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Home My WebLink About97-05483 . , ~i\ .(J ... ~ I \I ) I { ".1 ~ .J . ... i .. . ~t ~~ c. ~ ~ 1 ...(" .. Q -....( !J ;, I f I I :: I .') - f , t-o \l'- . ~ KEN WOOD W. LOSH. SR. and SUSAN K. LOSH, Husband and Wife, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY. PENNSYLVANIA Plaintiffs vs, NO, 97 - s.,.l:J CIVIL TERM BALTIMORE AMERICAN MORTGAGE: COMPANY and MICHAEL F. CIVIL ACTION - LA W COSTELLO, JURY TRIAL DEMANDED Defendants NOTICE YOU HAVE BEEN SUED IN COURT, If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you, You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff, You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE, IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP, Court Administrator Cumberland County Courthouse Fourth Floor Carlisle, PA 17013 (717) 240-6200 KENWOOD W. LOSH, SR. and SUSAN K. LOSH, Husband and Wife, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs vs, NO, 97- s.,83 CIVIL TERM BALTIMORE AMERICAN MORTGAGE: COMPANY and MICHAEL F. CIVIL ACTION - LA W COSTELLO, JURY TRIAL DEMANDED Defendants COMPLAINT 1. Kenwood W. Losh, Sr, and Susan K, Losh, Plaintiffs, are adult individuals who reside at 404 Crossroad School Road, West Pennsboro Township, Cumberland County, Pennsylvania, 2. Baltimore American Mortgage Company, Defendant, is a Maryland corporation whose address is 7484 Candlewood Road. Suite B.J, Hanover, Maryland 21076, and who, at the time the cause of action in this mailer arose, operated an office in Pennsylvania located at 3002 Hempland Road, Keystone Suites 5 & 6, Lancaster, Pennsylvania 17601. 3, Michael F, Costello, Def,:ndant, is an adult individual whose present address and whereabouts are unknown, but who, at all times relevant to this claim, was employed by, and acted on behalf of, Defendant Baltimore American Mortgage Company, 4, In June 1995, Defendant Michael F, Costello, in his capacity as employee and agent of Defendant Baltimore American Mortgage Company, visited the residence of Plaintiffs for the purpose of taking a mortgage application, 5, In June 1995, at the time Defendant Michael F. Costello took said mortgage application, as employee and agent of Defendant Baltimore American Mortgage Company, he advised the Plaintiffs that they were almost certainly approved. and requested money from the Plaintiffs to commence the appraisal process so that selllement could be held within six to eight weeks, 6, When advised by Plaintiffs that the)' did not have the funds, at the time, that were requested by Michael F, Costello for the appraisal, Defendant Michael F. Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, advised Plaintiffs to immediately stop payment on their most recent mortgage payment, as that lender would not be concerned if they were aware thatlhey were about to receive a full payoff. 7, The following day, Defendant Michael F. Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, telephoned the Plaintiffs and advised them that their mortgage application was pre-approved, 8, Defendant Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, also advised representatives of Kayer and Brown, the Plaintiffs' allomeys, the attorney for the owner of the Bedford Street property, and a representative of Northwest Mortgage Corporation, at that time the Plaintiffs' mortgage holder, that the Plaintiffs' loan application was approved, 9. Upon advising Plaintiffs of their pre-approval, Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, advised Plaintiffs that they required .:n additional $300,00 to appraise the North Bedford Street property. Plaintiffs paid $300.00 in cash to Michael F, Costello toward that apprais11. 10, Over the course of the next few months, Plaintiffs had regular telephone contact with Defendant Michael F, Costello. Continuously, Michael F. Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, would advise Plaintiffs that their loan was approved and that they would be sell ling in the near future, 11, On or about August 1995, Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, requested an additional $300,00, which was paid by Plaintiffs, for an appraisal of Plaintiffs' thirty-five (35) acres ofland located in Upper Mifflin Township, Cumberland County, Pennsylvania, At the time he received this additional money from Plaintiffs, at their home, Michael F. Costello, in his capacity as employee and agent of Ibltimore American Mortgage Company, advised Plaintitls that the reason for the delay in sellling their mortgage was that the appraisers had not yet completed all the neces~ary appraisals. 12, On or about October 6, 1995, Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, advised Plaintiffs that they should expect to sellle on October 13, 1995, 13, On or about November 7, 1995. Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, advised Plaintiffs that they should expect to settle on Friday, November 10,1995, 14, On Thursday, November 9,1995, Michael F, Costello, after four months of leading the Plaintiffs to believe that their loan was approved, advised the Plaintiffs that the loan was not approved, 15, On June 19, 1995, Michael F. Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, advised Dale F, Shughart, Jr., Esquire, attorney for the owners of the property Plaintiffs were purchasing under an installment sales agreement, that a blanket mortgage was approved, subject to an appraisal. 16. On September 29, 1995, Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, advised Michael R, Rundle, Esquire, at the time a partner of Attorney Shughart referred to above, that no commitment for the loan had yet been issued as a result of problems with the appraisal. At that time, Mr, Costello advised Mr, Rundle that he was "optimistic" that the appraisal problems would be worked out. 17, On or about October 13, 1995, after considerable delay on the part of Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, pursuant to an agreement of the parties to resolve an outstanding default judgment, Plaintiffs delivered a quit claim deed for the property at 540 North Bedford Street, Carlisle, Pennsylvania to Attorney Rundle, 18, Plaintiffs have suffered considerable damage in the loss of said property and their investment in said property located at 540 North Bedford Street, Carlisle, Pennsylvania as a direct rcsult ufthc fraudulcntllctiuns by Michacl F, Costcllo, in his capacity as employee and IIgcnt of Baltimore American Mortgllgc Company. 19, Plaintiffs have suffered considerable damage to their credit rating as a result of relying upon the advice of Defendant Michael F, Costello. in his capacity as employee and agent of Baltimore American Mortgage Company, to stop payment on their outstanding loan obligations pending selllement of the loan which Mr. Costello repeatedly assured Plaintiffs was approved. 20, As a direct result of the adverse credit rating caused by Defendant Costello's advice, proffered in his capacity as employee and agent of Baltimore American Mortgage Company, Nationwide Insurance Company has terminated Plaintiffs' homeowners policy, resulting in damage to Plaintiffs and the need to secure an additional policy, possi"ly at a higher premium. and further subjecting the Plaintiffs to risk of loss of their property until such insurance is obtained, 21. As a direct result of the conduct of Defendant Michael F. Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, Plaintiffs have suffered further damage in that, after considerable delay directly the result of Costello's action, they eventually were required to obtain alternative financing at a much higher cost than that initially promised by Michael F. Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, 22, As a further direct result of the actions of Defendant Michael F, Costello, in his capacity as employee and agent of the Balti,nore American Mortgage Company, Plaintiffs have incurred substantial expenses to both the law linn of Kayer & Brown, Carlisle. Pennsylvania, and to their present counsel, and will continue to incur legal expenses until this mailer is resolved, COUNT (. FRAUD 23. The allegations of Paragraphs 1 through 22 are incorporated herein by reference as if set forth in full. 24, The statcmcnts and reprcscntalions madc by Dcfcndlmt Michacl F. Costello, in his capacity as employee and agcnt of Baltimore American Mortgagc Company, throughoutthc course of his dealings with thc Plaintiffs, were false and, in fact, despite his repeated representations to the contrary, and despite the reliance ofthc Plaintiffs upon thc statements and representations, the Plaintiffs' loan application had not becn approvcd and no seulement datc had been set. 25, The representations made by Defendant Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, were known by Defendant to be false when made and were made with the intent to deceive and defraud the Plaintiffs, their counsel, and their creditors, to induce Plaintiffs to continue using his services in seeking mortgage loan approval. Plaintiffs, at that time, did not know the truth, reasonably believed that the representations were true, relied upon them, and were thereby induced to continue dealing with Mr. Costello and Baltimore American Mortgage Company to their detriment. 26. At all times relevant to this complaint, Defendant Michael F, Costello was acting in his capacity as employee and agent of Baltimore American Mortgage Company, and on behalf of and for the benefit of Baltimore American Mortgage Company. Therefore, Defendant Baltimore American Mortgage Company is jointly and severally liable to the Plaintiffs for any action of its employee and agent, Michael F. Costello. 27. As a result of the fraudulent and deceitful conduct of the Defendants, Plaintiffs have suffered damages, as set forth previously in this complaint. WHEREFORE, Plaintiffs demand judgment against Defendants for II sum in excess of TWENTY-FIVE THOUSAND ($25,000,00) DOLLARS, exclusive of interest and costs, COUNT II- VIOLATION OF UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW 28. The allegations of Paragraphs (through 27 are incorporated herein by reference as if set forth in full. 29, Statements and representations made by Defendant Michael F, Costello, in his capacity as employee and agent of Baltimore American Mortgage Company, throughout the course of his dealings with the Plaintiffs, were false and constituted fraudulent or deceptive conduct which created a likelihood of confusion or of misunderstanding and, therefore, constitute a violation of the Unfair Trade Practices and Consumer Protection Law, 73 P.S, ~201-1 et seq, 30, At all times relevant to this complaint, Defendant Michael F, Costello was acting in his capacity as employee and agent of Baltimore American Mortgage Company, and on behalf of and for the benefit of Baltimore American Mortgage Company. Therefore, Defendant Baltimore American Mortgage Company is jointly and severally liable to the Plaintiffs for any action of its employee and agent, Michael F, Costello, 31. As a result of the fraudulent and deceptive conduct of the Defendants which created a likelihood of confusion or of misunderstanding, constituting a violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, Plaintiffs suffered damages as previously set forth in this complaint. 32. Pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P,S, ~201-1 et seq., Plaintiffs are entitled to treble damages, costs, and attomey's tees, WHEREFORE, Plaintiffs demandjudgment against Defendants for a sum in excess of TWENTY-FIVE THOUSAND AND 00/100 ($25,000,00) DOLLARS, plus costs and attorney's fees, exclusive of interest. Respectfully submitted, 3 QC:T---1't~~ DATE ,--- h~J-j2~Q .... ROBERT PETER KLINE, ESQUIRE 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, PA 17070-0461 (717) 770-2540 Attorney for Plaintiffs "'C~&P~~~~EI~~Ai9.~ .,"~,'),c....\~I1\lAu.l:Ja:]O',!~, ..,................. PROTHONOTARY l;~ . ' lt1t- "" ... ..) 0 ... .. e. ~ , " * ' ~~ , . I ~ o ~~ :~ , t '-"" " . , r : '0 ,.., ~.J " , j .., '-i .. :'1 1--- , ,r, --j J ~'... :~ 'q ", ,. ,-'I :,') :".'J '" , I c- " '0 _U -< . --; ~ KENWOOD W. LOSH, SR. and SUSAN K, LOSH, Husband and Wife, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs vs. NO, 97 - 5483 CIVIL TERM BALTIMORE AMERICAN MORTGAGE: COMPANY and MICHAEL F. CIVIL ACTION. LAW COSTELLO, JURY TRIAL DEMANDED Defendants PRAECIPE TO THE PROTHONOTARY: Please reinstate the Complaint previously filed in this matter. Respectfully submitted, fJ/~l~ Date ' ~~ rp~Q ~ ROBERT PETER KLINE, ESQUIRE 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, PA 17070-0461 (717) 770-2540 Attorney for Plaintiffs . . () ..0 :""l C c.:l " '"\.-: r" .~ -.., .' r., "ll:n l1lr: ;~1 ~....~ ,- '" '.,1 ~-:~.I ~ r::.> :CJ . . : .::' C-.': ~. : -.:'1 ..<. r~: ~ , ; - .' ". ;-} )' , :~~ :"1 - '0 :q -;. ~ .. SHERIFF'S RETURN - OUT OF COUNTY CASE NO. 1997-05483 P COMMONWEALTH OF PENNSYLVANIA. COUNTY OF CUMBERLAND LOSH KEN WOOD W SR ET AL VS. BALTIMORE AMERICAN MORT CO R. Thomas Kline . Sheri!!, who being duly .worn according to law, .ay., that he made a diligent .earch and inquiry for the within named defendant, to witl COSTELLO MICHAEL F but wa. unable to locate Him in hi. bailiwick. He therefore COUNTY County, Pennsylvania. deputized the .h...~! o! LANCASTER to .erve the within COMPLAINT On March 26th. 1998 the attached return from . this offic~ .a. in r~ceipt of LANCASTER COU~ County, P~nn.ylvania. Sheriff's Co.ts. Docketing Out of County Surcharge LANCASTER COUNTY So an&,.rs. c' -:7: './ /---0 ~/ 0",,,,,---# /~;> K. Inoma. K~1ne, ~n.r1%% 18.00 9.00 6.00 33.75 .b6.7~ ROBERT PETER KLINE 03/26/1998 Sworn and sub.crib.d tc before m. ~ this .J.I; c day of 71t. <( 1-' 19 97 A.D. ~'iL<-- c.', fn<~ 1l~1</' . prothonotary , 50 NO~D~T~ ~n~ 1~~C:5~PES?V~ '~3~5:~:'~98200 ~ .. --SHERIFF SERVICE. r-PLDEOASNEOTTYDPEET-AOCR"-IPARNINyTCLOEpGIIEBSL.Y.~~ PROCESS RECEIPT, end AFFIDAVIT OF RETURN m _ '"PlAINTI-FF;S/------------. .~--"._--~-,------.. ____~__~M______. 2 COlJRf f.uMBfll l--:3 u__97-o5483 _____________ 4 TYPE OF WI~IT OH COMI-'t .\INT . KENWOOD J'L.._LJ)S tL~_Al'iLL SUS AtLK ,_ LQStL__ ------ J OEfENDANT/51 BALTIM~CMLl1QR'.tQ~~.ANL.AND.-.Ml.CHAEI. .11'_ _CO S;VE {~NAME OF INOIVIDlJAL COMPANY COIWOI1ATlON lie TO tiE SEflVLD _I1l.CJiA ELF '-c'QS'l'EL.L.Q 6 ADDRESS 1511101 or RFD Apartm.nt No City Bora rwp Stille artll ZIP Codel AT 2974 KINGS LANE. LANCASTER. PA _ 17601 1 INDICATE UNUSUAL SERVICE II DEPUTIZE U OTHER Now, __ 19 _ , I, SHERIFF OF LANCASTE~ COUNTY, PA., do hereby deputize the Sherlll 01 County to execute this Writ and make return theraof according to law. This deputation being made at the request and risk of the plaintill. I. .,!CIAL ,NSTRUCTlONS OR OTH!R 'NfORMATION THAT WILL AlS'ST IN UP!D'TINQ S!RV'C!, TEI.L<L-__-COMPLAINT------S en >-3 t'1 .... ... o 5"1 A'H OJ l""'C"'lFA COlJ"''' NOTE ONLY APPLICABLE ON WAIT OF eXECUTION: N,., WAIVER OF WATCHMAN - Any depuly Ihentllevying upon or .naching a.lypropel1y und.r vfllhln wrll may leave same Wllhout. walch man, In custody 01 whomever IS lound In possession, ,tier notlfymg peraon 01 levy or allachmenl, wilhout lIablllly on the part of such depuly or Ihe sh.nlf 10 any plamlllt herein lor any loss, dulrucllOn or removal 01 any such propet1y belor. then"" salt thereol t, SIGNATURE 01 A"ORNEY Of olher ORIGINATOR 10 TELEPHONE NUMBER 1 t DATE ~g 911 12. lEND NOTI~i~~8py)8 N1M~~IKoRi"~: 'I .r.. mutt bl camp el.d nollcelt 0 . mlilld) ROBERT PETER KLINE, ESQ. AT 331 BRIDGE ST., SUITE 350, POBOX 461, NEW C"MBERlM1C, ~~Ae~'iJ1~0~l~JR USE OF SHERIFF ONLY - DO NOT WRITE BELOW THIS LINE , ,. Dale Received 't 5 explrallon/Heanng dale 13 I acknowledge receipl ollhe wrill or complalnt as mdlcaled above HAME 01 Authonzed LeSO Deputy or CiOlk JUDY MORRIS 295 3609 2-24-98 3-23-9B 16 I hereby CERTIFY and RETURN lhalX1iJ have personally served, 0 have legal eVidence 01 sorvlce as shown m "RemarkS.,fl havo e..culed as shown In "Remarks" ,Ihe WIll or complalnl described on Ihe IndIVidual, company, corporahon, elc . althe address shown above or on lhe Individual. company. co,. porallon, olc _ allhe nddress Insorted below by handing a TRUE and ATTESTED COPY Ihereol 11 [J I hereby cenlty and return a NOT FOUND because I am unable 10 locale the individual. company, corporallOn, elc . named above (5.. remarks belowl 18 Name and IIUe 01 IndiVidual served tll nol shown above) IAelallOnshlp 10 Dofondanl) 19 L No ~ s.. RImIfQ &IkM tNo 30) 21 Oale 01 SeNlc8 22 Time .Clly.8oro. T"",p 20 Addrl!lSS ol....hore served lcomplet. only II dlllel8nllhan shown abovel {Slreel Of RFO, Apanmenl No SlaleandZtpCode) Lancaster Co. Sheriff's Office 50 N. Duke St., Lancaster, PA. 3/20/98 1: 10 - ."' 'Sf - R95376 30 REMARKS 100.00 30.50 23 ATTEMPTS 2. Ad~ance Costs STA Rd.. Subject appeared Lancaster, PA. at 020 and was served; subject residing at 25 W. Roseville el '/~~ 3/)3/98" Lt. ~' s' Be . rd ,I 3' " 37 PrO',",onol.'", }A CASTER'COUNTY MY CO ISSION EXPIRES 38 I ACKNOWLEDGE AECEIPf OF THE SHERIFF'S RETURN SIGNATURE I OF AUTHORIZED ISSUING AUTHORITY AND TITLE KEN WOOD W, LOSII. SR, and SUSAN K, LOSH. Husband and Wife, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs vs. NO, 97 - 5483 CIVIL TERM BALTIMORE AMERICAN MORTGAGE : COMPANY and MICHAEL F, CIVIL ACTION. LAW COSTELLO, JURY TRIAL DEMANDED Defendants AFFIDAVIT OF SERVICE I HEREBY CERTIFY THAT I served a certified copy of the Complaint filed in the above captioned case upon Defendant Baltimore American Mortgage Company, by certified mail, return receipt requested on October 8, 1997 addressed to : Baltimore Amcrican Mortgage Company 7484 Candlewood Road. Suite B-J Hanover. MD 21076 and did thereafter receive same as evidenced by the aunched Post Office receipt card dated October 10. 1997. 1 VERIFY THAT THE STATEMENTS MADE IN THE FOREGOING AFFIDAVIT OF SERVICE ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE, INFORMATION AND BELIEF, I UNDERSTAND THAT FALSE STATEMENTS HEREIN MADE ARE SUBJECT TO THE PENALTIES OF 18 PA.C.S, SECTION 4904 RELATING TO UNSWORN FALSIFICATION TO AUTHORITIES, ~'=Pk'O.< ROBERT PETER KLINE. ESQUIRE 331 Bridge Street, Suite 350 Post Office Box 461 New Cumberland, PA 17070-0461 (717) 770-2540 AUomey for Plaintiffs It! tJc r /9'9'? Date P 425 990 '108 US Po.lal S""'lc. Receipt lor Certified Mall No Insurance CoveragB Provldod. 00 nol use lor IntomaUonal Mall SOfl ffWf1fSd 110 Reslttded Deh_,., FH ~ Relum RecOlpt ShvWlOQ 10 .... Whom & Dale Oe.veAd ~ Ii. _"""'Shiomj.\\l<m c( O.llf. A A4t g TOTAL ... ... ~ ~ ~ ~FH _O"'-lFH .~~~~.._,'--,..-- .. SENDER: .. .c:ompoo''''''l _... lot __ _. '''lOwllh 10 receive the 1 .c:ompoo...... 3. 4..1lld 4.. following "Mee' (lor on I .PrtnlYCUMmeIndMldMtonlhe..........oflhitbmlO"-'..eanrtllll1IN. extra fee): I coni....... j': _AltICh" fomI \0 the front of the ~. tit on thI bac:* II "*" do8t not 1. [J Addr....... Addr... .=:'!it.o.mR__on ...___... _.......... 2, CJ Alltr1cled DII:..'Y , en. RtNn A-*Pf" thow 10 whom !he atUd. wa. detIvttId end the dIIt I ,'; Ii -, ConIult poIlmaller lor fll, "II 3, Mdl Addreued to: .1, AlJIdI Number ~ ~J"""~" ,4,n.KA.J )l0.<:1dtf6e" r -P',rf ? ~ :' ! I /) e ,n'1.-#!f/.J,/ ;' ::;'~:r::" ~"ed ,I 7~ ~1 Vt"~~ ItA, 5u11'E~-.:r 0 ExpreuMeU 0 InsuredI!': J. 0 Relum RICIIpC ,.. 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