Wednesday, Sept. 17, 2008 | 9:46 a.m.
CARSON CITY -- A company that wrongfully foreclosed on a Las Vegas family’s condominium will pay the owners $1.29 million, not the original $3 million jury verdict.
The Nevada Supreme Court reduced the amount that Countrywide Home Loans Inc. must pay Gerald and Katrina Thitchener and their family in general and special damages, but upheld the $968,070 in punitive damages.
Countrywide intended to foreclose on the condominium of James Rangel, who lived in the same complex. But because of errors, the company foreclosed on the Thitchener’s unit.
The Thitcheners financed the condo through Countrywide in 1998. In 2002, Gerald was deployed by the Air National Guard to Tucson, Ariz. His family followed. They left their possessions in their Las Vegas condominium and kept the power on.
The family missed their mortgage payments for March, April and May 2002 and their loan was referred to the foreclosure department of Countrywide. But in June, they brought their payments current and Countrywide halted its foreclosure proceedings.
But Countrywide mistakenly took over the vacant condo of the Thitcheners instead of the one of Rangel. And the possessions of the Thitcheners were sold off and the unit put up for sale.
The Supreme Court, in 34-page opinion written by Justice Ron Parraguirre Thursday, said there was ample evidence to uphold the $968,070 in punitive damages against Countrywide.
Justice Parraguirre wrote that the Thitcheners “presented evidence of multiple ignored warning signs suggesting that Countrywide knew of a potential mix-up, as well as evidence indicating that Countrywide continued to proceed with the foreclosure, despite knowing of the probable harmful consequences of doing so.”
The court however wiped out $600,000 in damages for negligence and breach of contract, saying it duplicated the other awards in the case. And it said District Judge Elizabeth Goff Gonzalez improperly tripled the $321,690 awarded the Thitcheners for “trespass and conversion.”
The court returned the case to Judge Gonzalez to adjust the amount to be awarded to the Thitcheners.
Cy Ryan may be reached at (775) 687 5032 or [email protected].
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