Gregory M. Taube

A debtor cannot recover sanctions or attorneys’ fees under 11 U.S.C. § 362(k) when the debtor admits to having suffered no actual damages and the filing of a motion for sanctions was not necessary to remedy a stay violation. Denying the debtor’s motion for sanctions, the U.S. Bankruptcy Court for the Western District of New York reached this conclusion and, in its opinion, colorfully addressed the potential for encouraging wasteful litigation that would arise from a contrary conclusion.

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