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