Peoples Neighborhood Bank v. Layo

42 Pa. D. & C.5th 100
CourtPennsylvania Court of Common Pleas, Lackawanna County
DecidedOctober 22, 2014
DocketNo. 12 CV 6669
StatusPublished

This text of 42 Pa. D. & C.5th 100 (Peoples Neighborhood Bank v. Layo) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lackawanna County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peoples Neighborhood Bank v. Layo, 42 Pa. D. & C.5th 100 (Pa. Super. Ct. 2014).

Opinion

NEALON, J.,

I. PROCEDURAL HISTORY

OnNovembef 13,2012, plaintiff, PeoplesNeighborhood Bank, formerly Peoples National Bank (“Peoples Bank”), instituted this ejectment action against defendant, Sheila M. Layo (“Layo”), seeking to evict her from a townhouse unit at 2916 McCarthy Street, Scranton, on the basis that Peoples Bank is the “record owner” of that property as a result of a sheriff’s deed that was duly recorded on April 27, 2012. (Docket entry no. 1 at ¶¶ 3-4). In her responsive pleading to the ejectment complaint, Layo asserted a new matter pursuant to Pa.R.C.P. 1030, and averred that she was never “provided with notice of the mortgage foreclosure action or sheriff’s sale as required by Pennsylvania law.” (Docket entry no. 11 at ¶24). Layo [102]*102further alleged that Peoples Bank does not have paramount title to the property since the sheriff’s sale was “a nullity and void” due to Peoples Bank’s failure to comply with “the affidavit, notice and posting requirements of Pa.R.C.P. 3129.1 through 3129.3.” (Id. at! 13).

In addition, Layo has advanced a counterclaim under Pa.R.C.P. 1031 in which she incorporates the allegations and causes of action that she set forth in an earlier civil suit, which she commenced against Peoples Bank on August 16, 2012. (Id. at ¶¶ 36-40). Peoples Bank filed preliminary objections to Layo’s counterclaim, and by memorandum and order dated October 17, 2013, visiting Senior Judge Harold Kane overruled those preliminary objections. (Docket entry nos. 13-16). On April 11, 2014, Peoples Bank sought leave of court to certify this case for trial over Layo’s objection, and on April 11, 2014, Judge Robert A. Mazzoni granted Peoples Bank’s motion pursuant to Lacka. Co. R.C.P. 214(d). (Docket entry nos. 20-22). On June 2, 2014, the Lackawanna County Court Administrator assigned this matter to the undersigned and scheduled a status conference for July 14, 2014. (Docket entry no. 25).

By order dated July 14,2014, this matter was scheduled for a non-jury trial on September 15,2014, and September 16,2014. (Docket entry no. 26). On those dates, testimony was received from Paul Walsh, Sheila Layo, Steven Stranburg, and Steven Yankowski, and various exhibits were introduced into evidence. The parties filed their proposed findings of fact and conclusions of law on September 22,2014, and later submitted a joint stipulation on October 3, 2014. (Docket entry nos. 31-32, 34). The transcripts of the non-jury trial were completed and filed on October 20,2014, and this matter is ripe for a decision. [103]*103(Docket entry nos. 35-36).

In a bench trial, the trial judge acts as fact-finder and has the authority to make credibility determinations and to resolve conflicts in the evidence. Haan v. Wells, 2014 WL 5018462, at *9, 12 (Pa. Super. 2014); Rizzo v. MSA. Inc., 18 Pa. D. & C. 5th 233, 244-245 (Lacka. Co. 2010), aff’d, 32 A.3d 830 (Pa. Super. 2011). When serving as the finder of fact, the trial judge is “in the sole position to observe the demeanor of the witnesses and assess their credibility.” Hirsch v. EPL Technologies, Inc., 910 A.2d 84, 88 (Pa. Super. 2006), app. denied, 591 Pa. 727, 920 A.2d 833 (2007). As a result, the trial judge in a non-jury trial is free to “believe all, part or none of the evidence presented.” Ruthrauff, Inc. v. Ravin. Inc., 914 A.2d 880, 888 (Pa. Super. 2006), app. denied, 599 Pa. 711, 962 A.2d 1197(2008).

Additionally, “¡j judicial notice can be taken of pleadings and judgments in other proceedings where appropriate.” Krenzel v. Southeastern Pennsylvania Transportation Authority, 840 A.2d 450, 454 n.6 (Pa. Cmwlth. 2003). “This is particularly so where, as here, the other proceedings involve the same parties.” Lycoming County v. Pennsylvania Labor Relations Bd., 943 A.2d 333, 335 n. 8 (Pa. Cmwlth. 2007). A court may also take judicial notice of established matters in publicly-available dockets for cases filed in its own jurisdiction. See Deyarmin v. Consolidated Rail Corp., 931 A.2d 1, 15 n. 10 (Pa. Super. 2007), app. denied, 597 Pa. 706, 948 A.2d 805 (2008). The factual findings set forth in Section II below are based upon the trial evidence, which has been deemed to be credible and relevant, as well as those matters which may be judicially noticed.

[104]*104II. FINDINGS OF FACT

OnOctober25,2007, PeoplesBankloanedMountainside Commons, LLC (“Mountainside”) $1,000,000.00 to finance the construction of seven townhouse units on the 2900 block of McCarthy Street in Scranton. Peoples Bank’s loan to Mountainside was secured by an “Open-End Mortgage” granting Peoples Bank a security interest in the property at 2900 McCarthy Street, including any structures and improvements erected on that land. Richard Hallock (“Hallock”) acted as the “settlement agent” at the Peoples Bank — Mountainside closing, as well as the title insurance representative for the transaction. Following the closing, Hallock filed the Peoples Bank — Mountainside “Open-End Mortgage and Security Agreement” with the Lackawanna County Recorder of Deeds on November 2, 2007.

After Mountainside completed the construction of townhouse Unit 1 on 2916 McCarthy Street, Layo entered into an agreement of sale to purchase Unit 1 from Mountainside for the sum of $287,500.00. In connection with her purchase of townhouse Unit 1, Layo agreed to make a down payment of $28,750.00 and to borrow the remaining $258,750.00 from Peoples Bank. Under her adjustable rate note dated August 20, 2008, Layo agreed to repay her $258,750.00 loan by making 360 monthly payments to Peoples Bank beginning on September 20, 2008. In order to consummate that transaction, Peoples Bank and Mountainside were required to execute a partial release agreement releasing townhouse Unit 1 and its accompanying land from the Open-End Mortgage and Security Agreement that was filed on November 2, 2007.

On August 20, 2008, Mountainside, Layo and Peoples [105]*105Bank participated in a closing with respect to Layo’s purchase of townhouse Unit 1 for the contract sales price of $287,500.00. Layo also paid settlement charges totaling $8,159.25, comprised of $250.00 for document preparation, $1,798.75 for title insurance with Penn Title Insurance Company (“Penn Title”), $200.00 for Penn Title insurance endorsements 100,300, 8.1 and 7.10, $35.00 for CPL, $115.50 for the recording fees for the deed, mortgage and partial release of open-end mortgage, $5,750.00 for her share of the realty transfer tax, and $14.00 for PIN certification. From the $287,500.00 purchase price that was paid to Mountainside, $150,000.00 was deducted for its “payoff of first mortgage loan” with Peoples Bank, and $5,750.00 was allocated to pay Mountainside’s portion of the realty transfer tax. The Mountainside — Layo settlement statement identifies Hallock as the settlement agent for the closing and the title insurance agent for Penn Title.

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42 Pa. D. & C.5th 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoples-neighborhood-bank-v-layo-pactcompllackaw-2014.