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PA Bulletin, Doc. No. 00-2208

THE COURTS

Title 246--MINOR
COURT CIVIL RULES

PART I.  GENERAL

[246 PA. CODE CH. 500]

Proposed Amendments Concerning Default Judgment Prohibited in Actions for the Recovery of Possession of Real Property

[30 Pa.B. 6547]

Introduction

   The Minor Court Rules Committee is planning to recommend that the Supreme Court of Pennsylvania amend Pa.Rs.C.P.D.J. 504, 512, and 514 to clarify that default judgments may not be entered in actions for the recovery of possession of real property (''Landlord/Tenant'' actions), and to make other technical or ''housekeeping'' amendments to these rules. This proposal has not been submitted for review by the Supreme Court of Pennsylvania.

   The following explanatory Report highlights the Committee's considerations in formulating this proposal. The Committee's Report should not be confused with the official Committee Notes to the rules. The Supreme Court does not adopt the Committee's Notes or the contents of the explanatory Reports.

   The text of the proposed changes precedes the Report.

   We request that interested persons submit suggestions, comments, or objections concerning this proposal to the Committee through counsel,

Michael F. Krimmel, Counsel
Supreme Court of Pennsylvania
Minor Court Rules Committee
5035 Ritter Road, Suite 700
Mechanicsburg, PA 17055

or e-mail to: mike.krimmel@supreme.court.state.pa.us no later than Friday, January 26, 2001.

By the Minor Court Rules Committee:

FRED A. PIERANTONI, III,   
Chair

Annex A

TITLE 246.  MINOR COURT CIVIL RULES

PART I.  GENERAL

CHAPTER 500.  ACTIONS FOR THE RECOVERY OF POSSESSION OF REAL PROPERTY

Rule 504.  Setting the date for hearing; delivery for service.

*      *      *      *      *

Official Note:

   The hearing date in subdivision (1) of this rule [was] is required to be set not less than seven days from the filing of the complaint because of the requirement [of Pa.R.C.P.D.J. No.] in Rule 506(B) that service be made at least five days before the hearing. It was thought that the requirement that the [complaint be served] hearing be held not more than fifteen days from the filing of the complaint should provide ample time to make the type of service required in these cases. However, the complaint may be reinstated upon written request of the plaintiff as in [trespass and assumpsit cases] civil actions. [See Pa.R.C.P.D.J. No. 314 (E) and the Note to Pa.R.C.P. D. J. No. 314.] See Rule 314(E) and Note.

   The notice for the defendant set forth in subdivision (4) of this rule varies somewhat from the notice required in [trespass and assumpsit] civil actions under [Pa. R.C.P.D.J. No.] Rule 305. There are a number of reasons for this. First, there can be no default judgment in these possessory actions [and, secondly,] . See Rule 512(A) and Note. Secondly, it was thought that cross-complaints of defendants in these cases should be limited to those arising out of the occupancy of the premises.

   Amended Oct. 17, 1975, effective in 90 days; June 30, 1982, effective 30 days after July 17, 1982; March 28, 1996, effective March 29, 1996; Note amended ____________________, effective___________________.

Rule 512. Hearings and Evidence.

   A.  The plaintiff must appear at the hearing and present testimony in an action for the recovery of possession of real property.

   B.  The district justice shall be bound by the rules of evidence, except that a bill, estimate, receipt or statement of account which appears to have been made in the regular course of business may be introduced in evidence by any party without affidavit or other evidence of its truth, accuracy or authenticity.

Official Note:

   Subdivision A of this rule is intended to make clear that the district justice may not enter a default judgment in a possessory action, including a judgment for money only. The plaintiff must appear and give testimony to prove the complaint even when the defendant fails to appear for the hearing. See Rule 514(A) and Note. See also Section 250.503(a) of The Landlord and Tenant Act of 1951, 68 P. S. § 250.503(a). When the plaintiff fails to appear at the hearing, the district justice may continue the hearing for cause or dismiss the complaint.

   Subdivision B of [This] this rule is the same as Rule 321 of the [trespass and assumpsit] civil action rules.

   Amended June 30, 1982, effective 30 days after July 17, 1982; amended _____ , effective _____ .

Rule 514.  Judgement.

*      *      *      *      *

Official Note:

   Subdivision A of this rule requires that the plaintiff appear and give testimony to prove the complaint before the district justice can enter judgment against the defendant, even when the defendant fails to appear for the hearing. The district justice may not enter a default judgment in a possessory action, including a judgment for money only. See Rule 512(A) and Note. The various issues that the district justice must determine at the hearing include, but are not limited to the amount of rent due, if any; the amount of damages for unjust detention, if any; the amount of physical damages to the leasehold premises, if any; the amount found to constitute the monthly rental, and; the amount of the security deposit held by the landlord, if any.

   The separate entries provided in Subdivision A are made necessary as a result of the rental deposit provisions for appeal or certiorari contained in [Pa. R.C.P.D.J. Nos. 1008.B. and 1013.B.] Rules 1008(B) and 1013(B), as well as the wage attachment provisions contained in [Act 5 of 1996] Section 8127 of the Judicial Code, 42 Pa.C.S. §  8127 (Act 5 of 1996).

   Subdivision B of this rule makes provision for a money judgment for the defendant if the defendant prevails in a greater amount on the defendant's cross-complaint.

   Amended April 25, 1979, effective in 30 days; June 30, 1982, effective 30 days after July 17, 1982; amended effective December 1, 1983; amended March 27, 1992, effective June 25, 1992 [The March 27, 1992, Order provided in part: ''In promulgating this Order, the Court recognizes that the District Justice Automation Project will be affected by said Rule changes and that, therefore, those Rules which affect the Project will become effective as the District Justice offices are brought on-line.'']; March 28, 1996, effective March 29, 1996; Note amended _____ , effective _____ .

REPORT

Proposed Amendments to Pa.Rs.C.P.D.J.
504, 512, and 514

Default Judgement Prohibited in Actions for the Recovery of Possession of Real Property

(''Landlord/Tenant'' Actions)

   The Committee undertook a review of the issue of the entry of default judgments in landlord/tenant actions on its own initiative, recognizing a need for clarification in the rules that default judgments should be prohibited in these cases. The prohibition against default judgments in landlord/tenant cases is referred to in the Note to Rule 504, but the Committee felt that the prohibition should be more prominently announced in the rules. The Committee noted that the statewide district justice computer system (DJS) does permit entry of a disposition of default judgment in landlord/tenant actions, and that many district courts routinely enter this disposition when a defendant fails to appear for a landlord/tenant hearing. The Committee learned that the DJS recorded 12,000 such dispositions in 1999 alone.

   In conjunction with the clarification regarding default judgments, the Committee also recognized the need for several technical or ''housekeeping'' amendments to Rules 504, 512, and 514.

A.  Default Judgments in Landlord/Tenant Actions

   In considering how to clarify the prohibition of default judgments in landlord/tenant actions, the Committee first considered whether such a prohibition is necessary and whether it is appropriately pronounced by procedural rule. The question was raised as to why it is necessary to hold a perfunctory hearing when the defendant fails to appear. Upon review of the Landlord and Tenant Act of 1951 and the existing rules, the Committee concluded that such a hearing is necessary. First, the Committee looked to the statutory language of the Landlord and Tenant Act of 1951, 68 P. S. § 250.101 et seq. Section 250.503(a) of the Act states, inter alia:

   (a)  On the day and at the time appointed or on a day to which the case may be adjourned, the justice of the peace shall proceed to hear the case. If it appears that the complaint has been sufficiently proven, the justice of the peace shall enter judgment against the tenant:  . . .

68 P. S. § 250.503(a) (emphasis added). This statutory language suggests that a hearing is necessary for the plaintiff to sufficiently prove the landlord/tenant complaint.

   Secondly, Rule 514 contains language similar to that found in 68 P. S. §  250.503(a). Rule 514(A) states, inter alia:

   (A)  If it appears at the hearing that the complaint has been proven, the district justice shall enter judgment against the defendant that the real property be delivered up to the plaintiff and shall enter judgment by separate entries:  . . .

Pa.R.C.P.D.J. No. 514 (emphasis added). The language of this rule, like that in the statute, suggests that a hearing is necessary for the plaintiff to sufficiently prove the landlord/tenant complaint. In further support of its conclusion, the Committee noted that Rule 514 requires that the district justice make a number of separate determinations when entering judgment for the plaintiff, not all of which can be ascertained from the face of the complaint. Specifically, the district justice must determine, inter alia, the amount found to constitute the monthly rental. Also, if a security deposit is to be applied to the judgment, the district justice needs to determine the amount of the security deposit held by the landlord. These determinations cannot be ascertained from the complaint, and therefore can be made only after hearing testimony.

   Having concluded that a hearing is required before a district justice can enter judgment for the plaintiff in a possessory action, and therefore that default judgment should be prohibited, the Committee went on to discuss the most appropriate way in which to incorporate this into the rules. As previously stated, the Note to Rule 504 already states that '' . . .  there can be no default judgment in these possessory actions  . . . .'' Pa.R.C.P.D.J. No. 504, Note. The Committee considered an amendment to Rule 504, but ultimately focused its attention on Rule 512, relating to hearings and evidence. The Committee decided that Rule 512 should be divided into two parts. Subdivision A would read, ''The plaintiff must appear at the hearing and present testimony in an action for the recovery of possession of real property.'' Subdivision B would contain the existing language of the rule. A sentence would then be added to the note to clarify that the district justice may not enter a default judgment, including a judgment for money only.

   The Committee also decided that the Note to Rule 504, relating to setting the date for hearing, delivery of service; and the Note to Rule 514, relating to judgment, should be amended to make clear that default judgments are not permitted and to cross reference Rule 512 with regard to this prohibition.

B.  Technical and ''Housekeeping'' Amendments

   In conjunction with the substantive changes discussed above, the Committee identified a number of technical and ''housekeeping'' amendments needed in the notes to Rules 504, 512, and 514.

   In the Note to Rule 504, the Committee is proposing a change to the second sentence of the first paragraph to substitute the phrase ''complaint be served'' with the phrase ''hearing be held'' to make the language in the note consistent with the rule. The existing reference to complaint being served ''. . . not more than fifteen days from the filing of the complaint . . .'' is not consistent with the rule and has created some confusion.1

   In the Note to Rule 512, the Committee proposes to clarify the proper procedure when the plaintiff fails to appear at a landlord/tenant hearing. While this procedure is made clear in civil actions by Rule 319, relating to failure of a party to appear at the hearing, there is no analogous rule in the 500 Series, nor did the Committee believe that such a rule would be necessary. The proposed change to the note, however, would simply clarify that when the plaintiff fails to appear at the hearing, the district justice may continue the hearing for cause or dismiss the complaint.

   In the Note to Rule 514, the Committee is proposing a new first paragraph to not only clarify that the plaintiff must appear and give testimony, but also to clarify the various issues that the district justice must determine, at the hearing, before the district justice can enter judgment for the plaintiff.

   In the notes to all three rules, the Committee proposes minor changes to correct citation form and the make references to other rules more consistent.

[Pa.B. Doc. No. 00-2208. Filed for public inspection December 22, 2000, 9:00 a.m.]

_______

1  This particular change was actually considered by the Committee in 1997 and was identified as the Committee's Recommendation #1 of 1997. However, for unknown reasons, the Committee never published the recommendation and there is some confusion as to whether or not it was ''officially'' submitted to the Supreme Court for approval. Therefore, this change is being incorporated into this current proposal and replaces Recommendation #1 of 1997.



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