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Neff, E. v. Pennymac Corp.
Neff, E. v. Pennymac Corp. No. 1568 WDA 2016
| Pa. Super. Ct. | Jun 19, 2017
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Background

  • In 2007 the Neffs executed a mortgage to PNC Bank that was assigned to Citibank; the Neffs allege a handwritten alteration later added parcel #1F104-3B without their consent.
  • The Neffs defaulted in 2010; Citibank initiated foreclosure in 2011 and later assigned the mortgage to PennyMac, which recorded the assignment and prosecuted the foreclosure.
  • In 2012 the Neffs sued PNC, Citibank, and an agent alleging fraudulent alteration; they also raised related defenses in the foreclosure proceedings.
  • On May 18, 2016 the Neffs filed a separate action against PennyMac alleging PennyMac knew or should have known of the fraudulent alteration and that its recording/publication caused damage—pleading slander of title.
  • PennyMac filed preliminary objections (demurrer) arguing the complaint failed to allege publication of any false statement by PennyMac or that PennyMac knew of fraud; the trial court sustained the objections and dismissed the complaint.
  • The Neffs appealed, arguing that recording the assignment constituted publication of a false statement (slander of title); the Superior Court affirmed dismissal because the recorded assignment did not reference the allegedly altered parcel and thus did not publish any false statement by PennyMac.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether PennyMac’s recording of the assignment constituted publication of a false statement supporting slander of title Neff: PennyMac recorded an assignment while knowing or should have known the original mortgage was fraudulently altered to include parcel #1F104-3B, so its recording published a false statement causing pecuniary loss PennyMac: The recorded assignment did not reference the disputed parcel and merely stated it acquired Citibank’s interest; complaint fails to allege PennyMac published any false statement or knew of fraud Court: Dismissed claim — assignment record contained no false statement about the parcel, so no publication by PennyMac supporting slander of title

Key Cases Cited

  • Kilmer v. Sposito, 146 A.3d 1275 (Pa. Super. 2016) (standards for reviewing preliminary objections/demurrers)
  • Pro Golf Mfg., Inc. v. Tribune Review Newspaper Co., 809 A.2d 243 (Pa. 2002) (elements and definition of disparagement/slander of title)
  • Maverick Steel Co. v. Dick Corp./Barton Malow, 54 A.3d 352 (Pa. Super. 2012) (elements for publishing a false statement causing pecuniary loss)
  • Childers v. Commerce Mortg. Investments, 579 N.E.2d 219 (Ohio Ct. App. 1989) (recording an assignment by an assignee with knowledge of invalidity held reckless in its factual context)
  • Lomah Elec. Targetry, Inc. v. ATA Training Aids Australian Party Ltd., 828 F.2d 1021 (4th Cir. 1987) (assignment recorded by a purported officer constituted slander of title where assignment itself was fraudulent)
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Case Details

Case Name: Neff, E. v. Pennymac Corp.
Court Name: Superior Court of Pennsylvania
Date Published: Jun 19, 2017
Docket Number: Neff, E. v. Pennymac Corp. No. 1568 WDA 2016
Court Abbreviation: Pa. Super. Ct.