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Bordoni v. Chase Home Fin. LLC

Citation: 374 F. Supp. 3d 378Docket: CIVIL ACTION NO. 18-3937

Court: District Court, E.D. Pennsylvania; April 10, 2019; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff, Michael, filed a lawsuit against Chase Home Finance, asserting various claims related to mortgage mismanagement following the death of his wife, Bernadette. The legal issues primarily involve alleged violations of the Real Estate Settlement Procedures Act (RESPA), Truth-In-Lending Act (TILA), and state laws concerning breach of contract, unjust enrichment, and deceptive practices under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL). The procedural history includes Chase's motion to dismiss these claims for failure to state a claim. The court ruled that the RESPA and TILA claims were barred by their respective statutes of limitations, leading to the dismissal of related declaratory judgment requests. The court also concluded that the economic loss doctrine precluded the UTPCPL claim. However, Michael's accounting claim was allowed to proceed as it was linked to a breach of contract claim, and the voluntary payment doctrine could not be assessed at this stage due to allegations of forgery. The unjust enrichment claim was dismissed due to the existence of a valid contract. Ultimately, the court provided a mixed ruling, allowing some claims to proceed while dismissing others based on procedural and substantive grounds.

Legal Issues Addressed

Accounting Claim under Pennsylvania Law

Application: Michael's accounting claim survives dismissal as it is incidental to his breach of contract claim, despite not specifying the nature of his claim.

Reasoning: Consequently, the Court denies Chase's Motion to Dismiss regarding the accounting claim as it is incidental to the breach of contract claim.

Declaratory Judgment Act and Statute of Limitations

Application: The court concludes that the declaratory judgment request is time-barred as it relies on RESPA and TILA claims, both of which are statute-barred.

Reasoning: The Declaratory Judgment Act permits courts to declare rights for interested parties, but the Third Circuit has determined that if underlying claims are statute-barred, related declaratory judgment requests are also time-barred.

Economic Loss Doctrine and UTPCPL Claims

Application: The court adheres to the Third Circuit's precedent in Werwinski, applying the economic loss doctrine to bar Michael's UTPCPL claim.

Reasoning: The Court reaffirms its adherence to the Third Circuit's ruling in Werwinski, concluding that the economic loss doctrine precludes the UTPCPL claim.

Statute of Limitations under RESPA

Application: The court determines that Michael's RESPA claim is barred by the three-year statute of limitations, which begins on the loan's closing date.

Reasoning: Michael alleges that Chase violated 12 U.S.C. § 2605(e) of the Real Estate Settlement Procedures Act (RESPA) by failing to respond to reasonable requests for mortgage information. However, Chase argues that the claim is barred by RESPA's three-year statute of limitations, which begins on the date of the violation.

Statute of Limitations under TILA

Application: Michael concedes that his TILA claim is time-barred by the one-year statute of limitations, leading to its dismissal.

Reasoning: Michael acknowledges that his TILA claim is barred by the one-year statute of limitations specified in 15 U.S.C. 1640(e) and agrees that his claim can be dismissed on this basis.

Unjust Enrichment and Existing Contracts

Application: Michael's unjust enrichment claim is dismissed as the mortgage agreement is a valid contract governing the parties' relationship.

Reasoning: However, such a claim cannot proceed when an existing valid contract governs the relationship, as Michael admits the mortgage's validity.

Voluntary Payment Doctrine in Contract Claims

Application: The court holds that the voluntary payment doctrine cannot be assessed at the motion to dismiss stage due to allegations of forgery.

Reasoning: The viability of this doctrine cannot be assessed at the motion to dismiss stage when the factual record is insufficient, such as when a party alleges forgery.