Facts

Defendant Specialized Loan Servicing LLC ("SLS") entered a false notation of bankruptcy onto plaintiff Sergio Larios' credit report. In spite of numerous disputes, calls and emails over a five-month period, SLS failed to correct the false bankruptcy reporting. The false bankruptcy reporting prevented plaintiff from obtaining a refinance loan on one of his properties, and the loan, for $150,000 with SLS, went into default. SLS then represented to plaintiff that he could apply for loan modification with SLS, which plaintiff did numerous times, only to have SLS reject each of his applications and ultimately inform him that he could not qualify for loan modification or loan relief.

Plaintiff sued SLS under the California Consumer Credit Reporting Agencies Act, for false credit reporting. Defendant SLS contended that plaintiff should have emptied out his retirement savings to pay off the SLS loan. SLS also contended that its false bankruptcy reporting did not prevent plaintiff from obtaining the refinance loan. Plaintiff at one point offered to pay off the loan to SLS if SLS would forgive $6,000 in interest, but SLS refused this offer.

PLAINTIFF'S CONTENTIONS: Plaintiff Sergio Larios contended that SLS violated the California Consumer Credit Reporting Agencies Act by falsely reporting a bankruptcy and not correcting it in spite of ample notice. Plaintiff contended he was damaged.

DEFENDANT'S CONTENTIONS: Defendant SLS contended that the false bankruptcy reporting did not damage the plaintiff and that he had the available money in his retirement account to pay off the SLS loan.

Settlement Discussions

Plaintiff issued a CCP 998 offer for $60,000 in damages plus a fee application, which SLS rejected.

Injuries

Plaintiff suffred Severe and continuing emotional distress and anxiety over having his credit destroyed by SLS.

Result

Plaintiff's verdict of $2.9 million. The court also entered an injunction against defendant Specialized Loan Servicing LLC, preventing them from foreclosing on the subject property.

Other Information

Plaintiff intends to seek attorney's fees and costs after the trial court enters judgment. Defendant intends to move for a new trial or JNOV.

Deliberation

2.5 days

Poll

12-0 liability; 10-2 damages

Length

eight days