In Re Brock Utilities & Grading, Inc.
Docket: 19-01934
Court: United States Bankruptcy Court, E.D. North Carolina; August 25, 1995; Us Bankruptcy; United States Bankruptcy Court
Brock Utilities Grading, Inc. filed a motion seeking damages under 11 U.S.C. § 362(h) for an alleged violation of the automatic stay by the IRS. The court noted that Brock had properly notified the IRS of its Chapter 11 filing, and the IRS acknowledged this notification. However, the IRS accidentally mailed a computer-generated notice of intention to levy after being informed of the bankruptcy. The IRS admitted to this technical violation but argued it was not willful and that Brock did not suffer any actual injury. The court explained that § 362(h) allows for recovery of damages from willful violations of the automatic stay, but the determination hinges on whether a violation is deemed willful and if the debtor has suffered injury. Precedent cases showed varying interpretations of what constitutes a willful violation, particularly regarding computer-generated notices. In this instance, the court concluded that Brock did not incur any actual damages since Brock's counsel had previously communicated with the IRS and received assurances against collection actions. Consequently, the costs for bringing the motion were unnecessary, and no compensation under § 362(h) was warranted. Therefore, the motion for sanctions was denied.