Conestoga Bank v. Tioga Invs. II, LLC
138 A.3d 652
Pa. Super. Ct.2016Background
- Conestoga Bank obtained a confessed judgment of $739,924.81 against Tioga Investments II, LLC and Yip‑Yan Wong and levied on five Philadelphia properties; bank acquired the parcels at sheriff's sale for $300,000.00.
- Sheriff delivered an initial deed on August 22, 2014 that omitted metes-and-bounds or BRT numbers for three parcels; a corrective deed with complete descriptions was delivered September 29, 2014.
- Under 42 Pa.C.S. §§ 8103 and 5522, a judgment creditor must file a petition to fix fair market value within six months of delivery of the sheriff’s deed or the debtor may ask the court to mark the judgment satisfied.
- Borrowers filed a petition (March 4, 2015) to mark the judgment satisfied, arguing the six‑month period began on August 22, 2014 (initial deed delivery) and the Bank’s petition (filed March 17, 2015) was untimely.
- Trial court denied the Borrowers’ petition, concluding the six‑month period ran from delivery of the corrective deed (Sept. 29, 2014); Bank’s petition was therefore timely. Borrowers also claimed denial without oral argument was error.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the 6‑month period to file a petition to fix fair market value begin? | The period began on delivery of the initial sheriff’s deed (Aug. 22, 2014); corrective deed irrelevant. | The period began on delivery of the operative corrective deed (Sept. 29, 2014) because the initial deed failed to convey clear title. | Court held period began on delivery of the corrective deed; Bank’s petition was timely. |
| Was the August 22, 2014 deed effective to convey title despite missing legal descriptions? | Yes — the initial deed conveyed title; omissions do not restart the limitations period. | No — the initial deed was legally insufficient (inoperative) because it lacked descriptions/BRT numbers for three parcels, so corrective deed is the operative delivery. | Court held the initial deed was insufficient and legally null; corrective deed constituted delivery for §5522 purposes. |
| Did the trial court err by disposing of the petition without oral argument? | Trial court should have held oral argument or parties had a right to request it. | Borrowers did not actually request oral argument; court may decide motions without argument. | Court held no error: parties did not request argument and court may dispose of motions without it. |
| Was there any unacceptable delay by the Bank in obtaining the corrective deed? | (Implied) Any delay would not justify extending period for Borrowers. | Bank acted promptly; sheriff corrected and delivered deed within ~5 weeks. | Court found no inexcusable delay; corrective deed delivery was timely. |
Key Cases Cited
- Bryn Mawr Trust Co. v. Healy, 667 A.2d 719 (Pa. Super. 1995) (six‑month deadline for deficiency actions runs from delivery of sheriff’s deed and a judgment is presumed satisfied if creditor fails to file within the statutory time)
- Marx Realty & Imp. Co. v. Boulevard Center, Inc., 156 A.2d 827 (Pa. 1959) (no sale is complete for purchaser until deed delivery; title receipt marks occurrence of sale)
- Mountain Properties v. Tyler Hill Realty, 767 A.2d 1096 (Pa. Super. 2001) (definition and requirements of a deed as instrument conveying real property)
- Dickson v. Pennsylvania Power & Light Co., 423 A.2d 711 (Pa. Super. 1980) (deed description must be sufficiently precise to enable a surveyor to locate property)
- Fidelity Fed. Sav. & Loan Ass’n v. Capponi, 684 A.2d 580 (Pa. Super. 1996) (purpose of the Deficiency Judgment Act is to protect debtors by requiring reduction of debt by fair market value of property)
- Bannard v. New York State Natural Gas Corp., 293 A.2d 41 (Pa. 1972) (tax sale requires sufficient property description in deed for sale validity)
- Fidelity Bank, N.A. v. Bourger, 663 A.2d 213 (Pa. Super. 1995) (courts follow the Marx rule on when the six‑month period begins but may carve out exceptions for inexcusable delay in obtaining deed)