Baederwood Shopping Center, Inc. v. St. George & Co.

396 A.2d 642, 262 Pa. Super. 55, 1978 Pa. Super. LEXIS 4237
CourtSuperior Court of Pennsylvania
DecidedDecember 22, 1978
Docket2072
StatusPublished
Cited by7 cases

This text of 396 A.2d 642 (Baederwood Shopping Center, Inc. v. St. George & Co.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baederwood Shopping Center, Inc. v. St. George & Co., 396 A.2d 642, 262 Pa. Super. 55, 1978 Pa. Super. LEXIS 4237 (Pa. Ct. App. 1978).

Opinion

SPAETH, Judge:

This is an appeal from an order striking a judgment entered by confession.

Appellant and appellee entered into a lease of a store in the Baederwood Shopping Center, Baederwood, Montgomery County. The lease was dated April 22, 1974, and was to run from May 1, 1974, to April 30, 1977. Appellee was to pay appellant a base monthly rent of $2,083.33, and was to pay as “additional rent” sewer rent charges, parking charges, late charges, and increases in real estate taxes over a set base level. The lease contained a confession of judgment clause, as follows:

13. If the rent or rent treated as if in arrears and/or any charges herein reserved as rent shall remain unpaid on any day on which the same ought to be paid, Lessee hereby empowers and Prothonotary or attorney of any Court of record to appear for Lessee in any and all actions which may be brought for said arrears of rent or rent treated as if in arrears or charges therein payable as rent, *57 and/or to sign for Lessee an agreement for entering in any competent Court an amicable action or actions in assumpsit for the recovery of such arrears of rent or rent treated as if in arrears or other charges or expenses, as aforesaid and in said suits or in said amicable action or actions to confess judgment against Lessee for all arrears of rent or rent treated as if in arrears or other charges therein payable as rent or expenses as aforesaid, and for interest and costs, together with an attorney’s commission of 5%. Such authority shall not be exhausted by one exercise thereof, but judgment may be confessed as aforesaid from time to time as often as any of said rent or rent treated as if in arrears and/or other charges herein payable as rent or expenses as aforesaid shall fall due or be in arrears, and such powers may be exercised as well after the expiration of the original term and/or during and after any extension or renewal of this lease.

The lease specified further that “[n]o determination of this lease or the taking or recovering of the premises shall deprive Lessor of any of its remedies or actions against Lessee for rent then due or which would thereafter come due as if there had been no determination of this lease or recovery of the premises, or for damages or for the breach of any covenant herein contained, . . . ” (Record at 7a).

Early in 1976, appellee decided to sell its business and asked appellant to terminate the lease, part of the premises to be leased to appellee’s purchaser, one David S. Zenstein, and the remainder of the premises to be let to Town and Country Meat Markets of Baederwood, Inc. On January 30, 1976, appellant wrote a letter to appellee, stating that “[t]his will confirm our agreement that the [April 22, 1974] lease will be terminated effective February 15,1976 in view of our entry into a new lease for a portion of the premises with David S. Zenstein and a lease for another portion of the premises with Town and Country Meat Market of Baeder-wood, Inc.” Record at 16a. The letter went on to state that “[notwithstanding the new leases, until time when rental is *58 to commence under the Town and Country Meat Market of Baederwood, Inc. lease, you [appellee], Mr. Zenstein and Town and Country have agreed that rental is to be paid to us at the rate of Twenty-five Thousand ($25,000.00) Dollars per year, plus taxes and parking lot charges per your existing lease.” Record at 16a.

Zenstein took possession of his part of the premises and paid rent of $1,500 per month for the period February 15 to April 15. Town and Country took possession of its part of the premises and began payment' of rent on April 15, 1976. Appellee failed to pay the rent due February 1, nor did it pay any amount toward the rent due thereafter. Appellant gave appellee two written notices of default, and on July. 21, confessed judgment against appellee for $7,768.42. This amount was calculated as follows: Rental — February to April 15, 1976 — $5,208.30; Parking charges for 1975 — $1,-180.16; Parking charges January 1 to April 15, 1976— $344.75; Real Estate Taxes for 1975 — $2,513.72; Real Estate Taxes for January 1 to April 15, 1976 — $735.00; Sewer rent for January 1 to April 15, 1976 — $42.49; Late charges to July 1, 1976 — $374.00; Attorney’s fee — $370.00. Subtotal: $10,768.42; Minus credit for rent paid by Zenstein— $3,000.00. Total = $7,768.42. Record at 2a. Appellee received notice of the judgment on August 2 and filed a petition to open the judgment on September 8. The petition alleged, among other things, that:

6. The Confession clause was invalid once the lease was terminated so that the Confession of Judgment was improper.
7. A part of the monies for which judgment was confessed allegedly accrued after February 16, 1976, when defendant had no obligations under the lease agreement.
8. The warrant of attorney only applied to funds due and owing pursuant to the lease.
9. Defendant has a meritorious defense in that it had no responsibility to make full payments after February 15, 1976.

*59 On June 28, 1977, the lower court entered an order striking the judgment. The court’s opinion stated that appellee had shown a meritorious defense with respect to charges accruing after February 16, 1976, and that the part of the judgment consisting of those charges should be opened. The opinion went on to state that “since confession of these charges was not specifically authorized in the warrant of attorney . . . [tjhis Court is compelled to strike the [entire] judgment obtained sua sponte.” Slip opinion at 6.

Appellant’s first argumentas that the lower court erred in striking the judgment where appellee had only petitioned to open it. We find considerable merit in this argument.

There is a significant body of Pennsylvania case law holding that a judge who is confronted by a petition to strike a confessed judgment should not open the judgment sua sponte. Florida Crab House, Inc. v. Roy P. Hake, 259 Pa.Super. 230, 393 A.2d 801 (1978) (HESTER, J.); Malakoff v. Zambar, 446 Pa. 503, 507, 288 A.2d 819, 822 (1972); Young v. Mathews Trucking Corp., 383 Pa. 464, 119 A.2d 239 (1956); Hamborsky v. Magyar Presbyterian Church (No. 1), 78 Pa. Super. 519 (1922). It is perhaps less clear whether a judge confronted by a petition to open, as here, should strike the judgment sua sponte. However, in Kros v. Bacall Textile Corp., 386 Pa. 360, 364 n. 1, 126 A.2d 421, 423 n. 1 (1956), the Supreme Court stated that it was “extremely doubtful” whether the judge may strike a judgment sua sponte. In Roselon Industries, Inc. v. Associated Knitting Mills, 221 Pa.Super. 8, 289 A.2d 239

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Bluebook (online)
396 A.2d 642, 262 Pa. Super. 55, 1978 Pa. Super. LEXIS 4237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baederwood-shopping-center-inc-v-st-george-co-pasuperct-1978.