McGinnis v. American Home Mortgage Servicing, Inc.

The Eleventh Circuit affirmed the judgment of the district court denying the motion for a new trial filed by American Home Mortgage Servicing, now known as Homeward, the defendant in this action brought by Jane McGinnis alleging, among other claims, wrongful foreclosure, holding that Homeward was not entitled to relief on its claims of error related to the jury’s punitive damages award.McGinnis, the owner of several rental properties, brought this action against Homeward, the servicer of seven of her properties’ mortgages, alleging wrongful foreclosure, conversion, interference with property, and intentional infliction of emotional distress. The jury found in favor of McGinnis on all claims and awarded $3,506,000 in damages, including $3,000,000 in punitive damages. In this appeal, Homeward argued that the punitive damages award was unconstitutionally excessive under the Due Process Clause and that the punitive damages award exceeded Georgia’s $250,000 cap on punitive damages. The Eleventh Circuit affirmed, holding (1) the punitive damages award was not unconstitutionally excessive; and (2) the punitive damages award did not unlawfully exceed the $250,000 statutory cap in O.C.G.A. 51-12-5.1(g) because there was no evidence from which a jury could conclude that it acted with the specific intent to harm McGinnis. View "McGinnis v. American Home Mortgage Servicing, Inc." on Justia Law