Appeal from the Judgment Entered October 9, 1985 in the Court of Common Pleas of Chester County, Civil No. 54 Equity of 1980.
Robert J. Hoelscher, Philadelphia, for appellant.
William R. Hagner, Paoli, for appellees.
Wieand, Olszewski and Cercone, JJ.
[ 362 Pa. Super. Page 56]
This is an appeal from an order granting appellant, Greater Delaware Valley Savings and Loan Association (GDV), restitution in the amount of $1,590.00 plus partial pre-verdict interest at the rate of 5 1/2% simple interest. The $1,590.00 award constitutes the sum of tax and insurance payments made by GDV's predecessor-in-interest, Lansdowne Federal Savings and Loan Association (Lansdowne), which appellees, the Parks, failed to tender to GDV.
Appellant raises two issues on appeal: (1) whether the trial court's findings were at variance with the facts stipulated by the parties; and (2) whether the trial court erred in concluding that pre-verdict interest commences at the time demand is made by the mortgagee (GDV), where the mortgagee recovers pre-verdict interest on the mortgagors' (the Parks) debt resulting from the miscalculations of the mortgagee's predecessor-in-interest (Lansdowne).
We adopt the trial court's accurate statement of the stipulated facts:
In February of 1963, plaintiffs entered into a home mortgage agreement with Lansdowne Federal Savings and Loan Association ("Lansdowne"). The mortgage was security for a loan of $16,000 to be repaid with interest at the rate of 5 1/2% per annum over 25 years.
With each monthly installment of principal and interest, the Parks also paid a portion of the annual taxes and insurance on the property, which Lansdowne paid on behalf of the Parks pursuant to the following clause of the mortgage agreement: "(T)he Mortgagor shall pay monthly to the Mortgagee one-twelfth (1/12) of said charges (if same are not certain as to amount, said amount to be reasonably estimated by Mortgagee): and
[ 362 Pa. Super. Page 57]
failure by Mortgagor to pay each month as provided in this paragraph shall be a default hereunder."
During the first thirteen years of this arrangement, Lansdowne underestimated the taxes and insurance which were due in a particular year. As a result, between 1963 and 1975 Lansdowne paid out more for taxes and insurance on the Parks's property than it collected from the plaintiffs. ...