From:http://morganking.com/academyfolder/thisweekhotwire.htmL
COURT LETS CASE AGAINST CHASE FOR FRAUD ON THE COURT TO PROCEED
In re Woodruff Case no. 02-81159 (Bkrtcy.M.D.Ark Jan. 27 2010)
Chapter 13
Debtors were in default on their mortgage
A plan was approved permitting debtors to
- Continue making the monthly mortgage payment directly, and
- Make delinquency payments through the plan
Chase moved for relief from stay to foreclose
In support, Chase filed a motion, an affidavit, and a record of payments
All three were inconsistent with each other
Debtors alleged Chase’s affidavits were boilerplate and Chase knew they were false
Debtors sued for damages and injunctive relief
Chase moved for dismissal, which court denied
Court observed: “The gravamen of the complaint is that Chase has made an institutional practice of filing false affidavits.”
The court denied Chase’s motion to dismiss:
“The damage alleged in this case is far more widespread than damage to an individual debtor. The damage is to the system itself. If improper procedures are followed by parties or their counsel, they must be unearthed …”