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NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37
FIVE STAR BANK AND FINANCIAL : IN THE SUPERIOR COURT OF
INSTITUTIONS, INC., : PENNSYLVANIA
:
Appellants :
:
:
v. :
:
: No. 2432 EDA 2022
MATTHEW CHIPEGO, CHARLENE :
MOWREY, CONSTANCE CHURCHILL :
AND JOSEPH EWING, INDIVIDUALLY :
AND ON BEHALF OF SIMILARLY :
SITUATED INDIVIDUALS :
Appeal from the Order Entered December 7, 2021
In the Court of Common Pleas of Philadelphia County
Civil Division at No: 170502466
BEFORE: BOWES, J., STABILE, J., and PELLEGRINI, J.*
MEMORANDUM BY STABILE, J.: FILED FEBRUARY 13, 2024
Individuals from Pennsylvania and New York (collectively “the
Borrowers”) filed this class action alleging that Appellant, Five Star Bank and
Financial Institutions, Inc. (“the Bank”), violated the Borrowers’ rights under
the Uniform Commercial Code in the course of repossessing their vehicles. In
an order dated October 7, 2022, this Court granted the Bank leave to take an
interlocutory appeal from a December 7, 2021 order denying the Bank’s
motion to dismiss the New York branch of this action for lack of standing. The
same order directed the parties to brief whether the trial court has subject
matter jurisdiction over the New York branch of this action. We hold that the
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* Retired Senior Judge assigned to the Superior Court.
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trial court has subject matter jurisdiction over the New York branch of this
action, and that the New York plaintiffs have standing to pursue relief against
the Bank in this action. Accordingly, we affirm.
On May 16, 2017, the Borrowers, two individuals from Pennsylvania and
two from New York (“the New York plaintiffs”), filed a consumer class action
on behalf of borrowers who had their vehicles repossessed by the Bank. The
Borrowers alleged that the Bank’s repossession practices, particularly
repossession notices that the Bank sent to the Borrowers, violated various
provisions in Pennsylvania’s and New York’s Uniform Commercial Codes
(“UCC”).1 Since the Bank’s appeal focuses on the New York plaintiffs, we
concentrate our attention on the alleged violations of New York’s UCC.
The Bank filed preliminary objections to the complaint alleging lack of
personal jurisdiction and improper venue. The trial court overruled the Bank’s
preliminary objections.
The Borrowers filed an amended complaint replacing one of the original
plaintiffs with another individual.
The amended complaint alleged the following relating to the two New
York plaintiffs. The first plaintiff, Constance Churchill, purchased and financed
a 2007 Dodge Dakota pickup truck for personal use from West Herr Dodge in
Orchard Park, NY. Amended Complaint at ¶ 37. The Bank financed Churchill’s
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1 The complaint alleged violations of 13 Pa.C.S.A. §§ 9610-9614 and N.Y. UCC
§§ 9-610-9-614 (McKinney). The complaint sought damages against the Bank
under 13 Pa.C.S.A. § 9625 and N.Y. UCC § 9-625. Pennsylvania’s and New
York’s versions of these statutes are identical.
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purchase and took a security interest in the vehicle. Id. at ¶¶ 38-39.
Churchill’s finance transaction made the Bank the secured party, and monthly
payments were made to the Bank. Id. at ¶ 40. Churchill fell behind on her
monthly payments, and the Bank determined there was a default. Id. at ¶ 41.
Accordingly, the Bank, as the lender and secured party, repossessed
Churchill’s Dodge vehicle or ordered that it be repossessed. Id. at ¶ 42.
Article 9, Part 6 of New York’s UCC requires a prompt post-repossession
notice to the borrower advising of the repossession and that the borrower can
“redeem” (or get her vehicle back) by paying past due payments and fees,
the method of intended disposition, whether the debtor may be liable for a
deficiency or entitled to a surplus, and other information. Id. at ¶ 43 (citing
N.Y. UCC § 9-614(a)(1), incorporating N.Y. UCC § 9-613(a); N.Y. Gen. Oblig.
Law § 7-401(2)). The Bank sent a letter to Churchill enclosing a Notice of
Right to Redeem (“Repossession Notice”). Id. at ¶ 44. According to the
amended complaint, the Repossession Notice did not state the method of
intended disposition. Id. at ¶ 45. While stating that the vehicle would be
sold, the Repossession Notice did not state whether it would be sold by public
or private sale, as required by N.Y. UCC § 9-614(a)(1), incorporating N.Y. UCC
§ 9-613(a)(3). Id. at ¶ 46. If sold by public sale, the Repossession Notice
failed to list the required statement of the date and place of any public sale or
auction, as required by N.Y. UCC § 9-614(a)(1), incorporating N.Y. UCC § 9-
613(a)(5). Id. at ¶ 47. The Repossession Notice did not advise the borrower
that she was entitled to an accounting of any unpaid indebtedness or the
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charge (if any) for such an accounting, as required by N.Y. UCC § 9-614(a)(1),
incorporating N.Y. UCC § 9-613(a)(4). Id. at ¶ 48. The Repossession Notice
did not provide an itemized statement of the dollar amount needed to redeem,
as required by N.Y. UCC § 9-611(b) and N.Y. Gen. Oblig. Law § 7-401(2). Id.
at ¶ 49. Instead, it conditioned redemption of the vehicle on payment of
undescribed and unincurred “estimated” expenses, or lump sum “storage
costs” not yet incurred. Id. at ¶ 50. These violations subjected the Bank to
minimum damages under N.Y. UCC § 9-625(c)(2) of not less than the credit
service charge plus 10% of the principal amount of the obligation. Id. at ¶
76.
The Borrowers made virtually identical allegations with regard to a
second New York plaintiff, Joseph Ewing. Id. at ¶¶ 56-64.
The Bank did not file preliminary objections to the amended complaint,
electing instead to file an answer to the amended complaint.
After several years of discovery, the Borrowers moved for class
certification. On September 30, 2021, the trial court certified two subclasses
of consumer borrowers from Pennsylvania and two from New York to pursue
claims for statutory damages under the UCC. The two subclasses of New York
plaintiffs were (1) persons whose vehicles were sold or auctioned by the Bank,
leaving a surplus or alleged deficiency balance, and (2) persons whose
vehicles were not yet sold or auctioned by the Bank. Order, 9/30/21. The
court divided Pennsylvania plaintiffs into identical subclasses. Id. Notice of
this action was mailed to over 6,300 class members.
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The Bank filed a “motion to dismiss” alleging that the Borrowers lacked
standing to sue. On December 7, 2021, the trial court denied the motion to
dismiss. On December 20, 2021, the Bank filed a petition for permission to
take an interlocutory appeal to this Court. The trial court took no action on
this petition, and it was deemed denied on January 19, 2021. Pa.R.A.P.
1311(b) (petition to take interlocutory appeal by permission deemed denied
if trial court fails to act upon it within thirty days after date of filing).
On February 9, 2022, the Bank filed a timely petition in this Court for
leave to take an interlocutory appeal as to whether the New York residents
have standing to bring suit in a Pennsylvania court. Id. (petition for leave to
take interlocutory appeal must be filed in appellate court within thirty days
after petition is deemed denied by trial court). On October 7, 2022, this Court
granted the Bank leave to take an interlocutory appeal on the standing issue.
Our order also directed the parties to brief whether the trial court had subject
matter jurisdiction to (1) certify the New York subclasses and (2) “determine
a controversy between New York residents for claimed violations of New York
law that occurred in New York where the New York plaintiffs seek statutory
damages that are not available to them under New York law.” Order, 23 EDM
2022, 10/7/22 (citing Bisher v. Lehigh Valley Health Services, Inc., 265
A.3d 383, 399 (Pa. 2021) (court may raise question of subject matter
jurisdiction sua sponte at any time)).
The Bank raises the following issues in this appeal:
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1. [Did the] trial court have jurisdiction to certify the New York
subclasses?
2. [Did the] trial court have subject matter jurisdiction to
determine a controversy between New York residents for claimed
violations of New York law that occurred in New York and seek
classwide damages explicitly prohibited under New York law?
3. [Did the] trial court err in finding that New York residents who
sued a New York Bank pursuant to New York’s UCC statute
regarding transactions that occurred wholly in New York and
suffered no injury had standing to bring suit in a Pennsylvania
Court?
Bank’s Brief at 2-3.
The first two questions in the Bank’s brief concern whether the trial court
has subject matter jurisdiction to certify the New York subclasses and resolve
issues of New York law between New York residents. We answer these
questions in the affirmative.
The question of whether a court has subject matter jurisdiction over an
action is a “pure question of law[.]” Clark v. Peugh, 257 A.3d 1260, 1266
(Pa. Super. 2021). Subject-matter jurisdiction is “the power of the court to
hear the cases of the class to which the case before the court belongs, that is,
to enter into inquiry, whether or not the court may ultimately grant the relief
requested.” Harley v. HealthSpark Found., 265 A.3d 674, 687 (Pa. Super.
2021). “Except where exclusive original jurisdiction of an action or proceeding
is by statute . . . vested in another court of this Commonwealth, the courts of
common pleas shall have unlimited original jurisdiction of all actions and
proceedings, including all actions and proceedings heretofore cognizable by
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law or usage in the courts of common pleas.” 42 Pa.C.S.A. § 931(a). The
question of subject matter jurisdiction is not waivable and may be raised by a
court on its own motion. Domus, Inc. v. Signature Building Systems of
PA, LLC, 252 A.3d 628, 636 (Pa. 2021).
Subject matter jurisdiction is different from personal jurisdiction.
Personal jurisdiction is “[the] court’s power to bring a person into its
adjudicative process.” Grimm v. Grimm, 149 A.3d 77, 83 (Pa. Super. 2016).
In addition, “personal jurisdiction is readily waivable.” Id.
In this case, while the Bank challenged the trial court’s personal
jurisdiction in the trial court, it has abandoned its challenge to personal
jurisdiction in this appeal. The only jurisdictional argument that the Bank
raises in this appeal is that the trial court lacks subject matter jurisdiction over
the New York branch of this action, i.e., the dispute between a subclass of
New York residents against a New York bank for alleged violations of New York
law.2
We agree with the Borrowers that the trial court has subject matter
jurisdiction over the New York branch of the action. The Judicial Code
authorizes Pennsylvania courts to apply the law of other states in appropriate
cases. See 42 Pa.C.S.A. § 5327(b) (“In determining the law of any jurisdiction
. . . thereof outside this Commonwealth, the tribunal may consider any
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2 There is no dispute that the trial court has subject matter jurisdiction over
the claims of the Pennsylvania plaintiffs in this action.
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relevant material or source, including testimony, whether or not submitted by
a party or admissible under the rules of evidence”); see also A.Y. v. Janssen
Pharmaceuticals, Inc., 224 A.3d 1, 17-18, 24-27 (Pa. Super. 2019)
(applying Tennessee law to substantive claims in product liability action);
Hammons v. Ethicon, Inc., 190 A.3d 1248, 1258 (Pa. Super. 2018)
(applying Indiana law to most substantive claims in product liability action and
New Jersey law to punitive damage claims). In view of these authorities, the
fact that New York substantive law applies to the claims of the New York
plaintiffs does not prevent Pennsylvania courts from exercising subject matter
jurisdiction over the New York branch of this action.
The Bank argues that the trial court’s decision to apply Pennsylvania
procedural rules instead of what it claims is a New York procedural rule, CPLR
§ 901(b), demonstrates that the court “is not competent to handle claims
arising under New York laws.” Bank’s Brief at 16. The Bank contends:
The Court of Common Pleas applied its own procedural rules,
ignoring the fatal impact of N.Y. CLS CPLR § 901(b) to the claims
brought by the New York classes. This provision unequivocally
prohibits no-injury class actions, specifically stating that:
“[u]nless a statute creating or imposing a penalty, or a minimum
measure of recovery specifically authorizes the recovery thereof
in a class action, an action to recover in a penalty, or minimum
measure of recovery created or imposed by statute may not be
maintained as a class action.” N.Y. CLS CPLR § 901(b). In other
words, New York law does not allow a class action to recover a
minimum measure of recovery created or imposed by statute
unless the statute specifically authorizes class actions. In the
instant matter, there is no such authorizing statute. Nothing in
Article 9 of New York’s Uniform Commercial Code specifically
authorizes the recovery of such damages in a class action. See,
e.g., Official Comment 4 to N.Y. CLS UCC § 9-625 (“Subsection
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(c)(2)) provides a minimum, statutory, damage recovery for a
debtor and secondary obligor in a consumer-goods transaction”).
Accordingly, Section 901(b) of N.Y. CLS CPLR bars class actions
such as that brought here by the New York classes who seek
statutory damages under N.Y. CLS UCC § 9-625(c).
Bank’s Brief at 16-17.
This argument is devoid of merit. The Bank’s argument is nothing more
than the contention that the trial court failed to apply the proper law, which,
according to the Bank, is N.Y. CLS CPLR § 901(b). The allegation that the
court applied the wrong law comes nowhere close to establishing that it lacks
subject matter jurisdiction over this case. A court lacks subject matter
jurisdiction when it lacks authority to hear a particular case, Harley, 265
A.3d at 687, not merely when, in a party’s opinion, it applies the wrong law
to the case. We know of no law, nor does the Bank point to any, that prohibits
the trial court from deciding the New York branch of this case—and the
authorities gathered above support the opposite conclusion.3
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3 At least one state court outside of New York has exercised subject matter
jurisdiction over a class action in which the defendants argued that CPLR
§ 901(b) precluded the class action. See Weber v. U.S. Sterling Securities,
Inc., 282 Conn. 722, 924 A.2d 816, 827-28 (2007). The plaintiff in Weber
filed a class action against a New York corporation, a Delaware limited liability
corporation (“LLC”) and individual members of the LLC residing in Connecticut.
The plaintiff alleged that the defendants violated the federal Telephone
Consumer Protection Act, 47 U.S.C. § 227, by sending unsolicited facsimile
advertisements to 5,000 individuals within New York state. The Connecticut
Supreme Court held that Section 901(b) applied under choice of law principles
and went on to conclude that Section 901(b) barred the class action. Id., 924
A.2d at 827-28. We regard Weber as persuasive authority for the proposition
that Pennsylvania state courts can exercise subject matter jurisdiction over a
(Footnote Continued Next Page)
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In its third and final argument, the Bank contends that the New York
residents lack standing to bring an action in a Pennsylvania court because they
are suing under New York laws, N.Y. UCC §§ 9-610—9-614, for which the
Pennsylvania legislature never authorized standing, and because they either
suffered no harm or suffered harm that has no nexus to the alleged
deficiencies in their repossession notices.
The Borrowers argue that the Bank waived the issue of standing by
failing to raise it in its preliminary objections to the complaint. Parties,
however, may challenge standing either in preliminary objections or in the
answer to the complaint. Drake v. Polyflow, Inc., 109 A.3d 250, 258 (Pa.
Super. 2015). The Bank alleged in its answer to the complaint with new
matter that the New York plaintiffs lack standing. Accordingly, The Borrowers’
claim of waiver fails.
In order to address the Bank’s standing argument, we must first
determine the proper standard of review from the denial of the Bank’s “motion
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class action in which the defendant contends that Section 901(b) precludes
the action against New York defendants. See Turnpaugh Chiropractic
Health and Wellness Center, P.C. v. Erie Insurance Exchange, 297 A.3d
404, 423 n.11 (Pa. Super. 2023) (“[A]lthough we are not bound by decisions
from . . . courts in other jurisdictions, we may use them for guidance to the
degree we find them useful, persuasive, and . . . not incompatible with
Pennsylvania law”). We do not express any opinion as to whether Turnpaugh
is persuasive on the merits of the Bank’s § 901(b) defense, i.e., on whether
CPLR § 901(b) bars the Borrowers’ action against the Bank. This affirmative
defense falls outside the scope of our October 7, 2022 order limiting
interlocutory review to issues of subject matter jurisdiction and standing.
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to dismiss.” While motions to dismiss are permissible in federal court, see
Fed.R.Civ.P. 12, they are not a cognizable form of procedure under the
Pennsylvania Rules of Civil Procedure. Accordingly, we will apply the
standards governing the Pennsylvania motion closest in form to the Bank’s
motion to dismiss. Since the pleadings were closed at the time of the Bank’s
motion, we will apply the standards governing motions for judgment on the
pleadings.
Appellate review of a trial court’s decision to grant or deny judgment on
the pleadings
is limited to determining whether the trial court committed an
error of law or whether there were facts presented which warrant
a jury trial. In conducting this review, we look only to the
pleadings and any documents properly attached thereto.
Judgment on the pleadings is proper only where the pleadings
evidence that there are no material facts in dispute such that a
trial by jury would be unnecessary.
Bowman v. Sunoco, Inc., 986 A.2d 883, 886 (Pa. Super. 2009). In
reviewing a motion for judgment on the pleadings,
[an] appellate court will apply the same standard employed by the
trial court. A trial court must confine its consideration to the
pleadings and relevant documents. The court must accept as true
all well pleaded statements of fact, admissions, and any
documents properly attached to the pleadings presented by the
party against whom the motion is filed, considering only those
facts which were specifically admitted.
Southwestern Energy Production Co. v. Forest Resources, LLC, 83 A.3d
177, 185 (Pa. Super. 2013).
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The parties agree that Pennsylvania law applies to the standing issue.
See Bank’s Brief at 21-24 (citing Pennsylvania standards); Borrowers’ Brief at
23, 26 (same). The general parameters for determining standing are as
follows:
[A] party seeking judicial resolution of a controversy must
establish as a threshold matter that he has standing to maintain
the action. The core concept of standing is that a person who is
not adversely affected in any way by the matter he seeks to
challenge is not aggrieved thereby and has no standing to obtain
a judicial resolution to his challenge.
Thus, the inquiry into standing ascertains whether a party is the
proper party entitled to make the legal challenge to the matter
involved. A person who has no stake in the matter has no
standing to obtain judicial resolution of his challenge to the
matter.
In re Walker, 208 A.3d 472, 475 (Pa. Super. 2019) (citations and footnote
omitted) (some formatting altered).
In Pennsylvania, standing may be granted by statute. Housing
Authority of County of Chester v. Pennsylvania State Civil Service
Com’n (“Housing Authority”), 730 A.2d 935, 941 (Pa. 1999); Milby v.
Pote, 189 A.3d 1065, 1076–77 (Pa. Super. 2018). When a statute confers
legal protections, Pennsylvania’s doctrine of standing merely asks whether
“the interest the plaintiff seeks to protect is arguably within the zone of
interests to be protected by the statute.” Milby, 189 A.3d at 1076–77. Since
ex parte repossessions deprive an owner of property without opportunity to
be heard and have for decades presented opportunity for abuse, the UCC
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requires a secured party to send specific notice to the borrower after
repossession advising of certain rights. N.Y. UCC § 9-611(b), 9-614(a).
The Borrowers allege in this action that the Bank breached its obligation
under Article 9, Part 6 of New York’s UCC to send proper notice to the New
York plaintiffs after repossessing their vehicles. In particular, the Borrowers
allege that the Bank’s repossession notice:
(1) failed to state the method of intended disposition, that is, whether
the car would be sold by public or private sale, as required by N.Y. UCC
§ 9-614(a)(1), incorporating N.Y. § UCC 9-613(a)(3);
(2) failed to state, in the event of a public sale, the date and place of
any public sale or auction, as required by N.Y. UCC § 9-614(a)(1),
incorporating N.Y. UCC § 9-613(a)(5);
(3) failed to advise that the borrower was entitled to an accounting of
any unpaid indebtedness, and the charge (if any) for such an
accounting, as required by N.Y. UCC § 9-614(a)(1), incorporating N.Y.
UCC § 9-613(a)(4); and
(4) failed to provide an itemized statement of the dollar amount needed
to redeem, as required by N.Y. UCC § 9-611(b) and N.Y. Gen. Oblig.
Law § 7-401(2), and instead conditioned redemption of the vehicle on
payment of undescribed and unincurred “estimated” expenses, or lump
sum “storage costs” not yet incurred.
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Amended Complaint at ¶¶ 43-49. In our view, the New York plaintiffs, having
allegedly suffered violations of their rights under New York’s UCC, are
individuals whom these UCC provisions are designed to protect. In other
words, “the interests [they] seeks to protect [are] arguably within the zone of
interests to be protected by the statute.” Milby, 189 A.3d at 1076–77. Thus,
they have standing to seek relief against the Bank for violations of New York’s
UCC.
Further, New York’s UCC affords the New York plaintiffs the right,
whenever the secured party failed to comply with Article 9, Part 6, to seek
statutory damages based upon the formula in N.Y. UCC § 9-625(c)(2). This
provision states that statutory damages include minimum damages of not less
than the credit service charge plus 10% of the principal amount of the
obligation. This remedy “provides a minimum, statutory, damage recovery
for a debtor . . . in a consumer-goods transaction[,]4 [and it] is designed to
ensure that every noncompliance with the requirements of Part 6 in a
consumer-goods transaction results in liability, regardless of any injury that
may have resulted.” N.Y. UCC § 9-625, Official Comment 4; see also Coxall
v. Clover Commercial Corp., 781 N.Y.S.2d 567, 578-79 (Kings Cty. 2004)
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4 The Bank does not contend, at least in this stage of the case, that the
transactions in question fall outside the realm of a “consumer goods
transaction” under Article 9, Part 6 of New York’s UCC. Therefore, we will
assume for purposes of this appeal that the transactions between the New
York plaintiffs and the Bank constitute consumer goods transactions.
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(Section 9-625(c)(2) provides right to “statutorily-prescribed minimum
damages” even if plaintiff sustains no actual loss).5 It is clear that New York’s
UCC affords the New York plaintiffs standing to seek these damages in court.
N.Y. UCC § 1-305(b) (“Any right or obligation declared by this title is
enforceable by action”).
The Bank cites TransUnion LLC v. Ramirez, 594 U.S. 413, 141 S.Ct.
2190 (2021), for the proposition that “[t]he Supreme Court confirmed that
every member of a class must have standing in a class action.” Bank’s Brief
at 26 n.7. Ramirez is inapposite because it concerns standing to sue in
federal court, not in Pennsylvania court. “While standing in a federal court is
derived from the United States Constitution, the same is not true in
Pennsylvania.” Johnson v. American Standard, 8 A.3d 318, 327 n.9 (Pa.
2010) (“We fail to see why [defendant] invokes Article III of the United States
Constitution and its requirement of a ‘case or controversy’”); see also
Firearm Owners Against Crime v. Papenfuse, 261 A.3d 467, 481-82 (Pa.
2021) (distinguishing Pennsylvania’s more liberal standing test from the
constitutional test for standing in federal court). As discussed above, in
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5 This Court construes Pennsylvania’s UCC the same way. See Cubler v.
TruMark Financial Credit Union, 83 A.3d 235, 242 (Pa. Super. 2013)
(noting that 13 Pa.C.S.A. § 9625, Pennsylvania’s counterpart to N.Y. UCC § 9-
625, “removed the requirement for an aggrieved debtor/obligor to prove
actual damages in order to recover statutory damages under § 9625 in
recognition of the inherent difficulty for a claimant to quantify and prove actual
damages”).
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Pennsylvania courts, a statutory violation—and in particular, the statutory
violation alleged here—is sufficient to confer standing. Housing Authority,
730 A.2d at 941.
The Bank attempts to limit the reach of statutory standing by claiming
that such standing may not arise from a statute created by another legislature
such as New York’s. Pointing to text in Housing Authority that standing may
be conferred by a statute “properly enacted by the Pennsylvania legislature,”
id., the Bank posits that statutes not enacted in Pennsylvania (e.g., New
York’s version of the UCC) fail to confer standing. We disagree. The sole
issue before the Housing Authority court was whether the plaintiff had
standing to enforce a Pennsylvania statute, the Military Affairs Act, 51
Pa.C.S.A. § 7101 et seq. This case did not concern whether the plaintiff had
standing to enforce a statute enacted in another state. The Bank does not
cite any other decision for the proposition that parties in Pennsylvania courts
lack standing to enforce out-of-state statutes; nor are we aware of any. To
the contrary, our jurisprudence indicates that plaintiffs from outside
Pennsylvania have standing to enforce out-of-state statutes in Pennsylvania,
assuming jurisdiction exists over the defendant and the subject matter of the
case. See, e.g., Hammons, 190 A.3d at 1255, 1270-78 (affirming judgment
in favor of Indiana plaintiff who brought action in Pennsylvania to enforce
rights under Indiana product liability statute). This seems particularly true
where, as here, the out-of-state statute grants standing to sue to enforce
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statutory rights, N.Y. UCC § 1-305(b), and authorizes recovery of minimum
statutory damages "regardless of any injury that may have resulted.” N.Y.
UCC § 9-625, Official Comment 4.
The Bank claims that the New York plaintiffs who redeemed their
vehicles cannot show causation of harm, thus, they are not aggrieved, and
therefore lack standing to sue for statutory damages. The Bank conflates an
asserted merits defense (no causation of actual harm) with the test for mere
standing to sue to seek to prove a violation, which is whether “the interest the
plaintiff[s] seek[] to protect is arguably within the zone of interests to be
protected by the statute.” Milby, 189 A.3d at 1076–77. As stated above, the
allegations in the amended complaint establish that the New York plaintiffs
have an interest in enforcing rights protected by Article 9, Part 6 of New York’s
UCC. Furthermore, even assuming the New York plaintiffs cannot prove
causation of harm, they still have the right to seek the statutory damages
available under N.Y. UCC § 9-625(c)(2) “regardless of any injury that may
have resulted.” See also Coxall, 781 N.Y.S.2d at 578-79.
Next, the Bank argues that the New York plaintiffs who lacked the ability
to redeem were not aggrieved by the notices of repossession. We disagree.
Once again, the New York UCC permits these plaintiffs to seek statutory
damages under N.Y. UCC § 9-625 for the secured party’s failure “regardless
of any injury that may have resulted.” N.Y. UCC § 9-625, Official Comment
4; see also Coxall, 781 N.Y.S.2d at 578-79.
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For these reasons, the Bank’s challenge to standing fails.
Accordingly, we hold that the trial court has subject matter jurisdiction
over the New York branch of this action, and that the New York plaintiffs have
standing to pursue relief against the Bank in this action.
Order affirmed. Case remanded for further proceedings. Jurisdiction
relinquished.
This decision was reached prior to the retirement of Judge Pellegrini.
Date: 2/13/2024
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