IN RE COSTA

Bankruptcy No. 89-25188-C-7. Adv. No. 93-2616.

172 B.R. 954 (1994)

In re Robert P. COSTA and Rebecca J. Costa, Debtors. Robert P. COSTA and Rebecca J. Costa, Plaintiffs, v. Peggyanne WELCH, individually and dba Credit Bureau of Amador and Calaveras Counties; Airola & Airola, Attorneys; Steven Airola, Esq.; and Wells Fargo Bank, N.A., Defendants.

United States Bankruptcy Court, E.D. California.

September 14, 1994.


Attorney(s) appearing for the Case

H. Lee Horner, Jr., Horner & Horner, Sacramento, CA, for debtors/plaintiffs.

Mark E. Ellis, Murphy, Pearson, Bradley & Feeney, Sacramento, CA, for defendant Wells Fargo Bank, N.A.

Steven Airola, Airola & Airola, San Andreas, CA, for Airola & Airola and in pro. per.


MEMORANDUM DECISION

CHRISTOPHER M. KLEIN, Bankruptcy Judge.

What is a law-abiding bank to do? It obeyed state law and froze $541 when served with a facially valid writ of execution. Now the debtor demands that the bank pay $10,000 in punitive damages on the theory that honoring a writ of execution violated the bankruptcy discharge injunction with respect to a debt that the debtors had intentionally omitted from their bankruptcy schedules.

The procedure...

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