Yes. The 9th Circuit Court recently held that the bankruptcy court’s award of $119,000 in emotional distress damages to a Chapter 7 debtor was reasonable given the facts and circumstances of the mortgage servicer violations, The Court upheld the bankruptcy court’s decision finding that award was reasonable and supported by the evidence.
As a result of the creditor’s communications, the debtor suffered from anxiety attacks and felt humiliated, tormented, and harassed. The debtor’s wife testified that she experienced severe stomach pains. The stress eventually made them contemplate divorce.
The bankruptcy court awarded $1,000 for each of the 119 communications violating the injunction, consisting of 19 letters and approximately 100 telephone calls.
Bankruptcy court has authority to award “relatively mild” punitive damages for violation of discharge injunction:
A bankruptcy court has authority to award punitive damages for a violation of the discharge injunction, although any such award must be “relatively mild.” Alternatively, the bankruptcy court might choose to issue proposed findings and a recommended judgment on punitive damages to the district court or refer the matter to the district court for criminal contempt proceedings.
In re Marino, 577 B.R. 772 (9th Cir. B.A.P., Dec. 22, 2017), appeal filed, Case No. 18-60005 (9th Cir., filed Jan. 23, 2018).