"This Is Unprecedented": JPMorgan Slams "Stunning" $8 Billion Damage Verdict Against It

Tyler Durden's picture

Here’s a live transmission from the Texas courtroom where JP Morgan Chase & Co’s lawyers are asking a judge to throw out one of the largest punitive judgments in legal history...

...Instead, the bank's lawyers say the $8 billion judgment should be reduced to zero.

“The law and evidence do not support any claim against JPMorgan, much less the unprecedented multi-billion-dollar punitive damage award, which the heirs have already admitted is unconstitutionally excessive,” the bank said in a filing in Dallas probate court according to Bloomberg.

Back in September, the bank was ordered to pay at least $4 billion in punitive damages, approximately $4.7 million in actual damages, and $5 million in attorney fees after a six-person jury found that the bank committed fraud, breached its fiduciary duty and broke a fee agreement, according to court papers in its handling of the $20 million estate of former airline executive Max Hopper, who died suddenly in 2010 without a will.

And - confirming that much of America does not hold Wall Street in high regard - the jurors awarded a total $8 billion in punitive damages against the bank.

Hopper, who pioneered the SABRE reservation system for American Airlines, 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.

Two of Hopper’s children, who died without a will, have already asked that the damages for them and their father’s estate be reduced to about $74 million, while his widow has yet to weigh in with any adjustment.

JPMorgan said the jury “accepted to the penny, the extraordinary invitation” of the family’s legal team to award the $8 billion without doing any “independent analysis,” according to Thursday’s filing. The bank previously said it was “highly confident” the verdict wouldn’t stand under Texas law.

JPMorgan denied any wrongdoing, saying it acted in good faith on the Hopper estate.

“The crux of the lawsuit is whether sparring survivors of a decedent may blame an independent administrator for seeking judicial guidance on a distribution issue about which the survivors disagree,” the bank said in Thursday’s filing.

The $8 billion award is the largest jury verdict of 2017 so far.
 

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AyatollahOfRockandRollaaa's picture

You're next Wells Fraudco.

Jack McGriff's picture

LOL this verdict is just appeasement fodder for the wage slaves of the banks.  JPMorgan will NEVER pay that verdict, and will tie up appeals for 10 years!  But some dumbasses out there think once the verdict is in, JPMorgan whips out the checkbook and pays on the spot.   Nope.

ebworthen's picture

^ This.  Not to mention the $1+ Trillion J.P. Morgan Chase got in the bailouts.

Even if they pay the $8 Billion, it would be a 0.008% fee for all the FED gravy.

johngaltfla's picture

While this judge is not impressed with the "Don't you know who I am" defense, the SCOTUS will side with the whores of the Fed for certain and reduce the verdict to $8.

tonyw's picture

“The law and evidence..."

Since when does the government need no stinking laws?

French Bloke's picture

Hard to feel sorry for any of them really. They're all pretty well loaded. But as JPM is pure eveil personified, I hope they get stuck with the bill...

Laowei Gweilo's picture

JPM may very well be evil banksters and deserve a lot more.

 

But awarding 8billion over this is just as stupd.

 

give the 8b to charity or something lol what retard judge ever thought this was sensible punitive value.

Sir Edge's picture

...

JPM To Pay $8,000,000,000...

One Word... Fan... Fucking... Tastic... !

Even $100B would not be enough... 

It should be a monthly payment with penalty n' interest of $100B

Saudi Blowout, Syria Mellowing, Hollywood Outing Itself, JPM Dinged !!

Popcorn Sales Thru Da Roof...

Carry On Fellow zHedgers... 

 

Edgey

auricle's picture

The laws were written by the bankers for the bankers. So it is therefore unpossible for the JPM bank to be guilty in this matter. Regretfully the $8B will not be paid out. Signed the bankers lawyer.

booboo's picture

I don't know, it does not say how well off the tamily was during the years that The Morgue sat around board rooms divying up art and sucking down the old dead guys wine while the family stewed. I think I would be a bit pissed myself. Fuck em and feed em beans

Lumberjack's picture

Hold Jamie in contempt and let him spend a couple of weekends at county!

847328_3527's picture

At least it sends a message the little peeples are fed up.

 

Bush and Obama handed "unprecedented" bailouts to these Fraudsters while they gave the little peeple.....zero.

 

I am sure the appellate court will reduce the dmages but one can never be sure. In any case, it does send a shock to the corrupt bankers, at least for a while.

Donnie Duvanie's picture

Asking for a reduction from $8 Billion to $74 million is like saying to the bank that f-cked you up the ass with a baseball bat, "Oh, it was nothing!"

marysimmons's picture

Forget the $8Bil, I want to see some bankers in jail doing hard time

Bes's picture

trump is going to jump all over this and

tweet

about how the swamp is fucking over the little ........... er nevermind

------

but he's strong on flag kneelers

hahahaha!

RAT005's picture

I would be more specific:  In Prison, a long hard time up their ass....

CheapBastard's picture

In the 1980's bank fraud cases, over 700 bankers and financial people were indicted by the AG.

Under Bush and Obama (a total of 16 years) zero have gone to jail.

[ok, maybe a handful, but there's close to zero]

So don't hold your breath. We're lucky if Sessons even gets out of bed in the morning!

jmack's picture

8 billion is hard time. 

Nobody For President's picture

Forget what you wanna see, ain't gonna happen.

Jon Corozine was the last corrupt-ass lying sob that went to jail for his fraudulent bullshit.

Oh, wait...

house biscuit's picture

Pleeez doan throw me the brier patch, Br'er Bear.....

Gorgeous's picture

In addition to the money, their bully tactics are now seing the light of day.  Hopefully it will bring some internal corrective action.  Not holding my breath though.

Rubicon727's picture

I say true justiice be meted out to Jamie Dimon, and all his bankster corporate elites. Throw them ALL in  Ryker's Island prison and throw away all the keys. Let them rot in Eternal Damnation for the crimes they've perpetrated against millions of people. And while we're t it --let's throw B.Gates, George Soros, the entire Goldman Sachs upper eschelon banksters *and* that thief  Warren Buffett in there, too.

 

ImGumbydmmt's picture

agree.

back in 2011 JPM was fined $5billion, the "Big news" was that single fine erased all of their PROFIT for one quarter of the year.

$5b is just the Profits on a 1/4 of a year. Not exactly devestating. and they seem to have bounced back "marvelously"

So like above mention, they can "afford" to write the check, but that can more easily afford the legal team to tie it up for YEARS. 

Reducing it is sensible ot get the plantiff paid on the spot.

So I wouyld maintain either $8b is NOT EVEN A FRACTION OF ENOUGH to begin to to punish such an institution.

Therefore Reform will only come via a dozen fortnights with Dimon himself enjoying the pleasures of having Bubba as a room mate.

Even better if they can find a room full of Bubba's whose momma lost the family home in a JPM foreclosure.

THEN we would see Justice AND Reform.

As long as Dimon can Smirk and say "thats why i moake more money than you"

NOTHING will Change.

Doesn't Anyone Know his address?

 

 

 

GreatUncle's picture

Whatever amount it is make Jamie buy and pay them in bitcoins.

Jack Oliver's picture

Yeah - JPM 's lawyers could get a charge of 'sodomy' - reduced to 'following too closely' !!!

natxlaw's picture

It is a very strong position at the settlement table.

lasvegaspersona's picture

Sorry to pee in the punch but the idea that a jury has the power to grant twice the budget of the State of Nevada to some poor souls is ridiculous and shows that juries do not understand what 3 extra zeros mean.

mkkby's picture

Only a stupid Bernie commie would think 8 billion is just. This is as dumb as saying blacks should get trillions in reparations because slavery 150 years ago.

No wonder normies have left ZH. The level of intelligence here is below the berkely campus.

effendi's picture

Punitive damages of 4 billion is just. It's a big enough sum to make the management of this bank and others sit up a realise that they need to fix their methods, but not so big that it bankrupts the company. Under a 100 million and it is a rounding error to the profits of the bank and a green light to continue the fraud. As for actual damages a sum of 10-20 million (plus legal expenses) is more realistic

343 Guilty Spark's picture

200 million in punitive damages and a court order to stating they cannot do this ever again should be enough.  Not because it is a slap on the wrist but because a company that disobeys a court order in such a way can lead to an injunction of the corporation, which would shut it down and prevent JPMorgan from doing business. 

Oddly enough it is light enough to nearly ensure that JPMorgan will do it again and then they can get tied up in legal for x amount of years fighting the federal government.  In addition to that, any legal defense that they are too big to fail would give additional ammunition for the federal governement to break up the bank and relook at other banks in the same light.

 

Ex-Oligarch's picture

A hypothetical court order that duplicates existing law against fraud, negligence and breach of fiduciary duty will do nothing to alter JPM's behavior or legal responsibilities.

And who, exactly, do you expect to police and enforce your hypothetical court order?  The plaintiffs aren't going to do it.  The court isn't going to do it.  Do you imagine that the same regulators that permitted this misconduct previously are going to do it?

Jack Oliver's picture

Maybe because you are here - Here is a little test !!

Can you tie your FUCKING shoelaces ?????

rockstone's picture

Amen. I loathe the banks but the bigger the settlement, the harder it is to collect. At $74 million somebody at least collects something in their lifetime.

And you're right, the rubes who make it through the jury pool don't know what a $8 billion dollars really is.

cherry picker's picture

Dimon, shut up and pay.  You commited crimes, you gotta do the time.  You are not too big to go to jail TBGJ

karenm's picture

If you believe the owners of this system are actually fined and face justice from the system they own, you have much to learn.

 

 

buzzsaw99's picture

it would be funny as hell if they actually had to pay that.

ReasonForLife's picture

Well a jury has decided, not sure how much more recourse Jamie has.

bonin006's picture

The recourse is appealing it up to the "Supreme" court.

buzzsaw99's picture

they won't have to go that high to find a crooked judge.

44magnum's picture

They will some how get the appeal moved to a NY court. The banks own the NY courts ,they never lose .

Max Cynical's picture

Meanwhile, while JP Morgan ties this up in the courts, the family won't see a dime from the estate for another 5 years.

True Blue's picture

Remember that woman who sued McDonalds over their coffee temperature and 'won' $12 million?

They appealed and it was reduced to peanuts.

And so it goes.

hola dos cola's picture

Wait till people start leaving bitcoin in their estates.

After this precedent... just WOW!

buzzsaw99's picture

dimon would start leaking from his spleen.  his liver would be like, wtf?  lulz

abyssinian's picture

JP Morgan Chase is a fraud....Jamie Demon said so......right?

ReasonForLife's picture

Sure Jamie, and Bitcoin's the fraud eh?  I believe the psychological term "Projection" is most appropriate here, viz:

"Psychological projection is a theory in psychology in which humans defend themselves against their own unconscious impulses or qualities (both positive and negative) by denying their existence in themselves while attributing them to others."