U.S. Bank v. Davis, K.

Superior Court of Pennsylvania·Decided July 31, 2026·No. 1302 EDA 2025·Unpublished·Dubow

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

U.S. BANK NATIONAL ASSOCIATION, : IN THE SUPERIOR COURT OF AS TRUSTEE FOR CITIGROUP : PENNSYLVANIA MORTGAGE LOAN TRUST 2006- : WFHE3, ASSET-BACKED PASS- : THROUGH CERTIFICATES, SERIES : 2006-WFHE3 :

:

:

v. : No. 1302 EDA 2025 :

:

KATHERYNE W. DAVIS :

:

Appellant

Appeal from the Judgment Entered May 6, 2025 In the Court of Common Pleas of Delaware County Civil Division at No(s): CV-2016-007787

BEFORE: DUBOW, J., NICHOLS, J., and MURRAY, J. MEMORANDUM BY DUBOW, J.: FILED JULY 31, 2026 Appellant, Katheryne W. Davis, appeals from the May 6, 2025 judgment entered in the Delaware County Court of Common Pleas in favor of U.S. Bank National Association (“U.S. Bank”) in this mortgage foreclosure action. After careful review, we affirm the verdict in U.S. Bank’s favor, but vacate the entry of judgment and remand for recalculation of the amount of the judgment against Appellant.

The relevant facts and procedural history are as follows. On July 31, 2006, Appellant borrowed $494,100.00 from Wells Fargo, N.A. (“Wells Fargo”) to purchase a home, and secured the loan with a mortgage. Appellant failed

to make her March 1, 2013 payment, and has not made any subsequent payments.

On April 23, 2013, Wells Fargo assigned the mortgage to U.S. Bank.

Pursuant to a limited power of attorney (“LPOA”), U.S. Bank authorized Wells Fargo to remain the loan servicer and to take other action on its behalf to enforce its rights to payment and pursue remedies for non-payment. On October 2, 2013, U.S. Bank filed a complaint in mortgage foreclosure against Appellant. The trial court, however, found that U.S. Bank had failed to prove that it provided Appellant with notice of the foreclosure proceeding pursuant to Act 91 and entered a compulsory nonsuit against U.S. Bank. This prompted U.S. Bank to send Appellant a new Act 91 notice and, on September 9, 2016, file a new complaint in mortgage foreclosure. On August 29, 2017, Appellant filed an answer with new matter.

The case proceeded through discovery, during which Appellant failed to respond to U.S. Bank’s request for admissions. As a result, on July 3, 2018, U.S. Bank filed a motion to compel discovery and to deem admitted its request for admissions. On July 30, 2018, the trial court granted U.S. Bank’s motion to compel and deemed admitted U.S. Bank’s request for admissions pursuant to Pa.R.Civ.P. 4014.1 Pursuant to that order, the court deemed admitted

every element of U.S. Bank’s cause of action, including Appellant’s execution

1 Rule 4014 provides that “[e]ach matter of which an admission is requested

. . . is admitted unless, within 30 days after service of the request . . . the party to whom the request is directed serves upon the party requesting the admission an answer[.]” Pa.R.Civ.P. 4014(b).

of the note and mortgage, failure to make payments since March 1, 2013, and receipt of the required notices. The order further directed Appellant to answer the interrogatories and request for production of documents within 20 days or risk further sanctions.2 On May 6, 2024, the trial court held a non-jury trial. At the commencement of trial, counsel for U.S. Bank, over Appellant’s objection based solely on U.S. Bank’s failure to include the admissions in its pre-trial exhibits list, read into the record Appellant’s admissions.

The trial court also admitted into evidence U.S. Bank’s Exhibits P-1 through P-6, which were as follows: (1) a copy of the original adjustable rate note (Exhibit P-1);3 (2) a certified copy of the mortgage (Exhibit P-2); (3) a copy of the recorded corporate assignment of mortgage from Wells Fargo to U.S. Bank (Exhibit P-3); (4) the LPOA (Exhibit P-4) authorizing Wells Fargo to service the loan; (5) Act 91 notice of Appellant’s default (Exhibit P-5); and (6) Appellant’s loan payment and financial transactions history (Exhibit P-6). In addition, U.S. Bank presented the testimony of Kim Daye, a Senior Loan

Document Specialist and Assistant Vice President at Wells Fargo. Mr. Daye

2 According to Appellant’s trial testimony, she ultimately provided responses

to the discovery requests, although it is not clear from the record when she did so. N.T. Trial, 5/6/24, at 112. As discussed below, Appellant did not file a motion to withdraw or amend her admissions pursuant to Rule 4014(d) until following the close of her testimony at trial, more than seven years after U.S. Bank served them on her.

3 U.S. Bank had the original note in the courtroom, both Mr. Daye and the court reviewed it, and the court confirmed that “it comports with the copy that’s been afforded to me.” Id. at 14.

explained that his role at Wells Fargo is to, inter alia, “review loans in foreclosure” and “provide business records to counsel.” N.T. Trial, 5/6/24, at 8-9.

Regarding U.S. Bank’s Exhibit P-4, the Act 91 notice, Mr. Daye explained that Wells Fargo uses a third-party vendor, the Walz Company (“Walz”), to send Act 91 notices to borrowers in default. Mr. Daye further explained that Wells Fargo provides Walz with a template notice, and once a loan is in default, Wells Fargo sends a:

secure feed to Walz to populate the template that was agreed upon. They input that information, the number of days in default, the amount, date, how [the borrower can] bring the account current. They provide that into the template. Once that information is inputted into the template, that person - -

authorized person print[s] that letter, mails that letter off. Once that letter’s mailed, they mail it from their site. Once its mailed, they send a transmitter feed back to Wells Fargo indicating that this is the date the letter was mailed, what type of letter was mailed, and it also identifies - - it’s input into the MSP system data that says - - that gives a stamp date and time this letter was mailed out.

Id. at 19-20; see also id. at 67-68. Mr. Daye confirmed that Wells Fargo maintains this document in its business record for the loan in the course of its normally conducted business activities and made by employees with knowledge of the information being entered at the time it was entered. Mr. Daye testified that Wells Fargo’s records indicated that the specific Act 91 notice at issue here was addressed to Appellant at the property address and sent both by certified mail and first-class mail.

With respect to Exhibit P-4, the LPOA, Mr. Daye testified that it was “part of Wells Fargo’s business record for the loan,” “kept in the course of Wells Fargo’s regularly conducted business activities,” “made by employees with knowledge of this information being entered at the time it’s being entered,” and it is the regular “business practice of Wells Fargo to make this kind of record.” Id. at 18.

U.S. Bank also examined Mr. Daye regarding its Exhibit P-7, which contained “judgment figures from [Wells Fargo’s] business records” and “identifies payments that due and owed.” Id. at 24-25. Mr. Daye read into the record the figures comprising the total amount that U.S. Bank alleged was due and owing—more than $1,000,000—including the adjustable interest rates it applied and the period for which it applied the rates to its calculation. According to its calculation, the applicable interest rate varied from a low of 6.25% to a high of 10.25% and rate adjustments took place 14 times between February 1, 2013, and May 1, 2024. Id. at 27-29. Appellant stipulated to the amounts listed on Exhibit P-7, but not to the admission of P-7.

Appellant’s counsel vigorously cross-examined Mr. Daye, including by conducting extensive questioning regarding the interest rate applicable to Appellant’s adjustable-rate loan, particularly because, initially, Appellant’s interest rate was indexed to the London Interbank Offered Rate (“LIBOR”) which ceased to exist more than a year before trial, and regarding Wells Fargo’s calculation of the amount of money Appellant owed on the loan.

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