October 9, 2007

David Strite was successful in defending an out of state bank against a punitive penalty related to a delayed lien release in Whitley County Kentucky.  Plaintiffs alleged that the bank failed to timely release a lien after the plaintiffs had refinanced their home in 2003.  The plaintiffs sought to enforce a statutorily created punitive penalty against the bank that would have given the plaintiffs a windfall more than $25,000 in excess of the value of the unreleased mortgage.  After plaintiffs put on their case, Strite successfully argued that the bank was entitled to a directed verdict as plaintiffs had not presented proof that the bank received written notice sufficient to trigger the statutory penalty.  The Court granted the motion based on the lack of proof by the plaintiff and case law interpreting the statute to require more notice than plaintiffs had provided.