In a legal action for a lender's failure to properly disburse settlement proceeds, what may a borrower not attain?

In a legal action concerning a lender's failure to properly disburse settlement proceeds, a borrower typically cannot attain twice the loan principal. This concept is related to the principle that damages awardable in such cases are generally limited to actual damages, which are designed to compensate the injured party for their actual loss. While borrowers may seek to recover actual damages incurred, legal fees, and potentially interest on the settlement proceeds, punitive or exemplary damages, such as seeking to collect double the loan principal, are not typically available in these cases unless specific statutory provisions or circumstances, such as fraud, are present.

Legal fees may be recoverable under certain circumstances, particularly if the borrower prevails in the action or if the contractual relationship includes a provision for the recovery of fees. Interest on settlement proceeds can also be a part of the claim if it can be demonstrated that the delay in disbursement caused lost opportunities or financial hardship. However, the idea of recovering twice the loan principal is not aligned with the remedies usually available in disputes involving improper disbursement of funds.