May v. Nationstar Mortgage, LLC

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Jeannie K. May filed suit seeking to recover damages under state and federal law arising from the debt-collection practices of Nationstar. After a jury found in favor of May on her invasion-of-privacy claim and her claim that Nationstar negligently violated the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681, the jury awarded May compensatory damages on both claims and punitive damages on her invasion-of-privacy claim. The court concluded that there was ample evidence to support the jury's award of punitive damages and Nationstar's renewed assertions that it acted in good faith provided no legal basis to vacate the jury's verdict. In this case, the record reflected that May contacted Nationstar repeatedly in order to resolve the issue with her account; rather than suspend its efforts based on its erroneous assessment of her debt, Nationstar aggressively pursued collection, posted May's home for foreclosure and conducted inspections of her residence; Nationstar employees spoke to May in a mocking and sarcastic manner; and May suffered physical ailments from the stress caused by Nationstar's conduct. The court concluded that the $400,000 punitive damages award was not unconstitutionally excessive because of the reprehensible nature of Nationstar's conduct; the 8-to-1 ratio of the award was not unconstitutionally excessive; and the award did not violate due process. The court also concluded that the district court did not err by excluding the testimony of another borrower; and the jury instruction regarding the Real Estate Settlement Procedures Act (RESPA), 26 U.S.C. 2601, was not plainly erroneous. Accordingly, the court affirmed the judgment. View "May v. Nationstar Mortgage, LLC" on Justia Law