MARTINSBURG – A lawsuit against PennyMac Loan Services alleging breach of contract has been removed to federal court.
PennyMac argues there is complete diversity between the plaintiff and the defendant since the plaintiff lives in Berkeley County and PennyMac is a California company.
PennyMac also contends that the amount in controversy exceeds the $75,000 state court limit.
Christine Hess initially filed the lawsuit in Berkeley Circuit Court before it was removed to federal court. Hess alleges she purchased a home in Martinsburg in June 2015 before she was married and PennyMac serviced the loan. Hess made loan payments electronically at PennyMac's website and after she got married and changed her last name, she alleges she informed PennyMac of the name change.
PennyMac told Hess that the name change would have no impact on her account, but that it would make note of it in her account, according to the suit.
Hess claims in July 2017, she was unable to complete her monthly payment on the website and she made a phone call to PennyMac to pay over the phone, however, the company declined her payment because the named associated on the account did not match PennyMac's records.
The following month, PennyMac again refused to accept her payment, according to the suit.
Hess claims although PennyMac refused to accept her payments, it continued to assess her with late fees.
Over several months, PennyMac refused payments and assessed her fees and eventually told Hess it was going to foreclose on her home, according to the suit.
Hess claims it wasn't until she hired an attorney that PennyMac agreed to process her name change and provide her with a loan modification.
Hess is seeking compensatory and punitive damages with pre- and post-judgment interest. She is represented by Stephen G. Skinner and Bryan Epps Ogilvie of Skinner Law Firm.
U.S. District Court for the Northern District of West Virginia case number 3:20-cv-00009