Howard L Henderson

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UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NEW YORK
Chapter 13
Case No.: 1-08-48268-jmm
ORDER AND JUDGMENT
Upon the motion of debtor Howard L. Henderson (“Debtor”) for violation of the automatic
stay pursuant to 11 U.S.C. § 362(k) by creditor Deutsche Bank National Trust Company, as Trustee
for Ameriquest Mortgage Securities, Inc., Asset-Backed Pass-Through Certificates, Series 2005-
R9 (“Creditor”) (the “Stay Violation Motion”) [ECF No. 24], with respect to Debtor’s real property
located at 108-30 Liverpool Street, Jamaica, New York 11435 (the “Property”); and hearings on
the Motion having been held on November 16, 2021, January 27, 2022, March 15, 2022, July 20,
2023, August 22, 2023, December 14, 2023, April 9, 2024, July 11, 2024, December 17, 2024, and
February 6, 2025, culminating in an evidentiary trial on damages held on April 3, 2025, and June
10, 2025; and good and sufficient notice of the Motion and the hearings and trial having been
provided, and counsel for both Debtor and Creditor having appeared; and the Court having read,
heard, and considered all submissions, arguments, and evidence of the parties, and any objections
thereto; and good cause appearing therefore, and
WHEREAS, on December 4, 2008, Debtor filed a voluntary petition for relief under
Chapter 13 of the Bankruptcy Code [ECF No. 1], which the Court dismissed on March 6, 2009
[ECF No. 16], and closed on March 16, 2009 [ECF No. 20]; and
In re:
HOWARD L. HENDERSON,
Debtor.
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WHEREAS, on October 13, 2021, Debtor moved to reopen this Chapter 13 case to seek
damages from Creditor for its willful violation of the automatic stay under 11 U.S.C. § 362(k)
[ECF No. 23]; and
WHEREAS, this matter concerns a Note and Mortgage dated August 24, 2005, in the
original principal amount of $457,000.00, executed by Debtor in favor of Ameriquest Mortgage
Company, the repayment of which was secured by a lien on Debtor’s Property recorded in the
Office of the City Register of the City of New York on September 26, 2005, under CRFN
2005000536142, and which were the subject of foreclosure actions filed in the Supreme Court of
the State of New York, Queens County, under Index Nos. 21001/2007 and 10743/2011 (which
was later converted to e-filing and assigned NYSCEF Index No. 700143/2021); and
WHEREAS, this Court has jurisdiction over this contested matter under 28 U.S.C. §§
157(a), 157(b)(1), 157(b)(2)(A), and 1334(b), and the Eastern District of New York Standing
Order of Reference, dated August 28, 1986, as amended by the Order dated December 5, 2012;
Debtor’s claim for damages for Creditor’s violation of the automatic stay is a core proceeding; and
WHEREAS, on March 4, 2022, this Court entered an Order Reopening Debtor’s Chapter
13 Case [ECF No. 39] to permit the Debtor to pursue these claims against the Creditor; and
WHEREAS, at a hearing held on February 13, 2024, regarding the parties’ motions for
summary judgment [ECF Nos. 58, 60], the Court preliminarily ruled that Creditor willfully
violated the automatic stay by refusing to convey the Property back to the Debtor; and
WHEREAS, on July 11, 2024, the Court ruled on the parties’ summary judgment motions
[ECF No. 75], holding that Creditor willfully violated the automatic stay, but denying Debtor’s
summary judgment motion due to a material factual dispute regarding the amount of damages, and
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scheduling an evidentiary trial regarding Debtor’s claims for actual and punitive damages, and
Creditor’s laches defense [ECF No. 77]; and
WHEREAS, trial proceeded on April 3, 2025 [ECF Nos. 98, 102-1], and June 10, 2025
[ECF No. 102-2]; and at trial, the Court heard testimony from (1) Debtor, (2) Jordan Manfro – a
partner at the law firm that represented Creditor in the foreclosure action against Debtor, and (3)
Gina Feezer – a Senior Loan Analyst in the law department of Onity Group, Inc., the parent
company of PHH Mortgage Corporation, the servicer of Debtor’s mortgage loan on the Property;
and evidence was admitted into the record regarding the extent of the Debtor’s damages; and
WHEREAS, following the parties’ submission of post-trial briefing [ECF Nos. 100-104,
109-110], the Court issued a Memorandum Decision on Damages for Violation of the Automatic
Stay Pursuant to 11 U.S.C. § 362(k) dated January 9, 2026 (the “Memorandum Decision”) [ECF
No. 111], with findings of fact and conclusions of law pursuant to Fed. R. Bankr. P. 7052; and
WHEREAS, the Court found that Creditor’s conduct in failing to remedy the stay violation
and holding title to Debtor’s Property hostage for almost five years, after it had actual notice of
the stay violation, was a willful and egregious violation of the automatic stay, warranting both
actual and punitive damages; and
WHEREAS, the Court found that Debtor presented sufficient and credible evidence to
support awards of actual and compensatory damages for lost FEMA benefits, attorneys’ fees and
costs, and emotional distress, and that Creditor failed to satisfy its burden of proof to establish a
defense of laches; and
WHEREAS, the Court found that because Debtor testified credibly as to the adverse
impact of Creditor’s years-long stay violation on his life and his health, Creditor did not produce
any evidence to the contrary, and a reasonable person under the same circumstances would have
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suffered severe emotional distress, that Debtor is therefore entitled to compensation equal to
approximately $131.59 per day for the 1,915-day period from December 5, 2008 (the date of the
foreclosure sale that violated the stay), to March 7, 2014 (the date title to the Property was restored
to Debtor); and
WHEREAS, the Court determined that the Debtor is entitled to actual damages in the
aggregate amount of $327,000.00, comprising (i) $20,000.00 in lost FEMA benefits, (ii)
$55,000.00 in legal fees and costs incurred in state court litigation, and (iii) $252,000.00 for
emotional distress; and
WHEREAS, the Court determined that Debtor is further entitled to an award of attorneys’
fees and costs incurred in litigating his stay violation claims, in an amount to be determined
following Debtor’s submission of a post-judgment motion for fees; and
WHEREAS, the Court determined that because of the egregious nature of Creditor’s
conduct in refusing to remediate its stay violation for more than four years to coerce Debtor to
settle his claims against Creditor, punitive damages equal to four times the actual damages awarded
are necessary to punish the Creditor and deter future misconduct; and
WHEREAS, the Court determined that additional equitable relief is required to restore
Debtor to the status quo ante, by precluding the collection of interest and fees that accrued on the
mortgage debt during the period of the stay violation;
NOW, THEREFORE, in conformity with the Memorandum Decision, and for the reasons
set forth therein, it is hereby
ORDERED, ADJUDGED, AND DECREED as follows:
1. 	Judgment is entered in favor of Debtor and against Creditor in the sum of
$327,000.00, as actual compensatory damages pursuant to 11 U.S.C. § 362(k)(1).
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2. 	Judgment is entered in favor of Debtor and against Creditor in the sum of
$1,308,000.00, as punitive damages pursuant to 11 U.S.C. § 362(k)(1).
3. 	The total money judgment awarded herein in favor of Debtor and against Creditor
is $1,635,000.00, plus post-judgment interest at the federal statutory rate pursuant to 28 U.S.C. §
1961, from the date of entry of this Order and Judgment.
4. 	Creditor, and its successors, assigns, servicers, and agents, are hereby permanently
enjoined from seeking, enforcing, collecting, or demanding any interest, fees, costs, late charges,
attorneys’ fees, or other charges on the subject Note and Mortgage secured by the Property that
accrued on or after December 5, 2008. Thus, the terms of this Judgment and Order shall also be
binding upon any and all of Creditor’s successors, assigns, servicers, and agents, and the Queens
County Clerk shall accept a copy of this Order and Judgment for recording as notice of such terms,
and shall cross-reference such recording with the Mortgage recorded against the Property on
September 26, 2005, under CRFN 2005000536142.
5. 	Creditor’s entitlement to proceeds from the Note and Mortgage, including a payoff
of the mortgage debt, exercise of the right of redemption in foreclosure, or sale of the Property at
a foreclosure sale or otherwise, shall be strictly limited to the principal balance and lawful amounts
due and owing under the Note and Mortgage as of December 5, 2008.
6. 	This Court retains concurrent jurisdiction with the Supreme Court of the State of
New York to hear and determine any disputes regarding calculation of the amount due on the Note
and Mortgage as of December 5, 2008, to ensure compliance with the injunctive relief granted
herein.
7. 	Any proceeds from a foreclosure sale, loan payoff, or exercise of the right of
redemption in foreclosure in excess of the amount due on the Note and Mortgage as of December
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5, 2008, shall be deemed surplus proceeds and shall be remitted to the Queens County Clerk for
distribution to the Debtor or other lawful claimants in accordance with New York Real Property
Actions and Proceedings Law.
8. 	Debtor is also entitled to an award of reasonable attorneys’ fees and costs incurred
in prosecuting his Bankruptcy Code § 362(k) claim in this Court, which he may seek by filing a
post-judgment motion pursuant to Fed. R. Civ. P. 54(d)(2) and Fed. R. Bankr. P. 7054, within
fourteen (14) days of the entry of the Court’s Memorandum Decision (i.e., by January 23, 2026).
9. 	Debtor’s concurrent request for judgment holding PHH Mortgage Corporation
(“PHH”) jointly and severally liable with Creditor for actual and punitive damages is denied for
failure to provide PHH with notice of Debtor’s request for relief as to PHH.
10. 	Counsel for the Debtor is directed to serve a copy of this Order and Judgment upon
the Creditor, and any other parties in interest who do not receive notice via the Court’s CM/ECF
system, within seven (7) days of its entry, and to file a certificate of service with the Court.
11. 	This Order and Judgment constitutes a final adjudication of the matters addressed
in the Memorandum Decision [ECF No. 111], and resolves the contested matter regarding damages
for Creditor’s violation of the automatic stay, as raised in Debtor’s motion filed on October 13,
2021 [ECF No. 24].
____________________________
Jil Mazer-Marino
United States Bankruptcy Judge
Dated: January 26, 2026
Brooklyn, New York
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