203 A.3d 187
Pa.2019Background
- In 2005 Taggart executed a residential mortgage; he defaulted beginning March 2009.
- Chase sent an Act 6/Act 91 combined pre-foreclosure notice on April 22, 2010, stating the amount to cure and giving 30 days to cure.
- Chase filed a foreclosure complaint in September 2010; that complaint was dismissed on preliminary objections in February 2011 and the docket later closed for inactivity.
- JP Morgan filed a new foreclosure complaint in July 2013 (new docket) but did not send a new Act 6 notice, instead appending the 2010 notice.
- The loan changed hands and Great Ajax was substituted as plaintiff; the trial court entered judgment for Great Ajax and the Superior Court affirmed.
- The Supreme Court reviewed whether Act 6 requires a fresh pre-foreclosure notice before each new foreclosure action after a prior action was dismissed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a lender must send a new Act 6 notice before filing a subsequent foreclosure action after a prior complaint was dismissed | Taggart: "any" in Act 6 means each and every action; a new notice is required so borrowers know current cure amount and contact info | Great Ajax: prior Act 6 notice suffices; Act 91 language and practicality support no requirement for repeated notices; dismissal does not nullify the earlier notice | The Court held a fresh Act 6 notice is required before each new foreclosure action; recycling a stale notice is insufficient |
Key Cases Cited
- Roethlein v. Portnoff Law Assoc., 81 A.3d 816 (Pa. 2013) (statutory interpretation standard; Act 6 purposes)
- Glover v. Udren Law Offices, P.C., 139 A.3d 195 (Pa. 2016) (Act 6 construed liberally to effectuate remedial purposes)
- Bennett v. Seave, 554 A.2d 886 (Pa. 1989) (Act 6 designed to avoid mortgage foreclosure abuses)
- Wells Fargo Bank, N.A. v. Spivak, 104 A.3d 7 (Pa. Super. 2014) (Superior Court held a second Act 6 notice is required after a discontinued foreclosure action)
- Fish v. Pennsylvania Housing Finance Agency, 931 A.2d 764 (Pa. Cmwlth. 2007) (construed Act 91 notice requirements; not binding on Pa. Supreme Court)