PA Supremes Hold that Aiding and Abetting a Fraud is a Separate Recognizable Tort Claim

we hold Pennsylvania law recognizes the tort of aiding and abetting fraud, and the scienter requirement for this cause of action is actual knowledge of the underlying fraud. Consequently, the decision of the Superior Court is affirmed in part and reversed in part. The case is remanded to the trial court for a new trial consistent with this opinion. Jurisdiction is relinquished.

Marion v. Bryn Mawr Tr. Co., 72 MAP 2021, at *28 (Pa. Jan. 19, 2023)

This case is worth considerable study since the PA Supreme Court went to great lengths to decide when a bank or any party could be liable for enabling fraud, provided that it knew the fraud existed.

There is also an extensive discussion of the elements of fraud that must be in the pleading and the proof. I would counsel homeowners against trying to do this without consulting local counsel, who needs to be familiar with litigating fraud claims. It is not as easy as it sounds.

I am in the process of creating the required forms for these actions.

But the discussion is both in-depth and very persuasive. It is something that is scaring lawyers who serve foreclosure mills, lawyers who work for regional law firms that hire the foreclosure mills, companies that pose as servicers, and banks that pose as trustees of a trust that does not exist.

The payoff is immense, considering what happens to the homeowner and family. Proof of fraud in such circumstances will easily justify the imposition of punitive damages if you plead and prove the right facts. It practically defines itself.

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Neil F Garfield, MBA, JD, 75, is a Florida licensed trial and appellate attorney since 1977. He has received multiple academic and achievement awards in business, accounting and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
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FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE COMMENTS ON THIS BLOG AND ELSEWHERE ARE BASED ON THE ABILITY OF A HOMEOWNER TO WIN THE CASE NOT MERELY SETTLE IT. OTHER LAWYERS HAVE STRATEGIES DIRECTED AT SETTLEMENT OR MODIFICATION. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.

But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 14 years or more. In addition, although currently rare, it can also result in your homestead being free and clear of any mortgage lien that you contested. (No Guarantee).

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One Response

  1. “. . . Pennsylvania law recognizes the tort of aiding and abetting fraud, and the scienter requirement for this cause of action is actual knowledge of the underlying fraud.”

    It’s about damned time!!! Thanks for this article and your in depth research!! You’re the best Neil!

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