PHILADELPHIA – Delaware County-based plaintiffs are seeking well over $300,000 in principal and interest payments subsequent to a mortgage not being executed or recorded for one of the properties it issued a loan to the defendants for.
Vincent DeSantis and Joan DeSantis of Broomall filed suit in the Philadelphia County Court of Common Pleas on Nov. 3 versus Alpha United LP of Philadelphia, Alpha Trust and James Melasecca of West Chester and Horizon Abstract Company, Inc. of Media.
On or about March 29, 2011, the plaintiffs say they issued a loan to Alpha United LP for $250,000 for the purpose of purchasing and (subsequent to renovation) re-selling a property on the 1800 block of North 18th Street in Philadelphia. According to the lawsuit, the loan was secured by a mortgage and attached with a promissory note stating Alpha United LP would repay the full amount of the loan over time at an annual interest rate of 12.25 percent.
Per the litigation, the plaintiffs did not collect their principal, but instead allowed Alpha United LP to keep the principal use it to purchase other properties in Philadelphia, including ones on the 2300 block of North Park Avenue, on the 1300 block of East Moyamensing Avenue and on the 800 block of North 5th Street. Along with those other purchases, similar mortgages and repayment schedules were involved.
For the last property located on 5th Street, Alpha United LP was required to pay monthly interest in installments of $2,552.08, the suit says. The promissory note included an acceleration clause, indicating that if Alpha United LP failed to make a monthly payment within 15 days of its due date, Alpha United LP would be required to pay plaintiffs the full amount due as well as an additional five percent of the amount due as a late penalty, the suit says.
“The note stated that a mortgage on the 5th Street Property would be executed by Alpha United LP, which would secure the note. However, the defendants never executed nor recorded the mortgage. Alpha United LP defaulted on the note by failing to make the monthly interest payments for July of 2017. Alpha United LP has not paid interest payments for July, August, September, or October of 2017,” the suit says.
The plaintiffs argue they are owed $367,797.78, which is broken down as follows:
Principal – $250,000
Monthly Interest Payments (for July 2017 through March 2020) – $96,979.04
Five Percent Late Fee – $17,348.95
Attorney’s Fees – $20,818.74
Total Amount Due – $367,797.78
For counts of breach of contract, fraud, unjust enrichment and negligence, the plaintiffs are seeking damages of $367,797.78 (and in excess of $50,000), plus costs, attorney’s fees, pre- and post-judgment interest and such further relief as the Court deems just and proper.
The plaintiffs are represented by Thomas D. Bielli and Cory P. Stephenson of Bielli & Klauder, in Philadelphia.
Philadelphia County Court of Common Pleas case 171100141
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com