Claims Recovery Systems v. Donley

24 Pa. D. & C.5th 64, 2011 Pa. Dist. & Cnty. Dec. LEXIS 527
CourtPennsylvania Court of Common Pleas, Lawrence County
DecidedApril 21, 2011
DocketNo. 10359 of 2010, C.A.
StatusPublished

This text of 24 Pa. D. & C.5th 64 (Claims Recovery Systems v. Donley) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lawrence County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Claims Recovery Systems v. Donley, 24 Pa. D. & C.5th 64, 2011 Pa. Dist. & Cnty. Dec. LEXIS 527 (Pa. Super. Ct. 2011).

Opinion

MOTTO, P.J.,

Before the court for disposition are defendant’s preliminary objections to plaintiff’s complaint. Defendant claims that plaintiff has failed to properly attach required documents to its complaint pursuant to Pa.R.C.P. 1019(i), specifically that plaintiff has failed to attach documentation demonstrating the alleged assignment of defendant’s account from Huntington National Bank to Hudson and Keyes, LLC or the alleged subsequent assignment of the account from Hudson and Keyes, LLC to plaintiff. In defendant’s brief in support of preliminary objections, defendant raises the additional matter of plaintiff’s failure to attach a statement of account detailing how plaintiff arrived at the sum of $8,000 owed. However, such a claim must be raised in the original pleading and not in a brief. As such, defendant’s objection is not timely and the court will not address it.

In accordance with the opinion of the Superior Court in Atlantic Credit and Finance Inc. v. Giuliana, 829 A.2d 340 (Pa. Super. 2003), and this own court’s opinion in Hilko Receivables, LLC. v. Haas, 10274 of 2009, C.A. (Com. Pl. Lawrence 2009), two cases which addressed the issue of what documentation is required in a debt collection action, [66]*66the court finds that defendant’s preliminary objections are meritorious, as the assignments attached to the complaint as Exhibits A and B do not refer to defendant’s loan account as being included in the assignments nor do the allegations of the complaint allege the connection between these documents and defendant’s loan account. Therefore, plaintiff’s complaint will be dismissed with leave to amend to file the proper documentation as required by the holdings of Atlantic Credit and Hilko Receivables.

In plaintiff’s brief in response to preliminary objections, plaintiff argues that Pa.R.C.P. 2002 is the controlling law in this instance, and that the rule does not require plaintiff to attach the actual assignments of assets. Instead, plaintiff avers, only an affirmative allegation of the fact of the assignment, that is susceptible of proof, needs to be pleaded. Brown v. Esposito, 42 A.2d 93, 94 (Pa. Super. 1945). Rule 2002 provides, in pertinent part, that “all actions shall be prosecuted by and in the name of the real party in interest,” Pa.R.C.P. 2002. Plaintiff’s argument is based on Brown v. Esposito, a case in which the Superior Court considered the proper application of Rule 2002.

In Brown, the plaintiff averred that she was the real party in interest because a contract had allegedly been executed which lawfully and duly assigned the interest at issue to the plaintiff. Id. 42 A.2d at 93. The plaintiff, however, failed to attach the assignment or to plead the fact of the assignment anywhere on the record. Id. at 94. The court noted that Rule 2002 did not require the joinder of the assignor as a nominal party, but the rule did require the real party in interest to show in his pleading how he acquired that interest. Id. Specifically, the Brown court [67]*67stated that, “The derivation of the title to the cause of action must be alleged affirmatively as a fact, so that the defendant may require proof of the assignment if he so desires.” Id. The court held that plaintiff was not required to set out the assignment verbatim or attach a copy of the assignment as an exhibit, it would have been sufficient if plaintiff had stated the fact and date of the assignment and the parties thereto. Id. at 94.

Plaintiff Claims Recovery Systems avers that the holding of Brown is controlling in the matter sub judice, and therefore the complaint is sufficient. Further, plaintiff avers that even if Rule 2002 and the holding of Brown do not control, Pa.R.C.P. 1019(h) and 1019(i) do not require the attachment of the assignments. In a case decided almost 40 years after Brown, in which an argument similar to plaintiff’s was made, the court in Rosenthal & Rosenthal, Inc. v. Fairy Mills, Inc., 18 Pa. D. & C. 3d 364 (Pa. Com. Pl. 1981), held that to comply with the pleading requirements of Rule 2002, any documents relied upon by plaintiff must be attached in accordance with the requirements of Rule 1019(h). Rosenthal at 366.

The plaintiff in Rosenthal cited the case of Monarch Co. v. Sylvania Mfg. Co., 2 Lyc. 157 (1950), which held that in a suit brought by an assignee, no copy of the assignment needed be attached to the complaint as an exhibit. The Rosenthal court examined Rule 2002 and stated, “Pa.R.C.P. 2002 requires the facts of the assignment to be pleaded in the complaint. The assignment is therefore an essential part of the plaintiff’s case; it becomes a document upon which plaintiff relies; Rule 1019(h) therefore requires its attachment as an exhibit.” Rosenthal at 366 quoting 2 Goodright-Amram 2d. §1009(h):2, fn.58. This court finds [68]*68the reasoning in Rosenthal to be on point in determining the matter at hand. Plaintiff claims Recovery Systems has plead the existence of an assignment relying on Rule 2002, thus the assignment is an essential part of plaintiff’s case and plaintiff’s pleadings based on the alleged agreement must comport with Rule 1019(h) and (i).

Pa.R.C.P. 1019(h) requires a pleader to specifically state whether an agreement upon which a claim or defense is based is written or oral. If the agreement is in writing, then Pa.R.C.P. 1019(i) requires a pleader relying on a written agreement to attach the agreement or the material part thereof to the complaint, unless the agreement is not accessible in which case the pleader must so state, along with the reason, and set forth the substance of the agreement in writing. Pa.R.C.P. 1019(i). The cases Atlantic Credit and Finance Inc. v. Giuliana, 829 A.2d 340 (Pa. Super. 2003), and Hilko Receivables v. Haas, 10274 of 2009, C.A. (Com. Pl. Lawrence 2009), provide the court with useful guidance in determining the proper application of Rule 1019(i) to the matter sub judice.

In Atlantic Credit, the Superior Court held that preliminary objections to the complaint based on the failure of the plaintiff to attach the cardholder agreement, statement of account, and evidence of the assignment of the account was meritorious and should have been sustained. Atlantic Credit, 829 A.2d at 345. When deciding the case of Hilko Receivables, LLC. v. Haas, supra, this court extended the reasoning of Atlantic Credit to find meritorious preliminary objections to the complaint filed by plaintiff for failure to attach the applicable cardholder agreement, a statement of account which explained fully how the contested balances were arrived at in terms of [69]*69payments and credits, and for failure to attach any writings that related to the assignment from the original lender to any other entity or to the plaintiff. Hilko, 10274 of 2009 at 4.

The situations in Atlantic Credit and Hilko Receivables are similar to the situation sub judice. In Atlantic Credit,

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Related

Brown v. Esposito
42 A.2d 93 (Superior Court of Pennsylvania, 1945)
Atlantic Credit & Finance, Inc. v. Giuliana
829 A.2d 340 (Superior Court of Pennsylvania, 2003)
Rosenthal & Rosenthal, Inc. v. Fairy Mills, Inc.
18 Pa. D. & C.3d 364 (Berks County Court of Common Pleas, 1981)

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Bluebook (online)
24 Pa. D. & C.5th 64, 2011 Pa. Dist. & Cnty. Dec. LEXIS 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/claims-recovery-systems-v-donley-pactcompllawren-2011.