A jury in the U.S. District Court in Miami recently awarded a Miami businessman $6 million after finding that U.S. Bank acted in bad faith when they forced Maury Rosenberg into involuntary bankruptcy. The settlement included $5 million in punitive damages, which is the largest amount awarded in history for such a case. Rosenberg claimed that U.S. Bank, the no. 5 bank in the country, was using involuntary bankruptcy as a collection tool. Federal law prohibits banks from such actions. U.S. Bank has refused to back down, after losing two appeals and bankruptcy petitions were tossed out. Rosenberg said the process has since ruined his life.
U.S. Bank claims that it has done nothing wrong and that all of its actions were legal while pursuing Rosenberg for his debts. The bank disagrees with the verdict and plans to file post-trial motions and possibly an appeal. The bank is also pursuing Rosenberg for breach of contract in U.S. District Court in Pennsylvania for $4.9 million on a personal guaranty. Rosenberg claimed he approached the bank in 2008 to restructure his debts but was unable to get the bank to talk to him. He said he stopped making payments in order to get the bank to respond. After being forced into bankruptcy, Rosenberg lost everything, including his son’s $50 million trust fund.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.