In re Dawson, 390 F.3d 1139 (9th Cir. 2004)

Background: Chapter 13 debtors brought adversary proceeding to recover for deed of trust holder's allegedly willful violations of automatic stay. The United States Bankruptcy Court for the Northern District of California entered judgment in favor of debtors on one of their claims, but declined to award emotional distress damages, and debtors appealed. The District Court, Claudia Wilken, J., affirmed on damages issue and remanded, and debtors appealed.

Holdings: Superseding its prior opinion at 367 F.3d 1174, the Court of Appeals, Graber, Circuit Judge, held that:

Court of Appeals would exercise appellate jurisdiction over district court's decision in its bankruptcy appellate capacity, despite remand language in decision;

1. "actual damages," such as may be recovered by any individual injured by willful violation of automatic stay, include damages for emotional distress;
2. debtors did not have to demonstrate pecuniary loss as prerequisite to recovery of emotional distress damages;
3. lack of corroborative evidence and fact that deed of trust holder had not engaged in any egregious conduct did not necessarily preclude award of emotional distress damages; and
4. bankruptcy court's determination of number of hours reasonably expended by debtors' attorney and of reasonable hourly rate, for purpose of making lodestar fee award, was not abuse of discretion.