Surefire Dividend Capture v. The PNC Financial

2024 Pa. Super. 54, 333 A.3d 406
CourtSuperior Court of Pennsylvania
DecidedMarch 10, 2025
Docket1222 WDA 2023
StatusPublished

This text of 2024 Pa. Super. 54 (Surefire Dividend Capture v. The PNC Financial) 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
Surefire Dividend Capture v. The PNC Financial, 2024 Pa. Super. 54, 333 A.3d 406 (Pa. Ct. App. 2025).

Opinion

J-A18006-24 2024 PA Super 54

SUREFIRE DIVIDEND CAPTURE, L.P., : IN THE SUPERIOR COURT OF LINDA BEDELL; THE LINDA BEDELL : PENNSYLVANIA INDIVIDUAL RETIREMENT : ACCOUNT; LANDON BEDELL; : KEATON BEDELL; INNER DESIGN, : INC., PROFIT SHARING PLAN; JOHN : SCIOTTO; LOUIS SCIOTTO; AND : THE LOUIS M. SCIOTTO TRUST : : No. 1222 WDA 2023 : v. : : : THE PNC FINANCIAL SERVICES : GROUP, INC. : : : APPEAL OF: THE PNC FINANCIAL : SERVICES GROUP, INC. AND PNC : BANK, N.A. :

Appeal from the Order Entered June 30, 2023 In the Court of Common Pleas of Allegheny County Civil Division at No(s): GD-21-006035

BEFORE: OLSON, J., MURRAY, J., and BENDER, P.J.E.

OPINION BY OLSON, J.: FILED: MARCH 10, 2025

Appellants, the PNC Financial Services Group, Inc. and PNC Bank, N.A.,

appeal by permission from the interlocutory order entered on June 30, 2023.1

We vacate and remand. ____________________________________________

1 On June 30, 2023, the trial court amended its order of May 31, 2023 to certify that the ruling “involve[d] a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of the matter.” See Trial Court Order, 6/30/23, at 1; see also 42 Pa.C.S.A. § 702(b). Accordingly, we may exercise jurisdiction over this appeal pursuant to Pa.R.A.P. 312 and Pa.R.A.P. 1311(a)(1). J-A18006-24

On May 28, 2021, Surefire Dividend Capture, L.P., Linda Bedell, the

Linda Bedell Individual Retirement Account, Landon Bedell, Keaton Bedell,

Inner Design, Inc. Profit Sharing Plan, John Sciotto, Louis Sciotto, and the

Louis M. Sciotto Trust (hereinafter, collectively, “Plaintiffs”), commenced the

current civil action by filing a praecipe for a writ of summons, naming the PNC

Financial Services Group, Inc. (hereinafter “Appellant PNC Financial”) as the

sole defendant. See Plaintiffs’ Praecipe for Writ of Summons, 5/28/21, at 1-2.

Appellant PNC Financial was served with the writ of summons on July 14,

2021. See Sheriff Return, 7/14/21, at 1.

Just short of two years later, on May 2, 2023, Plaintiffs filed a motion to

amend their writ of summons to (among other things) “correct the name of

[Appellant PNC Financial] to [PNC Bank, N.A. (hereinafter “Appellant PNC

Bank”)].” Plaintiffs’ Motion to Amend, 5/2/23, at “Wherefore” Clause. As

Plaintiffs contended, they filed their motion to amend in accordance with

Pennsylvania Rule of Civil Procedure 1033. See id. at ¶ 21. This rule

provides, in part: “[a] party, either by filed consent of the adverse party or

by leave of court, may at any time change the form of action, add a person

as a party, correct the name of a party, or otherwise amend the pleading.”

Pa.R.C.P. 1033(a).

Further, Plaintiffs’ motion to amend provided some factual context

behind their civil action.2 In the motion, Plaintiffs declared that their civil suit ____________________________________________

2 Plaintiffs have yet to file a complaint in this action.

-2- J-A18006-24

relates to an allegation of hedge fund fraud perpetuated by non-parties Brenda

Smith and George Heckler. Plaintiffs’ Motion to Amend, 5/2/23, at ¶¶ 3-4.

According to Plaintiffs, Appellant PNC Bank was “Smith and Heckler’s bank and

the epicenter of their Ponzi schemes.” Id. at ¶ 6. Plaintiffs further contended:

Plaintiffs’ money (representing their investments in the hedge funds) was accepted and held on deposit at [Appellant] PNC Bank in accounts opened and managed by Smith and Heckler, and then was misappropriated by them.

Plaintiffs have filed this action against PNC for its role in Smith and Heckler’s fraud.

...

[Appellant] PNC Bank opened the bank accounts at issue, and [Appellant] PNC Bank accepted Plaintiffs’ investment money, held it on deposit, and allowed it to be misappropriated. [Appellant] PNC Bank both knew of and substantially assisted the underlying wrongdoing by Smith and Heckler.

Id. at ¶¶ 7-8 and 10 (paragraph numbering omitted).

According to Plaintiffs, after they filed their writ of summons naming

Appellant PNC Financial as the sole defendant, they conducted additional

investigation and determined “that the specific PNC entity as defendant to this

case should be correctly identified as [Appellant] PNC Bank,” not Appellant

PNC Financial. Id. at ¶ 9. Plaintiffs claimed that any confusion between

Appellant PNC Bank and Appellant PNC Financial arose “because PNC conflates

the two [names] and uses them interchangeably in public-facing materials.”

Id. at ¶ 11. Thus, Plaintiffs requested that the trial court “grant its motion to

amend and correct the name of [Appellant PNC Financial] to [PNC Bank, N.A.

-3- J-A18006-24

(hereinafter “Appellant PNC Bank”)].” Plaintiffs’ Motion to Amend, 5/2/23, at

“Wherefore” Clause.

Appellant PNC Financial filed a response in opposition to Plaintiffs’

motion and claimed that the trial court must deny the motion to amend. First,

Appellant PNC Financial argued, Plaintiffs are wrongly attempting to amend

their writ of summons through Pennsylvania Rule of Civil Procedure 1033. As

Appellant PNC Financial claimed, Rule 1033 is solely concerned with the

amendment of pleadings; and, since a writ of summons is not a pleading,

Appellant PNC Financial argued that the rule does not allow a party to amend

a writ of summons and add an entirely new party as a defendant. Appellant

PNC Financial’s Response, 5/11/23, at 3.

Second, Appellant PNC Financial contended, Plaintiffs are attempting to

amend their writ of summons and add Appellant PNC Bank as a defendant, so

that Plaintiffs can assert fraud claims against Appellant PNC Bank. See id. at

4-5. Appellant PNC Financial noted, however, the statute of limitations for a

fraud claim is two years and, according to Appellant PNC Financial, the alleged

fraud at issue ended in 2019 – outside of the statute of limitations period.

See id. at 5. Therefore, Appellant PNC Financial claimed, the trial court must

deny the Plaintiffs’ motion for this independent reason, as “a writ of summons

cannot be amended to add a new or different defendant as to which the statute

of limitations has run.” Id.

Finally, Appellant PNC Financial argued, “Plaintiffs knew nearly two

years before they filed this action that [Appellant] PNC Bank was the party

-4- J-A18006-24

with which Brenda Smith, and her hedge funds, had accounts,” as evidenced

by the fact that Plaintiff Surefire Capital directed subpoenas in an earlier

arbitration action to “PNC Bank.” Id. at 8 (some capitalization omitted).

According to Appellant PNC Financial, since Plaintiff Surefire Capital

“indisputably had knowledge as of July 2019 that Ms. Smith’s banking

relationship was with [Appellant] PNC Bank, not [Appellant] PNC Financial,”

the motion’s “purported justification for the delay in identifying [Appellant]

PNC bank as the correct party to this action is not credible” and the trial court

must deny the motion to amend. Id. at 10 (quotation marks omitted).

On May 31, 2023,3 the trial court granted Plaintiffs’ motion and allowed

the writ of summons to be amended, to “correct the name of [Appellant PNC

Financial] to [Appellant PNC Bank].” Trial Court Order, 5/31/23, at 1-2; see

also Plaintiffs’ Motion to Amend, 5/2/23, at “Wherefore” Clause. Within its

later-filed Rule 1925(a) opinion, the trial court explained:

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2024 Pa. Super. 54, 333 A.3d 406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/surefire-dividend-capture-v-the-pnc-financial-pasuperct-2025.