JPMorgan Ordered To Pay Over $4 Billion To Widow And Family

Tyler Durden's picture

A Dallas jury ordered JPMorgan Chase to pay more than $4 billion in damages for mishandling the estate of a former American Airlines executive.

Jo Hopper and two stepchildren won a probate court verdict over claims that JPMorgan mismanaged the administration of the estate of Max Hopper, who was described as an airline technology innovator by the family’s law firm. The bank, which was hired by the family in 2010 to independently administer the estate of Hopper, was found in breach of its fiduciary duties and contract. In total, JP Morgan Chase was ordered to pay at least $4 billion in punitive damages, approximately $4.7 million in actual damages, and $5 million in attorney fees.

The six-person jury, which deliberated a little more than four hours starting Monday night and returned its verdict at approximately 12:15 a.m. Tuesday, found that the bank committed fraud, breached its fiduciary duty and broke a fee agreement, according to court papers.

"The nation's largest bank horribly mistreated me and this verdict provides protection to others from being mistreated by banks that think they're too powerful to be held accountable," said Hopper in a statement. "The country's largest bank, people we are supposed to trust with our livelihood, abused my family and me out of sheer ineptitude and greed. I'm blessed that I have the resources to hold JP Morgan accountable so other widows who don't have the same resources will be better protected in the future."

"Surviving stage 4 lymphoma cancer was easier than dealing with this bank and its estate administration," Mrs. Hopper added.

Max Hopper, who pioneered the SABRE reservation system for the airline, died in 2010 with assets of more than $19 million but without a will and testament, according to the statement. JPMorgan was hired as an administrator to divvy up the assets among family members. “Instead of independently and impartially collecting and dividing the estate’s assets, the bank took years to release basic interests in art, home furnishings, jewelry, and notably, Mr. Hopper’s collection of 6,700 golf putters and 900 bottles of wine,” the family’s lawyers said in the statement. “Some of the interests in the assets were not released for more than five years.”

The bank's incompetence caused more than just unacceptably long timelines; bank representatives failed to meet financial deadlines for the assets under their control. In at least one instance, stock options were allowed to expire. In others, Mrs. Hopper's wishes to sell certain stock were ignored. The resulting losses, the jury found, resulted in actual damages and mental anguish suffered by Mrs. Hopper. With respect to Mr. Hopper's adult children, the jury found that they lost potential inheritance in excess of $3 million when the Bank chose to pay its lawyers' legal fees out of the estate account to defend claims against the Bank for violating its fiduciary duty.

Confirming that much of America does not hold Wall Street in high regard, the court’s verdict form showed that  jurors awarded $8 billion in punitive damages against the bank. Alan Loewinsohn, attorney for Jo Hopper, said in an interview there may be duplication of some of the damage findings. He asked the jury to take into account the bank’s worth and asked them for $2 billion in punitive damages. “I believe they used that figure for the other parties in the case as well,” he said.

As a result, he said, the punitive damage award could end up being “somewhere between $4 billion and $8 billion.” The verdict form also shows jurors were advised to consider factors including “the net worth of JPMorgan.” JPM has a market cap of about $330 billion.

At the lower end of that range, the jury’s award would erase almost two-thirds of the $6.6 billion profit that JPMorgan generated globally during the second quarter. According to Bloomberg, it would rank high among the largest sanctions ever levied against the bank - somewhere between the $2.6 billion it agreed to pay in 2014 for allegedly failing to stop Bernard Madoff’s Ponzi scheme, and a $13 billion settlement it reached with government authorities in 2013 for its handling of mortgage bonds that fueled the financial crisis.

"Mrs. Hopper asked the jury to send a message loud enough for JP Morgan to hear it all the way to Park Avenue in Manhattan," said Loewinsohn, "Hopefully, that message has been received."

Probably not: sadly for widow Hopper, she is unlikely to see the full award: large punitive damages verdicts like the one in the Hopper case are often scaled back because the U.S. Supreme Court has ruled they can’t be disproportionate to actual damages. In this case, the jury awarded less than $5 million in actual damages.

The bank said it acted in a professional manner and in good faith on Hopper’s estate and is “highly confident” the jury verdict won’t stand under Texas law.

“Clearly the award far exceeds any possible interpretation of Texas tort reform statutes,” Andrew Gray, a spokesman for the bank, said in an emailed statement. “There has been no judgment entered by the court based on this verdict.”

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lester1's picture

Jaime will have to cash out his Bitcoin.

Croesus's picture

In Soviet Amerika, Bank Robs You!

bamawatson's picture

we're from the bank; and we're here to help

Croesus's picture

Haha, I don't know which version of the phrase scares me more...but I sure as hell wouldn't entrust responsibility with my money or my life in the hands of either.

peddling-fiction's picture

"Surviving stage 4 lymphoma cancer was easier than dealing with this bank and its estate administration," Mrs. Hopper added.

So did they try to "kill" her as well?

 

YUNOSELL's picture

Most amazing is how these criminal organizations calling themselves commercial banks are still in business, after all these sorts of stories keep coming out

SoDamnMad's picture

But hey.   A back room payoff in the appeal and the family will receive a buck 3 80.

One putta for me, one putta for you, 20 puttas for me, one putta for you, one thousand putts for me, one putta for you.

jcaz's picture

...And so Jamie pretends to be "outraged", puts a couple of people on double-secret probation,  uses BAC shareholder money and insurance to pay the negotiated-down settlement and laughs his way onto the next quarter-

Until they perp-walk a few of the fuckers that are doing this shit,  waving a billion or trillion fine isn't going to impress me.

Richard Chesler's picture

Fucking Netanyahoo still wonders why antisemitism is on the rise. Fucking thieves all of them.

Son of Loki's picture

Probate is one of the most corrupt arteas unless you have a person you can trust to move it along and not run up fees on useless things.

 

NYC is the MOST corrupt I read. But any attorney/administrator can rob you blind with filing tons of needless paperwork and charging for every tiny thing.

DeadFred's picture

The appeal filed on this decision will probably take until 2030 to be heard. In the mean time people grow old and die. Accidents happen and they (their grandchildren?) settle for pennies.

Still, it makes for a really happy headline :)

Bay of Pigs's picture

Let's all take a knee in protest shall we? Come on Popovich, share some more pearls of wisdom with us.

What bullshit.

Déjà view's picture

About 1/3 of JPM fine for MBS scandal...Gov't must have hired some cheap $150/hr. attorney...

Sir Edge's picture

 

Please... Mother of God... Make JPM pay every single cent... and let this be a turning point...  

DWD-MOVIE's picture

I'm making over $14k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://disq.us/url?url=http%3A%2F%2Fwww.Jobzon3.com%3Ab8eR_DQLwGRPVGtFvv...

Kayman's picture

The priviledge of having a brain. Maff is so hard, ax anybody.

lincolnsteffens's picture

Anyone with assets worth over $100,000 should create a  Revocable Trust and put all their assets into it and state exactly what is to happen under various life and death possibilities. They can appoint themselves as Trustee with complete control of the assets and then the successor trustees if the Trust maker becomes incapacitated or dies. They should also have a will.  Doing this will protect your estate from common place legal scams to drain the assets of the estate by lawyers.  You can put all assets including your house, car, bank accounts, jewelry, clothing or any tangible thing of value  into it.

I did it with the help of a lawyer and helped my parents do the same as well as becoming my parent's Trustee when they died. I took the time to learn and understand the process and the fine points of law. I only have a high school degree. If the concepts are properly explained by an estate lawyer any one of average intelligence, motivation and a high school level of education can understand and make the correct decisions. If possible the person who will take over the assets if you cant run the trust should be part of the process with you.  I'm now helping my sister revise her will and Trust of which I have been her Trustee for over ten years for which I voluntarily declined receiving any compensation for my time.

 

TuPhat's picture

My dad did that and then he lost the paperwork making him the trustee.  The house, the land, and all his financial assetts were owned by a trust with no assigned trustee.  Mom died and he wanted to sell the house.  What a nightmare.  He had to lawyer up and go to court to get ownership of his own property.  My advice is; do not get your property tangled up in any legal crap not even a trust.  100K is not enough to be worth it.  If you are wealthy enough to have a team of lawyers on retainer anyway then go ahead.

Kayman's picture

A town without enough work for 1 lawyer will find plenty of work for 2.

NumNutt's picture

If he knew the attorney that did the paperwork to make him a trustee he could have gone to their office and been provided a copy of the documents, by law they have to retain a copy of all legal documents that they generate. And yes I have been through the bullshit too...

JRobby's picture

Educate yourself, reduce taxes.

Rent a safety deposit box or better yet, buy a safe and bolt it in securely for important papers.

If you can't do these things pay tax like a slave or hang yourself or rent.

JRobby's picture

Sounds like shooting all the lawyers would be a cheaper solution?

Enjoyable at least.

Throat-warbler Mangrove's picture

Great post!  My mother had the foresight to create a trust for her estate.  Even so, I had to learn the fine points as the trustee.  It made the job of handling her estate much simpler than it otherwise would have been.

NumNutt's picture

Not that I don't think banksters are a bunch of crooks, but the stupidity of Max Hopper is just crazy:  "Max Hopper, who pioneered the SABRE reservation system for the airline, died in 2010 with assets of more than $19 million but without a will and testament" 

All of this could have been avoided if he had just had a Will, and a designated trustee, that is your take away from this story kids, live and learn....

hawaiian waverider's picture

Agreed.  Numerous high profile cases as well.  RE Tuphat, yes lawyer office would have a copy.  Don't lose it and no problems.  Trusts are a good idea and well worth it but don't pay over $3k for a trust.  

Bigly's picture

I had something take 9 years to get what was left me in a will. 

This is the worst area of the judicial system. You hate your family if you put something through probate.

Time is a weapon. The law is dead

Beam Me Up Scotty's picture

How many days did JPMorgan lose money trading stocks this year??  Zero again???

stinkypinky's picture

Like the article points out: The $billions figure won't stand. I suspect it'll be whittled down to $8 million in damages.

helloimjohnnycat's picture

The word antisemitism is too long to describe well-earned & deserved hatred.

In polite company, F'n joos is the Word. Just like bird.

And don't you know about the bird, why everybody knows about the bird.

ba-ba-ba-ba-bird-bird-bird

da bird is the word....

Yeah man, joos are the ultimate trashmen.

Nothing honest about their work. F'n joo trash comes trampin' directly into a human's home and begins taking everything to the curb.

 

 

Stuck on Zero's picture

Now you see why the government never brings Wall Street or political crime figures up for a jury trial. There's always an out of court settlement that amounts to peanuts. Any jury would send all these jerks to prison for life.

eatthebanksters's picture

I wish they could claw this money back from Dimon Douche!

greenskeeper carl's picture

Ya I agree. Lock a few of them up. They keep getting to pay for the damages they cause with shareholder money. They have no incentive to stop. If you make most of your money through fraud and theft, and only have to pay a quarter or half of it in fines, why would they stop? Too bad you can't sue the individuals responsible.

mtndds's picture

Phuck Ya!!!  Stick it to the man!!!

No Time for Fishing's picture

Because people keep giving them their business. People believe their sales pitch despite everything telling them to run, run away, run away fast. 

NoDebt's picture

"when the Bank chose to pay its lawyers' legal fees out of the estate account to defend claims against the Bank for violating its fiduciary duty."

Let that sink in for a moment.  The bank used the family's money to defend itself against a lawsuit brought against it by the family.

 

a Smudge by any other name's picture

I had to read that twice as well. Then it sunk in and conjured an image of banksters laughing and high-fiving when they came up with that idea. "Dude that's awesome!"

BarkingCat's picture

One has to wonder if all those nail gun accidents warrant the end result of these bankers screwing over the wrong individual.

Imagine a "family" business getting screwed over... Will the emphasis on "family".

Some people you don't fuck over no matter how much political and legal backing you might have.

The Forecast Calls for Pain's picture

Those "families" don't seem to have banking problems.

The Forecast Calls for Pain's picture

Those "families" don't seem to have banking problems.

you_are_cleared_hot's picture

Yeah I re-read that one several times. How is the Bank's Estate Management team not in Jail for that one?? I am pretty sure that is breaking the law in like EVERY state. But I do wonder one thing: Why didn't the widow just hire some goons to knee-cap this team? she has the means to do so.

Yes We Can. But Lets Not.'s picture

Reminds me a bit of the two times I've accepted a business check for payment,  walked into the bank it was drawn on, and been forced to pay a charge to cash it.  To put it another way, a business has a checking account, pays a vendor by check, and bank charges not the account holder but the payee!  So, business owed vendor $x, vendor netted $x-bank fee, business still owes vendor money....

Beam Me Up Scotty's picture

Thats how every credit card transaction across the land works.  The Banksta's gotta get their CUT!!

RedBaron616's picture

To be fair, you really don't expect them to run it for free, do you? Besides, there's a way around that. Pay cash.

Games Without Frontiers's picture

In some places that's called "theft" and "fraud", and it's against the law. Enough with the fucking pay to play, find the fucker who did this and criminally charge them.

BabaLooey's picture

"Expire at their own speed".....

"More monthlies for us".................overheard a banker scumbag say that once.....

Offthebeach's picture

Sheeple are for shearing. 

( Actually, probably Satcheet at the Bangalore sub-sub-sub contractor, by the time he got the pirate power line up the pole,  and the 2 hours a day of electricity,  and do you have any idear how hard it is to stand in 6 inches of effluent and get a Memory stick to load on a Kaypro 5 1/4" floppy? )

DerdyBulls's picture

4-8 billion seems reasonable to me.

CJgipper's picture

Aren't the banks and the government really one in the same at this point?