Anderson et al v. Bank of America

Filing 5

MEMORANDUM OPINION. Signed by Judge Norman K. Moon on July 11, 2012. (sfc)

CUERK' orFt u..nl . counr
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LYNCHBURG D I SI
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N o. 12 v-00017
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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 .
.
.
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NO
AN K.M OO
UNII STATES DI
'ED
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STRI J
CT UDGE

7