Opinion
CASE NO: 03-18020
September 5, 2003
ORDER
The matter before the Court is the Motion for an Award of Sanctions and Other Relief ("Motion") filed by Rossborough Remacor, LLC ("Movant"). Upon the duly noticed hearing of August 27, 2003, at 1:30 p.m., the Court hereby finds as follows:
On July 3, 2003, this Court determined that BSI violated the automatic stay provided for in § 362(a) of the Bankruptcy Code. The Court now finds that violation was willful. The testimony of Ms. Connie Frazier, president, shareholder, and owner of BSI, demonstrates that from at least June 25, 2003, BSI had full knowledge and awareness of the Movant's bankruptcy filing. The record reflects that Ms. Frazier instructed certain BSI employees to terminate the Administrative Services Agreement, and that these instructions were effectuated on July 1, 2003. The record further reflects that BSI did not seek a court remedy before it terminated the Administrative Services Agreement with the Debtor. During the time between the termination of the Administrative Services Agreement and this Court's order that BSI reinstate service, the Movant was without the services it was entitled to under the agreement. BSPs assertion of record that it had good cause to terminate the Administrative Services Agreement is without merit in view of the express prohibitions of § 362(a). Once the automatic stay is in force all actions, proceedings and claims against the debtor or the property of the debtor must cease.
Accordingly, this Court finds sanctions are to be awarded.
The Court finds that § 362(h) does not apply to this case. The Court finds that the plain meaning of the term "individual" as used in the Code does not include corporate debtors. For this reason, sanctions under § 362(h) are not appropriate. However, the Court finds that § 105(a) provides the mechanism for awarding sanctions in this case.
The sanctions will be in the form of reasonable attorney's fees and costs incurred by the Debtor in prosecution of the Motion For An Award of Sanctions. The Movant is to certify the actual attorney's fees and attorney costs incurred in the prosecution of this matter, only, and submit that certification to the court by Wednesday, September 3, 2003.
The Movant will not be awarded actual or punitive damages in this matter. Debtor failed to meet its burden of proof regarding its actual damages. The Court will not award damages based on speculation or conjecture, damages must be supported by the evidence. Thus, no actual or punitive damages will be awarded, other than the sanctions award imposed herein.
IT IS SO ORDERED.