Court Grants Leave to Amend Complaint Against Midland under FRBP 3001 which Failed to Detail Relief Requested

Court Grants Leave to Amend Complaint Against Midland under FRBP 3001 which Failed to Detail Relief Requested

The plaintiffs are debtors in pending chapter 13 bankruptcy cases. Midland filed proofs of claim in each of the bankruptcy cases. Midland did not itemize interest, fees, or costs when it originally filed the proofs of claim.

In Count II, plaintiffs allege that Midland violated Federal Rule of Bankruptcy Procedure 3001. Specifically, plaintiffs assert that Midland violated Rule 3001(a) “by failing to file a proof of claim that conformed substantially to the Official Form because it failed to accurately disclose that interest, fees, expenses, or charges were included in the claim amount.”

Additionally, plaintiffs complain that Midland violated Rule 3001(c)(2) “by failing to file with its proof of claim an itemized statement of the interest, fees, expenses, or other charges that were incurred before the bankruptcy petition was filed and which were included in the claim amount.”  The plaintiffs plead that “Defendants should be subject to an appropriate remedy as determined by this Court, and are liable to the Plaintiffs. . . for costs and attorneys’ fees.”  Finally, in the Demand for Relief, plaintiffs clarify that the relief sought includes: “[a]n award of the appropriate remedy as determined by this Court for the violations of Federal Rule of Bankruptcy Procedure 3001”; “[a]n award of attorneys’ fees”; “[a]n award of litigation costs”; “a Declaration that Defendants violated the law and an injunction against them filing any further Proofs of Claim that violate Federal Rule of Bankruptcy Procedure 3001(a) and 3001(c)(1) and requiring them to have the ability to respond properly to a request for the writing underlying a claim before filing a Proof of Claim”; and “[s]uch other declaratory or injunctive relief as the Court may deem fair and equitable.”

 

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