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HomeMy WebLinkAbout06-5301 CURT ZEIGLER and TONJA WEDDLE, Plaintiffs VS. GREGORY HAINES and INTEGRITY BANKCORP MORTGAGE COMPANY, LLC, Defendants IN THE COURT OF COMMON PLEAS OF THE 9TH JUDICIAL DISTRICT CUMBERLAND COUNTY, PENNSYLVANIA NO: O U - S'.36 ( CIVIL ACTION - LAW 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. Lawyers' Referral Service 100 South Street P. O. Box 186 Harrisburg, PA 17108 800-692-7375 Dated: 9 1 -11 aoblp or MidPenn Legal Services 213 N. Front Street Harrisburg, PA 17101 1-800-932-0356 By: FP ilp Cou h Hig O. Box 116 Duncannon, PA 17020 (717) 834-3087 (Attorney for Plaintiffs) CURT ZEIGLER and TONJA WEDDLE, Plaintiffs VS. GREGORY HAINES and INTEGRITY BANKCORP MORTGAGE COMPANY, LLC, Defendants IN THE COURT OF COMMON PLEAS OF THE 9TH JUDICIAL DISTRICT CUMBERLAND COUNTY, PENNSYLVANIA NO: CAP S36 CIVIL ACTION - LAW COMPLAINT L 0 If SZ-?`j C - -F 1. Plaintiffs are Curt Zeigler and Tonja Weddle, husband and wife, who reside at 1 Windy Hill Road, Duncannon, PA 17020, in Perry County, Pennsylvania. 2. Defendant Gregory Haines ("Haines") is a mortgage broker employed by defendant Integrity Bankcorp Mortgage Company, LLC, ("Integrity") with the title "Senior Mortgage Advisor, New Construction Specialist", working out of Integrity's office at 3345 Market Street, Suite 305, Camp Hill, PA, in Cumberland County, Pennsylvania. 3. Defendant Integrity is a foreign limited liability company doing business in Pennsylvania with a registered address of American Home Bank NA, 3 840 Hempland Road, Mountville, PA 17554, in Lancaster County, Pennsylvania. 4. In the summer of 2005, plaintiffs were planning to build a new home on their land in Perry County, now known as 1 Windy Hill Road, Duncannon, and contacted builders. 5. Builders explained the financing steps, including obtaining a construction loan which would later be replaced with a mortgage, and suggested the services of a mortgage broker in arranging financing. 1 6. Some builders gave the cards of mortgage brokers to plaintiffs, one of which was for defendant Integrity. 7. Plaintiffs contacted Integrity, and Haines returned the call and ultimately arranged both construction financing and a mortgage. 8. Haines indicated that he would diligently watch the rates and "lock in" a rate when it would be most advantageous to plaintiffs. 9. In the early spring of 2006, in a climate of steadily increasing long-term mortgage rates, the plaintiffs' new home was nearing completion. 10. Plaintiffs pressured Haines to "lock in" a mortgage commitment to replace the temporary construction financing, telling him that their home would be ready for occupancy in May 2006. 11. In late March 2006, upon Haines' representation that he was locking in at 6.5%, plaintiff Zeigler executed papers presented to him by Haines, but Haines did not furnish a copy to either plaintiff, telling them he was having trouble with his office copy machine. 12. The builder completed his work early in April 2006, whereupon plaintiff Weddle began to pester Haines for a settlement date. 13. Haines indicated that a settlement was to occur "soon", but specified no particular date. Plaintiff Weddle called Haines to ensure that settlement was scheduled. 14. Not only did plaintiffs wish to move into their new home, but they had been assured that they were locked-in and just had to settle. 15. In early May, plaintiff Weddle spoke to Haines, who assured her that everything was under 2 control and that settlement would happen in May. 16. In fact, no settlement took place until June. Once a settlement date was scheduled, they demanded information from the mortgage lender, American Home Bank, which furnished them by fax on June 15, 2006, a copy of a document showing that Haines had in fact obtained a locked-in rate of 6'/2% on March 28, 2006, good until May 27, 2006, at which date it expired. This document is attached hereto as Exhibit A. 17. They learned that, because settlement had not been scheduled on or before May 27, 2006, they had lost their locked-in rate of 6'/2%. The best rate they could get in June 2006 was 7'/2% . 18. The extra one percent will cost them $50,000 in interest over the life of the thirty year mortgage. 19. When plaintiffs contacted Haines about this, he insisted that they had never qualified for 6.5% and refused to even give them copies of any of the papers. - COUNT I - NEGLIGENCE 20. Plaintiffs incorporate by reference the foregoing paragraphs into this Count I. 21. Having obtained a mortgage commitment for plaintiffs that expired on May 27, 2006, in a time of climbing interest rates, Haines, as their mortgage broker, had a duty to schedule settlement before that date if it was feasible and to at least inform them of the deadline. 22. All the conditions precedent to settlement were met long prior to the expiration date of the locked-in rate. 23. Plaintiffs were diligent in demanding that Haines schedule settlement, even though they 3 were unaware of the expiration date. 24. Haines failed to schedule settlement before the expiration date. 25. As a result of Haines' failure to schedule settlement in a timely manner, despite their demands that he do so, plaintiffs have been forced to pay an extra one percent in interest over the life of their mortgage, which will cost them $50,000 or more. WHEREFORE, plaintiffs respectfully demand judgment on Count I in plaintiffs' favor and against the defendants in an amount in excess of Fifty thousand dollars ($50,000.00), exclusive of costs and damages for delay, and for such other relief as the court may deem appropriate. - COUNT II - BREACH OF FIDUCIARY DUTY 26. Plaintiffs incorporate by reference the foregoing paragraphs into this Count II. 27. As their mortgage brokers, Haines and Integrity owed plaintiffs a fiduciary duty of good faith. 28. Plaintiffs allege on information and belief that defendants' commissions and other earnings on mortgage transactions that they broker depend upon the interest rate. The higher the interest rate, the more the commission. 29. In a time of climbing interest rates, a broker thus stands to make more money by letting locked-in lower rates lapse to be replaced by higher market rates of interest. 30. Defendants did not inform plaintiffs that they had an expiration date on their locked-in rate. 31. Defendants either deliberately or negligently allowed the locked-in rate to expire by failing to schedule settlement in a timely manner. 4 32. By (a) failing to inform plaintiffs that they had a deadline on their locked-in rate and (b) failing to schedule settlement in a timely manner, defendants breached their fiduciary duties to plaintiffs. 33. Defendants' breach of their fiduciary duties have harmed plaintiffs in amount in excess of $50,000. WHEREFORE, plaintiffs respectfully demand judgment on Count II in plaintiffs' favor and against the defendants in an amount in excess of Fifty thousand dollars ($50,000.00), exclusive of costs and damages for delay, for punitive damages, and for such other relief as the court may deem appropriate. - COUNT III - FRAUD 34. Plaintiffs incorporate by reference the foregoing paragraphs into this Count III. 35. Although Haines informed plaintiffs orally that they had a locked-in rate, he refused to give them copies of the commitment papers or to tell them that the commitment had an expiration date. 36. In fact, Haines represented at various times that plaintiffs did not have a locked-in rate, when in fact they now know that they did, but that it expired on May 27, 2006. 37. Haines represented to plaintiffs that he would schedule settlement in May at an appropriate time. 38. Haines' representations and omissions were material to plaintiffs' borrowing decisions in that they affected the interest rate that would apply to their loan. 39. Haines knew that these representations were false and that the omissions were material to 5 plaintiffs' decision-making. 40. Plaintiffs were justified in relying on Haines' representations. 41. Plaintiffs' additional interest costs over the life of the loan are the direct result of Haines misrepresentations and material omissions. WHEREFORE, plaintiffs respectfully demand judgment on Count III in plaintiffs' favor and against the defendants in an amount in excess of Fifty thousand dollars ($50,000.00), exclusive of costs and damages for delay, for punitive damages, and for such other relief as the court may deem appropriate. -COUNT IV- VIOLATION OF CONSUMER SERVICES ACT 42. Plaintiffs incorporate by reference the foregoing paragraphs into this Count IV. 43. Haines was a "loan broker" within the meaning of the Pennsylvania Credit Services Act ("CSA"), 73 P.S. § 2181 et seq. 44. As alleged with greater specificity in the foregoing paragraphs, Haines made false and misleading representations and omitted material facts in his services as a loan broker to plaintiffs, which conduct is a prohibited act in the CSA. 73 PS. § 2182(c)(2). 45. Haines' false and misleading representations and material omissions caused plaintiffs to suffer actual damages in excess of $50,000 in additional interest over the life of the loans. WHEREFORE, plaintiffs respectfully demand judgment on Count IV in plaintiffs' favor and against the defendants in an amount in excess of Fifty thousand dollars ($50,000.00), for attorney's fees and costs as authorized by the CSA, for punitive damages, and for such other relief as the court may deem appropriate. 6 - COUNT V - VIOLATION OF THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW 46. 47 Plaintiffs incorporate by reference the foregoing paragraphs into this Count V. The foregoing violation of the CSA is also a violation of Unfair Trade Practices and Consumer Protection Law of Pennsylvania, 73 P.S. § 201-1 et seq. See 73 P.S. § 2190. WHEREFORE, plaintiffs respectfully demand judgment on Count V in plaintiffs' favor and against the defendants in an amount in excess of Fifty thousand dollars ($50,000.00), exclusive of costs and damages for delay, for treble damages, and for such other relief as the court may deem appropriate. Dated: 9 1-7 1 -a 00(-P quire Jerry hilpClb#4 Sup e Cou 22 orth Hiet, P. O. Box 116 ncannon, PA 17020 (717) 834-3087 (Attorney for Plaintiffs) We, Curt Zeigler and Tonja Weddle, verify that the statements made in this complaint are true and correct to our best personal knowledge, information, and belief. We understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904, relating to unsworn falsification to authorities. Curt Zeigler Tonja eddle 06/15/2006 10:52 FAX 7172856414 AMERICAN HOME BANK HOME BANK. Z001/001 BROKER LOAN REGISTRATIONILOCK CONFIRMATION Branch information LO Name: GREGORY RAINES Company: INTEGRITY BANCORP HTG CO. LLC Branch ID: BR7004 Phone: 717 635 2500 Fax: 717 635 2501 Address: 3314 MARKET STREET, SUITE 305 CAMP HILL PA 17011 Borrower Information Co-Borrower Information First Name: CURT B First Name: Last Name: ZEIGLER Lest Name: SSN: 182-62-5174 SSN: Property Informad Property Street: Property City: Property State: Property Zip Cod Occupancy Status Property Type: ii Units: on 1 WINDY HILL ROAD DUNCANNON PA 17020 OWNER OCCUPIED PRIMARY SINGLE FAMILY 1 Lonn Information Registration Date: 03/28/2006 ARB Loan Number: 0000161984 Product: 10830 Purpose: REFINANCE Loan Amount: S 220,000.00 Note Rate: 6.500% Term: 360 LTV: 84.942 TLTV: 84.942 CLTV: 84.942 Escrows: YES Current Status: REGISTERED/LOCKED Price lock date: 03/28/2006 Price lock expiration days: 60 Lock Expiration Date: 05/27/2006 Construction Financing Information AIq:B Current Construction Period Interest Rate: Length of Construction Period: Construction: Mortgage Amount: S Construction Loan Deposit: % $ Pricing Information: Loan Discount: 0.0000 Broker Fee: .0000 Broker Yield Spread: 1.8750 x Please review the information provided. If you have any questions, please contact the Secondary Marketing Department at 717-285-6400 AHB (pcl) AHDT qw) 062002 Rev: 0511712005 (awb) Copyright 2005 American Hotm Bank. N.A. EXHIBIT A fed O HARTMAN UNDERHILL & BRUBAKER LLP By: Rory O. Connaughton, Esquire Attorney ID No. 78775 No. 06-5301 Civl 221 East Chestnut Street Attorneys for Defendants: Lancaster, PA 17602-2782 Gregory Haines and Integrity Bancorp (717) 299-7254 Fax: (717) 299-3160 Mortgage Company, LLC CURT ZEIGLER AND IN THE COURT OF COMMON PLEAS OF TONJA WEDDLE, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION -LAW GREGORY HAINES AND INTEGRITY BANCORP MORTGAGE COMPANY, LLC, : NO. 06-5301 CIVIL TERM Defendants ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of Rory O. Connaughton, Esquire, as attorney for Defendants, Gregory Haines and Integrity Bancorp Mortgage Company, LLC, in connection with the above matter. HARTMAN By: 0. squire Attome? I.D. #78775 Attorneys for Defendants ERHILL & LLP 00453266.1 . 4 No. 05-4531 Civil Term CERTIFICATE OF SERVICE I HEREBY CERTIFY that I am this day serving the foregoing Entry of Appearance upon the person and in the manner indicated below: Service via fax and first class mail, addressed as follows: Jerry A. Philpott, Esquire P. O. Box 116 227 North High Street Duncannon, PA 17020 (via fax no. 834-5437) HARTMAN LKDFAHILL & BRUBAKER LLP Date: By: Rory O Esquire ID # 78775 for Defendants 00453266.1 v ?-?,, ca ..?? } ?r ,..,? cr?? ,, ??. ;:-' C.? -, c? ; ?? ?? ... ? i SHERIFF'S RETURN - REGULAR CASE NO: 2006-05301 P C uMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ZEIGLER CURT ET AL VS HAINES GREGORY ET AL RICHARD SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon L7T T?JU0 0V V0-nw the DEFENDANT , at 1457:00 HOURS, on the 14th day of September, 2006 at 3345 MARKET ST SUITE 305 CAMP HILL, PA 17011 by handing to BARB TOME, CUSTOMER SERVICE REP, ADULT IN CHARGE a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 13.20 Postage 1.02 Surcharge 10.00 R. Thomas Kline .00 42.22, 10/09/2006 14- ?' o I u JERRY PHILPOTT Sworn and Subscibed to By: before me this day J,-Dep y Sheriff of A.D. SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2006-05301 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ZEIGLER CURT ET AL VS HAINES GREGORY ET AL R. Thomas Kline Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT INTEGRITY BANKCORP MORTGAGE but was unable to locate Them COMPANY LLC to wit: in his bailiwick. He therefore deputized the sheriff of LANCASTER serve the within COMPLAINT & NOTICE County, Pennsylvania, to On October 9th , 2006 , this office was in receipt of the attached return from LANCASTER Sheriff's Costs: Docketing 6.00 Out of County 9.00 Surcharge 10.00 Dep Lancaster Cc 42.73 67 . 73 ? 10/09/2006 JERRY PHILPOTT Sworn and subscribe to before me this day of So answers R. Thomas Kline Sheriff of Cumberland County A. D. H ` SHERIFF'S OFFICE 50 NORTH DUKE STREET, P.O. BOX 83480, LANCASTER, PENNSYLVANIA 17608-3480 a (717) 299-8200 H SHERIFF SERVICE PROCESS RECEIPT, and AFFIDAVIT OF RETURN 3 113440 /S/ PLEASE TYPE OR PRINT LEG1KY. c DO NOT DETACH Alf COPIES. 2 COURT NUMBER 2006-5301 Civil 4 TYPE OF WRIT OR COMPLAINT Gregory Haines, et al l Notice & Complaint SERVE 5 NAME OF INDIVIDUAL, COMPANY. CORPORATION, ETC.. TO BE SERVED Integrity BankCorp Mortgage Co, LLC 6 ADDRESS (Street or RFD, Apartment No., City, Boro, Twp., State and ZIP Code) AT 3840 Hempland Rd, Mountville, PA 17554 7. INDICATE UNUSUAL SERVICE: (XDEPUTIZE ? OTHER Now, 9 ?? 2 20 116- , I, SHERIFF OF COUNTY, PA., do r b -:deputize the of Lancaster r County to execute this Wr' re to law. This deputation being made at the request and risk of the plaintiff. Cumberland Please mail return of service to Cumberland County Sheriff. Thank you. NOTE ONLY APPLICABLE ON WRIT OF EXECUTION: N.B. WAIVER OF WATCHMAN - Any deputy sheriff levying upon or attaching any property under within writ may leave same without a watchman, in custody of whomever is found in possession, after notifying person of levy or attachment, without liability on the part of such deputy or the sheriff to any plaintiff herein for any loss, destruction or removal of any such property before sheriff's sale thereof 8. SIGNATURE of ATTORNEY or other ORIGINATOR 10. TELEPHONE NUMBER 11, DATE JERRY A. PHILPOTT, ESO. _ 9/11/06 12. SEND NOTICE OF SERVICE COPY TO NAME AND ADDRESS BELOW: (This area must be completed if notice is to be mailed) CUMBERLAND COUNTY SHERIFF ONE COURTHOUSE SQ. CARLISLE, PA. 17013 `717- a y3`o SPACE BELOW FOR USE OF SHERIFF ONLY -- DO NOT WRITE BELOW THIS LINE 13.1 acknowledge receipt of the writ t NAME of Authorized LCSO Deputy or Clerk 114 Date Received 15 Expiration/Hearing date or complaint as indicated above. ( JA C KIE MICCIC H E 717-390-2309 9/15106 10/11/06 16. 1 hereby CERTIFY and RETURN that I ? have personally served, P<ave legal evidence of service as shown in "Remarks", ? have executed as shown in "Remarks", the writ or complaint described on the individual, company, corporation, etc., at the address shown above or on the individual, company, cor- poration, etc., at the address inserted below by handing a TRUE and ATTESTED COPY thereof. 17. ? 1 hereby certify and return a NOT FOUND because I am unable to locate the individual, company, corporation, etc., named above. (See remarks below) 18 Name and title of individual served\,f not shown above) (Relationship to Defendant) 19 ?NoServioe U _40 0 i f ?1? See Remarks Below (No. 30) 20 Address of where served (complete only if different than shown above) (Street or RFD, Apartment No , City, Boro. Twp 21 Date of Service 22 Time ,Alar State and Zip Code) PM - ,?\- O(n E ST C) , O's 23. ATTEMPTS D to Miles Dep. Int. Date Miles Dep. Int. Date Miles Dep. Int. Date Miles Dep. Int. Date Miles Dep. Int. 24. Advance Costs 25 Service Costs 26 Notary Cert 27 MileagelPostage/N F. 28 Total Costs 29. COST DUE OR REFUND R 150.00 36.50 0? 3 2•'1 l O -7 1 30. REMARK monweaBh of Pennsylvania cr_ S NO1ARf?,L SEAL. ATRICIA A. 0159lL. 14Wary Lancadar Cfty, LenMW commission 9"! Jtlly t;, 9009 Impy 31. AFFIRM E subscri d to before me this , t 32. Stature of 33 ate Q r 20 ©? DlP. Sheriff ?> 02 I `V tp 34-of 35 StapalnrcotSnsrAt /? _i1 36 Date/ i CURT ZEIGLER and TONJA WEDDLE, Plaintiffs VS. GREGORY HAINES and INTEGRITY BANKCORP MORTGAGE COMPANY, LLC, Defendant IN THE COURT OF COMMON PLEAS OF PENNSYLVANIA, CUMBERLAND COUNTY BRANCH NO: 2006-05301 CIVIL ACTION - LAW PRAECIPE TO DISCONTINUE To the Prothonotary: Please mark the above captioned matter as settled and discontinued. spectfully Dated: June 20, 2007 cc: Rory O. Connaughton, Esquire Hartman, Underhill & Brubaker, LLP 221 East Chestnut Street Lancaster, PA 17602-2782 Curt Zeigler & Tonja Weddle 1 Windy Hill Road Duncannon, PA 17020 JerfNo* Esquire SuD #47624 22reet, P.O. Box 116 Du17020 71 (A aintiffs) Jerry A. Philpott, Esquire P.O. Box 116 Duncannon, PA 17020 ?? a Sri I ?++'.^' ? -V A am ' I, N y