SCRANTON – A local credit union believes its attorney and his firm failed to advise it of an arrangement which could have prevented it from losing over $100,000.00, in connection with a mortgage agreement which it says went into default.
Incol Credit Union (doing business as “Community Regional Credit Union”) of Kingston filed suit in the Lackawanna County Court of Common Pleas on July 17 versus Gene M. Molino and Skibitsky & Molino, of Pittston.
On June 1, 2007, Sean Frick and Amy Frick (now known as Amy Schoonover) executed a mortgage on the 600 block of Maple Street in Scranton, knowing they had to pay taxes on the property and any failure to assume responsibility for costs would constitute default, and thus make any owed sums due to the plaintiff.
According to the litigation, the value of the property exceeded the amount of money owed to Incol Credit Union. Without the credit union’s knowledge, the property was sold at a judicial sale, without liens or other financial obligations on March 23, 2015 to Bendex Properties, a Taylor-based company.
The suit says Frick Schoonover’s failure to pay taxes on the property breached the mortgage agreement and constituted default, thereby making any owed sums due immediately to the plaintiff.
Therefore, Incol Credit Union retained the services of the defendant in that situation, whereas Frick Schoonover retained the services of the Law Offices of Raymond W. Ferrario, who objected to the sale.
Molino also filed an objection to the sale and a petition to vacate it. On Sept. 16, 2015, Molino gave Frick Schoonover 30 days to pay costs in order to upset the tax sale. On the same day, Judge Peter O’Brien entered an order in accordance with the stipulation of counsel.
Though relying on Molino’s representation, in a letter dated Sept. 23, 2015, Molino is said to have told the plaintiff that O’Brien’s order did not divest its secured interest in the subject property. Further, the judicial order did not provide relief to the plaintiff in the event of Frick Schoonover not providing payment.
That circumstance is what transpired, and the plaintiff states the tax sale was approved to its detriment, who lost its security interest in the subject property in an amount of $100,000.00.
The balance currently owed is $139,854.03, one which Frick Schoonover refuses to pay and is the amount the plaintiff has lost due to not being able to repossess the subject property.
The plaintiff believes the defendants failed to provide it the opportunity to pay Bendex Properties if Frick Schoonover did not make the required payments, failed to monitor whether Frick Schoonover made payments and failed to advise the plaintiff that the tax sale could have been cancelled by reimbursing Bendex Properties for the amount of $9,100.00.
For counts of negligence and negligent representation, the plaintiff is seeking damages in excess of $50,000.00 in this matter.
The plaintiff is represented by Richard H. Wix of Wix Wenger & Weidner, in Harrisburg.
Lackawanna County Court of Common Pleas case 17-CV-2995
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com