Atlantic Nat'l Trust v. Ruddy, D.

CourtSuperior Court of Pennsylvania
DecidedMarch 2, 2015
Docket759 EDA 2014
StatusUnpublished

This text of Atlantic Nat'l Trust v. Ruddy, D. (Atlantic Nat'l Trust v. Ruddy, D.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Nat'l Trust v. Ruddy, D., (Pa. Ct. App. 2015).

Opinion

J-A30040-14

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

ATLANTIC NATIONAL TRUST LIMITED IN THE SUPERIOR COURT OF LIABILITY COMPANY, PENNSYLVANIA

Appellant

v.

DONALD RUDDY AND ELEANOR RUDDY, H/W,

Appellees No. 759 EDA 2014

Appeal from the Order Entered February 11, 2014 in the Court of Common Pleas of Bucks County Civil Division at No.: 2012-01795

ATLANTIC NATIONAL TRUST LIMITED IN THE SUPERIOR COURT OF LIABILITY COMPANY, PENNSYLVANIA

Appellees No. 895 EDA 2014

Appeal from the Order Entered February 11, 2014 in the Court of Common Pleas of Bucks County Civil Division at No.: 2012-01795-31

BEFORE: LAZARUS, J., MUNDY, J., and PLATT, J.* ____________________________________________

* Retired Senior Judge assigned to the Superior Court. J-A30040-14

MEMORANDUM BY PLATT, J.: FILED MARCH 02, 2015

In these consolidated cross-appeals, Appellant, Atlantic National Trust

Limited Liability Company (Atlantic), and Appellees/Cross-Appellants, Donald

and Eleanor Ruddy (the Ruddys), appeal from the order entered on February

11, 2014, which granted the motion of the Ruddys for summary judgment

and denied the motion of Atlantic for summary judgment. For the reasons

discussed below, we affirm in part and quash in part.

In its summary judgment decision and order, the trial court

exhaustively details the extensive factual background and procedural history

of this case. (See Trial Court Opinion, 2/11/14, at 1-14). Therefore, for

purposes of clarity, we note only the following pertinent facts, taken from

that decision.

The instant matter concerns the attempt of Appellant to foreclose on

the second of two parcels of land (Parcel II) purchased by the Ruddys at a

tax sale in December 1993. Nickerson Development Cooperation

(Nickerson) originally purchased the two parcels in 1989, and it obtained a

$805,000.00 mortgage (the Mortgage) from Horizon F.A.; however, in May

1990, Horizon went into receivership with the Resolution Trust Company

(RTC). The duties of the RTC were eventually transferred to the Federal

Deposit Insurance Corporation (FDIC).

In 1990, Nickerson defaulted on the Mortgage and failed to pay

outstanding taxes on the parcels. As noted above, Bucks County ultimately

-2- J-A30040-14

sold the parcels at a tax sale, and for reasons not apparent from the record,

the title examination done by the Bucks County Tax Claim Bureau did not

disclose that the RTC had an interest in the property.

On December 21, 1999, the Ruddys conveyed the first of the two

parcels (Parcel I) to the Fonthill Corporation (Fonthill), an entity of which

they are the majority owners. On January 4, 2000, the FDIC assigned the

note and mortgage on both parcels to Atlantic. In 2004, Atlantic foreclosed

on Parcel I, then owned by Fonthill. Extensive litigation followed, and, on

November 13, 2008, this Court reversed the trial court and allowed Atlantic

to foreclose on Parcel I (Fonthill I). (See Atlantic National Trust, Ltd.

Liab. Co. v. Fonthill Corp., 964 A.2d 932 (Pa. Super. 2008), appeal

denied, 983 A.2d 1246 (Pa. 2009) (unpublished memorandum)).

The trial court entered judgment in favor of Atlantic for $742,083.40

on May 28, 2009. On November 13, 2009, Atlantic purchased Parcel I at a

sheriff’s sale for $20,000.00. On August 30, 2010, Atlantic filed a petition to

fix fair market value and, on July 21, 2011, the trial court issued an order

granting that petition and set the net fair market value of Parcel I at

$248,415.73 and the deficiency due on the judgment and underlying

obligation at $576,246.21. This Court affirmed that order (Fonthill II).

(See Atlantic Nat. Trust v. Fonthill Corp., 53 A.3d 944 (Pa. Super. 2012)

(unpublished memorandum)).

-3- J-A30040-14

On February 27, 2012, Atlantic filed the instant action against the

Ruddys seeking to foreclose on Parcel II. On January 8, 2013, Atlantic filed

a motion for summary judgment. The Ruddys filed a motion for summary

judgment on February 4, 2013. The trial court held oral argument on July

24, 2013. On February 11, 2014, the trial court granted the motion for

summary judgment filed by the Ruddys and denied the motion for summary

judgment filed by Atlantic. The instant, timely appeals followed. On March

7 and 18, 2014, the trial court ordered both parties to file concise

statements of errors complained of on appeal. See Pa.R.A.P. 1925(b). The

parties filed timely Rule 1925(b) statements on March 26, and April 2, 2014.

See id. The trial court issued an opinion on April 25, 2014. See Pa.R.A.P.

1925(a).

On appeal and cross-appeal, the parties raise the following questions:

I. Are [the Ruddys] collaterally estopped from contesting [Atlantic’s] prima facie case in a mortgage foreclosure action where [Atlantic] previously had obtained foreclosure under the same mortgage against a different parcel [the Ruddys] had conveyed to a corporation they owned?

II. Is a mortgage foreclosure action subject to a rebuttable presumption of payment after twenty years that [Atlantic] successfully rebutted in this case, rather than a strict statute of limitations?

III. Did [Atlantic’s] claim accrue when the FDIC was appointed as receiver of the mortgagee, pursuant to federal statute?

IV. Was the statute of limitations tolled pursuant to the doctrine of nullum tempus during the time the RTC and the FDIC were receivers of the mortgagee, administering its

-4- J-A30040-14

assets, including the mortgage [Atlantic] seeks to foreclose?

(Atlantic’s Brief, at 2).

I. Did Atlantic’s [c]omplaint in [m]ortgage [f]oreclosure filed in Fonthill I release the [o]bligor [Nickerson] from liability on the underlying [n]ote secured by the Mortgage thereby depriving Atlantic of any subsequent right to enforce the security for said [n]ote?

(The Ruddy’s Brief, at 24).

The parties appeal from the grant and denial of summary judgment.

The applicable scope and standard of review are as follows.

Pennsylvania law provides that summary judgment may be granted only in those cases in which the record clearly shows that no genuine issues of material fact exist and that the moving party is entitled to judgment as a matter of law. The moving party has the burden of proving that no genuine issues of material fact exist. In determining whether to grant summary judgment, the trial court must view the record in the light most favorable to the non-moving party and must resolve all doubts as to the existence of a genuine issue of material fact against the moving party. Thus, summary judgment is proper only when the uncontroverted allegations in the pleadings, depositions, answers to interrogatories, admissions of record, and submitted affidavits demonstrate that no genuine issue of material fact exists, and that the moving party is entitled to judgment as a matter of law. In sum, only when the facts are so clear that reasonable minds cannot differ, may a trial court properly enter summary judgment.

. . . With regard to questions of law, an appellate court’s scope of review is plenary. The Superior Court will reverse a grant of summary judgment only if the trial court has committed an error of law or abused its discretion. Judicial discretion requires action in conformity with law based on the facts and circumstances before the trial court after hearing and consideration.

Cresswell v. Pa Nat’l Mut. Cas. Ins.

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