First Union Mortgage Corp. v. Frempong

744 A.2d 327, 1999 Pa. Super. 343, 1999 Pa. Super. LEXIS 4718
CourtSuperior Court of Pennsylvania
DecidedDecember 31, 1999
StatusPublished
Cited by81 cases

This text of 744 A.2d 327 (First Union Mortgage Corp. v. Frempong) 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
First Union Mortgage Corp. v. Frempong, 744 A.2d 327, 1999 Pa. Super. 343, 1999 Pa. Super. LEXIS 4718 (Pa. Ct. App. 1999).

Opinion

CIRILLO, President Judge Emeritus:

¶ 1 Steven Frempong appeals pro se from an order entering an in rem judgment in favor of First Union Mortgage Corporation for the unpaid balance on his mortgage plus interest, a total of $62,-591.69, together with all other costs and charges associated with foreclosure and sale of the property. This case, involving an otherwise unremarkable mortgage foreclosure action, presents a cautionary tale regarding outrageous abuse of our legal system in order to delay collection of a debt. We affirm and direct the trial court to assess First Union’s costs of this appeal against Frempong.

¶ 2 Initially, we observe that the facts as stated in Frempong’s pro se brief are unintelligible, and those in First Union’s are but cursory and factually incomplete. After having examined the record, we sympathize with the court’s and First Union’s frustration with this case, but we cannot countenance such inadequate briefing. In order for the issues raised on appeal to take on even a semblance of meaning to us, we must be presented with a clear statement of the facts, and it is a waste of precious judicial resources for us to have to assemble such an account ourselves. The following recounting of this case’s history is gleaned directly from the certified record on appeal.

¶ 3 On April 22, 1985, Frempong, as mortgagor, executed a first mortgage on his real property at 8414 Fayette Street in Philadelphia, held by First Union Mortgage Corporation, as mortgagee, in the amount of $23,000.00. In January of 1992, he stopped making monthly payments on the mortgage. Six months later, First Union sent him notice of the amount necessary to cure the default, together with notice that if he failed to do so within a month, it would accelerate the mortgage. Frempong failed to cure the default. Thus, First Union filed a complaint against him in October of 1992, alleging his default on the mortgage. At that time, First Union demanded a total of $20,105.36, plus additional interest, fees, and costs to be calculated. Frempong filed preliminary objections based on defective service; these were denied, and he filed his answer.

¶ 4 Frempong executed a deed purportedly conveying 10% of the subject property to Information Management Group, Inc., 15% of it to F.A. Properties Corp., and 75% to himself. It appears Frempong formed and ran these two corporate entities.

¶ 5 In July of 1993, Frempong admitted his non-payment of the mortgage to the trial court, which then granted summary judgment for First Union in the amount of $23,658.32, an amount including the additional interest, fees, and costs requested by First Union, calculated as of July 17, 1993. Thereafter, First Union obtained its first of what were to be many Writs of Execution, directing the Sheriff of Philadelphia County to levy upon and sell the property at a Sheriffs sale to satisfy the judgment.

¶ 6 Several days later, Frempong filed his first notice of removal to the United States District Court for the Eastern District of Pennsylvania based on diversity of citizenship, claiming denial of due process in the common pleas court due to the alleged defective service. This temporarily stayed the Sheriffs sale. In response, First Union filed in the federal court a *330 motion to remand, noting that the amount in controversy was under the jurisdictional amount of $50,000.00. Frempong responded that the property’s market value was above this amount. The Honorable Donald W. VanArtsdalen, Judge of the District Court, issued an order essentially agreeing with First Union, citing the then-recent case of Sears Mortgage Corp. v. Atuahene, 828 F.Supp. 368 (E.D.Pa.1993), another mortgage foreclosure removal case from Philadelphia, for the proposition that the amount sought to be collected on the mortgage, not the property value, is the amount which must be above $50,000.00 for diversity jurisdiction to apply. In citing that case, Judge VanArtsdalen noted First Union’s allegation that Atuahene, the defendant in the Sears case, and Frempong were in fact the same individual, utilizing different names but the same ineffective removal strategy in two different mortgage foreclosure actions involving two different properties. As had the Honorable J. Curtis Joyner in Sears, supra at 370, Judge VanArtsdalen remanded the case to the Philadelphia Court of Common Pleas and ordered Frempong to pay “all costs and additional expenses, including attorneys’ fees, incurred as a result of the improper removal.” The case was remanded and the record returned by December of 1993.

¶ 7 Meanwhile, in October of 1993, Frempong had also filed a petition for bankruptcy under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Pennsylvania at docket 93-16296-BIF, utilizing the corporate name of Information Management Group, Inc. (IMG) and further staying the foreclosure. The following month, the Honorable Diane Sigmund of that court dismissed IMG’s petition.

¶ 8 The common pleas court’s Writ of Execution was re-issued in February of 1994, together with a supplemental list of judgment creditors with record liens against the property, including the City of Philadelphia, the Department of Public Welfare, the Internal Revenue Service, and the holder of a second mortgage, Continental Bank. Later that month, an outstanding prior petition of First Union to join the United States as party defendant was granted. First Union had found that Frempong, under the name of Steven Atuahene, owed substantial unpaid Federal taxes, and that a tax lien had been entered against the subject premises for approximately $75,000.00.

¶ 9 In February of 1994, First Union for the first time petitioned the common pleas court to reassess damages. It stated that the interest, escrow balance deficit, late charges, and attorneys’ fees had continued to accrue under the terms of the mortgage contract, and it sought to add approximately $2,000.00 to the prior amount. Shortly thereafter, the Honorable Russell M. Nigro, now a Justice of our supreme court but then sitting as a judge in the Philadelphia County Court of Common Pleas, issued a succinct order requesting from First Union within 30 days all documentation necessary for his decision. Although First Union filed a response to this request, it only included a copy of the mortgage in very fíne print. Therefore, in June of 1994, Judge Nigro issued an order stating that if First Union did not supply to the court within 30 days copies of the following, its petition would be dismissed:

A. Copy of Mortgage Foreclosure Judgment.
B. Relevant mortgage terms and conditions. Specifically, where petitioner is seeking post-judgment interest and/or post-judgment escrow deficit, petitioner must highlight the mortgage provision which evidence the parties’ intent to preserve the effectiveness of those provisions post-judgment. Failure to highlight the provision which allows for post-judgment interest at a higher rate than the 6% statutory rate and/or the provision which allows for an escrow deficit will result in dismissal of said petition.
*331 C. Petitioner must highlight the provision of the documentation substantiating request for attorney fees.
D.

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Cite This Page — Counsel Stack

Bluebook (online)
744 A.2d 327, 1999 Pa. Super. 343, 1999 Pa. Super. LEXIS 4718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-union-mortgage-corp-v-frempong-pasuperct-1999.