The Associated Press reports that the court, in a 5-1 decision, upheld a 2010 decision by a lower court that declined to hold GMAC in contempt, even though it acknowledged the company used bad faith in submitting a problematic foreclosure affidavit on behalf of Fannie Mae.
Writing for the majority, Justice Ellen Gorman made it clear that while GMAC was not being held in contempt, it was also not being held up for praise.
‘The affidavit in this case is a disturbing example of a reprehensible practice,’ she wrote. "That such fraudulent evidentiary filings are being submitted to courts is both violative of the rules of court and ethically indefensible.’
The case involved GMAC's foreclosure action against Nicolle Bradbury, a homeowner in Denmark, Maine, who fell behind on her mortgage payments after losing her job. During the lawsuit, Bradbury's attorney deposed a GMAC employee in Florida who testified to robo-signing 8,000 documents a month. GMAC later dropped its foreclosure action against Bradbury, who still retains her home.