Wise v. Mortgage Lenders Network USA - ED Pa. - March 13, 2006
http://www.paed.uscourts.gov/documents/opinions/06D0317P.pdf
Lender and mortgage broker moved to dismiss various consumer claims under Rule 12(b)(6) based on statute of limitations grounds. Motion denied.
equitable tolling
Dismissal of federal statutory claims was denied under equitable tolling doctrine, because the complaint alleged that the defendants had actively misled the plaintiffs about their claims. The "doctrine of 'equitable tolling' operates to stop the statute of limitations from running whete the claim's actual accrual date has alreayd passed...It thus allows a court 'to extend a statute of limitations on a case-by-case basis to prevent inequity." Fraudulent concealment was alleged, and plaintiffs showed that they had exercised reasonable diligence in investigating and bringing the claims. Plaintiffs' complaint alleged "facts that suggest an active attempt....to intentionally defraud them by exploiting their financial need and concealing material terms of the loan.
discovery rule
Dismissal of state fraud and breach of fiduciary claim was similarly rejected by application of the "'discovery rule' exception to the statute of limitations which delays the running of the statute until the plaintiff knew, or through the exercise of reasoanble diligence should have known, of the injury and its cause....[W]hen the underlying events being sued upon sound inherently in fraud or deceit...that, without more, will toll the statute of limitations until such time as the fraud has been revealed, or should have been revealed by the exercise of due diligence by the plaintiff.'"
