Union Planters Bank, N.A. v. Hutson

OPINION

POTTER, Senior Judge.

Union Planters Bank failed to timely release a mortgage on property owned by Donna B. Hutson and her mother, Joan Barton. They sued Union Planters under KRS 382.365, which imposes penalties upon a mortgage holder who fails to timely release the mortgage after the underlying note is satisfied. Union Planters appeals from a $98,000 adverse judgment.

KRS 382.365, which was first enacted in 1978, 2 took on new life in 2000 when the penalties were dramatically increased. The previous $500 ceiling on discretionary penalties became a mandatory daily penalty. 3 The…