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In re Laboy

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Before Hillman, Boroff, and Rosenthal, United States Bankruptcy Appellate Panel Judges.

Luis G. V zquez Laboy and Carmen D. Garc¡a Calderón (the “Debtors”), filed an adversary proceeding seeking a determination that the post-petition actions of Doral Mortgage Corporation (“Doral”) and others to perfect a prepetition lien violated the automatic stay. The Debtors sought an order requiring Doral to withdraw the mortgage deed and surrender the mortgage for cancellation, and $25,000 in actual damages, $75,000 in punitive damages, attorneys’ fees, and costs. Although the bankruptcy court initially dismissed the adversary proceeding, it subsequently vacated that decision, concluding that Doral’s post-petition actions violated the automatic stay and ordering Doral to surrender the mortgage for cancellation. The Debtors then filed a motion requesting an evidentiary hearing on damages. The bankruptcy court denied the Debtors’ motion, concluding that avoidance of Doral’s $25,000 lien was an adequate remedy, and that no monetary damages were warranted.

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