We sued Bank of America on behalf of our client in a classic case of predatory lending (bait and switch, undisclosed terms, etc.). The lawsuit was filed on August 31, 2012, and we served it on Bank of America by regular and certified mail, as the court rules permit, on September 5, 2012. Bank of America failed to respond, and I secured a default judgment against Bank of America on October 31, 2012.

Over a month later, on December 12, 2012, Bank of America filed a petition to open the default judgment, claiming that I improperly served the complaint. On a side note, Bank of America was served at their Plano, Texas Mail Center, and Bank of America concedes that this center is a regular place of business or activity. Also, I’ve served BoA dozens of times at that address and there were never any problems before.

On March 27, 2013, Judge Burr of the Delaware County Court of Common Pleas denied Bank of America’s petition to strike or vacate the default judgment. The court’s opinion is here. Bank of America appealed to the Superior Court of Pennsylvania. On December 22, 2013, the Superior Court affirmed Judge Burr’s decision that the default judgment was proper. The Superior Court’s opinion is here.

The crux of Bank of America’s argument was that service of process was deficient in two regards. First, it claims that the “mail center” is not a person, but rather a place. This, despite the fact that a bank employee physically stamped the lawsuit papers as “received”, was not persuasive to the Superior Court. Second, Bank of America maintained that proper service requires a signed receipt, and the mail center’s stamp was not sufficient. This was also dismissed by the Superior Court as not persuasive.

As service of the lawsuit has been deemed proper by the Superior Court, the default judgment remains in place. It is unknown whether Bank of America will file an appeal.

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