Basile v. H. & R. Block, Inc. (Dissenting Opinion)

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[J-16-00] IN THE SUPREME COURT OF PENNSYLVANIA EASTERN DISTRICT SANDRA J. BASILE AND LAURA CLAVIN, INDIVIDUALLY AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED : : : : : : v. : : : H&R BLOCK, INC., H&R BLOCK : EASTERN TAX SERVICES, INC. : : : APPEAL OF: H&R BLOCK, INC. AND : H&R BLOCK EASTERN TAX SERVICES, : INC. : : SANDRA J. BASILE AND LAURA : CLAVIN, INDIVIDUALLY AND ON : BEHALF OF ALL OTHERS SIMILARLY : SITUATED : v. : : : H&R BLOCK, INC., H&R BLOCK : EASTERN TAX SERVICES, INC., AND : MELLON BANK (DE) : : : APPEAL OF: H&R BLOCK, INC., AND : H&R BLOCK EASTERN TAX SERVICES, : INC. : : : SANDRA J. BASILE AND LAURA : CLAVIN, INDIVIDUALLY AND ON : BEHALF OF ALL OTHERS SIMILARLY : SITUATED : : No. 44 E.D. Appeal Dkt. 1999 Appeal from the Judgment of Superior Court entered 03/03/99 at No. 585 PHL 1998, reversing as to H&R Block; affirming as to Mellon Bank the Order entered 05/30/97 in the Court of Common Pleas, Philadelphia County, Civil Division at No. 3246 April Term, 1993 No. 45 E.D. Appeal Dkt. 1999 Appeal from the Judgment of Superior Court entered 03/03/99 at No. 586 PHL 1998, reversing the Order granting summary judgment entered on 12/31/97 in the Court of Common Pleas, Philadelphia County, Civil Division at No. 3246 April Term, 1993 No. 46 E.D. Appeal Dkt. 1999 Appeal from the Judgment of Superior Court entered 03/03/99 at No. 710 PHL : : v. : : : H&R BLOCK, INC., H&R BLOCK : EASTERN TAX SERVICES, INC., AND : MELLON BANK, (DE) NATIONAL : ASSOCIATION : : APPEAL OF: H&R BLOCK, INC., AND : H&R BLOCK EASTERN TAX SERVICES, : INC. : : SANDRA J. BASILE AND LAURA : CLAVIN, INDIVIDUALLY AND ON : BEHALF OF ALL OTHERS SIMILARLY : SITUATED : : : : v. : : : H&R BLOCK, INC., H&R BLOCK : EASTERN TAX SERVICES, INC., AND : MELLON BANK, (DE) NATIONAL : ASSOCIATION : : APPEAL OF: H&R BLOCK, INC., AND : H&R BLOCK EASTERN TAX SERVICES, : INC. : 1998, affirming the Order entered on 1/17/96 in the Court of Common Pleas, Philadelphia County, Civil Division at No. 3246 April Term, 1993 No. 47 E.D. Appeal Dkt. 1999 Appeal from the Judgment of Superior Court entered 03/03/99 at No. 711 PHL 1998, reversing as to H&R Block; affirming as to Mellon Bank the Order entered on 05/30/97 in the Court of Common Pleas, Philadelphia County, Civil Division at No. 3246 April Term, 1993 Argued: February 1, 2000 DISSENTING OPINION MR. JUSTICE SAYLOR DECIDED: November 22, 2000 I agree with the majority that, to the extent that refund anticipated loans ( RALs ) are viewed as discrete transactions, no agency relationship between Block and its customers would be discernible. Like the majority, I would not be inclined to conclude, [J-16-00[M.O. - Castille, J.] - 2 extrinsic of an existing, underlying agency relationship, that a separate agency role is necessarily undertaken by one who merely facilitates a lending transaction. Nevertheless, I join that portion of Mr. Justice Nigro s analysis which concludes, as did the Superior Court, that an agency relationship existed between Block and Appellees for the purposes of preparing Appellees tax returns, filing them with the IRS, and obtaining refunds. Indeed, I note that H&R Block conceded as much, at least for purposes of Maryland law, in Green v. H&R Block, Inc., 735 A.2d 1039, 1049 (Md. 1999). I also believe that the fiduciary duties associated with such relationship may be viewed as sufficiently broad to compel disclosure of aspects of self-interest in a related loan transaction. Thus, I would affirm the order of the Superior Court remanding for disposition of questions of fact concerning the extent to which Block s failure to disclose the nature of the Rapid Refund program and its participation in the profits generated by the RALs constituted a violation of Block s duty as an agent. Basile v. H & R Block, Inc., 729 A.2d 574, 582 (Pa. Super. 1999). [J-16-00][M.O. Castille, J.] - 3 -

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