By Mark H. Anderson, Associated Press
EMC Mortgage Corp., a unit of Bear Stearns Cos., on Monday failed to overturn a $6 million punitive damages award an arbitrator ordered the company to pay over its mortgage-debt collection practices.
The U.S. Supreme Court rejected the subprime lending company’s appeal without comment, ignoring pleas from EMC Mortgage and interested business groups that argued the arbitration award violated recent limits put on punitive damage awards by courts.
EMC Mortgage, which is based in Irving, Texas, was sued by Stanley and Patricia Stark of Holden, Mo. The Starks had filed bankruptcy in 2001 and moved out of a house mortgaged by a predecessor of the banking company. The Starks sued when the company repeatedly contacted them directly, even though they had an attorney. EMC also entered their house to post foreclosure related signs in the windows after the couple moved out of the house.
For this complete story, please visit Supreme Court Rejects EMC Mortgage Arbitration Ruling Appeal.
