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PA Bulletin, Doc. No. 01-770

THE COURTS

PART I.  GENERAL

[231 PA. CODE CH. 2170]

Proposed Amendment to Rule 2177 Governing Actions By and Against a Corporation or Similar Entity

[31 Pa.B. 2365]

   The Civil Procedural Rules Committee proposes that Rule of Civil Procedure 2177 governing actions by and against a corporation or similar entity be amended to permit the representation of a corporation by an executive officer in certain cases. The proposed recommendation is being submitted to the bench and bar for comments and suggestions prior to its submission to the Supreme Court.

   All communications in reference to the proposed recommendation should be sent not later than June 8, 2001 to:

Harold K. Don, Jr., Esquire
Counsel
Civil Procedural Rules Committee
5035 Ritter Road, Suite 700
Mechanicsburg, Pennsylvania 17055
or E-Mail to
civil.rules@supreme.court.state.pa.us

   The Explanatory Comment which appears in connection with the proposed recommendation has been inserted by the Committee for the convenience of the bench and bar. It will not constitute part of the rules of civil procedure nor will it be officially adopted or promulgated by the Court.

Annex A

TITLE 231.  RULES OF CIVIL PROCEDURE

PART I.  GENERAL

CHAPTER 2170.  CORPORATIONS AND SIMILAR ENTITIES AS PARTIES

Rule 2177.  Actions by and against a corporation or similar entity. Representation.

   (a)  An action shall be prosecuted by or against a corporation or similar entity in its corporate name.

   (b)  In any action prosecuted by or against a corporation or similar entity in which the amount in controversy does not exceed $8000, the party may be represented by an executive officer or by counsel. If the amount in controversy exceeds $8000, the party must be represented by counsel.

   Official Note:  See Rule 2176 for the definition of executive officer.

Explanatory Comment

   The proposed amendment permits a corporation to be represented by a corporate officer in cases involving relatively small amounts in controversy brought in the courts of common pleas. This amendment is consistent with the current practice of the district justice courts in which such representation is permissible. The proposed amendment recognizes that many of these cases will involve closely held corporations which are in effect ''incorporated individuals''.

   The new rule would represent a change from the practice established in Walacavage v. Excell 2000, Inc., 331 Pa. Super. 480 A.2d 281 (Pa.Super. 1984) which precluded a corporation from being represented by anyone other than counsel. That decision was premised on the desired goal of protecting courts from inartful representation of the corporation by nonlawyers. As the type of cases contemplated under the new rule would be relatively simple, the goal of insuring access to the courts as well as consistency among the different levels of courts would outweigh the concern expressed in Walacavage.

By the Civil Procedural Rules Committee

REA BOYLAN THOMAS,   
Chair

[Pa.B. Doc. No. 01-770. Filed for public inspection May 4, 2001, 9:00 a.m.]



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