PNC Bank v. Willis, D. and P.

CourtSuperior Court of Pennsylvania
DecidedDecember 30, 2014
Docket235 EDA 2014
StatusUnpublished

This text of PNC Bank v. Willis, D. and P. (PNC Bank v. Willis, D. and P.) 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
PNC Bank v. Willis, D. and P., (Pa. Ct. App. 2014).

Opinion

J.S45043/14 & J.S45044/14

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

PNC BANK, NATIONAL ASSOCIATION, : IN THE SUPERIOR COURT OF SUCCESSOR IN INTEREST TO NATIONAL : PENNSYLVANIA CITY BANK, : : v. : : DONALD J. WILLIS AND : PATRICIA A. WILLIS, : : Appellants : No. 235 EDA 2014

Appeal from the Order Entered November 19, 2013 In the Court of Common Pleas of Philadelphia County Civil Division No(s).: 3251 June Term, 2013

PNC BANK, NATIONAL ASSOCIATION, : IN THE SUPERIOR COURT OF SUCCESSOR IN INTEREST TO NATIONAL : PENNSYLVANIA CITY BANK, : : v. : : WHISPERING MEADOWS, LLC, : : Appellant : No. 282 EDA 2014

Appeal from the Order Entered November 19, 2013 In the Court of Common Pleas of Philadelphia County Civil Division No(s).: 3250 June Term, 2013

BEFORE: BOWES, WECHT, and FITZGERALD,* JJ.

MEMORANDUM BY FITZGERALD, J.: FILED DECEMBER 30, 2014

We dispose of these two appeals together, as they lie from identical

orders issued in the Philadelphia County Court of Common Pleas denying

* Former Justice specially assigned to the Superior Court. J.S45043/14 & J.S45044/14

petitions to strike or open confessed judgments obtained by the same

Appellee, PNC Bank, National Association, Successor in Interest to National

City Bank. The appellants at No. 235 EDA 2014 are Donald J. and Patricia A.

Willis. The appellant at No. 282 EDA 2014 is Whispering Meadows, LLC, a

limited liability company of which the Willises are members. We will use the

appellation “Appellants” to refer to all three appellants. 1 Appellants have

filed identical briefs and argue the trial court erred in: (1) holding they did

not raise meritorious defenses to the confessed judgment; and (2) awarding

the attorneys’ fees to Appellee. We deny relief on the first issue but grant

relief on the second. Accordingly, we vacate and remand for the calculation

of attorneys’ fees.

“On April 30, 2007, Donald and Patricia Willis, as the borrowers,

executed a promissory note with National City Bank, as the lender, in the

principal amount of $1,280,000[.]” Trial Ct. Op., 2/26/14, at 2. The Willises

defaulted on the note. Am. & Restated Forbearance Agreement, 7/1/12, at

1, Ex. C to Appellee’s Compl. in Confession of Judgment, 6/25/13.

On July 1, 2012, [the Willises and Appellee] executed an “Amended and Restated Forbearance Agreement” that amended the payment terms of the promissory note and caused Whispering Meadows, LLC . . . to execute a

1 Appellants were represented in the trial court proceedings and in the instant appeal by the same law office. Furthermore, the appellate briefs, trial court opinions, and filings in both cases are identical, and for ease of disposition we refer to them in the singular.

-2- J.S45043/14 & J.S45044/14

guaranty and suretyship agreement whereby it became a guarantor and surety for the Willis[es’] obligations.

Trial Ct. Op. at 2 (citations to record omitted). The documents attached to

the forbearance agreement set forth the outstanding balance as

$613,233.23.2 The new maturity date for the loan was one year later, June

30, 2013. Am. & Restated Forbearance Agreement, Exh. A at 1.

Appellants did not make any payments under the new agreement. On

June 25, 2013, Appellee, as a successor in interest to National City Bank

filed complaints in confession of judgment against both the Willises and

Whispering Meadows, LLC for the alleged failure to make payments Appellee

asserted it was owed $710,411.96, which included $63,715.94 in “attorneys’

fees of 10%.”3

[The parties] agreed to extend the time to file petitions to strike off or open the judgment so that the parties could attempt to negotiate a settlement of their issues. Those discussions were unsuccessful, and [on September 26, 2013, Appellants] separately filed nearly identical motions to “Open and Strike Confessed Judgment.”[4]

2 This figure included: (1) a principal balance of $546,012.57; (2) interest due of $61,950.33; and (3) a late fee of $5,270.33. The interest rate was 5%. 3 The total damages of $710,411.96 also included: (1) $546,012.57 of principal balance; (2) $91,146.89 of interest through the date of the filing of the complaint; (3) $9,536.56 late charges. Appellee’s Compl. in Confession of Judgment, 6/25/13, at ¶ 7. 4 Pennsylvania Rule of Civil Procedure 2959 governs petitions strike or open confessed judgment. Pa.R.C.P. 2959. “Pursuant to Pa.R.C.P. 2959(a)(3), a petition to strike or open a confessed judgment must be filed within thirty days of the date the judgment creditor filed written notice of its

-3- J.S45043/14 & J.S45044/14

Trial Ct. Op. at 2 (citations to record omitted).

Appellants’ motions raised three defenses. First, they argued:

[Appellee] has failed to properly calculate the amount outstanding on the Promissory Note and has failed to give [Appellants] proper credit for payments[.] Specifically, [Appellants] made two payments of $2,500 on March 30, 2011 and April 12, 2011.[5 Appellee’s] failure to credit these payments affects the principal balance, interest, and late charges in an amount that cannot be determined at this time because [Appellee] has thus far been unwilling to provide an accounting on how those amounts were calculated. Thus, it is indisputable that the confessed judgment is in an amount in excess to which [Appellee] could be entitled as a matter of law.

Appellants’ Mot. to Open & Strike Confessed Judgment, 9/26/13, at ¶ 3

(emphasis added). Appellants’ second defense was that Appellee

acted in bad faith with the intent and effect of frustrating [Appellee’s] ability to make payments on the Promissory Note. Specifically, [Appellee] lost two executed copies of the Forbearance Agreement; (2) . . . never provided [them] with a countersigned copy of the Forbearance Agreement; (3) . . . never provided [them] with a payment schedule; (4) . . . never provided [them] with a monthly payment amount; and (5) . . . never provided [them] with a location or address to which payments could be directed. [Appellants] requested the foregoing items on numerous occasions, but [Appellee] failed to address these requests. . . . As a result of [Appellee’s] failure to provide the foregoing items, [Appellants] were effectively unable to make regular payments on the Promissory Note. The two payments [above] were made by [Appellant] Donald J.

execution.” ESB Bank v. McDade, 2 A.3d 1236, 1240 (Pa. Super. 2010) (emphasis added). Here, Appellee did not seek to execute the confessed judgments, and thus Rule 2959(a)(3) is not triggered. See id. 5 As we discuss infra, the March and April 2011 payments predated the July 2012 execution of the amended forbearance agreement.

-4- J.S45043/14 & J.S45044/14

Willis literally appearing at a local [branch of Appellee bank] and giving the checks to a local teller. It was clear to [Appellants] from these circumstances that their payments were not being properly credited, and the Complaint in Confession of Judgment . . . has confirmed that belief. Thus, as a result of [Appellee’s] bad faith, it was objectively unreasonable for [Appellants] to continue to make payments that they knew would not be properly credited to the Promissory Note.

Id. at ¶ 2 (emphases added). Appellants’ final defense was that the

attorneys’ fees of $63,715.96 “act[ed] as an unlawful penalty rather than a

lawful liquidated damages provisions [sic]” and was “clearly unrelated to and

disproportionate to the work actually performed,” that of “filing . . . a three

page Complaint in Confession of Judgment.” Id. at ¶ 3.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

PNC Bank v. Bolus
655 A.2d 997 (Superior Court of Pennsylvania, 1995)
Dollar Bank v. Northwood Cheese Co.
637 A.2d 309 (Superior Court of Pennsylvania, 1994)
PNC Bank v. Kerr
802 A.2d 634 (Superior Court of Pennsylvania, 2002)
Liazis v. Kosta, Inc.
618 A.2d 450 (Superior Court of Pennsylvania, 1992)
ESB BANK v. McDade
2 A.3d 1236 (Superior Court of Pennsylvania, 2010)
Rait Partnership, L.P. v. E Pointe Properties I, Ltd.
957 A.2d 1275 (Superior Court of Pennsylvania, 2008)
Midwest Financial Acceptance Corp. v. Lopez
78 A.3d 614 (Superior Court of Pennsylvania, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
PNC Bank v. Willis, D. and P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/pnc-bank-v-willis-d-and-p-pasuperct-2014.