SCRANTON — A federal judge is mulling a Reading bank's request to dismiss an Auburn couple's lawsuit that claims Santander Bank failed to mark their paid loans as satisfied.
The motion to dismiss was filed Aug. 22, in U.S. District Court for Pennsylvania Middle District. The case is assigned to U.S. District Court Judge Malachy E. Mannion.
David and Maureen Vitez filed three derivative breach of contract claims against Santander Bank, one for each of their loans paid off in December 2016, according to their original complaint and the bank's motion to dismiss their claim. A third plaintiff in the case, DMS Enterprizes Inc., maintains its offices in Auburn.
"Each of these claims fail as a matter of law because plaintiffs have failed to allege that they sent a notice to Santander sufficient to trigger its duties under the Mortgage Satisfaction Act," the bank said in its 11-page memorandum in support of its motion to dismiss.
The bank further argued that "because the Mortgage Satisfaction Act is the exclusive remedy for claims arising out of a mortgagee’s alleged failure to mark a mortgage as satisfied," it mandates "dismissal of their breach of contract claims."
"For these reasons and for the reasons set forth more fully herein, plaintiffs' complaint should be dismissed with prejudice," the bank asserted.
Plaintiffs in the case claim that Santander Bank's failure to timely mark as satisfied their three paid loans caused their property's title to suffer harm and slander. Plaintiffs claim breach of contract in all three loans and are seeking damages in excess of $75,000.
The case originally was filed in Schuylkill County Common Pleas Court, from which Santander Bank removed the case to federal court in 2017.
Parties met in multiple settlement conferences earlier this year but efforts to reach settlement thus far have failed.